Purpose
Refinance Purchase Home Equity

Loan Type
Fixed ARM Interest Only FHA

Amount

State
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Display Mortgage Rates &
Refinance Rates in your State

How Do I Figure Out What Type Of Mortgage Loan I Need?

By Stacy Williams

How do I figure out what type of mortgage loan I need?  Read here for tips on to select what mortgage product is best for you!

For most people that are looking to purchase a home, one of the most complicated aspects of the whole process is deciding which mortgage product to select.  There are various mortgage products available and selecting the right one can be complicated.  Luckily there are several considerations that can be taken which can help narrow down the selection.

How Long Will You Stay

The first consideration which should be taken when determining what type of mortgage loan you need is how long you will stay in the home.  If you are planning on staying in the home for only a few years, then you would be better off selecting an adjustable rate mortgage (ARM) over a standard fixed rate mortgage.  This is because ARMs come with very low interest rate for an initial period of 1 to 7 years depending on the mortgage selected.

How Much Can You Afford

The next consideration which should be taken when determining what type of mortgage loan you need is how much you can afford.  15-year mortgages cost about 40% more per month than a 30-year mortgage, but they often come with a lower interest rate.  If you can afford a higher payment, you could save considerably on interest costs and you would build equity much more quickly.

How is Your Credit

The third consideration which should be taken when determining what type of mortgage loan you need is how good your credit is.  If you have poor credit, you may need to accept a bad credit mortgage.  These mortgages often come with higher interest rates and higher fees, but are easier to obtain for someone with bad credit.

Related posts:

1. Should I get a 30-year or a 15-year fixed mortgage?
2. How Do Mortgage Rates Influence The Type Of Loan I Choose?
3. What Type Of Mortgage Loan Should I Choose?
4. Should I Go With A Fixed Rate Loan Or An ARM?
5. How To Choose The Right Type Of Mortgage Loan

One Response to “How Do I Figure Out What Type Of Mortgage Loan I Need?”

1. Arvilla Wheater says:

   April 9, 2010 at 7:55 am

   Hi good post, im currently studying this at college. I like your blog there’s some real helpful stuff on here. Will check back soon to see if you have posted anymore pages, thanks