New home buyers are advised to speak with someone who can explain all the types of mortgages available. If you have a sizable down payment and the bank has given you the go ahead, you are ready to buy. Locate the home you wish to purchase, and find out the best way to finance it.
The amount of money you can put down on a home can prove to be saving in the long run. Your monthly payment will not only be lower, but over the term of the contract, you can save a vast amount of money. As little as one-half a percent spread out over thirty years will add up quickly.
There two types of mortgages that make up for nearly seventy percent of all home loans that are made. The first is the fixed rate loan. People are drawn to this type as the amount you pay each month is fixed. In other words, your payment cannot increase or decrease over the term of the loan.
With a variable rate loan you will be offered a low rate to begin with. Most ARM's are set at one year to five years. What this means is your payment could increase or decrease based on the prime rate at the end of each adjustable period. It can be a bit of a gamble unless you feel the amount of money saved in interest at the beginning of the loan, will justify any later increase.
Three different types of home buyer loans are offered by the government. Aimed at young first time buyers, they offer low down payments and modest monthly payments. There are some qualifications that need to be met. The Federal Housing Administration, also known as the FHA lender, is for people with low to moderate incomes.
The USDA also offers money for home buyers. Being the United States Department of Agriculture the home you are interested in must be in a designated rural location. Many first time buyers are prone to looking into this type of mortgage as no money down is required.
If you are serving, or have served in the U. S. Armed forces, you can apply for a VA loan. Again the down payment can be minimal to none at all. The only requirement is proof that you can meet the monthly payments along with a good credit history.
There are a few that might consider the Balloon Mortgage. You will get your biggest savings in interest with this type of loan but there are requirements. Set up for between five and seven years, you will make monthly payments like everyone else. The stipulation is that at the end of the term you will make payment in the full amount left payable. Lenders do make arrangements to refinance for those who cannot pay the entire balance.
Owning your own home is an investment. When properly maintained, homes appreciate in value. Buy now while the availability of homes is at its peak.
The amount of money you can put down on a home can prove to be saving in the long run. Your monthly payment will not only be lower, but over the term of the contract, you can save a vast amount of money. As little as one-half a percent spread out over thirty years will add up quickly.
There two types of mortgages that make up for nearly seventy percent of all home loans that are made. The first is the fixed rate loan. People are drawn to this type as the amount you pay each month is fixed. In other words, your payment cannot increase or decrease over the term of the loan.
With a variable rate loan you will be offered a low rate to begin with. Most ARM's are set at one year to five years. What this means is your payment could increase or decrease based on the prime rate at the end of each adjustable period. It can be a bit of a gamble unless you feel the amount of money saved in interest at the beginning of the loan, will justify any later increase.
Three different types of home buyer loans are offered by the government. Aimed at young first time buyers, they offer low down payments and modest monthly payments. There are some qualifications that need to be met. The Federal Housing Administration, also known as the FHA lender, is for people with low to moderate incomes.
The USDA also offers money for home buyers. Being the United States Department of Agriculture the home you are interested in must be in a designated rural location. Many first time buyers are prone to looking into this type of mortgage as no money down is required.
If you are serving, or have served in the U. S. Armed forces, you can apply for a VA loan. Again the down payment can be minimal to none at all. The only requirement is proof that you can meet the monthly payments along with a good credit history.
There are a few that might consider the Balloon Mortgage. You will get your biggest savings in interest with this type of loan but there are requirements. Set up for between five and seven years, you will make monthly payments like everyone else. The stipulation is that at the end of the term you will make payment in the full amount left payable. Lenders do make arrangements to refinance for those who cannot pay the entire balance.
Owning your own home is an investment. When properly maintained, homes appreciate in value. Buy now while the availability of homes is at its peak.
About the Author:
Do you need the assistance of mortgage brokers Oshawa? With our highly trained and experienced staff, we can help you find the mortgage you need at the best available mortgage rate. Visit the Oshawa mortgage brokers today.
No comments:
Post a Comment