Getting Financed

For many first-time buyers, this is the most challenging and confusing part of the process. We've prepared this information to help you understand new home financing and your options. Remember, the professionals at Duxford Financial Services have been helping people just like you for years. Types of Loans They come with lots of different names, in all kinds of combinations and with variety of terms, but there are essentially three types of home loans: Fixed Rate Mortgage, Adjustable Rate Mortgage and Combination Rate Mortgage. Which one you choose will depend entirely on your individual situation. When the time comes to make a choice, your Duxford Financial Services Consultant will help determine which is right for you. Type of Mortgage Reason to Choose Fixed Rate Mortgage You plan to live in the home for five or more years. You like knowing your monthly payment will not change. You're confident your income and expenses won't change. Adjustable Rate Mortgage (ARM) You'll be in the home fewer than five years. You're comfortable with monthly payments that may go up or down periodically. You're comfortable with the risk of payment increases in the future. You believe your income will increase in the immediate future. Because your initial monthly payments are lower, an ARM can give you more purchasing power. Combination Rate Mortgage   For the short-term, you want the stability of a fixed monthly payment. You want to repair your credit by showing you can meet a monthly obligation; later you'll refinance to a lower interest rate. You have a lot of consumer/credit card debt. You need to borrow more and get a lower monthly payment than a conventional fixed rate loan permits.

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