BuyingAHome-JenniferChristenot

finance the purchase of your home, and the sheer amount can
seem overwhelming at first. However, take the time to fully
research all of them and speak to a mortgage broker or other
professional about all of your options; knowing what they are
could save you a lot of money and stress for the next several
decades!
The two most common types of mortgages are fixed-rate and
adjustable rate mortgages (ARM). Fixed rate mortgages are
just that, homeowners pay a fixed amount for their mortgage
payment every month. That amount is the same amount
every single month and includes the principal, interest, and
other parts of the mortgage. The biggest benefit of this type
of mortgage is that it’s much easier to budget for the monthly
payment because you’ll know exactly what it will be every
single time.
ARMs work a bit differently in that they are directly tied to the
U.S. Treasury Securities index, the financial index that states
what the interest rate currently is. ARMs can change according
to this index, going up when interest rates rise and falling
slightly when those same rates drop. This can happen a few
times a year, which can be scary for those that need to know
exactly where their money will be going over the course of the
entire year. The initial interest rates on these loans is typically
smaller than on fixed rate mortgages, which is a huge benefit
to buyers, along with the fact that at times, they could be
paying much less for their mortgage.
FAQ’S ABOUT BUYING A HOME | JENNIFER CHRISTENOT
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