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What type of loan is best for you
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What Type of Loan is Best For You

Selecting what type of loan is one of the most important steps in the process, and one in which Prospect Financial Services excels. Deciding which loan makes the most sense for your financial situation and goals entails understanding the benefits of each. Prospect Financial Services offers many home loan options. We will work with you to determine the very best option for your particular situation!

Learn about your options. Each type of loan has advantages and disadvantages. Loans that are easier to qualify for might not always be the best deal. You need to weigh their different benefits based on your financial situation. We can help you do that!
The Three Basic Types of Loans
 

Whether you are buying a home or refinancing, there are three basic types of home loans. There are different reasons why you would choose each.

 
Fixed Rate Mortgage

Fixed rate mortgages are loans where the interest rate remains the same for the life of the loan. This is the option for you if you:

  • Plan to live in home more than 5 years
  • Like the stability of a fixed principal/interest payment
  • Don't want to run the risk of future monthly payment increases
  • Think your income and spending will stay the same
Adjustable Rate Mortgage
Adjustable rate mortgages have interest rates that may change at specified intervals. This is a good choice if you:
  • Plan to stay in your home less than 5 years
  • Don't mind having your monthly payment periodically change (up or down)
  • Are comfortable with the risk of possible payment increases in future
Combination Rate Mortgage

Combination Rate Mortgage is also known as the "Intermediate ARM"
These loans have a fixed initial term from 3 to 10 years. After that, they may adjust at specified intervals. This product works well if you:

  • Want the stability of a fixed principal/interest payment in the short term
  • Want to borrow more and get a lower monthly payment than a standard fixed rate loan
  • Will not be in the home for longer than the initial term

 
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