The most important feature of the program you choose is that it must have a mortgage payment that you can afford.
There is no sense in buying your dream home if worrying about making your mortgage payment keeps you up at night.
Need help determining how much you can afford to spend on your monthly housing expense? Click Here
To properly select a mortgage program, you need to consider how long you plan to own the property.
If you plan to sell the property in a few years, let’s say 5 years, there is no sense in getting a 30 year fixed rate loan when you can get a 5 year fixed adjustable rate mortgage with a lower rate. On the other hand, if you plan on owning the property indefinitely you should consider multiple options to determine which options best fits your needs.
To help you do this we can provide you with a table similar to the one shown below. This table lists the monthly payment options and the cost for 5 year and 7 year fixed rate options for a $560,000 mortgage. 
Using this table you can see what the difference in cost and in monthly payment is for each option. For example, the table shows that the borrower would have the option of a:
7 year fixed rate at 5.75% for a cost of $2740 or a
5 year fixed rate at 5.75% for a cost of $1430.
This is a difference of $1310 ($2740 minus $1430). The borrower would then have to consider whether or not it is worth paying the difference of $1310 to have their rate fixed for 7 years rather than for 5 years.
Using this side by side comparison, you can also determine if it makes sense to pay more upfront in order to get a lower rate over the life of the loan.
Call and have us personalize these options for you.
(415) 345-0794