Boca Mortgage Blog

Tips For The Best Mortgage

July 9th, 2014 2:21 PM by Leonard Silvestri

 
                      

 When obtaining a mortgage for the first time it is imperative to do as much research as humanly possible. A good lender will have no issue with you doing your homework first, they will actually encourage it. This advice piece from Zillow give the best tips for the best mortgage.

If you think you’ll only be in your new home for a few years, you might consider a hybrid loan. Many home buyers think the traditional fixed rate for a 30-year plan is the best choice for them, but that isn’t always the case. According to experts, if you know you are only keeping your house for a few years, a hybrid loan nets you a lower interest rate for the fixed period than a typical 30-year mortgage. For example, a homeowner who’s planning to sell their house after three or four years could opt for a 5/1 hybrid mortgage and pay about 1% less in interest. Of course, plans sometimes change. Since we can’t predict the future, there’s risk involved with the hybrid mortgage. If you end up staying longer than you planned, then interest rates could spike, or the housing market could be in a different place by the time you’re ready to sell. If you aren’t comfortable with that possibility, a more traditional 15- or 30-year mortgage might be a better option for you.

Posted in:General
Posted by Leonard Silvestri on July 9th, 2014 2:21 PM

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