OCEAN PACIFIC MORTGAGE

Before You Begin | Choose the Right Loan for You
Picking Rates, Points and APR |Getting Pre-Approved
| Closing Your Loan | From Contract to Closing

Step 2: Choose the Right Loan for You

To find the best loan for your needs, think about your short- and
long-term plans, your financial goals and your risk tolerance. Here are some
scenarios to consider, along with the best home loan types for each. If you;

Plan to live in your home for many years.


Look for a low interest rate over a long period of time. Since
you're going to be making payments for many years, your best strategy may
be a fixed rate loan and pay points to get your rate as low as possible.

Plan to sell or refinance your home in just a few years.
You may wish to avoid points and closing costs, since the difference in
interest payments won't typically make up for your out-of-pocket expenses at
closing. Also, look for a loan that enables you to commit to a
smaller down payment. An ARM is usually a good choice for holding rates down
for a set number of years.

Want to pay off home loan by the time you retire or your
kids are in college.

Shorter-term loans such as a 15-year fixed-rate home loan are an excellent way to
ensure that you can use your income for other goals later in life.
Another benefit is that you build equity faster.

Want to budget for a fixed payment each month, or don't want to
risk paying higher interest rates.

A fixed-rate loan has a principal and interest payment that stays the
same for the entire term of the loan. Avoid adjustable-rate or balloon loans.

Are comfortable with the risk of higher interest rates if it means you
can qualify for a larger mortgage right now.

Adjustable rate mortgages are a great solution for people with incomes that are
going to grow and who will quickly refinance or be able to afford
a larger payment in a few years if interest rates rise.

Click here to see a description of all the loan options.