What kind of loan program is best for you?

So what kind of mortgage is best for you? Fixed rate? Adjustable rate? Government loans? The truth is, there is no one correct answer. Given the many different types of loans and term lengths, the choice can be difficult. It is an extremely important choice and you can definitely benefit from research before you make your decision. Some time and effort right now can save you thousands of dollars in the long run. Your personal situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best:

• Do you expect your finances to change over the next few years?
• Are you planning to live in this home for a long period of time?
• Are you comfortable with the idea of a changing mortgage payment amount?
• Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?

Your lender can help you use your answers to questions such as these to decide which loan best fits your needs. Below is a general guideline that may be useful to consider when selecting the mortgage for your home:

Years you plan to stay in your home           Plan to Consider

                        1-3                                    3/1 ARM or 1-year ARM

                        3-5                                                5/1 ARM

                        5-7                                                7/1 ARM

                        7-10                                10/1 ARM or 30-year fixed

                        10+                                30-year fixed or 15-year fixed