Tools & Resources
Getting a Good Deal
Everyone likes a good deal. When financing or refinancing a mortgage, getting that deal starts with research – and finding the mortgage loan that matches your specific needs.
Determining the Right Mortgage Option
Securing a loan that works for you is a key part of the buying or refinancing process. Here are some factors to consider when determining loan options for your financial situation:
What is your credit history like?
- Your credit history and score show mortgage lenders your track record for paying off debt – and they help them determine the loan types and terms for which you’ll qualify.
- Monitor your score and take advantage of opportunities to address and correct errors in your history that could have reduced it, or changes in your borrowing behavior that may have improved it – ultimately, you are in control of your score.
- To learn more about credit and how to request your credit report, visit our Credit Guide.
- CONSIDER: Ask yourself if you should apply for a loan now or wait until you can improve your credit score to ensure a better loan and rate.
How long do you plan to own the home?
- One can never predict the future, but having a general idea of how long you plan to live in your home can impact the kind of loan that is right for you.
- Fixed rate mortgage – best suited for long-term homeowners. Offers a rate that stays the same over the life of the loan.
- Adjustable rate mortgage – best suited for short-term homeowners. Offers an interest rate that changes based on market conditions
- Some loans have longer repayment periods – up to 30 years – that work well if you’re planning to stay in the home for a long time. Other loans with shorter repayment periods – as short as 10 years – have lower interest rates and may be attractive if you plan to move in five to seven years or are thinking about refinancing. Remember that a shorter time frame will typically equal a higher monthly payment, while a longer time frame will tend to have a lower payment.
- CONSIDER: Short or long term, it is a good exercise to rank what is most important to you financially as you think about which loan and payment best fits your needs today – and tomorrow. For more about available loan products, visit Loan Options and Rates.
How much money are you able to offer as a down payment?
- On a conventional loan, a standard down payment is 20% of the home’s total cost. However, some loans allow you to put as little as 10% – or even no money – down.
- The higher your down payment, the lower your monthly mortgage payment will be.
- CONSIDER: How much can you realistically afford for the down payment, and will this help you get to the amount you hope to pay each month?
Contact PHH Mortgage when you are searching for the loan that works best with your financial situation and future goals. We have a wide variety of products from which to choose – and our experienced loan consultants can answer any questions and help you find the mortgage that’s right for you. Call us at (800) 210-8849.