Adjustable vs. Fixed Rate
There are many important choices consumers are faced with when
going through the home buying process. One big decision is what
type of mortgage loan to take out. With all the different loan
products out there, even more experienced consumers might be wondering
where they can get some reliable advice.
A licensed mortgage broker can help you look at the options available
and make the decision that fits best with your family’s
needs. Because he or she is experienced in matching consumers
with reputable lenders who are likely to give them the best deal,
a mortgage broker knows what factors to consider when deciding
between a fixed rate and an adjustable rate mortgage loan.
Your licensed mortgage broker will explain how adjustable rate
monthly loan payments can change at specific periods throughout
the life of the loan, and how these changes are “pegged”
to the interest rate of a certain index. He or she can work with
you to factor in considerations such as how long you plan to live
in the home and what your tax situation is. After reviewing your
situation, you and your broker may decide that a fixed rate loan,
with payments that remain the same, is the best way to go.
Knowing that their choices are based on input from someone whose
business it is to know the industry gives consumer a level of
comfort that makes the loan process easier. Remember, a good mortgage
broker will never pressure you into make a decision; rather, he
or she will guide you and provide you with the information you
need to feel confident in your own choice, and know that you’re
getting the maximum benefit from your loan type.