3 Common Mortgage Questions When You’re Buying a Home in Ellicott City
Three of the most common mortgage questions people have when they’re buying a home for sale in Ellicott City include:
- Do I really need a 20% down payment?
- Why is the lender offering me a higher interest rate than what I saw advertised?
- Should I get a fixed-rate loan for 30 years?
Mortgage Question #1: Do I really need a 20% down payment?
Not everyone needs a 20 percent down payment. In fact, it’s entirely possible to get a home with far less than that. If you’re using a VA loan, for example, you can buy a home with nothing down.
However, remember that what you don’t put down gets rolled into your mortgage loan – and that means higher monthly payments, as well as a possible higher interest rate on your loan.
The more you can put down, the better.
Related: What is a VA loan?
Mortgage Question #2: Why is the lender offering me a higher interest rate than what I saw advertised?
The rates you see advertised are for people who have exceptional credit scores and strong financial profiles. Your lender may offer you a higher interest rate based on your own credit score or debt-to-income ratio.
Related: What is debt-to-income ratio?
Mortgage Question #3: Should I get a fixed-rate loan for 30 years?
There are plenty of options when you’re getting a mortgage, and a fixed-rate, 30-year loan isn’t right for everyone – even though it’s what most people expect. Talk to your lender about the different types of loans it offers to find out what’s right for you.
Related: What to ask your mortgage lender
Are You Buying a Home in Ellicott City?
If you’re ready to buy a home for sale in Ellicott City, we can help you find the right one.
Call us at 410-465-5822 to tell us what you want from your next home or to schedule a tour in a home you’ve seen online.
Use these links to check out the hottest listings:
- Ellicott City homes for sale
- Columbia homes for sale
- Catonsville homes for sale
- Pikesville homes for sale
- Owings Mills homes for sale