What Type of Home Loan is Best for Me?
While it seems there are countless loan options, many of the programs offered by lending institutions are similar, so it is helpful to know a few of the basic ways in which they differ.
The first basic difference is whether the interest on the loan is fixed or adjustable. Fixed rate mortgages keep the same interest rate for the life of the loan, whereas adjustable rate mortgages (ARMs) change the interest rate after a set period of time.
The second basic difference is whether the mortgage is backed by conventional means, i.e. private lenders, or the government.
So, how can you know which of these loans is best for you? A few simple questions can get you off on the right foot and save time in your search.
1. How long do I plan to keep this property?
If you are planning to stay for a long period of time, more that 5 or 10 years, fixed rates often give a secure base in case of increasing rates in the future. If current rates are not high, this can be a great way to get locked into a good rate without the risk of higher payments in the future.
Adjustable rate mortgages (ARMs) often offer a lower...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
