Mortgage Education

If you’re looking to buy a home in Franklin, TN, you may be considering different types of mortgages, such as fixed rate mortgages and adjustable rate mortgages (ARMs). Understanding the differences between these two types of mortgages can help you make an informed decision that aligns with your long-term financial goals.

Fixed rate mortgages in Franklin, TN offer the benefit of a predictable monthly payment that stays the same throughout the life of the loan. This can make it easier to budget and plan for the future. Fixed rate mortgages tend to have slightly higher interest rates than ARMs, but that changes with the market and many times fixed rate mortgages will still have lower rates and more security than adjustable rate mortgages.

One of the biggest advantages of an ARM is the potential for a lower interest rate initially. Depending on varying market conditions, ARM loans can have a slightly lower introductory interest rate. This can result in a lower monthly payment, which can help you qualify for a larger loan. However, it’s important to remember that the interest rate on an ARM can change over time, which can lead to a higher and unexpected monthly payment based on market movement. If you plan to keep your home for an extended period of time, an ARM is usually viewed as a more risky choice due to the potential rise in interest rates.

When it comes to choosing between a fixed rate mortgage and an ARM in Franklin, TN, it’s important to consider your long-term financial goals. If you plan to stay in your home for a long time, a fixed rate mortgage may be the better choice, as it offers the stability of a consistent monthly payment. On the other hand, if you plan to sell your home or refinance before the interest rate adjusts, an ARM may be a viable option.

Ultimately, the decision between a fixed rate mortgage and an ARM will depend on your individual financial situation and goals. If you’re unsure which option is right for you, it’s a good idea to speak with a mortgage broker who can help you weigh the pros and cons of each type of mortgage and the financial benefit of each one. By doing so, you can feel confident that you’re making the best choice for your financial future here in Franklin, TN.

When buying a home in Franklin, TN, (or anywhere, really) working with a local mortgage broker can provide several advantages over a nationwide bank.

One significant advantage of working with a local mortgage broker in Franklin is our in-depth knowledge of the local real estate market and connections to local real estate professionals. As a mortgage broker in Franklin, TN, we understand the unique characteristics of the Franklin market, including neighborhoods, schools, zoning laws, and more. This knowledge can be especially helpful when navigating the home buying process, as we offer tailored advice and guidance based on the specific area you’re looking to buy in.

Another advantage of working with a local mortgage broker is that we can provide a more personalized experience. A local mortgage broker will take the time to understand your financial situation, goals, and preferences to help you find the best mortgage option for your unique needs. We also offer a level of personalized attention that may be harder to find at a nationwide bank, where you may be seen as just another customer. As brokers, we’re involved in and part of your community because we live here.

Additionally, working with a local mortgage broker in Franklin can provide access to a wider range of lending options. As brokers, we often work with multiple investors which allows us to shop for the best rates and fees for our clients. We can also provide more flexible lending options for those with unique financial situations, such as those who are self-employed or have less-than-perfect credit.

Finally, as a local mortgage broker, we offer valuable support and guidance throughout the entire home buying process and after – which is not commonly found with nationwide banks. We help you navigate the complexities of mortgage applications, closing costs, managing your loan after closing, and more. This holistic approach allows us to share insight into the local real estate market, including trends and forecasts that may impact your purchase decision and or future plans with your home.

In contrast, working with a nationwide bank may offer less personalized service and fewer lending options. Banks may also have a limited understanding of the local market in Franklin, making it harder to provide tailored guidance and advice.

Overall, working with a local mortgage broker in Franklin, TN, can provide significant advantages for those looking to buy a home. From tailored guidance and personalized service to a wider range of lending options and valuable support throughout the buying process, a local broker can help you find the best mortgage solution for your unique needs.