mortgage broker, mortgage loan Finding a home mortgage that will have favorable terms for the life of the loan, or for as long as you want to own the home, is the first step in achieving an affordable monthly payment for your nest egg. If you are buying a home less than $400,000, you might consider an FHA loan that will more than likely have an interest rate that is lower than the conventional rates that your mortgage broker might quote you. An FHA loan can be an ARM, but most lenders suggest that people take advantage of the 30 year fixed rate loans that they offer, since the payments are stable throughout the life of the mortgage loan.

An FHA loan might take a while longer to generate than a conventional loan. Your mortgage broker will explain that there is more paperwork involved, so if you are not in a big hurry to close on the loan, it will benefit you to take the extra time to wait for these preferred loans. Lenders like FHA loans because they guarantee your loan in case of default. But they are more time consuming and paper work intensive for the borrower. But time is money, and in this case, waiting an extra month to save thousands over the course of your loan is worth waiting for.