Mortgage Resource Center

The Benefits of Buying a Home

Even though purchasing a home can be a big-ticket expense, there are still a lot of perks to purchasing a home. Below you will find a list of the four benefits you can hope to receive when you buy a home. More

Mortgage Estimator

The Process of Purchasing a Home

Purchasing a home can be a confusing process, especially for first-time buyers. That's why we created a step-by-step guide to explain every step of the process of purchasing a home. More

Extra Costs of Buying a Home

There are a lot of unexpected expenses that first-time home buyers can often forget to include when they're debating whether or not they should purchase a home. This list breaks down each of these one-time and long-term added expenses. More

Additional Mortgage Tools

  • Should You Rent Or Buy?

  • Home Affordability Calculator

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Mortgage Options

As if purchasing a home and finding a mortgage aren't complicated enough, it turns out that there are multiple types of loans for you to choose from. Each of the mortgage loans has its own benefits, however it's best to make sure that you find the loan that fits your specific needs. We've broken down each of the three most popular types of mortgages to help you decide which loan is ideal for your home purchase:

This is the most popular home loan available because the interest remains the same throughout the life of the loan. Homeowners often choose a fixed-interest mortgage because they know that their interest rate and monthly payments will not change until they completely pay off the property. This type of loan is available in 10, 15, 20, 25 and 30 year terms.

Unlike the fixed-interest mortgage, the interest rate of the loan changes — based on the financial market — throughout the life of the loan, which means the monthly payments increase or decrease. The monthly payment amounts are determined by the lender and there is usually a set amount or cap, which is agreed upon by the lender and buyer, on the monthly payments to make sure the buyer can afford them throughout the loan's life.

This loan is a combination of the fixed-interest mortgage and the adjustable-rate mortgage. The hybrid ARM mortgage starts with a fixed or introductory rate that is in place for three, five, seven or ten years then the rate becomes adjustable. That's when the loan then becomes very similar to an ARM with interest rates that change regularly. The hybrid ARM is usually a good loan option for someone who is not planning to keep their home for a very long time because they get the benefits of the low introductory rate and, possibly, sell the property before the adjustable rate kicks in.

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