FIRST TIME HOME BUYERS SERIES | WEEK FIVE | MORTGAGES 101

Most mortgages start with a 25 year amortization. Your amortization period is the number of years you’ll need to pay off your mortgage. You can look at extending it to 30 years but you’ll need 20% down payment.

Terms for your mortgage typically range from 1 to 5 years. Think of them like chapters in your mortgage story, each offering unique opportunities.

Now, the critical decision: fixed or variable interest rate? Opting for a fixed rate ensures consistent payments throughout your chosen term.When you choose a variable rate, your payment can vary depending on prime rate fluctuations.

Speaking of Payments, they can be made weekly, bi-weekly, semi-monthly or monthly. Did you know that opting for bi-weekly payments or accelerated payments can help pay off your mortgage faster?

Now let’s talk Credit scores, choices you’ve made in the past can certainly come into play when applying for a mortgage, Lenders typically seek a minimum score of 680 for approval. Next week,we’ll dig deeper into this topic.

Often overlooked, and not a favorite topic of conversation,  but mortgage life and disability insurance can play a crucial role by providing protection and peace of mind on your mortgage journey.

There’s a lot to explore when it comes to your mortgage, and It’s always a great idea to reach out to your mortgage professional to get the help you need. If you have questions and would like to get started on your own journey, please feel free to reach out. I'll be back next week where we’ll credit.