Home & Auto Loans
Piggy Back: Home Loans
One of the most important decisions you will make around a home loan is the TYPE of loan you apply for. There are two basic types of loans: FIXED and ADJUSTABLE. Conventional wisdom tends to favor the fixed rate loan, because then you are locked in for 30 (typically) years and can sleep better at night knowing your mortgage payment won't go up. And with gradual inflation, your monthly payment gradually becomes more and more affordable. However, adjustable rate mortgages (ARMS) are increasingly popular among home owners. These loans can sometimes save you thousands of dollars in the first five years, at which point they can adjust or you can refinance to another ARM or even convert to fixed rate loan. Use our loan calculator to determine the difference over 5 years.
