Frequently Asked Questions- Sidman Financial Group

	What Is A Mortgage?
	Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

	What Types Of Loans Are Available And What Are The Advantages Of Each?
	Fixed Rate Mortgages: Payments remain the same for the life of the loan
	Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits

	When Do Arms Make Sense?
	An ARM may make sense if you are confident that your income will increase steadily over the years, or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates.
	What Are The Advantages Of 15- And 30-Year Loan?

- 30-Year: In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions. As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses.

- 15-year: Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal.

Are There Special Mortgages For First-Time Homebuyers?

Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past.

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