When you're buying a home, mortgage lenders don't look just at your income, assets, and the down payment you have. They look at all of your liabilities and obligations as well, including auto loans, credit card debt, child support, potential property taxes and insurance, and your overall credit rating.
It is a difficult decision to decide between a fixed and an adjustable-
Unlike fixed rate mortgages, the payments on an adjustable rate mortgage will vary as interest rates change.
If you choose to finance your closing costs, the monthly loan payments will be higher
than if you had paid the closing costs out-
An interest-
Depending upon the market value of your home, outstanding mortgage balance, credit history and other factors, you may qualify for a home equity line of credit. Monthly payments on a HELOC are variable as they fluctuate with interest rate changes.
Over the last couple of years with interest rates at a 40-
The loan amount, the interest rate, and the term of the mortgage can have a dramatic effect on the total amount you will eventually pay for the property. Further, mortgage payments typically will include monthly allocations of property taxes, hazard insurance, and (if applicable) private mortgage insurance (PMI).
Different mortgage terms and rates can make the loan selection process confusing, especially if you don't plan on keeping the loan for the full term.
In some cases, it may benefit you to 'buy down the interest rate' by paying extra money up front in the form of discount points.
With interest rates near 40-
It may surprise you that most banks and mortgage companies collect two to three dollars
for every dollar that you borrow! However, there is a way to accelerate mortgage
payoff using a method called Bi-
Many lenders will offer a 'no-
With the interest on a mortgage being deductible when you itemize deductions, it may surprise you how much you can save in taxes.