Will My Mortgage Payment Change Over Time?

This is a good question, and one you should consider before you start looking for a home; you don’t want to fall in love with a property that it turns out you can’t afford.

The simple answer to this question is that if you take out a fixed rate mortgage, your payment will stay the same for the life of the loan.

If you take out an adjustable rate mortgage, you should expect some fluctuation in both the interest rate and the payment.

The more in-depth answer is that, regardless of what type of mortgage you take out, you will always have fluctuations in your total housing expense, which is more than just the mortgage payment itself.

These additional items, mainly property taxes and property insurance, can go up over time (and most likely will). Whether they are included in your mortgage payment or you pay them separately, they are part of your monthly housing expense.

All of this points to the fact that when you are planning to purchase a home, you should expect some changes in these variable factors that make up your overall housing expense.

How can you get an idea of what property taxes and insurance will look like over time? To answer these questions, I can put you in touch with the experts.

A real estate agent can pull up historical tax records for properties in the area where you are looking.

As far as property insurance rates go, events such as severe weather, regardless of whether or not they impact your area, can affect the insurance rates of everyone involved in the larger insurance pool. One of my local insurance agent partners can provide a wealth of information on this and other insurance issues.

If you have questions about any of this, please give me a call. If I’m unable to answer any of your questions, I’ll put you in touch with someone who can.

Buyer Fears: Will I Even Qualify for a Mortgage?

This is the big question for buyers who believe they’re on shaky financial ground. One thing is for sure: unless you at least try, you’ll never know if you’ll qualify for a mortgage. It costs nothing to find out if you do, and you very well could qualify for more than you think.

If you are even remotely close to considering buying a home, it would be worth your time to give me a call and learn about your options.

There are three reasons for this. The first is interest rates. Currently, these are still at near historic lows. Low rates mean you’ll be able to obtain a higher loan amount than you would be able to in a higher interest rate environment.

The second is home prices. In many parts of the country, limited housing inventory is pushing prices higher. Why not shop before the prices go up even more?

The third is planning. If I review your financial details and determine that you aren’t in a ready-to-buy position, we can put a plan together to get you there.

This plan (which may be very simple) will normally focus on one of two areas: assets or credit. Assets refer to having enough funds for your home purchase, such as down payment, closing costs, and asset reserves.

Credit refers to paying down or paying off debt. Having high credit card balances, for example, increases your monthly obligations, which raises your debt ratios.

As straightforward as it may be, it could take time to see these plans through to their completion, so it’s good to get started as soon as possible.

Give me a call today to learn about your current and future home-buying options.