Buying and Owning a Home using Fixed or Adjustable Rate Mortgages

My first time attempting to buy a home was a lesson in humility. My parents had bought a home straight out of college. Back then houses were affordable for anyone who had a steady job. I thought it would be easy. So what if I had no credit? So what if I was still waiting tables looking for my lucky break? I was responsible. I came from good home owner genes. The joke would soon be on me.

Owning a Home

Anyone who has been through the home buying process knows that buying homes is not like buying a car. They are perhaps the most valued commodity available, and you typically are competing against other families looking to start their dreams in the same home. For me it would be another fifteen years till I actually owned a home with a wife and a child. I learned many valuable lessons along the way about saving money, building credit, and how to search for the right mortgage and loans to help fund owning a home.

• What is an adjustable rate mortgage and how does an adjustable rate mortgage work?
• What is a fixed mortgage rate?
• How should a first time home buyer decide between the two? What about owning a second home?
• What are the advantages of an FHA refinanced mortgage?

What are the differences?

First let's start by learning about the two most popular ways to finance a home. Both fixed mortgage rates and adjustable rate mortgages have their own advantages and disadvantages. For the first time home buyer it is essential to know the difference. An adjustable rate mortgage often requires less of a down payment. These are good for people who don't have a lot of money to invest immediately, but are expecting their income to grow substantially within the next ten years or so. The reason is because an adjustable rate mortgage interest rate goes up after a few years. Initially your month to month payments will be small, but eventually they will increase significantly.

As for a fixed rate mortgage, most first time home buyers consider this first if they can. It is more stable; however it requires a large down payment of between 20-35% of the principal value of the home. It is difficult to find this money sometimes, so being a good saver is usually the essential ingredient to owning a home. Still, a fixed rate mortgage is exactly how it sounds. The interest rate remains the same throughout the entire process. If you honor your side of the agreement and make your payments on time then the interest rates should remain the same for the life of the contract.

FHA Approval

Sometimes homes are FHA approved. This means that a bank or mortgage lender will often accept a lower down payment on a home because it has been inspected and is in great physical shape. It is a low risk high reward venture for everyone involved. A good real estate agent can find one's for you however they are often in high demand and will go to the best candidates.

For the best help available in finding a home or for any and all real estate questions visit www.real-estate-yogi.com. Speak with an agent directly by calling 1-800-987-1397.

How To Get Current Adjustable Rate Mortgage Rates

If you've ever tried to buy a home you know that it is a detail oriented, time consuming venture. Besides the upfront costs associated, more than likely you are also trying to get some help to pay for it. In most cases this comes in the form of a mortgage.

Some mortgages are great, and suit the buyer’s financial situation perfectly. These are considered good risks with both the lender and the homeowner fully expecting the principal to be paid off entirely over time. All mortgages are not created equal however, and families find out the hard way that they signed a deal that turns out to be nearly impossible to pay over time. Here are some things to keep in mind when looking around for mortgages to help pay for a home.

• Look at your financial situation in great detail. Is now the time to buy a home?
• What type of Mortgage is best suited for this deal? Adjustable? Fixed?
• Are you in the military? Being a veteran offers some benefits.
• What is your credit score situation?

You are eager to own a home, especially if you are a first time buyer. This doesn't mean it is necessarily the right time. Look at the housing market in your area of the country, or wherever you are looking for a home. Scope out the neighborhood and adjacent properties. You will want to be detail oriented in your search. The costs associated with a home rely heavily on set and setting, and if the property value has steadily been declining over time you will want to know why.

Is now the right time?

Look at your own situation in great detail. Can you even afford a home right now? Are you buying something to flip in a few years, or do you want something you will be living in for a long period of time? How is your current employment and health? If you foresee any possible trouble on the horizon in either of these areas you may want to listen to second thoughts about making such a large investment.

Fixed Rates v.s. Adjustable

If you decide to go ahead with purchasing a home, what type of mortgage would best suit your long term intentions? Typically a mortgage will take a long time to pay off, so you will need to have some foresight. Fixed rate home loans are usually recommended for people who intend to use the home as their primary residence for a long period of time. They typically cost more initially, however the long term advantages are numerous. Adjustable Rate Mortgage conversely are better for people who don't necessarily intend to have the home for very long. These are good if the person believes their income will increase over the coming years and can afford the gradual raising of mortgage interest rates over time. The benefit is that the initial costs are usually lower as well as the initial interest rates. Someone who has no intention of eventually paying off the entire loan may want to explore adjustable mortgage rates.

If you are trying to refinance home mortgage with bad credit you should visit Real-Estate-Yogi.Com and see what they might have to say. Call to speak with a representative 24 hours a day at 1-800-987-1397.