For most buyers, securing the financing you need is one of the most stressful parts of buying a house. The options you choose and the terms of your loan can have a major impact on your financial future, but many home buyers simply get overwhelmed and accept the first loan they're offered. EXIT Trinity Realty, a cutting-edge real estate team based in Gahanna, OH, has some home loan tips that could save you thousands when you decide to buy a house.
The most important options of a home loan are:
- The Mortgage Term: This is the amount of time you will have to pay back the loan. The most common options are 30-year and 15-year terms, and each has its own advantages and drawbacks. Essentially, the shorter the term, the higher your monthly payments will be, but the less you'll pay in interest. In fact, a 30-year loan could potentially double the price of your home.
- The Interest Rate: You may be offered the option of choosing a mortgage with either a flexible rate or a fixed rate. Flexible rates can be adjusted over time, which could be an advantage if rates go down. However, you could find yourself paying more if they go up later, which is why many people choose a fixed-rate plan.
- The Loan Type: Your mortgage may qualify for special assistance from the Federal Housing Authority or other entity who will offer help with the down payment and closing costs. If not, you'll likely be receiving a conventional home loan from a commercial lender.
Whether you're buying your first home or are an accomplished real estate investor, the experts at EXIT Trinity Realty will help guide you through every step of the process. They maintain a wide network of professionals throughout the industry, so visit their website to learn more, or call (614) 269-4663 to talk with an experienced real estate expert today.