Recommended Home Loans for Long Term Residents

When you plan on staying in a home long term, you can seek larger home loans. Instead of basing your decision solely on your current salary, you can choose a mortgage that anticipates a higher future salary. However, be wary of your rates so you can afford your payments both today and in the future.

Adjustable or Fixed Rates


An adjustable rate mortgage will become more expensive the longer you have it. While this may seem logical since you are anticipating more spending power in the future, be cautious. Some adjustable rate mortgages will skyrocket in the future. Seek a cap on the highest interest rate. You may also opt for a 30 year fixed rate mortgage to keep payments consistent. This may be a stretch of your income now, but will put you in a good position in the future.

Jumbo Loan or Limited Loan

Jumbo loans exceed the federal cap determined each year. If you are planning on being in a home for awhile, you may consider a jumbo loan that allows you to grow into your house rather than grow out of it. The biggest factor affecting your decision should be your ability to continue paying the loan even if your salary or financial position changes. Make sure you have savings and back up plans to avoid foreclosure on a large loan.