Home Mortgage Rules You Need to Know

Home Mortgage Rules You Need to Know for a Seamless Transaction

Obtaining financing for your dream Waxhaw house for sale can be confusing and at times, frustrating. However, with a bit of extra research, rules and regulations associated with mortgages don’t have to be mind-boggling. Read this article for home mortgage rules you need to know that will make purchasing that perfect home a breeze!

Know Your Options

While the 30-year mortgage is by far the most common, it isn’t your only option! Make sure to request that your lender run numbers for multiple set-ups to find the one that fits your financial situation.

For example, many home buyers overlook the 15-year mortgage when purchasing a house for sale in Waxhaw. If it fits your situation, this mortgage allows you to pay off your home in half the time. They also boast lower interest rates, which saves you a lot of money over the life of the loan!

Affordability Without 20% Down

When figuring out how much house you can afford, remember to consider your down payment. If you are unable to come up with the standard 20% down, you will be required to pay private mortgage insurance.

In addition to this monthly requirement, your principal balance will be greater without that substantial money down. To avoid trapping yourself in a deadly financial web, it’s important to factor in these extra expenses.

Use Your IRA

If you are in a mucky down payment situation, you can use your IRA for that very purpose. A special provision allows you to withdraw up to $10,000 from your IRA if you are a first-time home buyer.

While it may be wiser to use your IRA for something else, know that this option is available to you and may be the perfect solution to buying a gorgeous Waxhaw home for sale!

Tax Benefits Galore

Finally, there are tax benefits of a mortgage that can really boost your bank account. For instance, the interest you pay on your mortgage is tax-deductible as an itemized deduction. For more possible tax breaks from your mortgage, hire a tax professional!

What do you think of these home mortgage rules you need to know? If you need more guidance, you can always call Homes By Cross for your home buying questions!