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