March 17th, 2017 5:08 AM by Jackie A. Graves
you find your perfect house, make sure you make the right financing choices to
complete the picture.
Americans start to think about their housing needs this time of year.
some people, spring aligns with the school calendar, giving the time it takes
to find the right home, arrange financing and move before the next academic
year. For others, an income tax refund, coupled with refinancing a mortgage, is
the way to fund a home improvement project.
most people, a home is the biggest purchase of their lives. So how do you find
the right loan products and lender?
Research products and terms. Home loans come in two forms: fixed rate or
adjustable rate. Fixed-rate loans come with terms varying from 10 to 30 years
for consumers who want the security of consistent monthly payments plus a rate
that won’t change in the life of the loan. Adjustable-rate mortgages (ARMs)
typically are offered at a lower rate with an initial term of five to 10 years.
30-year fixed-rate loan is by far the most popular mortgage product with
borrowers, but ARMs can be a good option if you plan on moving or refinancing,”
says Craig Evans, Ally Bank’s mortgage executive. “When we start a dialogue with
a potential customer, we’ll discuss the various options and suggest products
geared toward their specific needs.”
Choose a lender focused on your needs. In a crowded mortgage landscape, it’s
important to find loan experts to help you through the process. For example,
the Ally Home Team is on hand to help home buyers through the home loan
experience, from application to close, ensuring they answer questions borrowers
have along the way.
and communications are the biggest considerations when it comes to choosing a
lender, whether it’s new construction, buying an existing home, or
refinancing,” says Beth Foley, broker associate at Beacon Sotheby’s
your lender what products fit your needs. For example, Fannie Mae’s HomeReady
product may be a good option for first-time homebuyers and millennials. Key
benefits include down payments as low as 3 percent, plus these loans are priced
similarly to standard loan pricing, and flexible sources of funds can be used
for the down payment and closing costs.
Establish your limits. Some lenders provide useful tools to get you started,
such as Ally Home, a new direct-to-consumer home loan service offered by Ally
Bank, (ally.com). Its Affordability Calculator helps
you analyze your household income and current financial obligations to estimate
how much house you can afford.
Refinance an existing loan. Refinancing is a potential option if it offers a
better rate than your existing loan, allows you to lower your mortgage payment,
or shortens the term of your existing loan. If you have considerable equity,
it’s also a way to consolidate debt or fund home improvements.
— StatePoint / To view the original article click here