 |
|
|
"This was the best finance experience we have ever had!..."
-
Ben & Tanya Hawkins
Tigard, OR
more»
|
|
|
|
Choose a Loan
Though there are many different
kinds of loans available today, these three
are the most commonly used:
• Fixed
loan.
This long-term option requires monthly payments
that will remain the same throughout the
duration of the loan, which may vary from
fifteen to thirty years. Though it’s
the most affordable short-term solution,
it may cost more than shorter term mortgages
over the life of the loan.
• Adjustable rate mortgage (ARM).
The loan rate here will be determined by
factors such as index, readjustment intervals,
and capitalization rate. The initial interest
rate can be as much as 2 to 3 percent lower
than a comparable fixed rate mortgage, which
can make homeownership more affordable.
However you should first examine variant
factors and downside risks before seriously
considering this option.
• Hybrid loan.
Also known as an intermediate or convertible
ARM, it offers a fixed interest rate for
a specified initial period before it ‘switches’
to an ARM and adjusts with the market every
six months or every year.
Consult with your lender to assess which
loan type and program would best correspond
with your resources and needs.
|
|
|
Secure Application
