Money decisions can feel complicated—but they don’t have to be. I’m here to help you simplify the process, avoid common pitfalls, and stay true to your values. And few decisions impact your long-term financial picture quite like choosing the right mortgage.
Whether you’re buying your first home, upgrading for your growing family, or relocating in retirement, the mortgage you choose can either be a stepping stone or a stumbling block.
Let’s break it down so you can make a wise, informed decision—without the financial heartburn.
1. Understand the Two Main Types: Fixed vs. Adjustable
- Fixed-Rate Mortgage
This is the most straightforward: your interest rate stays the same for the life of the loan. That means your monthly principal and interest payments won’t change, even if interest rates rise.
Good for: People who plan to stay in the home long-term or want predictability in their budget.
- Adjustable-Rate Mortgage (ARM)
These typically start with a lower interest rate for a set period (like 5 or 7 years), then adjust annually. If interest rates go up, so will your payment.
Good for: Short-term homeowners or those confident they’ll refinance or move before the rate adjusts.
2. How Long Should Your Loan Be?
- 30-Year Term
Lower monthly payments, but more interest paid over the life of the loan. - 15-Year Term
Higher payments, but builds equity faster and saves you thousands in interest.
Tip: If you can afford the payments, the 15-year mortgage is like a cheat code for faster financial freedom.
3. Know the True Cost of the Loan
Don’t just focus on the interest rate—look at the APR (Annual Percentage Rate), which includes fees and other loan costs. A mortgage with a slightly higher rate but lower closing costs may actually cost less in the long run.
4. Consider Your Down Payment
- Putting down 20% avoids private mortgage insurance (PMI), which can cost hundreds per month.
- A lower down payment (like 3-5%) might be available through FHA, VA, or conventional loans—but it often means higher monthly payments.
Think about your cash flow, savings, and financial priorities before emptying your bank account just to hit 20%.
5. Align Your Mortgage with Your Life Goals
Buying a home is more than a financial transaction—it’s a lifestyle decision. Before choosing a mortgage, ask yourself:
- How long do I plan to live here?
- How stable is my income?
- Will this mortgage allow me to still give, save, and invest according to my values?
Remember: the best mortgage isn’t just the one with the lowest rate—it’s the one that supports the life you’re called to live.
6. Don’t Go It Alone
The right mortgage for your neighbor might not be right for you. That’s why it’s important to work with someone who understands your full financial picture—and your values.
Wherever you are on your financial journey, remember—your money is a tool, not a trophy. It’s meant to reflect your values, fuel your purpose, and honor God in the process.
You don’t have to figure it out alone. I’m here to walk with you—one wise, faith-filled decision at a time.