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