When it comes to the home buying process, mortgages matter as much as some other important things like location, price and good schools. I was reading the Las Vegas Review Journal when I saw an article that offers some mortgage tips from GMAC Mortgage for first-time buyers and existing homeowners. This article entitled “Mortgage in slow market can differ”, touches on the recent changes in the mortgage and housing markets.
For first-time homebuyers, the market is loaded with inventory, offering a wide variety of choices in styles and prices. In addition, the downward trend over the last year has made for some enticing prices. The article advises novice buyers to secure a fixed-rate loan as opposed to adjustable or variable rate mortgages. Another helpful hint is for homebuyers to consider getting pre-approval for a mortgage in order to know their exact home-buying budget and show the home seller that they are a serious about buying.
Homeowners who currently have an ARM (adjustable rate mortgage), hybrid ARM, interest-only mortgage or variable-rate home equity lines should consider refinancing into a fixed-rate loan. If you were considering refinancing, it would be wise to discuss all of your options with your loan officer and choose the best for your personal situation.
Another thing the article mentions that can help both homebuyers and homeowners is a buydown. In a buydown, either the buyer or seller can pay part of the interest up front, thereby lowering monthly payments. These days, some home sellers are offering to pay points off the mortgage in order to sweeten their offers in competitive markets so homebuyers may want to remember this one when it comes time to negotiate. Another good thing to discuss with your mortgage lender if you are a homeowner thinking about refinancing may be ‘buying’ some of that interest up front and lowering your payments.
Read the complete article in the LVRJ.com here.
