How to choose the right mortgage loan

There are many different loan products available today and it is often difficult to pick the one best suited to your financial goals. By answering the following questions, you’ll get a feel for what’s best in your financial situation.

How long do you intend to occupy the home?

Length of stay in property Loan programs to consider
1-3 years 1- or 3-year adjustable rate mortgage (ARM)
4-6 years 5- or 7-year ARM; 5- or 7-year balloon
7 years or more 10-year ARM; 15-,20-, or 30-year fixed rate mortgage


Would you prefer a lower payment or more rapid accumulation of equity?

Financial goal Loan programs to consider
Equity buildup 15- or 20-year fixed
Minimize payment 1-, 3-, 5-, or 7-year ARM; 30-year fixed


What do you feel interest rates will do in the future?

Overall I believe interest rates will Loan programs to consider
Rise 30-, 20-, or 15-year fixed; 7- or 10-year ARM; 7-year balloon
Fall 1-year ARM
Stay about the same 1-, 3-, 5-, or 7-year ARM


How well do you tolerate risk?

Risk toleration Loan programs to consider
Uncomfortable with vulnerability to interest rate fluctuations 15- or 30-year fixed 10-year ARM
Comfortable with market changes  1-, 3-, 5-, or 7-year ARM; 5- or 7-year balloon



Get Home Mortgage Loan offers customized for you today.