Your Guide to Choosing a Mortgage

When it comes to purchasing a home, choosing the right mortgage is one of the most important decisions you’ll make. With so many options available, it’s smart to understand the main differences between various types of mortgages to find the best fit for your homebuying journey. Let’s explore some of the most common mortgage options.

Fixed-rate vs. adjustable-rate mortgages

First things first: understanding the difference between fixed-rate and adjustable-rate mortgages (ARMs). They’re both great options for different buyers. Here’s how to choose which type best fits your needs:

Fixed rate: The fixed-rate mortgage is the reigning champion of home loans for a very good reason. The interest rate is set permanently, and the monthly payments stay the same throughout the loan. A fixed-rate mortgage might be best if you:

Want the security of a predictable interest rate and monthly payment.
Plan to stay in this home for several years or longer.
Don’t expect your income to increase significantly in the coming years.

Adjustable rate: With ARMs, your rate is fixed for a set period and then adjusts at regular intervals, according to your loan structure, based on the market rates. ARMs are often named with their terms. For example, a 5/1 ARM has a fixed rate for the first five years and then adjusts yearly afterward. An ARM can be ideal if you:

Want to maximize your buying power.
Want to keep your payments lower during the first few years of your loan.
Plan to move into a different home within the next ten years.
Plan to pay off your mortgage within the next ten years.
Expect your income to increase significantly in the coming years.

If you’re not sure which type of mortgage to choose, don’t worry. Our Real Estate Loan Officers will get to know your individual circumstances and help you find the perfect loan.

Specialty mortgages

We offer a variety of specialty mortgages designed for different circumstances, including:

Professional home loan: Professional home loans cater to specific professionals who are prone to having more student loan debt, such as doctors, lawyers and dentists, to help them secure a home with favorable terms. Learn more.
FHA loans: FHA loans are government-backed mortgages designed to help first-time homebuyers and those with lower credit scores by offering lower down payment requirements and more flexible qualification criteria.
VA loans: VA loans are exclusive mortgage options for veterans, active-duty service members and eligible spouses, offering competitive interest rates, no down payment and no private mortgage insurance (PMI) requirement.

Choosing a mortgage lender

We know you have many options in the mortgage marketplace, so we seek to stand out by providing competitive rates and a friendly, personalized experience from start to finish because we know it’s about more than just a mortgage — it’s about helping you find your dream home.

To find out more about a home loan through Grow, talk to us today!

Subject to credit approval.
Grow Financial mortgage loans are valid for the purchase of refinance of owner-occupied residential properties in the states of Florida, South Carolina, North Carolina, Georgia, Alabama and Tennessee including single-family detached, condominiums and townhomes. Not valid for the purchase of investment properties. Grow Financial mortgage loan rates are updated daily and available at growfinancial.org.

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Home Education