First-time home buyers will quickly find that there is a lot to the home buying process to familiarize yourself with. There is more to the process than simply finding your dream home and paying the price tag attached. There are qualifications for buying a home, for getting a loan, as well as additional fees, and much more. Before deciding on a home, you’ll even need to consider what kind of mortgage would be most beneficial to you.
How long will you be paying off your mortgage loan?
There are a few different options when it comes to the length of your mortgage loan, but the most common mortgages by far are 15-year mortgages and 30-year mortgages. You might think that having more time to pay off your mortgage is the obvious choice. However, while with a 30-year mortgage your monthly payment can be lower, you ultimately end up paying more over 30 years than you would over 15.
Why are 15-year mortgages cheaper?
To put it simply: interest.
There is a wide range of interest rates that effect the economy, but generally what you need to know is that lenders charge less to lend money for 15 years than 30 years. The interest you accrue in the beginning may be low, but it will rise over the years. In a similar fashion, generally 3, 5, and 7-year mortgage rates are lower than 15-year or 30-year rate.
Discuss your options with your mortgage broker.
In the end, you must decide what the best choice for you is. Seek the advice of professionals who can break down the details of your financial situation. With professional advice and careful consideration, you’ll be ready to make an informed decision.
Looking for help with mortgage services? You can rely on Stonebridge Mortgage Group!
For professional assistance with mortgages, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. If you’re ready to apply for a loan and want to go through the process online, Stonebridge Mortgage Group offers online applications. We also help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and are in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!