By Ashlee Hovsepian
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 mortgage. There
are multiple choices when choosing the type of 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
mortgage:
1.How long do you want to stay in this house? 2.Can
you afford to make mortgage payments bi-monthly? 3.How
is your credit?
Answering the questions above, will assist you in
determining what type of 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!
About the author:
Ashlee Hovsepian is the successful publisher of http://www.anything-loans.com
where you can find the right mortgage companies to
finance your mortgage.
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