Buying your first home can be an exciting period in your life—but navigating the world of mortgages and real estate agents can be confusing, to say the least. Thankfully, the team at First & Peoples Bank and Trust Company in Russell, KY, is on your side to help resolve your mortgage-related questions and concerns.
First-Time Mortgages FAQ
What Factors Affect My Interest Rate?
There are several factors that will impact how much you need to pay each month. These include the size of your down payment, the type of payment schedule you choose, your credit history, and how much money you need to borrow in the first place. The higher your interest rate, the more you’ll need to pay over the length of your loan.
How Big of a Down Payment Should I Make?
In general, it’s recommended that you make a down payment that is at least 20% of the total value of your home. Paying less than this will usually require that you pay mortgage insurance in addition to your standard monthly payments. A larger down payment will also help you achieve a lower interest rate.
What Types of Payment Schedules Are There?
Most mortgages are paid off in either monthly or bi-weekly installments over a 15- or 30-year period. It’s worth noting that while 30-year mortgages offer lower monthly payments, you’ll pay more over the total lifespan of the loan.
How Does Pre-Approval Work?
Financial professionals will go through your credit records and financial history, examining factors such as income and other debts to determine how large of a loan you can afford. This information will be used to determine how much the bank is willing to lend to you for your mortgage.
Whether you need help understanding mortgages or wish to open a checking account, the team at First & Peoples Bank and Trust Company can help you take control of your finances. To learn more about the services offered by this bank, visit them online or call (606) 836-0211.