Is it important that the payment is the same every day?
- If so, you have not consider a fixed-rate mortgage . Is it important for you to build equity quickly?
- If this is a factor, you Should not consider a shorter amortization (final payment) period, Such as a 15-year, fixed-rate mortgage. Your income will stay stable, or Increase?
- If you anticipate an Increase in income, you MIGHT want to take advantage of a lower start rate on an ARM or a temporary Buydown . Other factors:
- Ability to qualify for the loan
- How long you will live and the location
- How would you be affected by significant rate changes
- Possibility of up-front costs
