Are you in the market to purchase a home? If so, you are not alone. In the United States in 2017, in fact, approximately 5.51 million homes were sold. And this number consists of existing homes sold, so it would not even include new homes sold. Any way you look at it, this means there are a lot of people purchasing homes!
For the majority of these individuals, financing will be needed in order to complete the purchase of a home. Here are three questions to consider as you go about financing the purchase of your home.
What Are the Most Current Mortgage Rates?
A key factor in determining the financing you will be able to obtain is the mortgage rates. Current mortgage rates are the basis for figuring out the what your monthly home payment will be. A mortgage company will tell you the mortgage rates and help you figure out the most affordable plan for you.
What Is an Adjustable Rate Mortgage?
There are two types of mortgage rates: adjustable and fixed. Mortgage lenders can walk you through both options and tell you the most up to date mortgage rates for each option. Basically, the difference is this: a fixed rate mortgage is a loan with terms that vary, and it can be scheduled on a 30-year or 15-year basis. With an adjustable rate mortgage (ARM), the interest rate can vary during the time of the loan; and usually, the mortgage rates for an ARM start out for a period as fixed and then become adjustable for a period.
How Do I Qualify for an FHA Home Loan?
Considering mortgage rates and the cost of purchasing a home an FHA home loan can be a great benefit for prospective home buyers.
There are, however, criteria that must be met. These are as follows: you are obligated to refinance your home’s value up to 97.75%, 580 is the lowest acceptable number for your credit score, and purchase a house putting 3.5% down.
In life, making dreams happen requires action, planning, thinking and determination. The dream of purchasing a home is a journey that can be realized, and understanding mortgage rates and the lending process is a great place to start. With hard work, and a little luck, too, you’ll be agreeing with the well-known quote: “The best journey always takes us home.”