Choosing the Right Mortgage

"There's no place like home" Buying a home is as much an emotional investment as a financial one. The Right Mortgage should fit your life--not the other way around.

Armed with all of this information, how do you decide which mortgage is best for you? Some questions to ask yourself would include:

Long term vs. Short Term

Am I planning to live in this house for a long time or do I hope to upgrade in a few years? If you are planning on living in this home for many years to come, then you might consider a long-term mortgage to avoid rate fluctuations and the cost of renewing your mortgage at regular intervals.

What payments can I afford? Do I have room in my budget to allow for increases in my mortgage payments if rates rise drastically--even if only for a short term? If yes, then you might consider a short term or variable rate mortgage to take advantage of the lower short-term rates. This is not advised for people who will lost sleep over payment fluctuations or will not be able to afford a dramatic increase in their payments.