Interest rates have a direct impact on everyone's finances. How much house you can buy depends on your mortgage's term and interest rate. The term is the length of time and it's usually 15 or 30 years over which payments will be paid. The rate can be fixed  or adjustable. Thirty-year fixed-rate mortgages remain the most popular. The longer term loans lower the monthly payment, while the fixed rate provides stability over the life of the loan. Arm/adjustable loans give relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home.