e-FAQs Everything You Need To Know About Real Estate
Can you tell me some things I should consider when shopping for a loan?
Shopping for a mortgage loan is like shopping for a new coat - you need one that fits your lifestyle as well as your budget. Many different mortgage products are available today, and each suits a different set of circumstances. Match mortgage terms to your lifestyle.
For a family expects to stay less than three years in a starter home, a one-year adjustable-rate mortgage (ARM) would make sense with its low initial rate and a cap on annual increases.
to stay longer? A five- or seven-year two-step loan provides a low
initial rate for a few years with a potentially significant one-time
jump at adjustment time if interest rates have risen.
10-year ARM provides an interest rate lower than a fixed rate mortgage
for the first decade, but adjusts annually after that for anyone who
hasn't moved or refinanced.
you plan to stay in the home indefinitely, you may opt for a
traditional 30-year fixed-rate loan - or 15- or 20-year loan if
you can meet the higher payments - and pay extra points to get a
lower interest rate.
To decide which to
choose, figure all the costs over the time you expect to be in the home,
and compare the bottom line. Also compare the monthly payments at each
step to be sure they are manageable. Keep in mind the maximum allowable
increases when calculating future payments under a worst-case scenario.
Our professionals are armed with the latest mortgage loan information
plus more tips on how to choose the right loan for your circumstances.
Just give us a call and we can start helping you right away.
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