Mortgage

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Understanding Mortgages

from home refinance to home purchase, lmb has you covered

Pros and Cons of the Different Loan Types

15 Year Fixed Rate

Pros
  • Lower interest rate
  • Lower amount to pay back
  • Home paid off in only 15 years
Cons
  • Higher monthly payment

30 Year Fixed Rate

Pros
  • Lower monthly payment
Cons
  • Higher interest rate
  • In debt for 15 more years
  • Higher amount to pay back

5 Year Adjustable Rate

Pros
  • Lower monthly payment for the first five years
  • Perfect if your living situation isn’t permanent
Cons
  • Monthly payments after first 5 years will be unpredictable (no fixed interest rate)

Frequently Asked Questions

Learn the mortgage basics

What is Home Refinancing?

Refinancing is the act of getting a new mortgage to replace the original one, usually done to obtain a better interest rate and term.  

Why should you refinance your home?

Refinancing can be a great way to get a lower interest rate to lower your monthly payment or pay less over the life of the loan. 

What is a home loan?

Known as a mortgage, a home loan is a loan that is secured by property or real estate.  In giving the loan, the lender is promised that the buyer will pay back the amount borrowed within a particular timeframe and owns the property until it is completely paid off.

What are different types of home loans?

Home loans can come in a few varieties, but the most common are a fixed-rate loan and an adjustable rate loan.  Other types include an FHA loan, VA loan, USDA loan or a Bridge loan

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