The decision to get a mortgage to purchase an apartment was a well thought and discussed alternative. It can take months to understand the relationship between rates, loans, brokers, interests and actual house. Don't think you can just walk into a broker's office and select a plan that would in a few years time make you the proud owner of a studio apartment. You might be in for a shock, as there are as many mortgage products, rates and interest values as there are brokers, companies and banks waiting to hook you in.

This might seem the right time to buy, with New York mortgage interest rates so low. In reality, it is a complex procedure. Brainstorming sessions with different broker offices might get you nowhere, so you can check the Net to understand mortgage rates.

If a mortgage is taken for a limited number of years then the savings are also more. Interest on fixed rate mortgage is decided by bond rates. It works if the rate given is lower than the market rate, but somehow it did not sound very inviting compared with fixed mortgages of 15 or 20 years, five or seven-year balloon loans and adjustable rate mortgages, or ARMs. The adjustable mortgage rate is based on short-term interest rates that follow the fed rate.

With adjustable rate mortgages, the catch is that interest rates fluctuate depending on market interest rates. You could start at 7.5% and go on to 9.5% in your second year. Maybe your paycheck will increase to cover it, but then one can never be sure. Getting the right mortgage interest rate is a matter of luck and to some extent foresightedness. When rates are low one does not have credit worthiness to take on a mortgage, and vice versa.

It is better to wait for an appropriate rate and rent in the meantime.