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By Ruby Frazier
FIRST TIME BUYER GUIDE: KNOW EXACTLY WHAT TO ASK FOR FROM YOUR MORTGAGE LENDERS
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bout 65% of American homes are owned via a mortgage, so you are certainly not alone if you are considering one. However, being your first time, you might find the numerous options for borrowers offered by financial institutions uneasy to navigate. This article is here to provide you some guidance on the top questions to ask your mortgage lender when shopping for a mortgage.
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IS THE INTEREST RATE FIXED OR VARIABLE? One of the first questions to ask your lender is the nature of the interest rate. When it is a fixed rate, it would be a lump sum that will remain constant throughout your loan. The variable rate - its name suggests - follows market changes. Research has shown that, in the long run, variable rates can be a better pick. For instance, the prices of homes in highbrow cities generally fell as an economic effect of the pandemic last year. A variable-rate would have reflected that in lower payments. Nonetheless, if you have a stable income and the location is projected to experience a boom in prices - fixed interest rates might be just the cut.
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