Choosing the right loan program is probably one of the more technical steps in the loan process. Here are a few basics to help guide your decision making process:

How long do you plan to keep the home? If you're going to sell the house in a few years, you may want to consider an adjustable or balloon loan in order to obtain a lower short-term interest rate. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans so you won't have to worry about fluctuations in the market.

Consider "buying down" with points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. So, for example, one point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get.

Do some loan program comparison shopping. Loan programs offer different rates, terms, points and fees. We have a wide variety of programs, with new ones coming out all the time. Talk with a First National Mortgage Banker to review the details of several options before you decide on a specific loan.

Check out our current Mortgage rate sheet for more information.