Grow Financial Federal Credit Union
June 13, 2019

How to Choose the Right Loan for Financing Your Home

Finding your dream home is easy. You’ll know it when you see it. Your dream home loan? That won’t be so obvious. About one in five homeowners experience buyer’s remorse because they got stuck with the wrong mortgage, or the wrong mortgage lender.1 Here’s what you’ll need to know so you can walk into your new home with no regrets.

Mortgage Interest Rates

A surprising number of homeowners don’t know what rate they’re paying. Big mistake. Even at today’s low rates, a small percentage point can save or cost you thousands in interest over the life of the loan. It definitely pays to shop around and compare rates from several lenders.

Mortgage Loans

Basically, your choices come down to either a fixed-rate or an adjustable-rate mortgage. What’s the difference?

Fixed Rate The 30-year fixed-rate mortgage is the reigning champion of home loans for a very good reason – security. Your rate is set forever, and your monthly payments will not change. Plan on living in your home for a long time? This is your best option.

Adjustable Rate (ARM) Here, your rate is set for a certain period of time, then it adjusts, according to your loan structure and the state of the market. That’s good when rates go down, because your monthly payments also go down. But it can very bad when rates go up. The advantage of an ARM is that, generally, your interest rate and monthly payments are lower at the start, but it’s a little risky, so consider this option carefully.

Mortgage Lenders

Look, all mortgage lenders want your business, including us. However, some just want to get you into any loan they can, and not the best loan for you. That’s when you have to trust your instincts. Are they attentive? Do they take the time to explain all the confusing mumbo jumbo and answer your questions? Even though you may never see the person you’re talking to, it still comes down to people. Go with a lender you’re comfortable with, someone you trust.

To start, why not talk with a Grow Real Estate Loan Officer? Call us at 800.839.6328, ext. 2694. And if you like what you hear, let’s get you home!

1Bankrate, January 29, 2018.
Subject to credit approval. Grow Financial mortgage loans are valid for the purchase or refinance of owner-occupied residential properties in the states of Florida and South Carolina, including single-family detached, condominiums and townhomes. Not valid for the purchase of investment properties. Grow Financial mortgage loan rates are updated daily and available at growfinancial.org.


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