First Time Homebuyers
What does the phrase “First Time Home Buyer” really means? For many consumers it means “I need help”. Many first time home buyers begin this major step without really knowing what’s involved in the home buying process. For many, the process is overwhelming; therefore they move back into their comfort zone, which is renting or living with parents. There are many who will continue to move forward, but will need someone to hold their hand until the deal is done.
Buying a home can be very rewarding, but it can also be very challenging; especially for the first time home buyer. It takes planning, money and work to become an owner.
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Oxford, MS Mortgage Lenders
Your first step to home ownership is getting approved for a mortgage loan. Oxford, MS is equipped with lenders who are ready to assist you in finding the perfect loan to fit you needs. Listed below are several lenders to consider
Gum Tree Mortgage
Oxford University Bank
Mississippi Federal Credit Union
Find the Home Loan that Fits Your Needs
By: G. M. Filisko
Published: February 10, 2010
Understand which mortgage loan is best for you so your budget is not stretched too thin.
The basics of mortgage financing
The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.
The risks and rewards of ARMs
An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.
Consider a government-backed mortgage loan
If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration or Department of Veterans Affairs.