Which Type of Loan is Right for Me?

The best loan can either be the loan with the lowest total costs, least long-term monthly payment, the least initial monthly payment or the quickest equity build-up depending on your situation.

A key input is your estimate of how long that you will own the property. If you know you will not own a property long, you will want to take advantage of the ARM's. If you have a career where you get transferred a lot, you should factor that in your estimate of how long you will own the property. In addition, it probably won't make sense for you to pay points if you won't own the property very long. On the other hand, if you plan on staying in a house for a while, a couple of factors should be considered. For example, you should consider assuring yourself an interest rate you are comfortable with and you should consider paying points.

If your income will increase rapidly, you may want to consider an ARM product to qualify for a larger home at a lower monthly payment, realizing that your rate may adjust upward in the future. In this instance, will your income increase a rate that will comfortably be able to absorb the higher monthly payment if the ARM adjusts upward?

Lastly, your adversity to risk should be a factor. Risk takers would be better suited for ARM loans versus a risk adverse borrower.

Just answer these few simple questions and USA-Mortgage.com will recommend some loans for you and explain why we selected these for you. It's as simple as that.

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