Getting the Right Houston Mortgage for Now and for the Future!

A vital part of buying a home is getting a mortgage. But not all mortgages are the same. There are two general classes of mortgages; fixed rate mortgages keep the same interest rate for the full duration of the debt. The interest rates for adjustable-rate mortgages (ARMs) change every year after an initial period expires. You also choose the duration of the loan. 
 

That’s the easy part. When it comes to choosing those details, coming up with the right option for your family can be a brain-twister (especially when you realize how big a difference different future scenarios might present). When you go about getting a mortgage, you need to account consider the major factors - 

• Affordability. Your budget for month-to-month payments is the largest single element to gauge when getting a mortgage in Houston. If you want to ensure lower monthly payments and minimize the risk of increases, tilt toward a longer-term fixed rate mortgage. If you can afford to risk a higher interest rate, a short-term ARM might be best.   

• Future Rates. This can be a key issue when choosing between a fixed-rate mortgage and an ARM. If you suspect interest rates will decrease over time, you might tilt toward the ARM, since those mortgage payments will eventually decrease along with interest rates. If interest rates are headed up over the long haul, a fixed rate lets you to lock in today’s lower rates.

• Permanence. If you plan to live in your new home for just a short period, your choice for getting a mortgage may be less complicated. ARMs usually start out at a lower rate than do fixed-interest mortgages, and if you move before the adjustment period begins, you can take advantage of the lower initial rate and avoid the future possible payment increase.

Like all financial decisions, getting a mortgage in Houston should be carefully undertaken: always keeping in mind your long-term financial goals. I’m here to help clarify the many issues that enable my clients’ success: call me today if you are thinking about a move this year!

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com