Are you looking for a new home for your family? If you are, then you might be looking for the best Mortgage Rates as well! There are several mortgage rates you can find in the market. However, finding the best rate is not the only thing important when looking for mortgage options. You need to choose the type of loan or rate you should use based on your circumstance as well.

For instance, if you are planning to buy a new home that you aim to keep for a long time or lifetime, the best loan for you is the 30-year fixed rate. That is because you will soon find that it is more worth to settle a high interest rate from an interest rate that you are certain won’t change for 3 decades.

In case you plan to go for refinancing for 15 to 20 years before you retire, it is better to choose the 15 to 20 year adjustable or fixed rate mortgage. That is because in this option, you are able to retire from the loan even before you retire from working. Yes, the cost of fixed rate is higher than with an adjustable. However, it is the one that better gives you certainty when it comes to budgeting. As for ARMs, you are able to able to save more from the adjustable rate if it is cheaper and you know that your income can still handle it even with a payment increase.

Are you a recent graduate planning to buy your own home? If you are certain that you have the potential of earning more, you can use the 1-year ARM option. This option allows you to have enough dollars to use with lower interest rates to pay. Yes, the rate may go up or down every year. However, the interest rate cap will always have a limit, which is guaranteed to be in a predictable amount. Hence, as time passes by, the more your income will be able to handle it. Just be careful with those that loans that do not have interest rate caps since it can only make your debt grow even if you are making the monthly payments.

It is best to use the A5/25 hybrid loan if you plan on buying a new home, but only live there for 4 to 5 years. The reason here is there’s no point in paying the extra amount just to lock-in the interest rate for a longer period if you are only going to have the loan for not more than 5 years. And even when stayed longer using the loan, you have the option of refinancing or just live with an adjusting interest rate each year.

From this, you’ve seen that there is a suitable mortgage option for you no matter what your circumstance is. Mortgage Brokers are experienced in getting the best type of mortgage for your needs. For more information about loan types visit: different needs different loans – Investopia