After having spent a lockdown in your current home or apartment, you’ve realized what you do want and need in a home, and maybe this isn’t it. Perhaps you need more space, a home office, a different city or even state, or just different walls to look at during the next wave. If this sounds like you, and you’re considering buying, here are some mortgage options you should be considering.
Adjustable Rate Mortgage
You might already know about Adjustable Rate Mortgages from the last housing bubble, and feel understandable trepidation about using one. Fear not: Nerd Wallet says they can still be a good tool in your repertoire, specifically if you plan on moving prior to the time the rate expires and becomes a higher rate. Traditionally, an ARM starts out at a lower rate and then adjusts over time to match market rates, usually going up. This can get you under water, but only if you buy a house which is going to go down in value. If you are careful about buying within your capacity to pay off and move, it can still be a useful option.
A VA loan is a great option for veterans! There’s no down payment needed, which means you don’t need to have tens of thousands of dollars in the bank before purchasing a home. According to Chris Murray Home Loans, the benefits of a VA loan can help you save a lot of money on the initial payments for your new home. They’re also available for refinances and you can’t be penalized for repayment of the loan early, unlike for many traditional loans.
If you’re a first time home buyer, a FHA loan might work best for you. With this kind of loan, Consumer Finance says you only need 3.5% of a down payment, which saves you time trying to save money before buying. This can get you paying down your mortgage and increasing your overall investment wealth more quickly! They usually allow lower credit scores than other loans, which is important if you are paying off educational debt. If your goal is to get into a home quickly and pay off your mortgage more quickly, this might be your best bet.
Your home awaits! Make sure you factor into your cost analysis what lenders to consider and all factors like medical and educational needs for your future before looking at mortgages! Get the best loan for you, and get ready to move into your dream home!
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