When it is time to buy a home, you deserve the best service that is available. Some homebuyers find it difficult to choose a lender because there are so many options available. Do you feel the pressure to find the perfect home for your family so that you have a comfortable space to create memories together? Then you need to be sure that you are working with the right team!
As you are evaluating your financing options, you will need to decide between two types of mortgages: a fixed mortgage or an adjustable rate mortgage. This article is designed to help you understand the differences so that you can spend your time having fun with your family instead of researching different types of mortgages.
Fixed Rate Mortgage
The traditional type of mortgage is a fixed-rate financing plan. This mortgage sets the interest rate at the beginning of the mortgage, and that rate will remain the same throughout the life of the loan. Because the interest rate stays the same, then it also means that the payment will stay the same.
This type of financing is best if you need a set payment for budgeting purposes. If you prefer a stable payment instead of something that changes, then you should consider a fixed rate mortgage.
There is a small drawback, though, which is a higher interest rate compared to an adjustable rate mortgage. The interest rate depends on your credit history, so you might be able to get a lower fixed mortgage interest rate by improving your credit score.
Adjustable Rate Mortgage
In comparison, an adjustable rate mortgage is when the interest rate can change over time. Because of the changing interest rate, your payments might change as well. The interest rate changes are based on the current market climate. So, it is an unknown future since the markets can change at any time.
This type of mortgage is often used by investors who are looking for the best way to maximize the cash flow of the property. With a lower monthly payment, many investors find it easier to improve the cash flow of each investment.
Talking with an Expert
The only way to choose the right type of loan for your home purchase is to talk with an expert. A lender will help you assess your individual situation to determine the right type of mortgage for your needs. If you are planning to buy a home, then you should start this conversation right away. It is easier to speed up the process of buying a home if you ensure that you have the financing pre-approval in place.
Do you want help from the best real estate team in Atlanta? Here at Duffy Realty of Atlanta, we are committed to your satisfaction! We can help you find a trusted lender so that you can get the financing needed to buy a home. Contact us to learn more: (678) 318-1700