Low Monthly Mortgage FAQs

The following are some of the most commonly asked questions we receive:

Is renting a home better than buying a home?

That can depend on your financial situation; however, renting a home is always going to be a short term option. Buying a house not only gives you ownership, but also a property investment value.

What is the difference between an ARM and a FRM?

An ARM, adjustable rate mortgage, is a mortgage with an interest rate that changes based on a monthly index. A FRM, fixed rate mortgage, is a mortgage rate that will stay the same the entire life of your mortgage. An adjustable rate starts lower than a fixed rate, but there is always the risk that it could rise higher then fixed rate you could have gotten. When getting a fixed rate you are paying more for the comfort of knowing your rate will never rise.

How does a down payment affect my mortgage?

The higher down payment you make the less you will have to pay monthly. If you have a good amount of money when you purchase the house then it would be a good idea to pay a higher down payment.

How does my credit score affect my mortgage?

The lower your credit score the higher your interest rate will be. This is because your low credit score will identify you as being a lending risk.

Make sure you avoid falling for these mortgage myths.