Perhaps you see yourself living in a New England Cape Cod, or dramatic Victorian. Maybe you’d prefer modern art deco homes, or you’re drawn to simple split-level ranchers.
For every style of home available, there are many more loan programs from which to choose such as fixed-rate, adjustable, jumbo, balloon, and two-step mortgages. Many mortgage companies also offer mortgages for varying repayment terms, as well as buy-down and buy-up opportunities, along with special programs for first-time buyers.
Since your home loan will be an integral part of your overall financial picture, and most likely your largest monthly payment, it’s important to choose your mortgage program wisely. Your current situation, goals and plans for the future, both personal and financial, also play a big part in your eventual decisions of what type of home financing to choose. Here are some questions to discuss with your loan agent to determine what may work best for you:
Is your down payment in your best interest?
Should you pay points?
Do you need a house that will accommodate a growing family?
Do you expect to be moving again in the near future?
Is your income stable or is it fluctuating?
Do you expect it to increase significantly or keep pace with the cost of living?
How much can you afford?
How much should you afford?
Can you comfortably handle the payment amount month in and month out, year after year?
Bottom line, your loan should fit you as comfortably as your new home. Asking your loan agent the right questions will help you get it right.