Mortgage Rates

Don’t judge a loan by its rate

Interests rates; are they high? Low? Middle of the road?

It’s important to ask, but if you’re looking for a loan that best suits your needs, we can categorically say: It’s not always the one with the lowest rate. Let’s outline some essential factors that should be considered:

How Much You’re Borrowing

RemEmber: When you’re starting out, most of your monthly payment will be going toward paying interest. If you’re deciding on a loan, calulate how much you need to borrow, and then research rates. If you’re principle is going to be high, consider ways to contribute funds to the principle only, to lower your payments.

Private Mortgage Insurance (PMI) 

If you’re not putting at least 10-20% on a down payment, you’re probably going to need PMI. PMI is deemed necessary until you own at least 20% equity in your home or if your credit is less-than-perfect. PMI can be calculated as a percentage of your principle balance. Other times, it’s a flat fee.

Real Estate Tax and Local Tax Rate

There is more to owning a home than just paying the mortgage. Make sure you know what the taxes amount to in your particular area. Then, determine at what value your prospective property or current residence is appraised.

How Long You Plan On Occupying Your Home

It’s important to plan ahead. Do you picture yourself living in this house five, ten, or thirty years from now? While it’s impossible to know exactly, take some time to envision where you’ll be in a few years by making some educated predictions. There are loans better suited for short stays, like ARMs , and others that benefit long-term ownership, such as FHAs or conventional loans.

Interest rates are really just the tip of the mortgage iceberg, which is exactly why you need someone to guide you around everything below the surface.

Keystone Alliance Mortgage has an experienced team of brokers who will assist you in finding a loan that fits your individual needs and can save you thousands of dollars over the course of your loan. Most importantly, they can help you finance a home that you cherish.

Get in touch with one of our amazing team members by contacting Keystone Alliance Mortgage. Contact us or fill out our online application for a free consultation or to find out more information.

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