How Do I Decide What Type of Loan is Right for Me?

Dear Ali, 

Do you know the difference between a fixed rate and an adjustable rate mortgage? Learning what type of loan might be right for you is the first step toward a great mortgage!

Fixed Rate Mortgages

Fixed-rate mortgages typically come in terms of 15, 20, or 30 years, and keep the same interest rate over the entire life of the loan. This is especially helpful if you plan on remaining in your home for more than seven to ten years, or you desire the extra stability that they provide. 

Adjustable Rate Mortgages (ARM)

Adjustable rate mortgages (ARM), on the other hand, often start out with a low introductory rate, which will change over time. ARM mortgages are a great option if you don’t plan on being in your home for many years. However, if you do decide to remain in your home for a longer time period, ARM mortgages may cost you more in the long run due to the higher interest rates later in the life of the loan. 

Whether you’re looking for stability in your monthly payments, or a great interest rate up front, there’s a mortgage out there for you. Please give me a call to discuss what might be right for you and your family. 

Sincerely, 

Anna Smith