Comparing Mortgage Types: Which is Right for You?

Comparing Mortgage Types: Which is Right for You?

Choosing the right loan can save you tens of thousands of dollars over the life of your home. In today's low-rate environment, your options are plentiful.

1. Conventional Fixed-Rate

• Best for: Stability. Your rate never changes for 15 or 30 years.
• Ideal in: 2020, while rates are at record lows.

2. Adjustable-Rate Mortgages (ARM)

• Best for: Buyers who plan to sell in 5-7 years.
• Pros: Lower initial rate than a fixed mortgage.

3. Jumbo Loans

In towns like Newton and Weston, most loans are 'Jumbo' because they exceed the federal limit. These often require higher credit scores and larger down payments (20%+).