I recently bought my very first home and I have to tell you that I had no idea what I was getting myself into. There was so much paper work and financing options it made my head spin sometimes. Buying a home is different in every state, but knowing where to look for help is the first step towards finding the home of your dreams.Click On Image To Get Instant Approval!
Once I had save up enough money to start considering owning a home I began researching online. That part was easy, but it seemed that every time I discovered one option, ten more options opened up before me. The biggest decision I had to make was what type of loan would be best suited for me.
- Fixed rate loans are great for people who have a stable job with a consistent income and don’t intend to move for a very long time. The monthly payments will stay the same for the life of the contract.
- Adjustable rate loans are more suited to people who foresee their income growing substantially over the coming decade. Usually after a few years the monthly payments go up.
- Within these two types of mortgage options are countless other financing options to explore as well as loans to acquire in the future to help make improvements to your estate.
When I began my search for mortgage options I was lucky to have a pretty good credit score. I had been responsibly paying off my credit cards each month for years and a good credit score I learned was essential in finding the lowest fixed rate mortgages available. I owned my own local plumbing business and knew I never wanted to leave the town I was currently residing in. My family was happy and grounded so I could see myself being settled in a home for many years. A fixed rate mortgage was my first choice, but it isn't for everyone.
Why do people choose adjustable rates?
Many people choose adjustable rate mortgages for very good reason. Often they require no down payment or very little up front money. Its been said that the financially savvy often choose adjustable rate mortgages because they can save a lot of money in the initial fixed rate period during which time they pay more towards the principal. Sometimes people don’t expect to pay the mortgage entirely back and only intend to live in a location for a few years.
I avoided the adjustable rate mortgage advantages because I was worried that I wouldn't be able to afford the monthly payments once the rates increased. I ended up finding a relatively cheap fixed rate mortgage in part because of my good credit score but also because I found great help through the www.Real-Estate-Yogi.com. I plan on using them again if I ever need to explore fixed rate mortgage refinance options in the future. They have many useful drop-down menus relating to the world of real estate such as home improvement projects and loan options such as equity lines of credit or mortgage refinance with cash out. Call them directly if you need advice at 1-800-987-1397.