It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
Loan Options Defined
When you think about your dream home, the butterflies and angel whispers often supersede reality. If you've found that lovely home, chances are you're likely going to need financing; sorry to burst your bubble. But, it's ok, you'll learn just about anything if you have to get this beauty. We're glad you feel that way, because today we're gonna give you a gentle introduction to loan options.
It's important to know about loan options. Knowledge and best choices will determine several things, like how much you'll need to borrow, what's needed up front, and what the cost is over time.
A loan option is almost always made up of three key things:
Interest Rate Type
Loan Term-is generally 30 year, 15 year, or other span of time you will borrow money, and repay your loan. Your choice of Loan Term will affect monthly principal and interest payment amounts, the rate of interest you will pay, and how much interest you will pay over the life of the loan. In general, the longer your loan term, the more interest you will pay. Loans with shorter terms usually have lower interest costs but higher monthly payments than loans with longer terms. But a lot depends on the specifics – exactly how much lower the interest costs and how much higher the monthly payments could be depends on which loan terms you're looking at as well as the interest rate. An example of Loan Terms is illustrated below:
Interest Rate Type- Loan interest rate types are 1). Fixed & 2). Adjustable Rate. Your choice on rate types will affect whether your payment stays the same, or will vary, and also the amount of interest you will pay over the life of the loan. An example of Interest Rate Types, are below:
Loan Types-are Conventional, FHA or other special programs. Mortgage loans are organized into categories based on the size of the loan and whether they are part of a government program. Loan type choices will affect how much you need for a down payment, the total cost of your loan including interest and mortgage insurance, and how much house you can afford. Each loan type is designed for different situations. Sometimes, only one loan type will fit your situation. If multiple options fit your situation, try out scenarios and ask lenders to provide several quotes so you can see which type offers the best deal overall.
Majority of loans
Typically cost less than FHA loans but can be harder to get
Low down payment
Available to those with lower credit scores
VA: For veterans, servicemembers, or surviving spouses
USDA: For low- to middle-income borrowers in rural areas
Local: For low- to middle-income borrowers, first-time homebuyers, or public service employees
There. It's that simple; well, kind of. There is actually more to the loan process of course, but this will get you started, but we're not going to leave you hanging! Call us and let us explain the rest in easy to understand terms. We're in the office at(423) 433-6517, and as always welcome you to come by for a visit to our office inside of Keller Williams Realty at 1033 Hamilton Place in Johnson City. Be empowered!
Wes Shields, Team Owner and Listing Agent for The Shields Team at Keller Williams Realty of Johnson City Tennessee, has a long and very impressive list of accomplishments in his 10+ years in the real ....
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