Home Loan-What Is The Right Loan For Me????

My friend, Eric Heath
 and the guys at City Life Lending have tons of great information about home loans and refinancing your existing mortgage.

Selecting the mortgage that's right for you is central to the homebuying process–that's why it's so important to understand your options. You'll need to consider two things at the outset: which loan type meets your homebuying needs, and which loan term offers the ideal repayment schedule.

Loan types

Most home loans fall into one of two general categories: fixed-rate mortgages and adjustable-rate mortgages (ARMs).

• Fixed-rate mortgages have interest rates that stay the same for the entire life of the loan.
  • You will have predictable monthly payments throughout the life of the loan.
  • You'll be protected from rising rates, so your principal and interest payments will never increase, no matter how high interest rates rise.
• Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions.
  • The initial rate is fixed for an introductory period and is typically lower than for a fixed-rate mortgage. After that, the rate adjusts annually based on a market index, but can't go above a predetermined adjustment cap.
  • Because of the lower initial rate, some borrowers may be eligible for a larger loan amount with an ARM than with a fixed-rate mortgage.
• Need repairs on the new property? Our Purchase & Renovate^SM loan can give you the financing you need to both buy the house and fix it up – all with one closing.

Go here for more home loan information.