Choosing the Best Loan

There are many types of mortgage programs available. Determining the right type of loan for your circumstances depends upon several factors: * Your current financial picture * How you expect your finances to change * How long you intend to keep your house * How comfortable you are with the possibility your mortgage payment may change in the future When considering loan programs, the first decision is usually whether you prefer a fixed-rate mortgage or adjustable-rate mortgage (ARM). For example, a 15-year fixed-rate mortgage can save you thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher than a 30-year fixed-rate, or most ARMs. An adjustable-rate mortgage may start out with a lower monthly payment than a fixed-rate mortgage, but your payments could increase when the interest rate changes. The comparison table below can help you determine your preference. Once you decide, visit the fixed-rate mortgage or adjustable-rate mortgage sections of my site to learn more about the features and benefits of fixed-rate or adjustable-rate loan programs. Fixed-Rate Mortgage Adjustable-Rate Mortgage I am comfortable with a monthly payment that may vary.   x I believe interest rates are going to decrease.   x I believe current interest rates are low. x   I plan to stay in my home for more than five years. x   I plan to stay in my home for less than five years.   x Instead of a more expensive home, I want the lowest possible payments. x   I’m interested in avoiding PMI with a combine second mortgage. x   I’m interested in a low down payment loan program. x   I’m interested in a VA loan. x   I’m building a custom home. x x My loan amount will be greater than $417,000. x x I’m interested in an FHA loan. x x