From the desk of Rio Vista REALTOR, Ralene Nelson; Just wanted to share this article, it simplifies and demystifies mortgages.
Choosing the right mortgage is daunting, so we’ve demystified common scenarios to help you find the right loan.
Tired of paying rent and ready to become a homeowner? Good news! According to Trulia’s recent rent vs buy report, buying a home remains a cheaper option than renting, thanks to relatively low interest mortgage rates and fast-rising rents. And, even better news, you’ve taken a step in the right direction when it comes to saving money — buying can be nearly 40% cheaper than renting.
But before you start picking out curtains and furniture for that new home, there are some financing decisions that need to be made. Determining what type of mortgage is best for you and your family may seem intimidating, but there is one out there that’s right for you.
1. Find The Right Type Of Mortgage That Fits Your Needs
2. What if I can’t afford a conventional mortgage?
3. I’ve got two toddlers and want to pay off my mortgage before they head to college. How can I do that?
4. I’m downsizing to a smaller, less expensive home.
5. I’m not sure how long I’ll live in my current city. Does it still make sense to buy?
How long you stay in a home is an important consideration when deciding to purchase a home and take out a mortgage. As we’ve outlined before, it might be five years before you recoup the initial costs of purchasing a home.
If you’re certain you won’t be staying put much longer than five years, options that get you the most equity in your home — such as a 15-year or 30-year mortgage — are good ways to go.
6. What else should I be thinking about when considering buying a home and taking out a mortgage?
Most real estate professionals recommend shopping around, obtaining information from several lenders to ensure you’re getting the best price. You can also work with a mortgage broker to find a lender. Securing a home loan can take anywhere from a few weeks to a few months, so it pays to do your homework.