Buyer Resources

Choose the Right Mortgage

Contact me to find the home of your dreams

As your Real Estate Agent, I have in-depth knowledge of the home buying process helping me to anticipate potential issues and guide you through a smooth purchase of our next home.
For most people, purchasing a home is the largest and most emotional financial decision they will ever make, which is why you should work with an experienced Real Estate Agent to properly negotiate on your behalf.
Purchasing a home is a fluid process with a lot of moving parts. After you have chosen the home of your dreams, you will need reputable resources as you move forward with our purchase. There will be homes inspections, oil tank sweeps, septic/well inspections (if present), real estate attorneys, mortgage brokers, title companies, and more. I work with a team of experienced professionals that will help guide you through each step of the process.
I will provide a full list of all properties that match your search criteria, daily updates, as well as access to the MLS which will ensure accurate information. This will allow you to make the most informed decision while helping to narrow down your choices.

What is The Right Mortgage

for Your Home Purchase?

With almost two hundred different options available for your next mortgage, how do you choose the right one for you? After a closer examination, though, you’ll find that there are actually only about six or seven basic types of home mortgages. You’ll want to base your decision on several key factors, including your current monthly income, your future expected income, current assets, and your liabilities or debts.

Another choice to make is whether you want to gamble on an interest rate that changes (adjustable-rate mortgage). Would you feel more at ease paying the same amount each month? Once you decide on that, then you can move on to the basic mortgages that are offered:

Before You Move

  • Oldest and most popular
  • Rate is constant over the life of the loan
  • Can be taken out in 10, 15, 20, or 30-year lengths

Adjustable-Rate Mortgage (ARM)

  • Interest rate fluctuates
  • Are tied to one-year Treasury bills or another specific index
  • Initial rate is low, but grows each year
  • Usually a cap of two points; lifetime ceiling caps of around six points
  • Rate can drop

Two-Step Mortgage

  • Usually called 5/25s and 7/23’s
  • Convertible converts the loan to a fixed loan for the remaining 25 or 23 years
  • Nonconvertible – converts the loan to an ARM
  • Both are 30-year loans
  • Fixed interest rates for the first 5 or 7 years; then change to convertible or nonconvertible loans
  • Both can be amortized over 30 years
  • Riskier than fixed rates, but less risky than ARMs

FHA Mortgage

  • Pre-set spending limitsOldest and most popular
  • Amounts are set by the median prices of different cities within a particular area
  • Only 5% down is required (sometimes 3%)
  • Steep mortgage insurance premium and other upfront costs are required

VA Loans

  • Designed to help military vets buy homes with no down payment
  • Not allowed to pay points; responsible for some fees
  • Seller usually has to pay the extra money

Balloon Mortgages

  • Can be any length
  • Some can be principal and interest; others only interest
  • Loan must be paid in full when it’s due: either amortized over 30 or 50 years and you pay the first 5 or 10 years before paying it off OR you only pay the interest until the loan is due

Shared-Appreciation Mortgages

  • Lender offers you a below-market rate in exchange for a share of the profits when the home is sold
  • You receive the tax benefits
  • Lender doesn’t make money unless you do
  • If home increases greatly in value, you’ll lose a lot of profit to the lender
  • Most common among first-time homebuyers working with non-profit groups that help low to moderate income families

Biweekly Mortgage

  • You pay half the amount of a monthly payment
  • Paid 26X a year (not 12X monthly)
  • Cuts down on the amount of interest over the life of the loan
  • Paying so often can be a drawback