By shopping around now and deciding what type of mortgage meets your needs best, you will be ready to apply for your loan as you begin the home search process. Your can ask for a list of possible lenders (or ask me to help) who will be able to provide you with information on the large variety of loan packages available to you. Below is a small list of common mortgage alternatives to get you started:

30-Year Fixed-Rate Mortgage offers a predictable monthly payment and protection from interest rate increases. However, to take advantage of falling rates you must refinance and pay closing costs and other fees.

15-Year Fixed-Rate Mortgage may offer a lower rate than a 30-year loan. You will build equity faster, cut overall interest costs and own your home free and clear in only 15 years.

Adjustable Rate Mortgage (ARM) will probably offer a lower initial rate than fixed-rate loans. The rate can fluctuate up or down, but many ARMs have rate caps limiting increases. The option of converting an ARM to a fixed-rate mortgage is currently available from some lenders. The Convertible ARM allows the borrower to lock in an interest rate and predictable payments for a smaller fee than would normally be charged to refinance.

Graduated Payment Mortgage is designed for buyers with the potential of future income growth. Monthly payments start low and increase over the 15- or 30-year term.

Biweekly Mortgage allows you to pay off your loan quickly. By making 26 biweekly payments per year, you save on interest and build equity faster.

PLEASE NOTE: This information is not intended to be legal advice. Your licensed real estate agent cannot give you legal advice. If you have any questions about your legal rights or obligations, you should consult with an attorney.