What is the Best Kind of Mortage in Chatham, IL
Buying a home can be both exciting and scary. This is a situation where you will be asked to make the biggest financial commitment of your entire life, in all likelihood. What many people don’t understand, however, is how important it is to get the very Best Mortgage Chatham IL Loan possible. Many people feel that they should accept whatever loan they get, but this can lead to big financial trouble. Here are a few things to keep in mind.
The first thing to consider is ARM vs. Fixed Rate mortgages. An ARM is an adjustable rate mortgage that will vacillate with the going mortgage rates across the country. The benefit to this kind of mortgage is it usually starts at a 2% or so lower APR than a Fixed Rate mortgage. However, the downside is that it can fluctuate wildly throughout the life of your loan, creating a very large mortgage payment that you can’t afford.
Fixed Rate mortgages are the most common type of mortgage. This is a mortgage with rates that stay exactly the same through the life of the loan. The benefit to this type of mortgage is that you always know what you’re payment will be and you can always appropriately budget for that payment.
It’s important to ensure that you get the lowest interest rate possible. With a loan of several hundred thousand dollars, 1% interest can mean a significant increase in your monthly payment. For example, a 30 year fixed on $250,000 at 4% will be $1,506.04 a month with insurance and taxes. At 5% your payment will change to $1,654.55 and at 6% it would be $1,811.38 each month. Just a little bit can make a huge difference on the affordability of your loan.
If you want to get the best mortgage Chatham IL loan possible, then you need to contact Diamond Residential Mortgage Corp. They can help you find the right type of mortgage and work with the necessary lenders to find you the best interest rates as well. They can also answer all of your mortgage questions, down payment questions and any questions you may have on the best type of loan.