Buyer's Guide - Page 8

The Loan Process (cont.) Financing your home purchase 3. Check out your mortgage options Generally, there are two ways you can go: a fixed-rate mortgage with an interest rate that remains the same for the life of the loan, or an adjustable-rate mortgage (ARM) with a rate that adjusts up or down, depending upon economic trends. Fixed Rate Mortages The advantages of a fixed-rate mortgage – particularly if you lock in at a low rate – are: They protect you against the risk of rising interest rates. Their stability can make it easier for you to plan and budget your short and longterm expenses. If shorter-term, such as a 15-year mortgage, you will pay less interest over the life of the loan; although your monthly payments wil