Quick Guide to Choosing a Home Loan (Mortgage).
There are three types of home loans available: Fixed rate,
adjustable rate and hybrid or combination rate mortgages.
Here are some things to think about with each mortgage type:
| Fixed
Rate Mortgages |
- Stability--You
always know what your payments will be, even
in inflationary times.
- You plan to
live in your house a long time--say 5 years
or more--and you don't want to risk payment
increases
|
| Adjustable
Rate Mortgages |
- You need a
lower rate right now, and since you plan on
staying in the house only a short time, rate
increases in the furture won't hurt you.
- You're comfortable
with the possibility of rate increases in the
future because you expect your income to rise
over time.
- You don't mind
seeing rate changes--or you're betting rates
will go down in the future.
|
| Hybrid
or Combination Rate Mortgages |
- You're looking
to repair your credit--or have a high debt load
that doesn't enable you to qualify for a fixed
rate mortgage.
- You want the
stability of lower, fixed payments in the short
term.
|
|
Sign up for a Home
Loan | Mortgage Definitions
| Mortgage Calculator
|
