According to statistics, 99% of US residential real property purchasers use a mortgage to buy properties. There are many types of mortgages available, and the best option for you depends on your financial situation and long term plans.


The biggest question borrowers usually face is between a fixed-rate or adjustable-rate. Fixed-rate mortgages have the same interest rate for the entire term of the loan, the advantage being that your monthly payment will stay the same, month after month and year after year. Fixed-rate home loans can be 10, 15, 20 or 30 years, the most popular being the 30-year because it offers the lowest monthly payment. Adjustable-rate mortgages (ARM) have an interest rate that will change from time to time. Typically, the rate on an ARM will change every year after an initial period of remaining fixed. These are referred to as "hybrid" ARMs. For instance, a 5/1 ARM has a fixed rate of interest for the first five years, after which it begins to adjust annually. There is usually a cap on the highest interest rate that can be charged.

In addition to considering a mortgage type, some buyers also have to consider mortgage insurance. If a buyer puts down less than 20% of the purchase price as a down payment, they are required to purchase mortgage. There are a lot of options to consider when choosing a mortgage: conventional loans vs. government-insured loans, jumbo loans vs. conforming loans, different loan providers (banks, credit unions, saving institutions, etc.).  If you have any questions about mortgages, please feel free to contact us and we will help you in any way we can.