| Your Home
Ownership Goals |
|
Your Loan Strategies |
| Plan
to live in your home for many years. |
|
Loan
interest rate over a long period of time. Since you're going
to be making payments for years to come, your best strategy
may be a fixed rate
loan and paying points to get your rate as low as possible. |
| Plan
to sell or refinance your home in just a few years. |
|
Avoid points and closing costs since
the difference in interest payments won't typically make
up for your out-of-pocket costs at closing.
Also, try for a smaller down payment.
A fixed
period ARM is a good choice for holding rates down
for a set number of years.
|
| Want
to pay off the home loan by the time your children go off
to college. |
|
Shorter
term loans such as a 15
year fixed rate home loan are a smart way to ensure
you can use income for other goals later in life. Plus you build equity faster. |
| Want
to budget for a fixed payment each month. |
|
A
fixed rate loan has a principal and interest payment that stays
the same for the entire term of the loan. |
| Comfortable
with periodic changes to interest rates if it means you
get more home now. |
|
Adjustable rate mortgages are a great solution for people with incomes that are going to grow and will
quickly refinance or be able to afford a larger payment
in a few years should the interest rates rise. |
