How do I know which type of mortgage is best for me?
Thank you for using our 425.com mortgage website. You have requested information on "How do I know which type of mortgage is best for me?" There isn't a single, simple answer to this question. The right type of mortgage for you depends on many different factors: your current financial picture; how you expect your finances to change; how long you intend to keep your house; and how comfortable you are with your mortgage payment changing from time to time. For example, a 15-year fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. And an adjustable rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage but your payments could get higher when the interest rate changes. The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with a mortgage lender and to go through e pre-qualifacation process. Pre-qualifying is a process whereby a loan officer obtains information about you, either over the telephone or face-to-face and indicates the loan amount you can qualify for and the best type of loan to meet your particular needs. The loan officer will want to know information about your income and a list of your debts. The lender through a series of calculations will be able to determine the size of a loan you qualify for based upon loans available in today’s market. The term pre-qualified simply means that a mortgage or real estate representative has examined your income to debt ratios...this does not mean pre-approved. Pre-approval is a step beyond pre-qualifying. In a pre-approval we send the credit part of the loan package to the lender and get you approved for a certain type of loan with a particular lender before you have found or made an offer on a property. Pre-approved means that a mortgage or real estate professional has examined, submitted and received acceptance on your financial capabilities of qualifying for a mortgage based upon your income to debt ratio, loan information, and credit profile.
The loan professional that has made this information available to you specializes in assisting those individuals with obtaining a home loan whether for purchase or refinance. Your loan professional in most cases can advice you on the best approach and help you with your specific loan requirements.
“How do I know which type of mortgage is best for me?”[ Back ][ Next ]
