220 Week 3 F /For WIZARD KIM

CHAPTER 5 Selecting the Best Home Purchase Loan 81

Chapter 5

IN THIS CHAPTER

» Choosing the right type of mortgage

» Understanding fixed, adjustable, hybrid, and other loan options

» Making the 15-year versus 30-year decision

» Dealing with periods of high mortgage interest rates

Selecting the Best Home Purchase Loan

As you consider your mortgage options, you may quickly find yourself over-whelmed by the sheer number of choices. Should you choose a 15-year or a 30-year fixed-rate loan? What about mortgages that have variable inter- est rates — some adjust monthly, others every 6 or 12 months. Still others have a fixed interest rate for, say, the first one, three, five, seven, or ten years and then convert into some sort of adjustable rate. Or you can choose loans that start out as adjustable-interest-rate mortgages but allow you to elect at some future date to convert into a fixed-rate loan.

Most mortgages come with a number of bells and whistles, which means that literally tens of thousands of loan choices are available. Talk about a mortgage migraine! This chapter goes over the many options you can choose among and helps you select which ones work best for you.

Griswold, R. S., Tyson, E., & Tyson, E. (2017). Mortgage management for dummies. Retrieved from http://ebookcentral.proquest.com Created from apus on 2020-04-21 07:44:39.

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