You've just found a home in a nice neighborhood and you plan to stay there until your kids are through high school. Or maybe you're 65 and are buying your retirement home. In either case, you know you're not moving for at least a decade.
What you want: No doubt about it. In the current environment, you want a fixed-rate mortgage. Rates on a 30-year fixed-rate loan are incredibly low, and though a fixed rate still costs more than an adjustable-rate mortgage, the difference between the two is not that great. The price of stability, in other words, is relatively affordable. If your monthly cash flow permits it, you might consider a 15-year loan. The monthly payment is higher, but you pay less interest over the life of the loan.
Where to shop: Your first stop should definitely be a mortgage banker such as Countrywide Funding. Unlike mortgage brokers, with which these outfits are sometimes confused, mortgage bankers are not intermediaries between you and a lender; they are lenders. Mortgage bankers don't write a lot of adjustable-rate loans, because it's harder to package those for sale to organizations, such as Fannie Mae and Freddie Mac. Thus, because mortgage bankers make their money on fixed rates, their prices tend to be the most aggressive around.
source: yahoo.com
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