WHAT IS RIGHT FOR ME
Loan Options
Understanding your loan options is a major step in finding the right loan. This is about how long you think you will keep the loan—not how long you will stay in the house.
YOU HAVE OPTIONS
We Will Help Find the Right Loan for You
There are many different types of loans which include:
LOAN TERMS
30 Years, 15 Years, or Other
Loans with shorter terms usually have lower interest costs but higher monthly payments than loans with longer terms. A lot depends on the specifics – exactly how much lower the interest costs and how much higher the monthly payments depend on which loan terms you are looking at as well as the interest rate.
When choosing the term, you should consider:
- Your monthly principal and interest payment
- Your interest rate
- How much interest you will pay over the life of the loan
Shorter Term
- Higher monthly payments
- Typically lower interest rates
- Lower total cost
Longer Term
- Lower monthly payments
- Typically higher interest rates
- Higher total cost
INTEREST RATES
Fixed Rate or Adjustable Rate
Interest rates come in two basic types: fixed and adjustable.
This choice is about whether your interest rate and your monthly principal and interest payment can change. Also, it affects how much interest you will pay over the life of the loan.
FIXED RATE
- Lower risk
- Higher interest rate
- Rate does not change
- Monthly principal and interest payments stay the same
Adjustable Rate
- Higher risk
- Lower interest rate to start
- Higher total cost
- After initial fixed period rate can increase or decrease based on the market
- Monthly principal and interest payments can increase or decrease over time
