The average home owner will pay far more in interest over
the life of a mortgage
than the original loan amount. So the time you spend researching
the best mortgage deal could easily save you tens of thousands
of dollars over the term of the loan. Finding the right home
is important and so is finding the right mortgage loan. Use the
loan calculator to help determine a general budget figure.
Use the internet to research mortgage loan options before deciding
which loan is right for you. There are several types of mortgages
and you should know which is right for you and your future plans.
Fixed rate mortgages give you the comfort of knowing your interest
rate will remain the same for the duration of the loan. With fixed-rate
loans you may also pay a slightly higher interest rate than some
of the other loan options.
Adjustable rate mortgages are usually offered at lower initial
rates and adjust up or down in the future, generally aligned with
the prime interest rate.
Balloon mortgages are short term mortgages, generally
five to seven years, offering lower interest rates with a total
balance due at
the end of the loan period. If you plan to stay in the home less
than five years you may want to research this option in some detail.
There are numerous other mortgage loan products available and
any you consider deserve thorough investigation. While most mortgages
are structured to pay principal and interest, some mortgages allow
you to pay interest only for a specified term. Interest-only mortgages
may work well with the balloon mortgage concept.
The Right Mortgage Lender
Once you've determined the type of mortgage loan for your home
purchase it's a good idea to "shop" for the right lender.
Spend a little time to determine potential candidates. Research
each lender to define the interest rates offered and all costs
associated with the loan. Use the map above to locate lenders in
Be as informed about your home mortgage as you are about your