Your home is one of your most valuable assets. Not just for the memories and history you have or will build over the years, but also for its equity, value and potential tax advantages. There are questions you'll want to ask yourself before you take the plunge and obtain a mortgage or refinance. Even if you're not a first-time home owner, finding the right mortgage can often be difficult and complicated Because a home will mostly likely be the single largest purchase commitment you will ever make it is important to fully understand the process, know what you can afford and do not over commit. Knowing the answer to the questions can you afford to buy? Should you buy or rent, are an important initial step in the process. Once committed finding the right type of mortgage and a lender can be important steps that can save you thousands of dollars both immediately and over the long haul. There are many types of mortgages available for different situations,
- Fixed vs. Variable
- Length of Term
- Points vs. No Points
- Escrowed mortgage or non-escrowed
Fees associated with getting a mortgage are often also substantial. Such things as, What is PMI and how can I potentially get rid of it must be addressed. For those individuals who already own property and have a mortgage, refinancing may be an option to save money. Home equity loans also present an option that owners are additionally faced with.