Your Lake of the Ozarks Mortgage Lender: Types of Mortgages to Consider

Tuesday, November 12, 2019

Types of Mortgages to Consider - Part 1

Whether you’re purchasing your first home or you have several scattered around in your favorite locations - purchasing a house will always be a big decision. For a large number of the population, getting a mortgage is the fastest and easiest way to complete your purchase, and that is where Team Lasson comes into play! Because there are so many different components to a mortgage, from the interest rate to the terms of the loan, it’s important to have a mortgage lender at the Lake of the Ozarks who you can trust. Here are a few things you may want to keep in mind as you work through the mortgage process, and how we can help!

Fixed vs. Adjustable Interest Rates

This will be one of the first major decisions you make in your mortgage process. Knowing how your interest rate is treated is going to make a difference in the long run, so you want to make sure you understand before moving forward. Here are a few pros and cons to the different types:

Fixed-Rate Mortgages
The pros of this type of mortgage are that the interest rate stays the same for the entire time it takes you to pay off the loan. This means that the size of your monthly payment stays the same, and it’s easier for budget planning. The cons are that should mortgage rates lower at any time during the term of your mortgage, your rate is going to stay the same throughout the term.

Adjustable-Rate Mortgages (ARMs)
Pros can include that ARMs offer a lower interest rate (which can mean a lower monthly payment) for the first few years. However, the cons are that while the low-interest rate at the beginning is appealing, there is a risk of higher interest rates down the road.

Mortgage Terms

Your mortgage term refers to the length of the loan in years. This is the agreement you make with your lender on the maximum amount of time it will take you to pay off the loan in full.

15-Year Mortgages
Pros are that a 15-year term can keep you on track to pay off your home quickly, and it can often have a lower interest rate and even cost less in total interest compared to other loan options. Cons are that this term comes with a higher monthly payment compared to options with a longer term.

30-Year Mortgages
A pro is that you will have lower monthly payments with a 30-year term, compared to a 15-year term. A con is that you could end up with a higher interest rate, and could end up paying more in interest than you would have with a shorter term.

Securing Your Mortgage at the Lake of the Ozarks

Team Lasson looks forward to helping you buy the home of your dreams at the Lake. From a primary residence to a vacation home at the Lake of the Ozarks, we have done it all. Now is proving to be an AMAZING time to lock in your interest rate and get your mortgage or refinance finished up. If you have questions about this, we would love to chat with you! Start by visiting our website (www.YourLakeLoan.com) and filling out the application - we look forward to helping you buy the home of your dreams!

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