Choosing a Mortgage
Let us help you find the best loan program for your life situation!
Which program is right for you?
We can tailor a mortgage program to fit your specific needs. Columbia Mortgage knows that financing can be a hectic part of the home buying experience. Our mortgage consultants make it their priority to guide you through the financing process and into the best loan program for your situation. They can provide approvals in minutes, hassle-free one-stop shopping, and efficient underwriting with your best interests in mind. With a vast menu of loan products at their disposal, they will find a solution that gives you the greatest long-term benefit at the most competitive rate.
An important decision in the process is whether to select a fixed rate or an adjustable rate mortgage (ARM). Fixed rate mortgages offer principal and interest payments that don’t change during the loan term. ARM’s and balloons generally offer a lower starting interest rate; however, the payments can go up or down periodically (annually or every few years) depending on market conditions and the type of ARM selected.
Use the following as a guide to determine which mortgage may work best for you:
Fixed:
- I like the security of knowing my monthly principal and interest payment won’t change over the years.
- I think that interest rates may increase significantly during the term of my loan.
- I plan to be in my home more than ten years.
ARM:
- I only plan to live in my home for ten (or fewer) years.
- I’d like lower payments in the early years of my loan.
- I can budget for and manage mortgage payments that fluctuate with interest rates.
- I need a larger loan than I initially thought for the house I want.
- With over 350 different Mortgage Products available, your Mortgage Consultant (link) can help you determine the best product for your current and anticipated future situation.
TIP: You could experience significant savings with a 15-year Mortgage. For instance on a $150,000 mortgage at 7.5% interest you would pay approximately $250,293 over the life of the loan. On this same loan with a 30-year term you would pay approximately $377,575 over the life of the loan. This is a savings of around $125,000 – over $8,300 per year for 15 years.
