If you’ve been looking to purchase a home recently, you’re probably considering the various types of mortgages and loans that are out there and wondering which one is best for you.
Most people will need a loan in order to purchase their first home. It can be difficult and confusing if you’ve never gone through the process before, but two of the more common loan options are fixed-rate loans and adjustable-rate mortgage (ARM).
Now there are many variations contained within these categories, but the important thing to know is how predictable a monthly payment will be and how easy it will be to afford them.
For many customers, choosing a fixed-rate loan will be the best option since they payments on their mortgage will be regular and predictable. This will be a great aid in calculating your budget and make it easier to plan from month to month.
Other customers will choose an ARM because their initial payments towards the mortgage are lower. While this would seem to be the more obvious choice due to the low starting payments, the customer must be willing to acknowledge and accept the risk (and be confident in their ability to adapt) to increased mortgage payment, resulting in adjusted interest rates throughout the term of the loan.
Knowing which loan is best for you and your family can be difficult to determine and it helps to have the guidance of an expert in the field. Depending on your specific circumstances, there may be other options that would be better for your needs. This is how our team can help you. If you’re looking to purchase a home or refinancing your home, we’d love to talk with you in order to find the best solution for your needs. Contact our offices in Joplin, MO and let us know how we can help you.