What Mortgage is Best For You?
Did you know the most affordable mortgage may not be the one with the lowest rate?
In fact, there are a number of ways you can structure your mortgage, from lowest monthly payment to lowest down payment, and each comes with a different set of pros and cons.
That's why we've broken down the process into a series of videos to help you understand your options and choose the best mortgage for your financial situation.
Understanding Your Mortgage
There are a variety of viewpoints on the ideal mortgage structure, but, sadly, there is not a one-size fits all answer. In our Mortgage 101 video series, we evaluate the four approaches to establishing a mortgage term: the lowest interest rate, the lowest monthly payment, the lowest closing costs and the lowest total cost of ownership. These four options all have unique advantages and disadvantages — we’re here to break down what is the best fit for your current financial situation.
Lowest Interest Rate
Many people incorrectly assume that the lowest interest rate equates to the overall lowest cost of ownership but, in reality, choosing a mortgage based on the lowest interest rate could prove to be a very costly mistake. In this video, we explore why the lowest interest rate available for a specific loan type or product will generally come with the highest fees.
Lowest Closing Costs
Closing costs are often an intimidating fee for buyers. To combat this, some lenders advertise a no-closing cost mortgage but, unfortunately, there is no such thing. In this video, we explore what makes up standard closing costs and how lenders are able to advertise a no-closing cost mortgage.
Lowest Monthly Payment
Selecting a mortgage with the lowest monthly payment might seem like an obvious choice, but there are many more factors to consider, especially if you have less than the standard 20% down payment. In this video installment, we check out the various variables that play into determining a borrower's interest rate and ultimately the monthly payment.
Lowest Total Cost of Ownership
Basing your mortgage on the lowest total cost of ownership certainly seems logical, but that doesn’t necessarily mean that it’s the right decision for you today. In this video, we discuss the importance of realistically assessing how long you’re likely to keep this mortgage and not how long your plan to keep the home.
