Choosing mortgage professional image

Step 7: Choosing the Correct Mortgage 

So, you found the house! Talk to your Realtor® about what is included on the real estate contract, and how to complete it. Consider the following with your Realtor, who will help you step-by-step:

  • What purchase price will you offer the seller?
  • Who will pay closing costs?
  • Who will pay for inspections?
  • What do you want to keep and what needs to go?

Also, an offer requires an earnest money deposit, refundable during a certain period of time. By making an offer, you are signing a contract, and if the sellers accept, you are one step closer to owning the property. Don’t be discouraged if your offer isn’t accepted, because they could counteroffer, and then the process could repeat again…and again.

FIXED-RATE:
Comes in 30-, 20-, 15- and 10-year loans. It guarantees the interest rate will remain the same and offers you the security of knowing the monthly payment will never change.

ADJUSTABLE RATE:
Comes in 3/1, 5/1 and 7/1 ARMS. The initial interest rate on an ARM is usually lower than the rate on a fixed rate loan. The lower interest rate will remain fixed at the initial rate for the first years specified. After that, the interest rate will change annually based on the value of the index plus the margin, subject to annual and lifetime interest rate adjustment caps.

It’s best to discuss all the options with your mortgage loan originator before deciding. The mortgage loan originators at CapFed® are available to discuss all your options.

Email loans@capfed.com, for more information, or CALL 1-888-8CAPFED (1-888-822-7333).

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