Many lenders now offer specialty mortgages that help make homeownership more affordable but have risks that consumers should fully consider (see our brochure on specialty mortgages - item 126-105). But for most consumers, the traditional fixed-rate mortgage and adjustable-rate mortgage (ARM) continue to be excellent options. However, even these traditional financing options require a number of important decisions by the consumer. "Should I get a 15- or 30-year loan?" "Should I get a fixed-rate mortgage to lock in today’s interest rates for the term of the loan—or is taking out an adjustable-rate loan with a lower current rate and payment, but with the risk of rate and payment increases in the years ahead a better choice?
This brochure also helps the consumer consider other options such as tapping into the equity in their homes by refinancing their existing mortgages, taking out a second mortgage, or obtaining a home equity line of credit.
Created with the Center for Responsible Lending, a nonprofit "dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices," this useful brochure helps consumers better understand what types of mortgage are best for them.
Back to Top
