The greatest factor to consider when choosing a mortgage program is the length of time you intend to own the property. For instance if you only intend to own a property for 5 years there is no reason you should be paying an interest rate associated with a 30yr fixed loan. With a 7 yr adjustable rate mortgage your interest rate and payment would be lower than those associated with a 30yr fixed and the 7 year fixed period gives you all the security you need since you will only own the property a maximum of 5 years.
On the flip side if you know you intend to hold on to your property for the long term you will most likely want to consider a fixed rate mortgage for the long term safety and security it offers. Once you have determined the estimated time you intend to keep your property use the chart below to determine the loan programs that best meet your goals.
How Long Do You Plan
On Living In The House? |
We Recommend |
| Not Very Long (1-3 Years) |
3/1 ARM, 1 year ARM or 6 month ARM |
| A few years (3-5 Years) |
5/1 ARM |
| At least 5 years (5-7 years) |
7/1 ARM |
| Around 10 years ( 7-10 years) |
10/1 ARM, or 10, 20, 30 yr fixed |
| A long time (10 plus years) |
10, 15, 20, 30, or 40 year fixed |
|
