Which mortgage is right for you?, by Sharon Bartlett.

By Sharon Bartlett

Which mortgage is right for you?

MORTGAGES… It’s a sensitive topic and I will try to be as impartial as possible. But right off the bat, this is a subjective decision that you have to make yourself, all I can do is offer guidance.

Let’s get started. Choosing the right mortgage will certainly be a bid decision with huge impacts on your journey to homeownership. As such, I understand that this is an emotional question to you. After all, your mortgage provider will be with you for the next 1030 years. Therefore, you cannot afford to get things wrong right from the start.

I have found that most first-time homebuyers often struggle with the question, ‘which mortgage is right for me?’

If you are at this stage, first of all, congratulations, you have come from so far. What you are feeling right now is completely understandable. Choosing the right mortgage can make a huge difference to your financial future.

There are so many options available, which can be quite confusing to the first-time homebuyer. Oftentimes, it will feel like picking a need in a haystack. So what do you look for when choosing the right and best mortgage?

To help you figure out what mortgage to work with, I will be sharing with you 6 types of mortgages to choose from each month only on this issue of The Power Is Now Magazine, therefore, lookout for the next edition to learn more about the right mortgage for you.

Before choosing a mortgage, you have to decide whether you want a fixed or adjustable interest rate which is what I want us to talk about this month.

FIXED VS. ADJUSTABLE INTEREST RATES

When choosing the mortgage, one of the first things you will have to determine is how the mortgage lender will be treating your interest rate. Each one has its own advantages and disadvantages.

Some lenders will offer you a fixed rate while some will offer you an adjustable rate. Some will even offer a combination of both. For instance, it’s not a surprise to find a 30-year mortgage with a 5/1 adjustable rate. This means that your mortgage interest rates will be locked for five years, then adjust annually for the remaining 25 years.

FIXED-RATE MORTGAGE

What this means is that the mortgage rate will remain the same for the life of the loan. This means that your monthly mortgage payments will relatively remain the same, which is good if you are a person who likes to plan and keep a budget. The only disadvantage I find with the fixed-rate mortgage is at times, it will be higher especially when compared with the adjustable-rate mortgage.

ADJUSTABLE-RATE MORTGAGES

Unlike the fixed-rate mortgage, the adjustable rate means that your rate will go up and down, following the economic swings. This means that there are some months where you will pay more. One of the advantages I find with the ARM is that you can benefit from the low interest rate hence low mortgage payments at times depending on the economic performance.

But, on the other hand, ARMs have a huge risk of higher interest rates down the road. And while they are so appealing in that you can afford a more expensive home, what happens to in case of an economic downturn? Or when you lose your job and are unable to afford the monthly payments at a higher rate?

MY PERSONAL OPINION

Before deciding what mortgage is best for you, try and find out the rates each lender is willing to give you. In addition, I would steer away from the ARMs they are probably the worst mortgages out there, it is best to go for a fixed rate, something that you are sure will never change no matter the economic condition.

This sums up this month’s discussion on the best and right mortgage for you. If you would like to know more about these ARMs and fixed-rate mortgages, reach out to Sharon Bartlett, one of the VIP Agents with the Power Is Now, or talk to Eric Lawrence Frazier MBA, the Founder and CEO of the Power Is Now Media at 800-261-1634 ext. 703.

ABOUT SHARON BARTLETT LIC#0684103 | TEXAS

Sharon Bartlett is a real estate and mortgage industry expert with almost 40 years of experience. After spending 35 years at Freddie Mac, Sharon set out on a path to create her dream job. She started with her consulting firm, Sharon Bartlett Consulting, LLC, which lead to obtaining her real estate sales license, and then the creation of a real estate training company, the Real Estate Academy for Learning (REAL). Most recently, Sharon became the National Director of Operations for US REO Partners, a nationwide real estate trade organization that connects and trains REO professionals. To read more about Sharon, go to; https://www.thepowerisnow.com/sharonbartlett/

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderateincome and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com

WILDFIRES DON’T CARE ABOUT YOUR RACE. BUT WHEN WE TRIED TO RENT A NEW PLACE TO LIVE, WE LEARNED THAT SOME LANDLORDS DO.

When the fire came, we had to run from our home. Fortunately, we found temporary shelter. But as we started looking for a place to live, we ran into housing discrimination, which isn’t just unfair – it’s illegal. If you feel that a landlord or broker has denied you the sale, rental or financing of a home based on your race, color, religion, sex, national origin, disability or because you have children, report it to HUD or your local fair housing center.

Go to hud.gov/fairhousing or call 1-800-669-9777 Federal Relay Service 1-800-877-8339

FAIR HOUSING: THE LAW IS ON YOUR SIDE.

A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability.

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