Loans: What is important to you

Before I took my real estate classes, I was clueless about how to finance a house. You always see commercials on TV spouting off different numbers for this and that and those numbers almost always have a * attached to them. I thought I would give a quick rundown of some basic types of loans you may encounter when purchasing your first home.


Great question to start out with: What exactly is a mortgage? If you have ever played the board game Monopoly, you've seen the word mortgage. To put it simply : "You have a certain amount of money. The home costs a certain (larger) amount of money. The home mortgage loan covers the distance between the two." Types of Home Loans  


Ok, so your mortgage essentially helps you pay for your home. Now most of us will encounter mainly two types of loans, fixed-rate mortgage  and an adjustable rate mortgage. 


Fixed Rate Pros and Cons

• Interest rate stays the same over the lifetime of the loan (usually 15 or 30 years), therefore your payment will never change
• Since it is fixed, the economy cannot effect this loan, however, you will be paying a higher interest rate for that security

Adjustable Rate Mortgage (ARM) Pros and Cons

• Low fixed rate 3, 5, or 7 years (lower than a fixed rate loan)
• However, after this introductory period, you cannot predict whether your interest rate will rise or fall 

This is just a very quick rundown of loans. For further reading, I would suggest this article: Fixed Rate Vs ARM

If you have any further questions about loans or the process, my preferred banker can give you a free consultation. Please do not hesitate to ask me! Rates are amazing right now!


Also, my very good friend Mark Davis works for American Bank up in Columbus and he has all the info you could ever want on loans. His contact info:

Mark Davis |Mortgage Banker

American Bank

National Lending Center

150 E. Campus View Blvd  Suite 200
Columbus, OH 43235

Toll Free: 866-209-7652 | Local: 614-441-9233

Fax: 1-800-785-1583