Choose your winner
Once you’ve snapped or entered your quotes, it’s time to pick your winner.
The IMG app provides expert analysis on each quote.
Not only will it tell you which one wins in a certain category but it gives you details on where it stands on all other categories so there are no surprises down the road.
Pick your goal
Most people want the mortgage that costs them the least amount of money in terms of monthly payments. But there are other ways to think about your mortgage. If you are planning to be in your home for more than five years, you’ll want to look at total costs for five years and see which is the least expensive. Or, total cost for 10 years or 30 years, too.
Think about how long you plan to be in your home. Is your intent to stay there for 30 years or do you think it’s likely that you’ll move within five or 10 years?
Consider your equity
It’s crucial that you understand home equity when you buy your home. So many factors in your future depend on how much equity you have in your home. Here are just a few:
- Your net worth
- Your ability to borrow against your home (e.g. for improvements or emergencies)
- How much money you get back with the sale of your home
Pretty important, right? You won’t find your loan officer talking about equity with you. Their job is to make sure you qualify for a loan and that they seal the deal. You’re on your own with this important aspect of a mortgage decision.
Luckily, you can easily sort by which mortgage gives you the most equity with the IMG app, making a hard job incredibly simple.
Check out our Bonus: Your equity to fully understand this important dimension of your mortgage.
What if you have more than one goal?
If you want to stay in your home for five years AND build a lot of equity? You can’t just sort by one factor. The IMG app is designed to let you sort through any number of variables so that you can see how your favorite loan in one category stacks up in different categories. If a loan comes in first in lowest cost for five years and comes in second for highest equity in five years, for example, then take a peek at the difference in total cost and total equity between your two favorites and make a decision based on the difference. If a loan is best equity builder for five years, the term you expect to stay in your home, AND only a couple thousand dollars more expensive, look at the difference in equity you are building. It’s a much more balanced and informed approach than looking at only one factor, or worse, only considering monthly payment, which leaves off all kinds of fees.
Get clarity on ARMs
An ARM stands for adjustable rate mortgage. If you are considering this type of loan, know that it offers both advantages and disadvantages. Definitely check out our Bonus: Adjustable Rate Mortgages to fully understand what you need to know about this type of loan.
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