Is My Home Loan a good deal?

Is My Home Loan a good deal?
Sammamish Mortgage
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Getting a home loan can have immediate and long term effects on your finances. The wrong loan terms can leave you with less in your wallet. Knowing what to look for in a home loan means having some idea of your future plans. Here’s what you need to consider:

Is your home loan good for the short term?

Getting into your new home is a priority, and homebuyers often look for the cheapest, fastest way to do that. Ask about ways to speed the process and lower your costs. Maybe you can get the buyer or lender to cover some of the closing costs.

You can also ask if there are programs that could drop your down payment. It’s important to make sure you don’t trade away future benefits for these perks, however. Everything has a balancing effect, and saving money on the front end can mean paying more on the back end for your home loan.

Is your home loan good for the long term?

While certain things can help you short term, they can mean spending tens of thousands more over the life of your loan. Make sure you run the numbers to decide if that longer loan term or lower monthly payment are really the best idea.

Just by putting down a slightly larger down payment can mean saving far more in interest over a 20 or 30 year loan. You can also consider buying points to gain a lower interest rate. Usually for every point you buy, you’ll pay 1% of the loan amount, and get a .25% drop in your interest rate. Over time, that adds up to a lot of savings.

Do you plan to refinance or sell in a few years?

Be aware that a lot of savings schemes when it comes to home loans only pay off over time. If you refinance a loan before you’ve saved enough to justify buying points, you’ll have lost that money.

Look at your home loan from all angles and make sure to run the numbers for different scenarios before signing on the dotted line. Also get preapproved and find out what your estimated monthly mortgage payment will be before you look at a single house. This will help you stay on track and get the best possible deal for your new home.

If you are buying a home and didn’t have time to prepare and research different mortgage companies ahead of time it’s advisable to try and limit your closing costs as much as possible. This gives you flexibility to refinance if you chose a lender that was offering a higher than market rate. The last thing you want to do in this situation is paying significant lender fees and points only to find out after the fact you could have gotten a much better deal if you had worked with a more competitive mortgage company.

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Your Sammamish Mortgage Loan Officer Can Help You Start the Preapproval Process Today!

We’ve fine-tuned the preapproval process to make it one of the easiest experiences you’ll have in the whole home buying process. Buying a home should be fun and exciting, not stressful. Get preapproved today!

Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.

Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

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