Step 2 - Learn About Loans
Countrywide offers a wide variety of home loans for every borrower. You'll find everything you need to know about each type of home loan and its advantages here. Or, if you'd just like us to help match you up to your best choices based on your preferences, contact me.
Overview
There are home loans for every type of home buyer. The goal here is to match the benefits of a specific loan type with your goals for owning a home. Here's a chart to start you thinking.
| Your Home Ownership Goal |  | Your Loan Strategy | ||
| Plan to live in your home for many years. | | | Low interest rate over a long period of time. Since you're going to be making payments for years to come, your best strategy may be a fixed rate loan and paying points to get your rate as low as possible. |
| Plan to sell or refinance your home in just a few years. | | | | Avoid points and closing costs since the difference in interest payments won't typically make up for your out-of-pocket costs at closing. Also try for a smaller down payment. A fixed period ARM is a good choice for holding rates down for a set number of years. |
| Want to pay off home loan by the time your children are in college. | | | | Shorter term loans such as a 15 year fixed rate home loan are a smart way to ensure you can use income for other goals later in life. Plus you build equity faster. |
| Want to budget for a fixed payment each month. | | | | A fixed rate loan has a principal and interest payment that stays the same for the entire term of the loan. |
| Comfortable with periodic changes to interest rate if it means you can get more home now. | | | | Adjustable rate mortgages are a great solution for people with incomes that are going to grow and will quickly refinance or be able to afford a larger payment in a few years should interest rates rise. |
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