Understanding the “Big Three” When it comes to Mortgage Loans

More and more people of all ages are entering the ranks of homeowners for the first time. Prices have been fluctuating on homes for several years, but have mostly reached a plateau in most areas. For new homeowners taking advantage of these prices, a mortgage loan in Maryville can get them into the house of their dreams sooner than they ever imagined!

Fixed Rate, Adjustable and Jumbo

When looking for a mortgage, you may be faced with three options. Fixed rate are the most popular, but can become a monthly payment obligation that will be with you for up to 30 years. With financial stability, this is a very common option for new homeowners to choose. While 30 years is the most common, 10, 15 and 20 are also able to be used depending on your personal finances and ability to meet monthly requirements. Adjustable rates have the interest fluctuate throughout the plan to reflect current market prices. This could both benefit and hinder you. While there may be some years where an adjustable rate is less than a fixed rate, it is ultimately up to the homeowner to decide if the risks are worth it. Jumbo loans are for wealthy individuals looking at more valuable homes. Interest-only jumbo loans are very popular and should only be considered by affluent homebuyers. The jumbo category is usually reserved for homes with a value of more than $625,000.

Finding the Right One for You

Before deciding on any mortgage loan, it’s a very wise choice to do thorough research. Being honest with yourself and your financial abilities can prevent many financial issues later on down the road. In addition, business owners with a free business checking account, or individuals with an online checking account can also negotiate with loan adjusters and accountants to find the best value for their abilities. Take some time to speak with an accountant or other financial advisor in your area, let them know about any income you may have from personal careers, hobbies or side businesses and see how much of those finances can be used to meet the requirements of a monthly mortgage loan payment. No matter which route you decide to take when it comes to buying a new home, you can rest comfortably in the fact that the roof over your head is your own property. It’s a place you can start or add to your family, and a place that may eventually be passed down to your children. It’s a worthy investment to consider.

As a potential new homeowner, if you’re looking for the best mortgage loan in Maryville, be sure to check with the helpful team at your locally-based community bank. They can answer all of your questions!

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