When shopping for a mortgage…
…be sure to ask the loan officer you are working with to explain to you how a particular product directly benefits you and meets your goals. A 30 year fixed rate mortgage may be a good pick for the homebuyer who has found their dream home and plans to live in the home for a long period of time.
On the other hand, a 2 year fixed mortgage which adjusts for 28 years is best suited to the homebuyer who is just making their first small purchase, perhaps a condo. After two years the homeowner may have solid decisions to sell the property in order to move up to a larger home. In this situation the 2 year fixed tends to have a lower rate which means smaller payments while still having the benefit of a fixed rate while the person still lives in their home.
While the 30 year fixed is the most common and popular product, do not forget to see if any mortgage product being offered to you meets your personal financial goals. If the loan officer can’t directly explain it to you, then you may need to change the loan product you’re looking at, or change your loan officer!