Are you confused about mortgages? Well, you are not alone, mortgage loans can be confusing, especially for first-time homebuyers. Below are three important questions to answer that will help make your mortgage experience go smoothly.
1) How much house can I afford?
A simple guideline to follow is that your monthly housing payment should not be greater than 36% of your annual gross income. A home lender will measure your debt relative to income to come up with this percentage. Remember to include principal, interest, property taxes, homeowner’s insurance, and mortgage insurance (if necessary) as part of the monthly payment. Find out how much of a mortgage you can afford today by contacting our mortgage lenders!
2) What type of mortgage loan is right for me?
If there is one fact that is universally true, it is that each mortgage applicant is unique; one size does not fit all. Do you want a fixed mortgage rate or an adjustable mortgage rate? How long should the mortgage term be? Conventional mortgage or non-conventional mortgage? These are the questions that a mortgage lender will walk you through to find the right mortgage for you. For more information on fixed mortgage rates vs. adjustable mortgage rates, click here.
3) How much of a mortgage down payment will I need?
In the past, the traditional answer has been that you need 20% of the purchase price of the home as a down payment. Today, however, there are options for lower mortgage down payment amounts. Also, there are first-time homebuyer and down payment assistance programs for which you may qualify. Let our home lenders help walk you through our mortgage solutions.
For more information on our mortgage services and home lending solutions, please email us at [email protected] or call 920-430-1400.