Mortgage home loan options cover more than just the type of loan you are looking to open. There are actually several parts to discuss with your Lendevity advisor. We have listed an overview below to help you understand your choices in deciding which loan is best for you.
Options include:
The Term of the Loan (Loan Term):
Of course, this means how long you will be paying on your home mortgage loan. Short term and long-term loans, each affect your monthly principal and interest, what interest rate you will pay and exactly how much your pay in interest over the lifetime of your home loan.
In general terms, the longer you pay the more interest you pay on your loan. The short-term loans have lower interest rates however, the con to this type of loan is the higher monthly payment.
Mortgage Loan Interest Rates (Rates):
Interest rates are always fluctuating in the market. There is a basic rule of thumb when thinking about interest rates. If you like to know that your loan payment will not increase, then fixed rate mortgage loans are right for you. Your total monthly may increase some if your homeowner’s insurance increases or if you own more on your property taxes but principal and interest payments stay the same. Adjustable-rate mortgages, known as ARMs, are not the steady and stable loan option typically for those that plan to be long term homeowners. Rates my increase based on the market and could even double. If you plan to live in your home for a brief time, then this could be an option to discuss with your Lendevity loan officer.
The Type of Loan You Need:
There are several categories of loans to choose from and a Lendevity advisor will help you choose which loan works best for your budget and your lifestyle. Loan option types consist of:
