Finding a home in Illinois can be tough enough without thinking about mortgage services. When picking the best mortgage keep in mind that different mortgages fit different needs. There are two mortgages that you should be informed about as a home buyer: A fixed rate mortgage and an adjustable-rate mortgage.
The benefit of having a fixed rate mortgage is predictability. As you would assume a fixed rate mortgage has a fixed interest rate from the day you get your loan, your mortgage rate is set and does not change until the loan is fully paid.
The benefit of having an adjustable-rate mortgage is the lower rates that often come along with it. The rate will remain unchanged for a fixed number of years and will change based on the preset formula. Adjustable-rate mortgages cannot adjust too high in a small amount of time because of “adjustment cap” limits.
If all of this sounds a little like jargon it’s okay. Insurance and Mortgage Services can help you choose the best mortgage based on your unique needs. Contact us today to discuss your mortgage service options!