Buying a house in Baltimore — or anywhere, really — is an exciting time for anyone. Before you even think about how you will design the interior and surrounding area of your targeted residential property, you think about the financing. Fortunately, loan programs are available.
What are the factors to consider in getting a loan?
According to Primaryresidentialmaryland.com, there are numerous loan programs, and each one has unique features. Consider talking to a mortgage professional for advice and more information.
Still, you must think about payment certainty, equity buildup, and income. These factors greatly affect your choice of loan program.
Payment certainty refers to how much you will be paying monthly and if it will be the same all throughout. The equity buildup impacts your chosen amortization period. And of course, the stability and growth of your income may affect your start rate. Also consider your anticipated term of occupancy, forecasted rate changes, and possible upfront costs.
What are the different kinds of loans?
Once you’ve found a Baltimore house you want to move into, financing is naturally your next move. Some of the most common are FHA, VA, USDA, and HARP loans.
If you’re in the low to moderate income brackets, FHA loans are a recommendation. They have low down payments, and you have the option of fixed or adjustable rates. The government-backed VA loan removes your down payment and mortgage insurance worries.
Similarly, the USDA loan allows lower monthly payments if you are eligible. Lastly, HARP lets you refinance to a mortgage with a lower rate without the need for down payment.
With numerous loan programs to choose from, financing your new Baltimore house shouldn’t be so difficult. Start that search now.