Homes come in many shapes and sizes, and so, too, do mortgages. If you think you have found the right home, you must get the right mortgage in order to close on that home.
You drive around and see that the shapes and prices of homes come in a myriad variety. While it may be easier to say that you want a one- or two-story house, Victorian as opposed to Colonial, figuring out what kind of mortgage works best for your financial situation is much harder. If you want to put yourself in the best position when you apply for mortgages, it is important that you know the following things on how to determine which mortgage is best for you.
The traditional mortgage that most everyone gets as most everyone plan on living in their homes for quite some time. A fixed-rate mortgage locks in an interest rate and remains at that level for a set amount of time. While this can protect you if interest rates increase, it does leave a sour taste when interest rates decrease, but you are left paying a higher interest rate.
As opposed to a fixed-rate mortgage, your adjustable-rate mortgage (ARM) is influenced by the strength of the economy. To start, the interest rate will be lower than the average interest rate, but only for a short while – a few months at best. After this time, the influence kicks in and your interest rate can vary heavily. ARMs are a good to get if you plan on only living in that house for a short amount of time.
To know what mortgage is best for you, contact a dedicated home loan specialist like me, Andraya Coulter. I serve the Bay Area and the entire state of California and Texas with quality, suitable, home loans!