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.