 Looking
for a Mortgage?
Know Your Real Estate
Mortgage Loan Options when applying
for a loan
Buying a new home is an exciting time
in everyone’s life, but it can
also be one of the most stressful. Unless
you have done it before, it is important
to know your options when selecting
a real estate mortgage. There are multiple
choices when choosing the type of real
estate mortgage that best suits you
doing a little research first, can save
you money in the future.
There are several things to consider
when shopping for a real estate home
mortgage loan:
- How long do you want to stay in
this house?
- Can you afford to make mortgage
payments bi-monthly?
- How is your credit?
Answering questions above, will determine
what type of real estate mortgage is right
for you.
How long do you want to stay in this
house? If your answer is 15 to 30 years,
you may want to consider a non-variable
rate mortgage. With this type of mortgage,
your rate will be set from day one,
and unless you refinance, the rate will
never change. If your answer is 5 to
10 years, you may want to consider a
variable rate mortgage. This type of
mortgage, usually gives you a lower
set interest rate for the first five
years and then the rate becomes variable
after that. With a variable rate mortgage
you will benefit from the lower interest
rate during your first years in the
house.
Can you afford to make mortgage payments
bi-monthly? Some mortgage companies
give you the option of making your mortgage
payments either once a month or splitting
it in half and paying it bi-monthly.
By paying bi-monthly, you lower the
total amount of interest paid on your
loan and decrease the time to pay off
your mortgage. A mortgage of 30 years
may be shortened by quite a few years
if you pay your mortgage bi-monthly.
How is your credit? Many times people
believe that having bad credit will
make it impossible for them to obtain
a mortgage. This is not true. There
are lenders that specialize in developing
mortgage programs for people with poor
credit. Initially, you may pay a higher
interest rate then someone with good
credit, but over time, if you make regular
payments and slowly improve your credit,
your mortgage rate may be lowered.
The process of obtaining a mortgage
can be simplified if you know what you
are looking for. So good luck shopping!
article reprinted with
permission by: Ashlee Hovsepian of http://www.anything-loans.com
& GoArticles.com
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