You don't have $150,000 in cash laying around? Then chances are your purchase of a home will depend on your ability to borrow 95% or more of the money you'll need.
Borrowing the norm
Before the 1929 stock market crash, cash purchases of homes were the norm. Or if money was borrowed, it was on a term that typically didn't last much more than five years. That made payments relatively steep, which is part of the reason so many homes were lost in the Great Depression.
Today, the 30-year fixed-rate mortgage, while still the most common way to buy a home, is just one of many financing options available. Indeed, many mortgages today are almost custom-tailored to individual needs. Learn about the basic types of mortgages here.
Mortgage lending is a highly competitive field. Information on mortgage rates, which can change daily, is available in local newspapers, through mortgage brokers, from individual lenders. When you're shopping for a loan, interest rates tell just part of the story. You'll also need to study the various fees lenders charge.
Use our very easy mortgage calculator and other financial calculators to estimate what your monthly payments will be.
The road to financing a home can be arduous and convoluted, but a lot of 'maps' are available to help make the trip less troublesome. Check out our favorite online financing resources to help you stay on course.
RealEstate-Calc.com is a website specifically geared to online real estate calculation tools.
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