How to Pick the Right Mortgage Product for You

Picture shows couple applying for a home loan with their mortgage broker, hoping to pick the right mortgage.
Picture shows couple applying for a home loan with their mortgage broker, hoping to pick the right mortgage.

When moving back to a place near her hometown of Chicago, 29-year-old veterinarian Katherine Hillebrand considered her finances and lifestyle when she began to think about selecting the right mortgage product for her new three-bedroom condo.

With her career and family close by, Katherine knew she would be in the same Evanston, Ill. home for the foreseeable future. "Unless something catastrophic happens," says Katherine, she doesn't anticipate moving "for quite some time."

While not all buyers are in Katherine's situation, brokers in today's market are increasingly using the term "lifestyle" to help borrowers figure out what type of mortgage product is right for them. However, unlike the pre-housing-bust days, this doesn't mean the lifestyle you want to live, but rather addresses the fundamental question: How long do you anticipate living in your new home. Naturally, for many this is difficult to predict, but as you'll see, it's essential to figuring out what the right mortgage product is for your lifestyle.