As a prospective homebuyer, you may be wondering exactly which type of mortgage is right for you. Comparing the different options that your lender has and considering your financial goals is a great way to determine which type of mortgage may be best suited for you. A local mortgage Chattam, IL lender can offer a personalized consultation and assessment to see which products you qualify for. However prior to that, it is helpful to have an understanding of the types of loans that are available to you.
Considering adjustable and fixed rate loans
Most new home owners considering a home purchase opt for a fixed rate home loan. A fixed rate home loan provides security because your payments will remain the same for the life of your loan. However depending on how long you will be living in your home, you may find that an Adjustable Rate Mortgage (ARM) is a better option for you. An adjustable rate mortgage is usually lower than a fixed mortgage rate but can fluctuate up and down. There is also the option to select a hybrid ARM which is fixed for the first five years and then adjusts yearly.
Your local mortgage Chattam, IL lender should explain these options in detail to ensure that you have full understanding of exactly what your mortgage payments will be. If you are considering an adjustable rate loan, request that your lender provide examples of what your monthly mortgage payments will be prior to and following any adjustments. This will help you to determine whether you can afford the larger payments that may follow the low initial interest rate on an ARM loan.
Exploring other mortgage Chattam, IL loan options
Your local lender should provide you with information and resources about specific mortgage products that are available in your State. They may be federally and locally supported mortgage programs for first time home buyers that you may qualify for. Other types of mortgage options include:
Jumbo loans
FHA & VA loans
B/C loans
Conforming loans
Location efficient mortgages
One consideration to make that will best help you decide on the type of loan for you is how long you will be in your residence. If you plan to move in a relatively short amount of time then a loan which has a large amount of points may end up being more costly than one without. It is best to select a lender that understands your long term and short term goals completely so that they can best advise you on the options that are right for you. A local mortgage Chattam, IL lender with a wide array of mortgage options will provide you with enough choices to make the best selection.
Get the best mortgage company as the most trusted lender for your next home loan in Chattam, IL.
