So, Big Spender, You've Got Money...
But You also have Choices
Having money gives you options. Just because you have the money, doesn't necessarily mean you should spend it. Maybe using someone else's money for the 20% is a better option. We can go through this scenario and see what is best for your situation. If you want to see what the non-20% loans look like, click here.
Below are some of your options as a 20%-er.
| Loan Type | Explanation | Pros | Cons |
|---|---|---|---|
| 30-year Fixed | This is very common and means your interest rate will remain the same for the 30-year life of the loan. | Stable percentage rate for 30 years, so no surprises | Not the lowest rates available |
| 15-year Fixed | Your interest rate remains the same throughout the life of the loan's 15 years. | Save tons on interest charges compared to the 30-year because it is only half as long and usually is a lower rate than the 30-year fixed | Higher monthly payments because you are paying it off in 15 years |
| ARM | This stands for an Adjustable Rate Mortgage and means the rate can change. These types of loans can vary such as having a fixed rate for a period that then becomes adjustable. For example, it might be fixed for 5 years and then it can adjust every year after that. | Usually lower rates than the fixed rate loans. This is sometimes a good option if you know you will only have the loan for a short period. | The rate is not set after the introductory period, so it could go up. Usually there are safeguards that keep it from going up too fast or too high, though. |
| Interest-only | You pay only interest on the loan and never actually pay down on the original principal | Lower rates and lower monthly payments | You never pay off the loan. |
The best way to start is to fill out the application (it's free), so we can start analyzing the best plan for your money.
3100 W Ray Rd STE 201 Office #209, Chandler, AZ 85226
NMLS #1660690