Choose the Mortgage that is Right FOR YOU

Most financial experts maintain that choosing the wrong type of mortgage is the single biggest money losing mistake the average person makes in her lifetime.

Don't make that mistake. Learn from us and you will save money.

This guide:

  • Explains what information is covered in the next section

  • Lists some of the choices you will have to make

Over the next few pages, we examine the benefits and disadvantages of fixed and adjustable mortgages rates, and we help you figure out which type is best for you, based on your financial, employment, family and/or living situations.

By the end of this guide you should be able to make an informed choice about what is likely to be one of the most important financial decisions of your life.

What type of mortgage is best for you?

Choosing the right type of mortgage sets the stage for how smoothly your entire loan proceeds.

And choosing between a fixed rate or adjustable rate is only the first decision. If you settle on a fixed loan you'll have to choose between 15 and 30-year packages. If you opt for an ARM, the options only multiply. (ARMs today come with initial fixed-rate periods of almost any length. Picking the right one is essential.)

But the fun doesn't stop there.

Designing your loan package

Even with the right type of mortgage under your belt, you'll face a dizzying array of loan options. Down payment, discount points, closing costs, and mortgage insurance are just a few.

It can be hard to tell just where to allocate your precious cash. Learn how to find the right balance on your loan package in the second part of this guide.

And finally . . .

Your debt capacity

Designing the right home loan won't do you any good if you're assuming too much debt (and lenders won't approve you either). Make sure you're setting your sights on a reasonable mortgage goal with our mini-guide on healthy debt.

We begin by taking a look at both FRMs and ARMs, and how they compare to each other. Later, we examine each individually, so that you can decide for yourself which type fits your situation better.

Next: Let's start finding the right mortgage for you

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