Buying a home is a massive step forward, but paying for it will likely be a pain. It’s good to know how you can lower your mortgage rate.
Buying a home is an incredible financial commitment, and finding the right mortgage can be as confusing as understanding Feynman Diagrams—especially for first-time buyers. Comparison shopping is the key to getting the best deal, and you’ll want to ask yourself, “How much home can I afford?” before you get too far in the process. While there may not be a point of no return, there’s definitely the point of “it’s going to be hard to return” in the world of home buying. Here are two good questions you can ask to get a lower mortgage rate and possibly afford more house for your dollar.
Mortgage Questions to Ask
- Adjustable- or fixed-rate mortgage? Mortgages come in two forms: adjustable and fixed rates. Adjustable rates will have an introductory period of 10, 7, or 5 years, during which your interest holds steady. After this period, your rate changes based on an interest rate index chosen by the bank. Fixed rates (as the name implies) stay fixed, but are generally more expensive than their adjustable cousin. Insurance and property taxes and other costs may fluctuate.
- How much can/should i put towards my down payment? The lower your down payment, the higher interest rate and money you’ll pay in the long-run. If you can, pay 20 percent or more of your home’s purchasing price when you make your down payment. If you don’t have this kind of cash lying around, don’t worry! Many lenders will accept down payments as low as 5 percent.
Getting a lower mortgage is something your future-self will be thankful for! For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. We have the experience needed to make sure you get the right mortgage.
