Buying Cape Coral/Fort Myers Real Estate: What Type of Mortgage is Right for You?


You’ve been watching the news, reading blogs and you know this is the perfect time for you to buy a piece of Cape Coral/Fort Myers real estate.  You want to do all the right things to get the best deal, and you know one of the first steps is to line up your financing.  

To help you pick a mortgage that matches your goals and financial situation, here’s an overview of three of the most popular mortgages available today.

Fixed Rate Mortgage

If you plan on keeping your new Cape Coral/Fort Myers real estate for more than 10 years and you don’t expect your income to change, this is probably the loan for you.  Although fixed rate loans charge a bit more interest, the rate will never change.  This provides financial stability and the security of knowing what your monthly mortgage payment will be.  By locking in the current low interest rates, you’ll save thousands of dollars over the life of your loan.

ARM (Adjustable Rate Mortgage)

With the ARM loan, the interest rate is usually very low at the beginning but can increase over time.  If you plan on keeping your Cape Coral/Fort Myers real estate for only a few years (up to 7) or you expect your income to increase, then this might be a better choice for you. If you expect your income to increase, an ARM loan can allow you to buy a more expensive home now. The drawback to this type of loan is that you do not know what your mortgage payment is going to be in the future; if the interest rate jumps dramatically, then so does your payment.  A particularly popular ARM is the 5/1 ARM.  The interest rate of a 5/1 ARM is fixed for a period of 5 years.  In the 6th year, the loan becomes a typical Adjustable Rate Mortgage.  So if you plan to own your home for less than 5 years, the 5/1 ARM may be your best choice.

FHA Mortgage

If your credit is a bit shaky, an FHA loan may be a good fit for you.  The qualifying criteria for FHA loans are not as strict as for traditional mortgages.  Also, because these loans are guaranteed by the FHA, lenders often allow you to provide a smaller down payment than they would allow for other types of mortgages.  If you’re in a time crunch, an FHA loan may not be right for you; processing times are typically longer than other types of loans because of the government paperwork involved.

If you have any questions about mortgages or need a referral to a lender, give me a call today at 239-699-0142 or email me at Liloc@att.net.
Please visit my Website at www.LiloRealtor.com

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About Lilo Realtor

With over a decade of industry experience, Lilo Clacher is proud to represent Cape Coral/Lee County FL . With a degree and previous career in interior design, Lilo understands the importance of the entire package her clients are receiving. Lilo has a passion for real estate and a passion for taking care of her clients. She understands that for many they are making the biggest investment of their lives, and therefore she endeavors to make their experience in buying or selling as easy and comfortable as possible. With an impressive repeat and referral rate of 90 percent, it is clear that her clients appreciate the dedication she puts in to every real estate transaction. In addition to being fluent in German and Swedish, Lilo has received numerous awards for excellence in real estate. She received the 2000,2001 and 2002 Excellence Award for being a multi-million dollar producer, as well as the 2003 and 2004 Platinum Award, Diamond Award 2005, 2006. Multi million Dollar producer in 2007, 2008, 2009 She also received the Designation e-PRO Endorsed by the National Association of REALTORS®, for being an internet savvy realtor, for knowing how to work with the 87% of clients, starting seeking Real Estate per Internet. Lilo received the Designation for Short Sales, Foreclosures and Home modefication loans, helping homeowners to keep there home. In her free time, Lilo enjoys boating, diving, Horsebacriding, Gardening and catching up on her reading.
This entry was posted in Cape Coral, Cape Coral homes for sale, Financing, FL real estate, Foreclosures, Fort Myers Fl Homes, Investors, Real Estate, Short Sales. Bookmark the permalink.

One Response to Buying Cape Coral/Fort Myers Real Estate: What Type of Mortgage is Right for You?

  1. Pingback: Real Estate – Interest Rates at Historic Lows Again « Diana Wu — diana.wu@elliman.com

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