| With a credit score of 680 or higher, you | | | | pay in finance charges. But your monthly |
| have a plethora of home loan options. | | | | payment will be higher with the short term. |
| Basically, you can choose your terms, but you | | | | The most common mortgage is for 30 years, but |
| want to make sure you find the best financing | | | | you can choose a 25, 15, or even a 10 year |
| package. That means looking at financing | | | | mortgage. Choosing terms is really based on |
| costs, terms, and lenders. | | | | what you can afford to pay each month. |
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| Financing Costs | | | | Lenders |
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| The most competitive mortgage market is | | | | Conventional lenders usually offer the best |
| conventional loans, including both fixed-rate | | | | financing, even if you need an unconventional |
| and ARM. That means these types of loans have | | | | loan. Jumbo and subprime mortgages can be |
| the lowest rates. Add a 20% down payment, and | | | | processed by conventional lenders. They will |
| you will have lenders swooning over you. | | | | find underwriters, which will add slightly to |
| | | | the interest rate of your home loan. |
| Fixed-rate home loans offer security of a | | | | |
| flat interest rate. You will be paying the | | | | Still you want to investigate all your |
| same interest rate over the entire life of | | | | lending options. Begin by collecting rate |
| your mortgage. You can also lock in today's | | | | quotes on a predetermined loan amount. This |
| low rates. You always have the option of | | | | way you are comparing similar numbers. Also, |
| refinancing if rates do drop. | | | | be looking at fees to make sure interest |
| | | | savings are not offset by high closing costs. |
| An ARM provides lower rates with the risk | | | | |
| that they will rise in a couple of years. For | | | | When you have picked a lender, request a bid. |
| those homebuyers who plan to move in a couple | | | | This is when the lending institution will |
| of years, this financing can save you | | | | actually look at your credit history and give |
| hundreds in interest charges. | | | | you real numbers. If you aren't happy with |
| | | | the terms, don't be afraid to walk away from |
| You can also choose a hybrid of the two, | | | | the deal. There are many lenders to choose |
| offering initial low rates that will lock in | | | | from. |
| after a couple of years. | | | | |
| | | | To view our list of recommended lenders |
| Terms | | | | online for mortgage lenders online, visit |
| | | | this page: Recommended Mortgage Lenders |
| The shorter the mortgage, the less you will | | | | Online. |