Finding the right mortgage loan for your new home may well determine just how much home you can afford. Consider pre-qualifying before choosing your new or custom home. Once pre-qualified you know exactly what your budget can handle.
Home Mortgage Loans
The average home owner will pay far more in interest over the life of a mortgage than the original loan amount. So the time you spend researching the best mortgage deal could easily save you tens of thousands of dollars over the term of the loan. Finding the right home is important and so is finding the right mortgage loan. Use the mortgage loan calculator to help determine a general budget figure.
Use the internet to research mortgage loan options before deciding which loan is right for you. There are several types of mortgages and you should know which is right for you and your future plans.
Fixed rate mortgages give you the comfort of knowing your interest rate will remain the same for the duration of the loan. With fixed-rate loans you may also pay a slightly higher interest rate than some of the other loan options.
Adjustable rate mortgages are usually offered at lower initial rates and adjust up or down in the future, generally aligned with the prime interest rate.
Balloon mortgages are short term mortgages, generally five to seven years, offering lower interest rates with a total balance due at the end of the loan period. If you plan to stay in the home less than five years you may want to research this option in some detail.
There are numerous other mortgage loan products available and any you consider deserve thorough investigation. While most mortgages are structured to pay principal and interest, some mortgages allow you to pay interest only for a specified term. Interest-only mortgages may work well with the balloon mortgage concept.
The Right Mortgage Lender
Once you've determined the type of mortgage loan for your home purchase it's a good idea to "shop" for the right lender. Spend a little time to determine potential candidates. Research each lender to define the interest rates offered and all costs associated with the loan. Use the map above to locate lenders in your area.
Be as informed about your home mortgage as you are about your new home.