May 10, 2019
How to Find the Best Lender
What type of loans do you offer? What are the qualifying guidelines for each?
Since there are many different types of mortgages, including:
Federal Housing Administration
Things You Need to Know About Home Loans
Everybody’s dream is different and there’s no one-size fits all mortgage solution for everybody. You may prefer a shorter term loan with bigger payments and lower interest rates, or a longer term home loan where you pay more interest over time but the monthly payment is lower. Each mortgage agreement has its own pros and cons, and it’s up to you to weigh it all before you sign on the dotted line and get the keys to your dream house. Buying a house is the biggest purchase most homeowners make, so here are some insights and some peace of mind.
Knowing What to Look for When Choosing a Home Loan
Take a deep breath and kick back for a second. Signing a mortgage, especially if it’s the first time you’re buying a home, is one of the biggest financial decisions you can make in your life and it’s not something you should rush into. You can relax though, knowing that you’ve done your homework.
The Associates Home Loan of Florida is committed to providing their clients with the highest quality services available in Florida. Their outstanding professionals will work with you one on one to ensure that you get the loan solution that is tailored specifically to meet your needs. Whether you are purchasing your dream home, purchasing an investment property, refinancing an outstanding loan, or consolidating debt, and they can get you a loan after bankruptcy. Because they have a highly experienced team of mortgage advisors that can help you no matter what your needs are.
Bigger payments or more interest?
You know, one of the central questions when considering any loan, especially one as big as a mortgage, is length of term versus size of payments. If you put down a bigger down payment and agree to bigger payments over a shorter loan term, you will pay less interest over the lifetime of the loan. That said, you will also have a higher monthly payment, so make sure this is something you can keep up with. The central question in this calculation is whether or not you’d prefer to pay less interest over the loan term, or would rather have somewhat more interest over a longer term, in exchange for a monthly payment that’s easier to make. This is a decision only you can make, and one that’s best done after taking a comprehensive look at your finances, long term plans and the mortgage lenders and rates available.
Fixed vs Adjustable rate home loans
With a fixed rate mortgage, the monthly payments are locked in for the entire loan term, which can help you plan your month-to-month expenses. A variable rate mortgage can adjust in keeping with changes in mortgage rates, potentially saving you money on the interest during the repayment period. Consider which is best for you, and don’t rush it.
Depending on your lender and the type of loan you choose, your required down payment can range from 2.25% to 20% of the purchase price of the home. Establishing a monthly budget will help you put away enough money for your down payment.
Once you’ve assessed what your budget will support, consider having money automatically deposited from your paycheck or bank account to a savings account to make it easier and more convenient to put aside money each month. An account like Discover Bank’s AutoSavers Plan can help you start saving today.