A HOME FOR YOUR FAMILY 12
Choosing the Best Mortgage
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Selecting a mortgage can be perplexing,
frustrating, and time-consuming. Mortgage
lenders offer a variety of loan packages
under different names with different interest
rates, up-front costs, and fine print terms, all
of which can change frequently. You need a
lot of information to get a mortgage that
best fits your needs at a competitive price.
Sources of mortgages include: savings
and loan associations, commercial banks,
federal and related agencies, life insurance
companies, some credit unions, and family
When you start to shop for a mortgage,
you will find a number of factors may cause
interest rates to vary, such as differences in
lenders, the size of the mortgage, the
amount of down payment, and general
conditions in the money market.
A number of mortgage types are on the
market today, including: fixed rate, adjust
able rate, graduated payment, growing
equity, balloon, or wraparound and others.
In addition, you have other choices to make:
•	 Fixed versus adjustable payments.
•	 Fixed interest rate with payments that
usually do not vary versus adjustable and
variable-interest rates where payments do
•	 Variations of fixed or adjustable pay
•	 “Creative financing” alternatives.
•	 Form of payments.
Your challenge is to match a mortgage to
your personal situation. You need to con
sider current market conditions, the age of
your family, your attitude toward risk, and
how long you plan to stay in the house. It
may take time, phone calls, and leg work,
but when you are ready to sell the house or
pay off the mortgage, your investment in