A recent survey from the National Association of Realtors showed that owning a home is a high priority for 51 percent of renters. Find the ideal home in Towne Lake!
Owning a home begins with borrowing money, a mortgage. There are many different types of mortgages, with various interest rates and terms. Mostly it comes down to making a monthly mortgage payment, which combines the principal (amount of the actual loan), interest, taxes and home insurance. In addition, the mortgage process also includes up-front fees and documents.
- 1) Do your HOMEwork! prequalification and preapproval are different. Prequalification is an estimate, whereas preapproval implies that a lender is prepared to offer a mortgage loan based on documentation such as credit history and other information.
- 2) Put in your due diligence. Choosing a fixed rate or adjustable rate mortgage is a big decision. A fixed rate mortgage keeps the costs fixed and an adjustable rate mortgage may start out with a lower monthly payment, however it is designed to go up depending on market conditions. Discuss long term plans with your mortgage broker to find out which one makes sense for you.
- 3) Refinancing, the goal is to take an existing loan and refinance it into a lower interest rate or shorter loan term. Look for credible institutions with a good track record and reputation, and find out whether there are any rewards programs, a welcome back bonus.
- 4) The time to buy is right now! According to Frank Donnelly, Chairman, National Bankers Association, “A lot of times, people think that because rates have recently gone up that suddenly, it’s not a good time to buy, but the ability to lock in a 4.5 percent interest rate on a 30-year, fixed-rate mortgage is an incredible opportunity. I’ve talked to people who originally thought that their mortgage payments were high—and then 28 years later, the payment is the same and it seems low. Unlike insurance and taxes, fixed-rate mortgage payments are not subject to inflation.”
Enjoy the adventure and make your dream a reality with Towne Lake!
