Purchasing a home
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Buying a new home is probably the most common reason to seek financing. Depending on your overall goals for the property along with the type of property will ultimately determine the right financing vehicle. For example if you plan on renting this home out as an investment property and you know you will be selling the home in five years to recoup funds for a 1031 exchange on a commercial property opportunity. You’re concern is cashflow – in this case a 5 year adjustable rate mortgage with an interest only option may be the best program. On the other hand if you are moving into a home as your primary residence in your home town and about to have your first child; a 30 year fixed mortgage fully amortized is probably the smartest solution. Be mindful when considering finacing behind a new home purchase. Know your exit strategies and discuss them with your loan officer so they can help you determine the best financing vehicle.
