Are you in the market for a new home in the State of Florida?
If so, you aren’t alone.
According to Florida Realtors, more than 25,000 homes sales closed in August 2017. The total inventory of homes offered for sale statewide was 86,661!
If you’re new to the home buying process, you may be unfamiliar with how to find an affordable first mortgage.
Read on to learn the secrets to getting the best rate on your mortgage.
Shop Around for Competitive Rates
Take time to shop around for the best interest rate you can find. To make the most of this approach, begin looking early on in your home search.
By doing this, you get a good sense of the best interest rate you qualify for. This will help you to have an accurate idea of what an affordable monthly mortgage payment will be.
Once you know that payment figure, you can look around for a home that will fit your budget.
Decide Whether or Not to Pay Closing Costs
You should consider whether or not you should pay for the closing costs on your first mortgage.
If you are unfamiliar with what closing costs are, these are the costly fees that can tack on thousands of dollars to the price of your home.
Oftentimes, you can receive the lowest possible interest rate by covering all your closing costs. But if you have limited cash reserves and want to keep a higher down payment, you may want to have the seller cover the closing costs.
It’s always good to have some extra cash on hand for roof repairs or other unexpected costs.
But what are some other things to think about with closing costs?
You should consider how long you plan to live in the home you are purchasing. If you plan to stay in your home long-term (five years or more), consider covering the closing costs yourself. This way you lower the total costs of your mortgage.
You should speak with your realtor or New Florida Mortgage brokers about what may be best for your situation.
Consider a 15-Year Mortgage
A conventional home mortgage spans 30 years, but depending on your circumstances, a 15-year mortgage may be best for you.
Why?
For starters, a 15-year loan generally has a lower interest rate than a 30-year term. This is because you are borrowing money for a shorter amount of time. But keep in mind, this also means your monthly payment is probably going to be a bit higher with a 15-year loan.
Since you are borrowing for a shorter period, you can save thousands of dollars in interest on your loan. This is because you will pay down the principal on your loan faster with a 15-year loan than one that is 30 years long.
Wrapping Up: Make the Most of Your First Mortgage
The idea of purchasing a home for the first time can be a daunting task. There are the stresses of finding a place you want to call your own.
There can also be the concerns that come with securing affordable financing.
Working with an experienced realtor and a trustworthy mortgage broker will help ease some of this stress. But taking the time to educate yourself on this process will go a long way to make finding your first home more enjoyable.
Looking for a reliable professional to help you in your home search? Find them in Florida today!