Home Loan mortgage rates change on a constant basis. It is important to understand how the process works and how to put yourself in the best position to buy a home with a decent rate on your mortgage.
Deciding on a home loan doesn’t have to be daunting; education yourself on what types of loans are out there can help you secure a loan that is affordable, fair, and most importantly; right for you.
A Conventional Mortgage is a fixed rate 30 year mortgage loan and is considered the most common type. Be sure to check with your broker or lender, depending on your financial situation you can sometimes go with a 15 year loan. This gives you the option of accumulating less interest on your loan and paying off the mortgage quicker. An interest rate which is fixed is often your best option, an adjustable rate mortgage can change over time; fluctuating with the market.
An FHA loan, though less conventional than a 30 year fixed rate, may fit you best. An FHA loan is backed by the Federal Housing Administration. and requires less of a down payment, usually 3.5%. If your credit is good, the pricing of the monthly payment can be more manageable.
If you are in or have been in the military, a VA loan may be the best option for you. The Department of Veteran Affairs backs VA loans and they require no down payment from the borrower.
Fannie Mae offers a program called the Conventional 97. This mortgage only requires a 3% down payment. This type of loans also allows the use of gifts from family or related persons.
Always remember keeping track of your credit and keeping it in good standing, this is the key to a great mortgage loan no matter which you choose. Know what you can afford and try to stay within your means when considering which home is best for you.
Always consult with your lender or home financier; they keep track of the market in your area as well as the interest rates which are constantly in a state of fluctuation.
For more information on financing your New Mexico home, please feel free to contact Cindy Schweikert either by email cindy@hartwest.com or call (480) 596-5151.
Licensed in Arizona, Colorado, Utah, Oregon, New Mexico, and Washington, we have had new and previous home buyers covered since 1997.
