More for your Mortgage
Buying a home is a whirlwind of excitement. If you’ve ever shopped for a home, you’ve probably spent hours combing the listings online, imagining how your couch would look against that wall, how your lawn furniture would look on that fantastic patio. You think it’s a great home in a perfect neighborhood; it’s got all of the features that you want. But then you think about that pesky mortgage payment, and your daydream comes to a screeching halt.
Never fear, we here at MBNG Mortgage have prepared a cheat sheet for all of you first-time buyers out there, just to make things a little easier to take. Learning about mortgages is a bit like eating an elephant: one bite at a time!
Plan Ahead
If you’re at the point where you’re ready to start looking for a home, it’s time to start thinking. First, visit our website here and fill out an online loan application. It’s important to know what your credit score looks like; getting a credit report and filling out the loan application will show you and potential credit hassles, as well as what kind of loan you will be able to get. Remember, even if you qualify for an expensive home, it’s always better to stay under that figure if you can. You’ll appreciate it later!
Think Short-Term
A recent trend in the market is 30 and 40-year mortgages. This will cause you to have never-ending interest payments. For example, a $100,000 loan at 7% interest paid off over 20 years will accrue $86,072 in interest. The same loan paid off over 30 years will incur $139,509. Wow…I could buy a whole other house for that! A shorter mortgage term will cause your payments to be a bit higher, but think about the interest and weigh it out.
Get Fixed
Interest rates are low right now, and a fixed-rate mortgage will keep your monthly payments the same for the life of the loan. Adjustable-rate mortgages generally have a lower rate at the beginning, but can rise after a few years, depending on the condition of the market. If you qualify for a fixed-rate loan, this is usually a wise choice.
Pay More Now
If you have less than 20% of the home’s purchase price at your disposal for a down payment, you are required to buy private mortgage insurance to protect the lender in case you mess up and can’t make your payments. What a cheerful thought, right? Best idea here is to save your money until you have 20% ready to go, and then buy a home.
We know there is lots of information to learn in the world of mortgages, but remember that we at MBNG Mortgage are here to help! Please don’t hesitate to give us a call, or visit our website for a wealth of information. 
