Do you know what type of mortgage you have? ARM? Fixed? Hybrid?
If you already have a mortgage, hopefully you’re familiar with the type of mortgage you have because it was explained to you by the mortgage representative that helped you get approved.
If you are still going through the process of getting a mortgage, do you know what type of mortgage it’s going to be? ARM? Adjustable Rate Mortgage. Fixed? A fixed mortgage. Hybrid? A combination of a Fixed Rate mortgage and an Adjustable Rate Mortgage.
ARM: Adjustable Rate Mortgages: Mortgages that have adjustable rates from the start, which means your payments change over time.
Fixed Rate Mortgages: Mortgages where the rate is fixed for the life of the loan.
Hybrid ARM: Mortgages that have fixed payments for a few years and then turn into adjustable loans.
Have your mortgage representative explain which type of loan he or she is going to secure for you based on your qualifications.
Understanding what type of mortgage you’re going to have before you sign on the dotted line, can prepare you for some questions you may not have thought of until it is too late. For example, if you weren’t aware that with an ARM (Adjustable Rate Mortgage), the amount you will be responsible for will increase you can look at your finances and make sure you will be prepared for the increase or secure another type of mortgage.
Preparation is always best!
It’s best to talk to your Realtor who can point you in the Right Direction!
Any and all questions are welcome!