What Mortgage is Right For You?

Which Mortgage is Right For You?

Many of our clients have asked us the question, “which mortgage is right for me?” In most cases, every client’s financial background is quite different and thus results in complex solutions, which a mortgage broker or a highly qualified loan officer can figure out.

On the flip side, buying your first home or condo can seem frightening and with all the different loan programs you can be faced with a tough situation.  Whether you are looking for real estate property in Glendale or real estate investments in Burbank, we have put together a quick snippet of the various mortgage options and some helpful suggestions as to when each loan may be appropriate for you.

Save this list somewhere or simply call us for a more precise breakdown of what choice may be best for you:

Fix Rate Mortgage (30, 20, 15, 10 years) – Monthly mortgage payment & interest rate remain locked for the entire term of the loan

  • Appropriate for home buyers who – plan to reside in the property for more than 10 years respectively.  Provides peace of mind and payment stability

10/1 Year Adjustable Rate Mortgage – Monthly mortgage payment & interest rate remain locked for 10 years.  Beginning of the 11th year, your interest rate is adjusted every year so your mortgage payment is subject to change every year for the remainder of the loan.

  • Appropriate for home buyers who – plan to reside in the property for more than 10 years or plan to sell the property right before the loan becomes adjustable

7/1 Year Adjustable Rate Mortgage – Monthly mortgage payment & interest rate remain locked for 7 years.  Beginning of the 8th year, your interest rate is adjusted every year so your mortgage payment is subject to change every year for the remainder of the loan.

  • Appropriate for home buyers who – plan to reside in the property for more than 7 years or plan to sell the property right before the loan becomes adjustable.

7 Year Balloon Mortgage – Monthly mortgage payment & interest rate remain locked for 7 years.  At the end of the 7th year, loan is due in full.  Keep in mind, you (borrower) can refinance into a new loan with different stipulations.

  • Appropriate for home buyers who – plan to reside in the property for more than 7 years or if you can position yourself financially to refinance when your term is done.

5 Year Balloon Mortgage – Monthly mortgage payment & interest rate remain locked for 5 years.  At the end of the 5th year, loan is due in full.  Keep in mind, you (borrower) can refinance into a new loan with different stipulations

  • Appropriate for home buyers who – plan to reside in the property for more than 5 years or if you can position yourself financially to refinance when your term is done.
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