HOW TO CHOOSE A MORTGAGE

Dated: April 24 2018

Views: 5

                                             

Now that you’ve decided to buy a home, it’s time to consider how you’ll pay for it. Mortgages can be complicated, and selecting the wrong one could seriously jeopardize your future. Here are a few pointers for choosing your mortgage wisely.

GET TO KNOW THE PLAYERS

Talk to a friend or relative who’s local in the area and has recently gotten a mortgage – ask if they would recommend their lender and why. Then, reach out to your real estate agent or someone else who deals with mortgage lenders regularly (a financial adviser, attorney, etc.) for help with creating a list of lenders. Search the web and research these recommended lenders extensively, being sure to push past the advertising and investigate fees, lock-in periods, and qualification requirements.

GO LONG

When it came to mortgages, the emphasis used to be on paying them off as soon as possible. Today, the average debt accumulated per person due to credit cards, student loans, etc. indicates that you’re better off opting for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good.

TAKE THE EXTRA POINT

When selecting a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in your new home for a long time – and given the current real estate market, you should – taking the points will save you money and ease the burden you’ll bear down the road, when you’re investing in a family.

DRAFT A PRO

If researching mortgage lenders sounds overwhelming, you might consider hiring a mortgage broker to do it for you. A mortgage broker is an independent contractor who pairs you with lenders by scouring available loans to find the one that best fits your needs. As with your realtor, be sure to research your mortgage broker upfront and get everything in writing.

Not sure which steps to take next? Let us know where you stand in the process of choosing a mortgage for your new home so we can help you move forward!

Blog author image

Kathleen Comerford

Let The Comerford Group Be Your Key to Your Real Estate Success! I am a Broker and REALTOR, connecting buyers and sellers around the world. The Comerford Group is able to provide customers with excep....

Latest Blog Posts

How to Set Up the Perfect Home Office

For some, it’s a dream to work from home. But once you finally get your remote job, you might be surprised to learn that kicking back on the couch isn’t going to get the job done. Having

Read More

Sarasota Named One of the Best Places to Live in the U.S.

The U.S. News and World Report's annual "Top 10 Best Places to Live in the U.S." report has ranked Sarasota No. 9 in their 2021-2022 edition. The list ranks metro areas taking into account

Read More

Older Homes, New Trend: Tips for Improving Comfort and Energy Efficiency

Older homes tend to require upgrades that houses constructed after standards for energy efficiency came into widespread use do not. Buying an older house may mean living in a property with history

Read More

7 Best Tips for Homeowners in Florida During the Summer Months

The summer months in Florida can be grueling and especially hard on our homes.  Homeowners in Florida can avoid any added stress and unforeseen repairs with regular  maintenance checks.

Read More