Home Loans
QWhat's The Best Home Mortgage Loan For Me?
AThe best home mortgage loan is one you can afford for as long as you plan to remain in the home. Affordability varies with the types of mortgage loans. The two most common types of mortgage loans are fixed- and adjustable-rate mortgages (ARM). A fixed-rate mortgage is constant for the length of the loan, usually 30 years. Shorter term fixed-rates, typically 15- or 20-years, carry lower interest rates, higher payments and less money paid out than with a longer-term loan mortgage loans. Longer term fixed-rates have smaller monthly payments and are easier to budget than shorter term mortgage loans. ARMs initially come with rates lower than a fixed rate mortgage but periodically rise or fall, depending on economic factors. Its lower initial rate can help you qualify for a larger mortgage loan. If you know your income will rise to keep pace with an ARM's periodic adjustment and you plan to move in a few years, an ARM could be a good choice.