Sep 8, 2012
Securing the best financing for home purchase
A property sale cannot close unless buyers have the means to make a cash purchase or obtain finance. Securing the best financing in today’s marketplace can be challenging, here are some helpful information on the major mortgage plans.
In most cases financing is necessary and is obtained from institutional lenders such as Mortgage Companies or Banking Institutions. Buyers may also obtain finance from sellers or private investors.
Financing a home purchase is a critical and complex subject for most homebuyers. What you know about mortgage plans, rates, points, taxes and selecting a lender, can save you thousands of dollars. The more you know about finance, the better decisions you will make in choosing the financial product suitable to your circumstances.
If knowing that your payment will be the same every month is important, a fixed-rate mortgage may be the ideal loan for you.
Fixed-Rate Mortgage
This type of mortgage fixes the interest rate for the term of the loan, are most commonly used by homebuyers because they’re stable. Typically monthly payments of principal and interest are fixed and never change regardless of rate fluctuation within the market place. Fixed-rate mortgages are offered for conventional loans as well as government loans (FHA & VA) with equal monthly payments spread over 15, 20, or 30 year terms.
30 year fixed-rate mortgage
The 30 year fixed-rate loan offers the lowest monthly payments in the fixed rate category. Due to the low monthly payments it is often the easiest loan to qualify for. Down payments starting at 5% for conventional loans (3.5% for FHA and 0% for VA) are often required.
Get more information on selecting the best financing for your Orlando home purchase, contact homes for sale by owners direct.
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