Types of Mortgage Loans
Before you get hot mortgage quotes, you will need to decide what type of mortgage you want. Here is a brief explanation of the most common types of mortgages.
One type of loan on which we offer hot mortgage quotes is a fixed-rate mortgage. A fixed-rate mortgage has consistent monthly payments and interest rates for the duration of the loan. Fixed-rate mortgages usually come with terms of 15 or 30 years. A fixed-rate mortgage will usually have a higher initial interest rate than an adjustable-rate mortgage, but it typically has lower overall interest expenses in the long-term. If you get hot mortgage quotes on a fixed-rate mortgage, you will enjoy a stable interest rate regardless of how market interest rates fluctuate. You might consider hot mortgage quotes on a fixed-rate mortgage if:
- You are uncomfortable with fluctuating payments
- You expect interest rates to rise
- You want to save on long-term interest expense
- You plan to stay in your home for more than five years
Another type of loan on which we offer hot mortgage quotes is an adjustable-rate mortgage. An adjustable-rate mortgage will have fluctuating monthly payments and interest rates according to the changes in the market interest rate. Usually, adjustable-rate mortgages come with an initial fixed interest rate that lasts anywhere from one to ten years. After that period, your interest rate will adjust according to market conditions every six months to a year. Generally, hot mortgage quotes on adjustable-rate mortgages have lower initial interest rates than fixed-rate mortgages. However, you must keep in mind that these low initial interest rates will not last forever. You might consider hot mortgage quotes on adjustable-rate mortgages if:
- You are comfortable with fluctuating monthly payments
- You want the lowest initial interest rate possible
- You expect interest rates to decline in the future
- You do not plan on staying in your home longer than five years
- You expect your income to increase in upcoming years
If you want to know more about hot mortgage quotes, read through the frequently asked questions.