Knowing the differences between loan programs can be a very confusing task. The first step in getting a loan is deciding what kind of loan is best for your financial situation. Be honest with yourself. When you call me, explain your financial circumstances as if you were describing symptoms to your physician. That way, I can complete your financial prescription by getting you the best program avaliable.

Some of the factors include, but certainly aren’t limited to:

  • How do you expect your finances to change?
  • How long do you intend to keep the subject property?
  • How comfortable would you be if your mortgage payment changed?
  • How would you rate your overall credit?
  • Are you planning on making home improvements, making large purchases, or sending your children to college? Or even planning a leisurely vacation?

For example, a 15-year fixed rate mortgage can save you thousands of dollars in interest payments as opposed to a 30-year fixed rate. However, your monthly payments will be significantly higher than the 30-year mortgage. An adjustable rate mortgage may get you started with a lower monthly payment than a fixed rate mortgage, but your payments could get higher when the interest rate adjusts.