Two of the main considerations in deciding on whether to refinance, what type of loan to get, and and what your monthly payments will be are the rate and term of the mortgage loan.
Rate refers to the interest percent of the loan. Also included, however, are the fees you pay, which combine with the rate to give you the loan's APR. The APR is the single number you want to know in comparing rates.
Term is the length of time over which you repay the loan. Mortgages come in fixed and adjustable rates, which have fixed and adjustable terms. Most mortgages are 30-year fixed, meaning the term is 30 years and the rate is fixed. Adjustable rate mortgages, however, can have much shorter terms.
When selecting a mortgage, you must understand how the interest rate and the loan term interconnect. It's the combination of term and rate that tells you how much you actually pay for the home over the course of the mortgage.
In essence, the lower the rate and the shorter the term, the less you pay in total. In actuality, the choices are more complex.