What kind of loan should you choose? Consider the lower cost and higher risk of an adjustable rate mortgage over a 30-year fixed rate loan.
According to the mortgage industry, the average homeowner refinances his loan or sells his home within 5 years. If you're going to move or refinance your home within 5 years, choosing a 30-year mortgage doesn't make any sense. You're paying for stability you'll never need.
Instead, consider a 5-year or 7-year adjustable rate mortgage. The interest rate is fixed for the first 5 or 7 years, so the loan gives you some of the same stability of a 30-year fixed rate mortgage. But you may save anywhere from .50 to .75 percent over the rate of a 30-year fixed rate mortgage.
On a $100,000 loan, that savings translates into $50 per month, or $600 per year.
Ilyce Glink is the bestselling author of 100 Questions Every First Time Home Buyer Should Ask, and is the Managing Editor of Right at Home Daily.
Figuring Out How Much The Property Is Worth
You think you've found the right home. But is it really worth what the sellers are asking? Before you give away your hard earned money, do some thorough research. Margaret Crane tells you what steps to take to ensure you're paying the right price.8
Unless you've recently won the lottery, it's likely you'll
be getting a loan to pay for your new home. Here's
everything you need to know to get your application
approved. From Margaret Crane, contributor to
Newsweek, The New York Times and Money magazine
and author of Successful Homebuilding and Remodeling:
Real-Life Advice on Getting the House You Want without
the Roof (or Sky) Falling In.
There's little chance you'll have a successful closing
unless all of the details are in place. Here's some
information to help you get from offer to closing without
missing a beat. From Barbara Buchholz, former editor of
House & Garden Guides Magazine and co-author of Porch
Style and the New Homeowner's Handbook.
For most, making an offer for a home is the most
stressful part of the process. The information you'll find
here will help you figure out everything from how much a
piece of real estate is worth to how to win a bidding war.
From Margaret Crane, contributor to Newsweek, The
New York Times and Money magazine and author of
Successful Homebuilding and Remodeling: Real-Life
Advice on Getting the House You Want without the Roof (or
Sky) Falling In.
