Can you tell me some things I should consider when shopping for a loan?

Things to Consider When Shopping for a Loan these days is like shopping for a new coat – you need one that fits your lifestyle as well as your budget. Many different mortgage products are available today, and each suits a different set of circumstances. Match mortgage terms to your lifestyle.

  • For a family that moves frequently or expects to stay less than three years in a starter home, a one-year adjustable-rate mortgage (ARM) would make sense with its low initial rate and a cap on annual increases.
  • Planning to stay longer? A five- or seven-year two-step loan provides a low initial rate for a few years with a potentially significant one-time jump at adjustment time if interest rates have risen. Planning to stay longer? A five- or seven-year two-step loan provides a low initial rate for a few years with a potentially significant one-time jump at adjustment time if interest rates have risen.
  • A 10-year ARM provides an interest rate lower than a fixed rate mortgage for the first decade, but adjusts annually after that for anyone who hasn’t moved or refinanced.
  • If you plan to stay in the house indefinitely, you may opt for a traditional 30-year fixed-rate loan – or 15- or 20-year loan if you can meet the higher payments – and pay extra points to get a lower interest rate.

To decide which to choose, figure all the costs over the time you Things to Consider When Shopping for a Loan, and compare the bottom line. Also compare the monthly payments at each step to be sure they are manageable. Keep in mind the maximum allowable increases when calculating future payments under a worst-case scenario.

Our professionals are armed with the latest mortgage loan information plus more tips on how to choose the right loan for your circumstances. Just give us a call at  (609) 287-1795 and we can start helping you right away.

(Courtesy of the Gooder Group)

 

Leave a Reply

Your email address will not be published.