Your Arizona home will probably be the largest purchase you will ever make, so it pays to ensure that you are choosing the right mortgage for your particular needs.
When it comes to mortgages, a little bit of research and some smart thinking can ensure that you get the right loan and make the most out of it.
Look For A Shorter Term Mortgage
Perhaps all of your friends are signing up for 30 year mortgages, but do you really want to be paying off your home for the next three decades?
When you spread out your mortgage payments over such a long period of time, you will usually end up paying more in interest than the house is actually worth! To make the most out of the mortgage, look for a 10 or 15 year loan instead.
This will save you tens of thousands of dollars in interest, will usually offer a lower interest rate and will mean that you own your home before you are old enough to have grandkids.
Make A Large Down Payment
The bigger the down payment you can make, the more you can make of your mortgage. If is it more than 20%, you won’t have to worry about private mortgage insurance which will save you a lot of money. Also, this will reduce the loan amount so that you pay less interest over the years and you may be able to pay off your home sooner.
Think Ahead To The Future
If you are thinking of buying a home in the next six months, it’s time to start filling out a pre-approval mortgage application with your lender. This will help you to discover any potential problems with your credit score and also allow you to determine what size of loan you can take out.
If you are a couple, make sure that you file this paperwork together so that you have a clear picture of your finances.The earlier you figure out this info, the more chances you will have to get an advantageous mortgage loan.
These are just a few ways that you can make the most of your mortgage when buying a Arizona home. To find out more, please contact us right away!
