Finding the Right Mortgage for Your Home Purchase

Researching mortgage loans will help you avoid making the wrong decision on your financing which could cost you thousands of dollars down the line. Choosing right mortgage is critical in the current Portland real estate market. A mortgage can also be a great investment tool, which is very important since buying a home may be the biggest investment you will ever make.

Here are a few tips to help you make sense of the various mortgage programs available to the consumer:

•    How long do you plan on staying in the home? If the answer is less than five year, you may want to consider a 3, 5, or 7 year adjustable rate mortgage (ARM), which will have a lower interest rate for that period of time. At then end of the ARM period, the interest rate will adjust based upon the rates at that time.
•    How much risk are you willing to take? If you can tolerate financial risk you might consider a variable rate mortgage with an interest only payment. They can save you money over a short period of time, but can fluctuate widely and may end up costing you more down the road. If you want to avoid risk, you should stick with a fixed rate mortgage.
•    Is a fixed rate mortgage right for you? If you plan on staying in the same home for more than 10 years, the 30 year fixed mortgage will be the best option. This will allow you to budget for the same mortgage payment over the life of the loan and keep you shielded from the swings in the lending market.
•    The two most important parts of a mortgage are the interest rate and the down payment. Typically the more you put down the lower the interest rate. Depending on you financial goals you may or may not want to put down a large amount.
•    Whether it’s a fixed rate, interest only, or an ARM you need to be comfortable with the terms and the monthly payment. The best way to get comfortable is to know your options and it’s strongly recommended to use a mortgage broker that you can trust.

We have a couple mortgage brokers that we have great relationships with and wouldn’t hesitate to recommend them for your real estate purchase in the Portland metro area.

See our Buyers Page for more articles on the home buying process, as well as articles geared towards using your mortgage as an investment vehicle to maximize personal wealth.

Use our custom map to find Portland Homes for Sale or browse our selction of Portland Neighborhoods