Once you have decided to join the ranks of homeowners, you need to decide what type of mortgage is right for you. The most conventional choice for home loans is the 30-year mortgage. The 30-year mortgage started to grow in popularity in the 1950s and quickly became the loan of choice. While the 30-year mortgage is still the standard, the 15-year mortgage may be something to consider for new homeowners.
Buying your first home is filled with many other first-time experiences, one of the most common being applying for a mortgage. While many lenders have simplified this process over the years, the need to verify your debt and income almost always comes into play. To do this, your lender will likely request lots of information, information that you’ve repeatedly been told to keep in a safe place and not share with anyone. While you may feel hesitant about sharing such confidential information, rest assured that there are federal and state laws in place to protect you. In fact, the Consumer Financial Protection Bureau says that to even receive a loan estimate you should be prepared to provide a prospective lender with the following:
It’s no wonder that the majority of homeowners dream of one day being able to pay off their home loan and live a life free from the shackles of interest rates, home finance and worries about meeting the monthly mortgage payments because the largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.
Various factors enter a borrower’s decision-making process when it becomes necessary to obtain an ARM (Adjustable Rate Mortgage) or a FRM (Fixed Rate Mortgage) to finance a home purchase or refinance an existing mortgage; and on some occasions, not all factors are known to the decision maker until s/he is in the presence of a bank or mortgage lender representative.