Most home buyers take a thirty-year mortgage loan to keep their payments low and allow them to get the most home for the monthly payment. The thirty-year loan accomplishes this, but has two major drawbacks.

* It is the most expensive loan you can have if your credit is good. (If you have credit problems, your rate can be higher.)

* Your principle balance decreases very slowly - especially in the first several years. You are basically depending on inflation to build equity in the property.

Statistics tell us that most people do not keep their home loan more than five to seven years. They either sell the property or refinance their loan. If that is the case for you, there are alternative loans that give you the stability of an interest rate that does not change every six months or a year, yet provide lower rates than the standard thirty-year fixed-rate loan. These include hybrid loans that give you a fixed rate for three, five, seven or ten years, but are amortized, or paid back, over a thirty year schedule. These loans can save you up to 0.5% on your interest rate! The idea is to get the rate guaranteed for only the amount of time you need the loan.

WHAT IS THE BEST LOAN FOR YOU?

Individual circumstances vary so much, there is no set rule that can give you an easy answer. If you are moving to New Mexico and want personal consultation about the right loan for you, call, fax or e-mail us your pre qual info today.

"Your mortgage loan specialist in New Mexico"