They should be committed
to helping you find the right home loan to fit your ever changing
needs. Use a lender that has a broad array of mortgage products
paired with customized home financing planning services. They should
be able to provide you with a financing solution that offers the
greatest long-term benefit and at the most competitive rate.
An important decision in the process is whether to select a fixed
rate or an adjustable rate mortgage (ARM). Fixed rate mortgages
offer principal and interest payments that don't change during the
loan term. ARMs and balloons generally offer a lower starting interest
rate however the payments can go up or down periodically (i.e. annually
or every few years) depending on market conditions type of ARM selected.
Use the following as a guide to determine which mortgage may meet
your needs.
Fixed:
- I like the security of knowing my monthly principal and interest
payment won't change over the years.
- I think that interest rates may increase significantly during
the term of my loan.
- I plan to be in my home more than three years.
ARM:
- I need a larger loan than I initially thought for the house
I want.
- I'd like lower payments in the early years of my loan.
- I can budget for and manage mortgage payments that fluctuate
with interest rates.
Your Mortgage Broker can help you determine the best product for
your current and anticipated future situation.
TIP: You could experience significant savings
with a 15-year Mortgage. For instance on a $150,000 mortgage at
7.5% interest you would pay approximately $250,293 over the life
of the loan. On this same loan with a 30-year term you would pay
approximately $377,575 over the life of the loan. This is a savings
of around $125,000 — over $8,300 per year for 15 years.
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