How to Pick the Right Mortgage

There are many mortgage options available to buyers, and it can be a challenge to figure out which one is right for you. Choosing the right mortgage option depends on your financial situation and your personal needs. Here are some tips to help you choose the right loan.

Determine your financial priorities:

A mortgage is a long-term commitment. Different loans have different terms and conditions, so choosing the right mortgage can have a big impact on your financial future. Here are some questions to ask yourself before you start looking for a loan:

• • How much can you afford for a down payment?
  • Do you want fixed monthly payments?
  • Will you need extra money for renovations?
  • How quickly do you want to pay off your loan?
  • Are there local down payment assistance programs?
  • Are you eligible to receive Veteran benefits?

Things to consider:

Consider your long-term goals when choosing a mortgage. Here are some additional things you should think about when choosing a loan:

• • Are there any fees associated with the loan?
  • What are the interest rates like for the different loan types?
  • Do you want the ability to make additional payments at no extra cost?
  • How long do you plan on staying in the home?

Research:

There are quite a few mortgages out there, and choosing the right one means doing your homework and researching the different options available to you. It’s important that you understand the differences between types of mortgages, so you should also talk with a reputable mortgage professional early on in the process. Here are a few tips to help you do your research:

• • Talk to family and friends
  • Contact a reputable mortgage professional so they can provide advice based on your current financial situation and long-term goals
  • Visit websites such as: U.S. Department of Housing and Urban Development, Federal Housing Administration, Fannie Mae, and Freddie Mac.
  • Contact local housing non-profits to see if you qualify for special assistance.
  • Attend local seminars or training sessions