To properly analyze a Mortgage Program, the borrower needs to think about how long they plan to keep the loan. If you plan to sell the house in a few years, an adjustable or balloon loan may make more sense. If you plan to keep the house for a longer period, a fixed loan may be more suitable.

A borrower should also understand the relationship between rates and points. Points are considered to be prepaid interest and may be tax deducible (consult your tax advisor). Each point is equal to one percent of the loan. The more points you are willing to pay, the lower the interest rate will be.

Shopping for a loan is very time consuming and frustrating. With so many programs to choose from, each with different rates, points and fees, an experienced mortgage professional can evaluate a borrower's situation and recommend the most suitable Mortgage Program. Thus allowing the borrower to make an informed decision.