Find A Low Interest Mortgate For First Time Home Buyers
- Author Sintilia Miecevole
- Published October 29, 2005
- Word count 605
If you are a first-time homebuyer, applying for a mortgage can
be a very stressful situation. It is common for first-timers to
become overwhelmed with all of the technical jargon and the
variety of choices available to them. However, if you are tired
of renting and you have a steady income and a good credit
rating, you are already on the road to purchasing your own
home. With a little help from special first-time buyer
programs, you can purchase a home for less per month than you
have been paying to rent.
As a general rule, a household can purchase a home that is
worth up to two to three times its yearly income. However, if
you are a low-income family, there are special programs that
can help you obtain an affordable mortgage that will allow you
to purchase a higher-value home. When you first apply for your
mortgage, you will need to gather all of your financial
information. You will need to know your salary, employment
history, personal assets, bank balances and debts. You will
then need to decide which type of mortgage you would like to
apply for.
There are two different types of mortgages, fixed rate and
adjustable rate. With a fixed rate mortgage, you will pay the
exact same interest rate throughout time, whereas an adjustable
rate can fluctuate over the years. Deciding on the type of
mortgage you need depends on several different factors. These
include your current finances, expected changes to your income
and how long you expect to stay in the house you are
purchasing. With a fixed rate mortgage, you may save money in
the long run, but you will end up paying higher monthly
payments. On the other hand, you can pay less per month with an
adjustable rate mortgage, but you could end up paying much more
overall if interests rates skyrocket.
Obtaining your first mortgage can be made easier with a little
help from special programs. The FHA, or Federal Housing
Administration, issues government-insured loans for first-time
buyers. These loans typically have lower down payments and are
more flexible in their qualification requirements. The Rural
Housing and Community Development Service is another program
that helps low down payment loans. This agency provides loans
to farmers or people in rural areas who cannot obtain mortgages
elsewhere. State and local governments typically provide these
loans to first-time buyers that qualify.
HUD homes are a good option for those who have limited funds
available for home buying. HUD homes are sold as is, at or
below market value, making them more affordable for first-time
mortgage seekers. HUD homes are houses that have been
repossessed by the government after owners defaulted on their
government insured mortgages. These homes can be a good
investment, especially if you plan to fix them up and increase
their market values, or if they are locating in up and coming
areas of town. If you are a first-time buyer, you may be able
to bid on a HUD home and secure a low interest mortgage more
easily, especially if you arrange financing through government
agencies.
No matter what route you choose, there are many different ways
to secure a mortgage that works for you. If you have little
money for a down payment, you can obtain a low or no down
payment loan that may have a slightly higher interest rate and
higher monthly payments, but it will enable you to stop renting
and to start investing in your future. If you do enough
research, you will be able to find and qualify for a first-time
homebuyer loan that is affordable and fair.
Sintilia Miecevole is an expert on mortgages
having worked in the lending industry for many years.
http://www.flexxmortgage.com is a great resource of information
in answering your questions regarding a mortgage. Whether this
is your first mortgage or a renewal, be sure to visit
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