Loan Types and Your Options

The individual needs of our clients are taken into consideration before we suggest and explain suitable mortgage programs. Fixed rates may be recommended to the homeowner who wants to keep their present home for the long term. The borrower more interested in a short-term solution so they can upgrade to a bigger home in a few years may benefit from an Adjustable Rate Mortgage. Our clients are made aware of mortgages that may be most beneficial to their situation.

It is extremely important to select the correct loan program and understand why that program has been suggested before agreeing to a loan. MS Residential Mortgage, Inc. has received many referrals from completely satisfied clients who were happy with the advice provided by our loan consultants.

Fixed Rate Mortgage

Borrowers who benefit the most from obtaining a fixed rate mortgage:
  • Want to retain their home for the long term.
  • Feel secure in the knowledge that their rates will not change, irrespective of how the Market or Economy does.
Fixed Rate Advantages: Disadvantages:
No surprises, no uncertainty for future payments.

Easy to budget and plan your finances. 		Slightly higher rates to account for the longer term of the loan and to compensate the Lender for the additional risk of a possible change in the Borrower's financial status.

Adjustable Rate Mortgages (ARMs)

ARMs are better suited for Borrowers who:
  • Need a low rate to either get used to having a monthly mortgage payment or need the money saved for other financial obligations.
  • Are first time homebuyers who can qualify for more loan with the lower rates.
ARM Advantages: Disadvantages:
An ARM in a declining market offers the Borrower the advantage of a lowering rate without having to go through the process of refinancing.

Sometimes a Borrower is able to enjoy what is called a 'teaser' rate, which is rate below the market rate.

However, the opposite can happen in a market where the rates are on the increase. It can be more difficult to budget one's finances in such a variable market.

Payments may be higher than expected.

Teaser rates are eventually replaced by higher rates.


If you would like to speak to a loan consultant, click here for contact information.