The Real Scoop on Affordability
The housing market right now is hot. Demands for homes making it an opportune time to sell, but you don’t have to worry. Lending services like Gulfside Mortgage can help you figure out what you can afford when it comes to housing, based on income, expenses and credit history. Here is the real scoop on home affordability from Gulfside Mortgage Services:
Mortgage: The simplest definition is a mortgage is loan used to purchase a home. Few people can outright pay for real estate, so mortgages are the easiest way to afford a home. Once you enter into a mortgage loan agreement, you will have to pay back the loan over a set number of years. Typically, there a will have a 30-year loan agreement, however, depending on how much you are able to pay back on your loan, you can adjust the initial fixed rate mortgage. You can also apply for an adjustable-rate mortgage which can change periodically depending on interest rates.
Down payment : When looking to buy a home, the rule of thumb for years has been 20% of the home’s cost should be the down payment. Depending on where your dream home is and the types of loans available, you may be able to pay more or less as your down payment. The 20% guideline as always been thought of to improve your changes of loan approval and lock in a lower rate, but grants, first-time home buyer programs and additional federal loans can make getting your home more affordable. You can put more money down at first to lower your monthly payments and lock in a lower interest rate. Or you may find that you can gain assistance with your down payment, which may give you more money to direct to monthly payment and pay down your loan quicker.
Interest Rate: Any home purchase through a lender or mortgage service company will be subject to interest rates. Interest will be factored into your loan repayment. If the timing is right, you could purchase your home and lock down a good interest rate. According to BankRate.com, the current mortgage interest rate is around 3.060%. This percentage can vary day to day depending on the market, but currently, this is a low interest rate, indicating a good time for buyers.
Loans: Where you want to buy a home and your homebuyer status may help you afford your dream home. Whether you are a first-time buyer, a veteran, interested in rural housing or looking to refinance, there are many loan options that can help your home buying budget and bolster your borrowing power.
Purchasing you first home, finding a new home, or refinancing the home you love are all things Gulfside Mortgage Services can help you achieve. We are available to help you navigate the process of home loans and affordability. Call our offices at 888-960-6850
