So you have decided to start thinking about how to finance a house before shopping! Yes, financing a home is an important step. Whether or not a certain house is in mind, it is crucial to begin considering which financing option available is the best for a specific need. Many different options are available, and it is easy to fall victim to apathy due to so many option. However, armed with information, and a certain plan and purpose, shopping for mortgages can be one of the easiest and most beneficial aspects of home purchasing. So, for the sake of illustration, you are the buyer of a house; finding a four bedroom and four bathrooms eclectic in Michigan. The real estate agent settles for a reasonable price, and there is a sandbox. That is step number one. Finding the perfect home. Step two, and arguably the least entertaining albeit most important part of the whole process is finding financing for the house. Different programs and options exist for potential homeowners. One option offered is the Michigan Fixed Rate mortgage.
A Michigan fixed Rate mortgage secures a rate approved and agreed upon by the mortgagee and the bank, which locks in a set interest rate, which does not change. This allows the buyer to actually know and plan when the house is going to be paid off. For example, take a $300,000 house at a rate of 9.1% for 30 years. A traditional variable rate mortgage (boo) leaves that interest percentage open to change, parallel with the market. It would be possible for the interest rate to rise, to, as an example, 10.3% raising the monthly mortgage payment tremendously. The fixed rate, however, guarantees the rate to be 9.6% (it is possible to be higher) for the entire life of the loan. This means that the only change in the loan is the amortization, which is the reduction of the balance due. And that is simply one option of a Michigan fixed-rate mortgage.
At Michigan Lending Group our knowledgeable loan officers are available twenty-four hours a day, seven days a week to assist you in finding the best financing option for you. Visit us online at www.michiganlendinggroup.com