If you’re in the market for your first home, you’re probably considering a loan and wondering what options are available that’ll fit your situation.
It’s not uncommon. Most people will need a loan in order to buy their first home. It can be a daunting process, but the most common options are fixed rate loans and the adjustable-rate mortgage (ARM). Variations exist within both categories and you’re mortgage lender will be able to help you schedule them based on what you can afford for a monthly payment.
Many customers will find a fixed-rate loan to be the best option for them because the payments will be regular and predictable. This will help you calculate your budget each month, making it easier to develop a financial plan for your income.
Others will choose the ARM because the initial payment towards the mortgage is lower. While the idea of lower payments might make it seem like the obvious choice, the ARM comes with the risk of an increased mortgage payment, which results in adjusted interest rates over the life of the loan.
Trying to decide between the two can be difficult and it helps to have the guidance of an expert. That’s where partnering with a qualified mortgage lender can help. They’ll have the experience and expertise necessary to help you find the best home loan for you and your family. If you’d like to know more about these and other options, contact our offices in Joplin, MO and let us know how we can help you.