When you’re getting ready to purchase a home, chances are you’re worrying getting a mortgage. Relax! It’s really not as complicated as it seems, even for those of us who don’t have a financial background. We’ll help you learn what your options are and how to find a reputable lender so the process will be de-mystified.

How Do You Choose A Lender?

Banks, credit unions, direct lenders – how do you decide where to go for your mortgage? Many people go straight to their bank or credit union to get the ball rolling, which is a fine choice, but you may be limiting yourself by doing that. If you use a mortgage broker, they will do all the leg work of evaluating your specific situation and finding a lender who can offer the best product for you at the best rate. They may even know of options you weren’t aware of, such as VA, FDA, or even USDA loans.

Fixed Rate Or Variable?

Next, get to know the types of interest rates that are available. Making the right choice could save you thousands of dollars over the life of the loan. Talk with your lender or financial advisor to determine which would be the right option.

• Fixed rate: This type of loan locks in your interest rate for a specified amount of time, usually five years. This protects you from fluctuating rates, so if the federal government ever hikes up interest rates, you won’t be affected until it’s time to refinance. On the other hand, the interest on a fixed-rate loan does tend to slightly higher than a variable-rate.
• Variable rate: This means that the amount of interest you pay will vary depending on the market rate. This usually means a slightly lower interest rate, but it can also be risky since your monthly payments could go up significantly if the interest rate rises. On the other hand, if interest rates are falling, this could work out quite well in the long term.

How Long Should The Loan Be?

The next factor to consider is the life of the loan. The standard in the United States is thirty years, but that isn’t the only option. Your mortgage could run anywhere from 10 to 40 years. Ask your lender to run the numbers for a few different mortgage lengths to see what each scenario would look like financially. You might be surprised to find out that you could pay off your house in half the time with just a small increase in your monthly payments.

Buy Your Dream Home With The Link Team

Once you’ve discussed your mortgage options and figured out a price range, contact the Link Team! We would love to help you find a home that you love and can afford. Give us a call at (239) 357-5058 or get in touch through our website.