Find the best type of home loan  

If you want to buy a house and need to take out a mortgage, you might get a little confused by this process. It can be quite complicated, and there are many terms you will need to familiarize yourself with. It is hard to choose the right home loan if you do not know anything about them. You need to do your research so that you know what to look for, and what is available to you.

It is crucial to choose a reputable home mortgage lender, such as Moreira Team, and to discuss all your options. They will discuss terms like balloon mortgages, and adjustable and fixed rates. If you have no idea what they mean, you will be pretty confused. That is why you should know at least the basic information about them.


If you want to buy a property, and stay in it until you pay it off entirely, a fixed rate home loan might be most suitable to your situation. Here, you will have a fixed payment you will need to spend money on, and it will never change during the whole life of the mortgage, no matter what happens in the financial market. However, it can be both a good and a bad thing. For example, if the interest rate skyrockets, your payment will stay the same, which is fantastic. On the other hand, if it falls, you will be paying more than you need too.

If you choose an ARM (adjustable rate mortgage), your interest rate will go up and down, depending on the market. The higher it is, the greater your payments will be, and vice versa. With this type of home loan, you will never know how high your monthly mortgage obligation will be, from one reporting period to another. It is ideal if you want to buy a property for investment purposes, and sell it quickly. If it looks as if interest rates are on the decline, take advantage of this opportunity. Also, remember that you can take out an adjustable rate mortgage, and change it back to a fixed rate home loan later. If you want to know more, take a look at Moreira Team LinkedIn.


When it comes to balloon mortgages, you will need to make monthly payments for a fixed period, and with an unchanging interest rate. When it ends, you will owe the unpaid balance in one large sum. The advantage is that these rates are much lower than with fixed and adjustable options. However, the negative thing about it is that you will need to pay a huge payment at the end of the period. If you plan to hold the house only for a short time, this might be the perfect mortgage loan option for you.

If you have no idea which alternative to choose, consult a home loan specialist. These professionals are very knowledgeable and can help you pick the right solution, most suitable to your needs, and your financial situation. If you have no idea what to choose, it is recommended to get a second opinion from another experienced home mortgage lender.

Brenda McCoy

Brenda McCoy

I like to focus more on people than technology. I have a passion for teaching.
Brenda McCoy