Rate and Program are EVERYTHING!
What is a fixed rate loan?
A fixed rate loan is a fully amortizing loan. Meaning, if you take out a 30 year fixed rate loan and make payments according to the terms of the note, your loan will be paid in full in 30 years. Or, if you take out a 15 year fixed rate loan, it will be paid in full in 15 years, and so on. Previously, a rate on a 15 year loan would likely be lower than a 30 year. But today, there isn't much of a difference in rate between repayment terms. Obviously, the advantage of a 30 year loan is a lower monthly payment because of the longer promise to repay the loan. Of course, the downside is there is a lot more interest accumulation over that period of time!
In most cases, maximum purchasing power is limited to the amount of total monthly payment. Thus, the lower the rate, the lower the monthly payment allowing a buyer to qualify for a more expensive home. As rates go up, a buyer's purchasing power goes down. Because of the balance between rate, purchase price, and loan qualification, it's often a good idea to talk to someone on the Lifetime Lender Team about "locking in your rate".
The Perfect Scenario!
Low fixed intere rates + high appreciation = best opportunity for increased equity. Of course, you can only access your equity when you either sell, refinance or take a home equity loan. There is actually a "break even" analysis The LifetimeLender Team can walk you through to determine best options when that time comes.