1021. Looking for a mortgage but are unsure what’s best for you? Laura answers a question from a listener who’s ready to buy a home but is overwhelmed by mortgage choices. Find out whether a fixed- or adjustable-rate loan, with or without mortgage points, is right for you.

Key Takeaways:

• Fixed-rate mortgages are popular because they lock in a rate, providing financial stability no matter what happens in the economy.
• Adjustable-rate mortgages (ARMs) can be good when interest rates are high, you don’t expect to own your home for the long term, or you can pay it off early.
• Conventional loans are the most common type of mortgage because they’re backed by federal agencies, reducing risk for lenders.
• Jumbo loans are high mortgage amounts that aren’t federally-backed and typically require stricter qualifying criteria by lenders.
• There are various loans backed by the federal government, including FHA, VA, and USDA products, that come with lenient underwriting standards, making homeownership more affordable.
• Buying mortgage points allows you to get a lower interest rate, which saves money if you own the property past the breakeven point.

Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. 

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