Everyone’s Mortgage Needs Are Different:
This is one of the most important questions you can ask; What mortgage is right for me? 15 year fixed mortgage or a 30 year fixed mortgage or maybe an Adjustable Rate Mortgage (ARM)? And the questions about “what mortgage is right for me” can go on and on and on. Unfortunately there are no easy answers; just because one type of mortgage was good for let stay your neighbors or even your parents doesn’t mean that is the right mortgage for you. Each borrower is different with a different set of needs when it comes to discovering the answer to “What mortgage is right for me?”. That being said; there are some basic steps you can take to help you decide what mortgage is right for you.
The First Question You Should Ask:
How long do I plan on living in the house and/or how long do I plan on keeping the loan? If you say that this will be the last home you’ll ever buy and that you never want to do another mortgage again; then you should really only look at fixed rate mortgage loan programs.
Fixed Rate Mortgage:
There are 10 year, 15 year. 20 year, 25 year and 30 year fixed rate mortgage loan options. So if you’ve settled on a fixed rate mortgage than you need to decide how long you want to have the loan. This is where your personal short term, medium term and long term goals come in to play and it’s a discussion that eventually should include the loan officer as well. If you want a low payment; a longer tax benefit with the IRS then go into a 30 year fixed rate mortgage. If you want to pay the house of early then it’s a 10 or 15 year fixed rate mortgage. If you want something in the middle then go with a 20 year fixed mortgage rate loan.
Adjustable Rate Mortgage:
Now if you are only going to live in the home for a few years; less than 5 then you should consider an adjustable rate mortgage. There are 5/1 ARMs, 7/1 ARMs and 10/1 ARMs. The first number is the number of years the mortgage rate is fixed; the second number refers to how often it can adjust after the fixed period (this example refers to “1” so that means it can adjust once every year after the fixed rate period is up.
Connect with Loan Officer Kevin O’Connor on Twitter @Rates01
So as you can see figuring out “What mortgage is right for me?” can be a bit difficult but if you take the time to review options I’m sure you’ll come up with a great plan. Other factors to discuss:
- If you’re buying a home; do you have 20% or more to put down as a down payment or do you have a limited amount to put down?
- Should you buy a Single Family Residence, a Townhome or a Condominium?
- How is your credit and should you consider improving it before moving forward with a new mortgage?
- Should you impound your property taxes and insurance?
Home Owners Refinancing Their Mortgage:
- Do you have a conforming loan amount or a jumbo loan amount?
- If you’re taking cash out; what’s it for and how much do you need?
- Have you paid your mortgage on time?
- Do you qualify for a Property Inspection Waiver (no appraisal)?
JB Mortgage Capital, Inc.:
And if you have any questions or you need some assistance figuring out what’s best for your situation please be sure to ask. You can contact Loan Officer Kevin O’Connor directly at 1-800-550-5538 or submit a request form through this website. He will take the time to listen and provide some suggestions along with what steps you can take to get the best possible mortgage rate. At JB Mortgage Capital, Inc. we offer both fixed rate and adjustable rate mortgages for both purchase transactions and refinance transactions. For those that qualify we also offer a true direct zero cost mortgage (zero points and zero fees).