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Lester Brown's Blog

By Lester Brown | Other/Just Looking in Long Branch, NJ

Pick the Proper Loan For Next House Among Long Branch Homes For Sale

Many Americans today are starting to realize their dreams of acquiring a home.  Just as the sales market is flooded with homes for sale and in bargain prices (Long Branch homes for sale included), home buyers are all the more thrilled as there are many financing options to choose from and some are offering very low mortgage rates.  To choose which is the most fitting financing option for you is to consider these factors – your monthly income, financial stability in the long run or long-term, and other resources to which you’ll get the house payment from.  Whether planning on buying a scenic oceanfront house in an exclusive gated community, a luxury custom home, average yet equally gorgeous colonial single family houses, or a trendy condominium space in Long Branch real estate, here are the most laudable and accessible financing options available to help you out:

Conventional or Fixed-Rate Mortgages – The interest rate for this kind of loan does not change during the entirety of the credit period, usually with options of 15 to 30 years.  This is usually availed by buyers with fixed monthly salaries or minimal financial resources.  Also, if you’re planning to stay that long in your home in Long Branch real estate, this is the most preferable method for you, as you’ll be secure on the amount of mortgage and interest rate you’re going to pay each time.

Adjustable Rate Mortgages (ARM) – Aptly called and opposite from fixed-rate mortgages, ARM’s interest rate changes, depending on a certain index, such as the national average mortgage rate or the Treasury Bill rate.  This is usually appealing for many home buyers as lenders will both grant a large amount of loan and a low interest at first.  Home buyers will also take the risk, hoping that the interest rate will not increase during the period.  Although payment for home mortgages are of utmost importance in the entire expense list, there are other payments that should be regarded, also, thus with an adjustable rate mortgage, you can’t make an accurate calculation of your expenditures, as the rate might go up (or hopefully) down all of a sudden.

Federal Housing Administration insured loan and Veterans Affairs guaranteed loans – The FHA-insured loan usually offers a low down payment of 3.5% to the maximum of 5%.  On the other hand VA-guaranteed loans can be availed by eligible American veterans and active military personnel.  There is usually little or no down payment involved.  Some surviving spouses can also avail a loan, provided that they pre-qualify.

VA Mortgages - Qualified American veterans and active military personnel can avail of this loan.  This can be acquired with little or no down payment involved.  There are listings in the site of properties which qualified members could avail of and how much maximum loan they could borrow.  Some surviving spouses may also avail of the loan, provided they pre-qualify.  Active duty personnel may avail of this if they had been in service for more than six months.

Home buyers ought to remember that while they have these many options for a house loan, they should have lenders review and assess their financial standing, having themselves pre-qualified and pre-approved, from which these professionals will draw out which financing suits them best.

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