Chapter 6

Selecting a Mortgage

In This Chapter

Exploring the differences between fixed-rate and adjustable-rate mortgages

Understanding hybrid loans, balloon loans, and negative amortization

Selecting the loan that’s best for you

Looking at points, caps, and other mortgage mumbo jumbo

Finding a lender (or finding someone to find a lender for you)

Most of us need to take out a mortgage to buy a home for the simple reason that doing so is the only way we can afford a home that meets our needs. This chapter helps all nonwealthy folks comprehend mortgages and then choose one. (If you are wealthy and have a great deal of money to put into a property, this chapter can also help you decide how much of your loot to put into your home purchase.)