Choosing a loan that meets your individual needs requires you to review your financial objectives and ask certain questions that along with the help of a loan officer will help you make informed decisions. One of the most important questions to determine is how long you intend to occupy the house. What is your tax bracket? How much can you afford for a down payment? Is paying the mortgage off early important? Can you or should you make extra principal payments? Do you want a level payment or a variable payment mortgage? Should you finance the closing costs in the interest rate or the loan amount? The two most common loans are fixed-rate mortgage loans and adjustable-rate mortgage loans. If you plan to stay in your house for a long time, you will probably want a fixed-rate loan so that your interest rate stays the same throughout the entire life of your loan. Fixed-rate mortgages are available in a variety of repayment terms, with 15, 20 and 30 years the most common. The interest rate with an adjustable-rate loan (ARM) adjusts periodically as the market rates change. These loans are attractive to consumers because they usually offer a lower initial interest rate than a fixed-rate loan, and many people qualify for larger loans due to this initially lower rate. On the other hand, the rate can increase substantially and some people cannot handle the instability.

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at (800) 741-7813 or 910-692-6225.