Choosing The Right Loan
23 Feb, 2008 | General | adminThere are lots of different mortgage loans available out there today. It can be so hard to figure out which is best for you. Here are a few questions you can ask yourself, to help decide which loan is the best loan for your situation.
* How long do you plan to reside at the property?
If you are only going to be there for say, 1 to 3 years, then your should probably look into a ARM or Adjustable Rate Mortgage.
If you plan to stay around a while, a Balloon loan is best for up to about 7 years, but anything longer than that and you should check out a Fixed Rate Mortgage.
* Would you rather have a lower monthly payment or acquire equity faster?
If you are looking to minimize you payments, go with the 1-7 year ARM or the 30 year Fixed Rate.
If you are more concerned with building equity then a 15-20 year Fixed Rate Mortgage will probably suite you best.
* How big of a risk taker are you?
If your are afraid of fluctuating interest rates, you should definitely take out either a 15-30 year Fixed or a 10 year ARM.
If changes in the market don’t bother you, then by all means go with a 1-7 year ARM or a 5-7 Balloon.
Once you can answer these few questions, you should have a better idea of which loan is right for you.
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