- Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to consider an adjustable-rate or balloon loan. However, if like most people, you plan to keep your home for a longer time, you may want to consider a fixed-rate loan.
- Understanding the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your interest rate.
- Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. I can put you in touch with an experienced loan originator who can help you find a loan program that best fits your short- and long-term goals.
December 17, 2013
The Loan Process - Step 3 Shop Rates and Loan Programs
Which loan program is best for you?