As I was sharing with the class last night, I wanted to impress upon them the importance of understanding the loan process. I shared with several types of mortgages:
1) A traditional, 30 yr fixed mortgage. One gentleman asked me what that was. I went on to share with him that this has been the normal mortgage that people have gotten. He asked me what did traditional mortgage mean. I shared with him that your payments are the same very month.
2) Upon understanding a 30 yr, fixed mortgage. I shared with the class regarding a 15-year mortgage. He asked if a 15 yr mortgage was a good step to take. I assured him that would be less interest payments and time to pay for your house. The downside to this is that you will start off paying more.
3) We moved on to discuss an ARM. This one we discussed in greater detail because of 4) Lastly we discussed a no documentation loan primarily because I shared a scenario regarding how this type of loan was an option for us at one time. I explained who qualifies for a no documentation loan.
The above are only some of the types of loans available. Make sure when you are talking with a loan officer or mortgage broker, you ask enough questions and fully understand your options.
