Some home buyers may think getting a loan for a new home is complicated. In reality, it’s not! It is the same loan you would get for an existing home. Not all mortgage products are created equal, so finding the right one is important. The good news is there are many types of loans available in the market so homebuyers can find the perfect fit.
What makes the perfect home loan?
1. How long will you live there?
It’s vital that you ask yourself one crucial question: How long do you plan on staying in the home?
In general, loan terms are set at 30, 20, and 15 years, but other options exist as well. Shorter-term loans usually have higher monthly payments with lower interest rates and lower total costs. But houses don’t usually make great short-term investments.
If you’re planning on being in a home long-term the more likely you are to regain what you paid in transaction costs and be able to sell for a profit. This consideration also affects the interest rate type and loan type, which brings us to our next point.
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