What should I consider when choosing a mortgage?

Buying a home is a big decision—the biggest most people make in a lifetime. So, being informed and understanding your unique financial situation is critical.

Choosing a mortgage requires taking a holistic look at your life events, including current and future goals. It requires analyzing how a mortgage can affect paying off car loans, student loans, high-interest credit card debt and more. It’s evaluating long-term benefits and understanding the results of each option. At Mortgage Coach, we call it a Total Cost Analysis.

Three things every homebuyer needs to know:

1. Your Mortgage Options
Compare different types of loans based on your life events and future plans. How long do you plan on owning the home? Can you buy before you sell? How much money do you have allocated for closing costs? There’s a lot more to consider than rates.

2. Total Cost Over Time
Consider the total cost based on short-term and long-term scenarios. Are you hoping to own a home free and clear? Are you trying to accumulate as much cash wealth as possible right now? How long will you be in the home? Is the property a vehicle for investment? These types of considerations will help determine your strategy.

3. Investment Strategies
Map out different strategies to determine the best option. For example, consider prepaying your mortgage to shorten the loan length. Or, use the benefits of a smaller payment to enable investments in accounts that deliver better interest rates.

Work with a pro who can guide you through smart financial decisions.

When you work with a lender who uses a Total Cost Analysis, you’ll be able to compare specific scenarios of the overall cost of the loan and discover unique strategies you likely wouldn’t have considered. If you are transparent about your financial situation and goals, your lender will guide you with an easy-to-understand visual presentation.

Is that your best rate?A low rate may require a higher payment, or more cash at closing.What else should I consider?How long you plan to own, existing debt, your financial goals…Do I have to sort through all that?No, I'll show you a TCA. It will outline the best long-term mortgage strategy.Awesome, let's do it!Borrower chatting with lender on mobile phone

See why homebuyers prefer working with lenders who use TCAs.

“Denise and her team expertly guided us through the whole process. I was shopping for rates and she quickly caught my attention with a personalized video analyzing multiple options and the rationale on choosing one or another. From there we worked with her to find the best mortgage for us and were able to close in a two weeks record time.”

“I was beyond impressed with the financing comparison provided by Brian. We were seeking loan info for a home improvement, and he provided a very detailed guide showing 4 different scenarios. He made it easy for us to understand our options and compare them to each other as well as our current loan payment. We were given a personalized link to our cost analysis and there was a short video from Brian explaining everything. That was an above-and-beyond feature and I was very happy with the attention to detail that went into our request.”

“Their web-based loan visualization platform made it very easy to decide between different financing options. We are now living in our dream home.”

“The video explanations that Brian provided us made it easy to go back and review our different options and the detail he provided made our decision easier to make. In the end, we had multiple options, were able to lock in a great rate and we were happy with the mortgage we received.”

    My Nest—Home shopping made easier.

    Never again forget a single detail after a long day of home shopping. Organize your home search with photos, videos and voice memos. Within the My Nest app, capture footage and record details of each room. You can also get top mortgage advice directly from the app, along with personalized, instant quotes.

    Download the app

    Play Store
    App Store