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