How long do I plan on being in this home?
Answer this question before you select your mortgage. When you get a mortgage you can choose between an adjustable rate mortgage (ARM) or a fixed rate mortgage. ARMs usually have 1 to 7 year terms while fixed rate mortgages range between 10 and 30 years.
If you’re planning on being in your home less than seven years, an ARM may be a wise choice. Here’s why:
ARMs generally have lower interest rates than fixed rate loans. If you’re planning on moving in five years, there’s no need for you to pay the higher rate of a 30 year mortgage.
If you have questions or don’t quite know if you should select an ARM or a fixed rate mortgage, contact your local Heritage branch — we’re happy to help.
Have questions about mortgages?