Which loan is right for you?

Which loan is right for you?

Husband and wife meeting with loan officer

To help determine the best loan program for you, consider the following:

  • How important is payment certainty? If knowing that your payment for principal and interest will be the same every month is important, you may want to consider a fixed-rate mortgage.

  • How important is building equity in your home? If building equity rapidly is a factor, you may want to consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.

  • Do you anticipate increasing or stable income? If income growth is anticipated, you may want to take advantage of a lower start rate with an adjustable-rate mortgage.

Other factors to consider include:

  • Your ability to qualify for a mortgage at market rates for the loan amount selected

  • How long you expect to live in your new home

  • The possibility of rate changes

  • Various up-front cost options