Mortgages

Congratulations on taking your first step toward home ownership. Buying your own home is one of the most important decisions, and perhaps the biggest investment, you’ll make in your lifetime. Buying a home can considerably alter your lifestyle and financial circumstances, and you want to be as prepared as possible. This includes understanding the lending process, managing your finances, and maintaining the investment you call home. Better Living Realty has a network of Mortgage Brokers who can assist you with:

  • Pre qualification
  • Potentially help you with your credit scores
  • Help with your application process
  • Provide you with many different finance options

Are these some question you can’t answer yourself? Contact a Better Living agent and they can refer you to a Mortgage broker that can answer these questions for you today! Contact Us (203) 756-2520

  • Can I buy a home if I have less-than-perfect credit?
  • Which is better: a fixed or adjustable interest rate?
  • What documents will I need to apply for a mortgage?
  • How much do I need for a down payment?
  • Which mortgage and homeowners costs are tax-deductible?

Connecticut offers several homes and properties for sale. But no matter if you choose a condominium or a multi-family house, securing a mortgage is a crucial purchasing step.   The Mortgage broker we refer can help assist each client through the steps of the application process and refinancing. Better Living Realty has access to get up-to-date mortgage rates and do everything in their power to make your home buying a great experience.

Types of mortgages

  • Fixed-rate Mortgage
  • Adjustable-rate Mortgage
  • 203K Rehab Mortgage
  • Investor Mortgages

Most mortgages fall into one of two categories: fixed-rate and adjustable-rate. A good mortgage broker will clearly explain the benefits of each type and help you determine which is best for you. Here are a few highlights:

Fixed-rate mortgage

  • A fixed-rate mortgage term is generally 15, 20, or 30 years long
  • You pay the same interest rate the entire length of the loan—this means monthly principal and interest payment amount remain constant for the life of your loan and you don’t have to worry about rising mortgage rates
  • Interest rates are slightly higher than adjustable-rate mortgages (ARM)
  • Best if you plan to stay in your home at least 5 years

Adjustable-rate mortgage (ARM)

  • Usually available in 5-year, 7-year, and 10-year fixed-rate periods
  • At the end of the fixed-rate period, if interest rates go up or down, your payments will also change at each scheduled adjustment date. Note: In most cases, there are “rate caps” to limit the amount your interest rate can go up or down. The APR may increase after the loan consummation.
  • Generally offers a lower rate than a fixed-rate loan for the first 5-7 years of your term
  • Saves you money initially, and may help you qualify for a more expensive home
  • Best for buyers who know they’ll sell within 5-10 years

Additional Loan Considerations

In addition to the traditional fixed-rate and ARM loans, they are a variety of other loan options, like programs for low-income families, veterans or union members. As you shop around for loans, make sure to ask if you qualify for any special loan programs. Here are a few things to consider:

FHA/VA loans

The Federal Housing Administration and the Veterans Administration offer loan programs with low down payment requirements. The FHA allows as little as a 3.5% down payment and there may be no down payment required for VA loans.

Low down payment loans

Some lenders also offer low down payment loans. You may be able to put as little as 3.5% down.

Alternative loan terms

Most mortgage loans are 30-year loans. However, there are also 10, 15, 20, 25 and 40 year options. This saves you money initially, and may help you qualify for a more expensive home. However, your payments will increase quite a bit when interest rates are rising. And as the index goes up or down, your payments will also change at each scheduled adjustment date. Please consider: In most cases, there are “rate caps” to limit the amount your interest rate can go up or down.

Note: You should know that buying a home is a big responsibility. You can speed up your loan process by obtaining your credit report immediately. Get in touch with one or all three credit bureaus that supply reports to lenders:

Equifax – www.equifax.com
1-800-685-1111

Experian – www.experian.com
1-888-397-3742

TransUnion – www.transunion.com
1-800-888-4213

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