If you’re in Joplin, MO and you’re looking to purchase a home, you’re probably considering the various types of loans that there are and wondering which one is best for you.
Most people will need a loan in order to purchase their first house. It can be difficult and confusing if you’ve never gone through the process before, but two of the most common loan options are the fixed-rate loan and the adjustable-rate mortgage (ARM).
Now there are many variations within these two categories, but the important thing to know is how predictable your monthly payment will be and how easily it will be to afford them.
For many customers, choosing a fixed-rate loan will be the best option because the payments on their mortgage will be regular and predictable. This will aid in calculating your budget and make for easier planning from month to month.
Other customers choose an ARM because at their initial payments towards the mortgage are lower. While this would seem to be the 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 an increased mortgage payment, resulting in adjusted interest rates over the term of the loan.
Knowing which loan is best for you can be difficult to determine and helps to have the guidance of an expert in the field. Depending on your specific circumstances, there may be other options that would better meet your needs. This is how our team can help you. If you’re looking to purchase a home, we’d love to talk with you and find the best solution to meet your needs.