There are lots of mortgage type loans, how do I know which one is best for me?

There are many types of mortgages, and the more you know about them before you start, the better. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 or 15 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be each month. The longer your amortization period, the lower your monthly payments would be, but the more interest you’d pay.Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. Consider an adjustable rate mortgage (ARM) if you want to keep some cash or take advantage of a low interest rate.The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower.


Also, there are several government mortgage programs, including VA loans or FHA programs. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, lenders are protected to receive their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan.

It is also important to know your financial strategy and answers to the following questions:

  • How long do I plan to live in this house?
  • Where do I see myself in five or ten years?
  • Do I have to or want to make home improvements?
  • Do I want to keep cash on hand for other investments?
  • Can I take financial risks?
  • Do I want to be debt-free?

For complete mortgage loan program details and to find out if you qualify, contact us today at 888-488-3807 or go to

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