Phoenix Arizona Home Mortgage: Finding the Right Mortgage

Mortgages should be simple - find the house, do the paperwork, and get the loan. But there are actually a lot of different options for a mortgage.

It can be hard to figure out which mortgage program is the best fit for you - should you consider a traditional fixed-rate mortgage, an adjustable rate mortgage, an FHA or VA mortgage? What exactly is a two-step mortgage or a graduated-payment mortgage?

There's never just one mortgage option - the best mortgage option is dependent on your circumstance and your needs, for the present and the future. You can make the process slightly easier if you take the time to contemplate a few questions.

How long do you expect to live in the home? Some people purchase a "starter home", planning to sell in five years and move up to a larger home. Other people plan to pay the home off and make it their retirement home. If you plan to only be in the home for a few years, you may want to consider an adjustable rate loan. If you plan to stay in the home for a long time, you may want to investigate a fixed-rate loan which will give you long-term payment stability.

Are you the type of person that is comfortable with risk? If you need to know exactly how much your payment will be from month to month or even year to year, you probably want a fixed -rate loan. If you feel comfortable with risk, you may want to look at an adjustable rate loan - the interest rate may be lower initially, but there's a chance that the rates could increase over time.

How much do you expect to make? You income potential is important. If you anticipate (reasonably) that your income with increase substantially, you may want to consider a graduated payment mortgage which allows the payments to increase over time.

Do you have cash upfront? If you have a substantial savings, you could put a large down payment, and opt for a shorter period of time on the loan - perhaps a 15-year fixed rate loan. Within a relatively short amount of time, you'll have the loan paid off and you'll save thousands of dollars over the life of the loan in interest.

Each person has a unique set of circumstances that make one type of loan more ideal than another. When you talk with a qualified loan officer, you'll get lots of options. Carefully weigh your options against your circumstances, and you'll find the best mortgage for you in your new home.

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