There are so many different loan programs today that borrowers need to ask an experienced Mortgage professional, " What mortgage program is right for me?". The answer to this question depends on many different factors. These factors include a borrowers economic and credit situation plus future plans.Many times an interest-only option can benefit your budget as well. Ask your mortgage professional to give you the pros and cons of several different loan programs to see what works best for you.
Do you currently have damaged or below average credit? If so, an ARM loan, also known as an adjustable rate mortgage, may be a good idea for you. An ARM loan can help provide you with the lowest rate and payment that you can currently qualify for and provide you with some stability for a few years until you have rebuilt your credit. After a couple of years has passed and before your ARM makes its first adjustment, you will be able to refinance into a low fixed rate mortgage because your credit shall be improved. This process is also sometimes referred to as a "two step" loan or a "band-aid" loan.
The length of time you plan to be in a home is another factor in determining your mortgage program. If you are going to be moving within 5 years then a 5 year ARM may be best or you. If you plan to make this home your long term residence you may want to examine the 30 year fixed rate mortgage programs.
