With many different mortgages available these days buyers
ask…”What type of mortgage is best?”
Well, I wish I knew the answer to that question. What is right
really depends on you! Today there are many options available to buyers. There
are Fixed Rate mortgages, ARM’s and Hybrid Mortgages, couple these with FHA, VA
and Conventional and you have a lot of options. When looking at your finance options here are
a couple things to consider.
Fixed Rate Mortgages
are the most common, and with rates today they really make sense. The term, or
time frame, of those loans typically allow for a 30 or a 15 year note. Make
sure to ask your lender to help you evaluate both options. You may be surprised
how affordable they can be. Adjustable Rate Mortgages
are less popular, but still an option for some people. This is a loan that has
an interest rate that changes over time. You may start out at a lower rate for
a fixed period of time, but the rate can change. Things to ask about with an
adjustable rate mortgage are initial rate, index it’s tied to, period and cap. Again,
your lender should be able to give you options and examples. I remember my
first home loan was a 3 year adjustable rate mortgage. We chose that option at
the time because we expected interest rate to go down over the next several
year. We were lucky, as they did and our payment adjusted down as well. A Hybrid Mortgage has a mix of fixed and adjustable mortgage characteristics.
It will typically have a longer fixed period up front and then adjust annually
after that. Many people who plan to refinance in several years will choose a
hybrid mortgage to take advantage of the initial lower rate. Again, the
questions to ask are… rate, index it’s tied to, period and cap. Whatever is right for you will
depend on several variables, but a qualified loan officer should be able to
show you examples and walk you through the benefits and pitfall of all your
options. Kim Moon, with First Bank, is a fantastic local resource who could
answer any and all of your financing questions. You can reach her at email@example.com.
Author:Allison Chappell Phone: 256-529-8860 Dated: March 13th 2014 Views: 3,308 About Allison: Military Relocation Specialist
In my experience as a Huntsville real estate professional, I've found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to your needs.
This client firstphilosophy has always been my approach and it requires me to continually improve my skills and ways of doing business. In addition, I've found that the latest technologies are enabling me to do everything I've always done, only much more quickly and efficiently. Combining a customer service approach with the latest technology tools helps to extend the range of services I provide to my clients.
I was born and raised in North Alabama which enables me to offer you the local perspective that will benefit you in your new home experience. It's not the same everywhere, so you need someone you can trust for up-to-date information.
With 2015 coming to an end many are staring to make their predictions
"Being a first time home buyer I did not know what to expect. Micah made this process as easy as possible with quick email correspondence and showed many quite a few properties until I settled on the one I purchased. The signing of all offer documents was very easy using electronic signatures and using the recommended lender made closing just as effortless. I would go through him again if I purchase another home."