Buying your dream home is an important decision and is often the biggest investment people make in their lifetime. While shopping for new homes can be exhilarating, few people take the time to consider mortgage options. There’s certainly no shortage of choices out there when it comes to financing your home, it’s a step that is often overlooked. Taking a little time to understand mortgages and what they mean to home buyers can help save tens of thousands of dollars over the life of the mortgage, so here it is. Mortgages: what you need to know.

Mortgages

For first time home buyers, learning about mortgages is vital. A mortgage is a long term loan that helps finance a home. They’re available in varying terms, or lengths of time, from just a few years to thirty years. Most homes are amortized for about twenty-five years. Depending on the current market, a minimum down payment may or may not be required for most people to be considered for a mortgage, so an understanding of the current market is something of a necessity. The best way to ensure that your information is up to date is to speak with a reputable and experienced REALTOR^®, like those found at JN Asensio REALTORS^®.

Mortgage Rates

When shopping for your home, you may have seen mortgages advertised as two points above prime, or as being a "reasonable rate.” It can be difficult to understand mortgage rates and interest, but it doesn’t have to be. The important thing to remember is that the lower the rate you acquire, the more you’ll save over the amortization period. Another important aspect to remember when it comes to mortgage rates is that they sometimes change. Purchasing a home that one can just afford is often a bad decision. Many people don’t realize that an increase of even one percent in interest rates could result in an increase of hundreds, or even thousands of dollars in monthly payments.

REALTOR^® Help

Most financial institutions are able to offer information regarding interest rates for mortgages, but don’t immediately disregard the information that can be attained through the use of professional REALTORS^®like those at JN Asensio. They are often able to shed light on the lending rates available from several financial institutions and can help direct you to the lender that best suits your unique needs as a home buyer. They can reduce the amount of legwork required when looking for an ideal institution and help simplify the buying process. They will have had dozens of former customers who have dealt with every lender in the area. This knowledge can be invaluable, especially to first time home buyers.

Understanding mortgages and what you need to know about them as a buyer doesn’t have to take hours of research. If you’re unsure of the options available to you, be sure to speak with a dependable and knowledgeable REALTOR^®in your area. They’ll be happy to guide you towards the lending products and services able to help get you into the home of your dreams.