How to Get a Home Mortgage That You Can Afford
Buying a home is an exciting and overwhelming time. Selecting the features you want and finding your dream home should be exhilarating, but finances can create a cloud of anxiety over the process. Knowing how much home you can afford and getting a home mortgage you can afford can ease the stress and bring enjoyment back into the process.
Try to Avoid PMI
Private mortgage insurance is required in cases where you have less than 20 percent available for the down payment of your home. Boosting the amount of money you have available for a down payment, or shopping for a less expensive home, are ways to avoid PMI. If you do end up with PMI insurance, keep track of the value of your home. Once the balance of your mortgage falls below 80 percent of the value of your home, petition your lender to have the PMI insurance canceled. You can reach this goal not only by making payments on your home, which lowers your loan balance but by increasing the home’s appraised value.
See What Mortgage Programs You Qualify For
There are many different types of loan programs available. While the traditional loan programs that are open to everyone maybe what a bank steers you toward, when you work with a lending expert you may be surprised at how many options are available to you. There are specialty loans for first time home buyers, veterans, jumbo loans for pricier properties, loans for investment properties, and other choices. Working with a mortgage expert allows you to take advantage of the best deals available at the time you are borrowing.
Check Your Property Assessment
Property taxes can make up thousands of dollars that are folded into your mortgage payment each year. If you have reason to believe that your home’s value is assessed at a higher rate than it should be, contact your assessor for a new assessment. This can be a great way to cut your monthly costs.
Remember, Nothing is Set in Stone
If you have an existing mortgage and are feeling a financial crunch, you may be able to make your mortgage more affordable. If interest rates have lowered since you purchased your home, refinancing can help you lower your monthly payment while also reducing the amount you pay in interest over the life of your loan. You will be charged certain fees when refinancing, so you want to be sure that the interest rate adjustment makes the costs worthwhile. A mortgage specialist can guide you through the process and let you know if it makes sense to refinance.
Buying a home can be affordable and within your reach. Smart shopping and working with an expert to find a mortgage program that meets your needs helps take the stress out of the process.
Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.
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