When it comes to finances, there are many things to consider when purchasing your first home. You may need to sit with a mortgage broker to evaluate your budget and find out exactly how much you have for a down payment and how much house you can truly afford.
Mortgage brokers will discuss with you the current mortgage rates. If you are planning on staying in your home between 5 and 7 years you may want to consider fixed mortgage rates. The fixed mortgage rate typically spans anywhere from 15 to 30 years and the rate remains the same throughout the life of the loan. This can be really helpful when budgeting your payments since they will be the same every month. If you want the lowest payment you should consider the 30 year fixed mortgage rates. However, many people want to be done paying for their home in a shorter amount of time and go for the higher monthly payment to be done in 15 years. They will also spend less money on interest and more to the principle. If this is a possibility, you may want to consider the 15 or 20 year fixed mortgage rate.
Having to consider a fluctuating market may be another reason many people choose fixed mortgage rates. There is peace of mind in knowing that the rate will never go up.
You want to shop around as even with fixed mortgage rates there can be considerable differences as mortgage lenders and businesses try and remain competitive. Finding the perfect home loan takes a little bit of effort, but sitting with a mortgage broker and discussing all your options is the best way to start.
