If you aren’t familiar with the mortgage industry, then it might feel overwhelming to decide on the type of mortgage you need for your home. Many people don’t realize that there are different types of mortgages to choose from, and then they find themselves stuck in analysis at the lender’s office. In this article we will be discussing Choosing a Mortgage? Ask These Questions before Making Your Decision. Here are a few questions you should ask to help you select a mortgage that is right for you:
How Much Will You Be Paying Monthly?
The monthly payment matters, because you need to be sure that you have the income to support your mortgage payment. As you are putting together your new budget, it is helpful to know how much the payment will be. Make sure to also include payments for property taxes and homeowners insurance when calculating the amount you will need each month.
What is the Interest Rate?
The interest rate is important, because it impacts the total amount of money that you will be paying to pay off the loan. This interest rate is based on current market trends as well as your credit history, and it will affect the amount that you will be paying each month. It is best to get the lowest interest rate possible, because it will decrease the monthly payment and decrease the total amount that will need to be paid overall.
Is it an Adjustable Rate or Fixed Interest Rate Mortgage?
When you are asking questions about the interest rate, find out of the rate is fixed or adjustable. Many people find that a fixed rate mortgage is preferable, because the rate will stay consistent for the entire loan. But, there are certain situations where you might be interested in an adjustable rate mortgage, which means that the interest rate will change to match the variations in the market. Keep in mind that an adjustable rate mortgage can impact the monthly payment at certain intervals, so you need to be sure that you will be able to manage the new payments if anything changes. Remember how important it is to Choosing a Mortgage? Ask These Questions before Making Your Decision
How Much of a Down Payment Do You Need?
Since there are different types of mortgage products, you will see that there are different requirements for down payments. In most situations, you need at least 20% down for the mortgage, although there are certain types of loans that have lower down payment requirements. If you don’t have the money available for a down payment, there are other options that you might consider. So, the best thing that you can do is talk with your lender to determine the best financing terms to meet your individual needs.
It can be time consuming to buy a home and figure out the financing for your new home, which is why you need a reputable team to help. Here at Duffy Realty of Atlanta we can assist during every step of the home buying process, and we can help you find a good lender to work with. Contact us for more information: (678) 318-1700. We hope that you enjoyed our article on Choosing a Mortgage? Ask These Questions before Making Your Decision.