Buying a home can seem like a scary process and a huge commitment, but with a wide variety of mortgage plans designed to make this process easier and more manageable, home buying is an option for everyone. Our experts here at Arbor took some time to explain the biggest questions first time buyers have about mortgages to help you more confident during the process!
Down Payments. How do they work?
Although down payments, and all of the other closing costs, seem scary and confusing, there are a variety of different mortgage plans that help you understand and cover these costs.
With many different options allowing a down payment of just 3% to 5% of the purchase price, and even a select few with 0%, there is sure to be a plan that fits your needs. This means all of your savings don’t have to be drained to buy a house, and if you don’t have enough in savings, there are other options too, such as a way to take out of your retirement plan without being taxed or receive a gift payment from a relative. There are also mortgage planners you can talk to for more details- such as at Fairway Independent Mortgage Corporation or Ruoff Home Mortgage, our two lending partners.
How is buying different from renting?
We know if you’re only going to live somewhere a few months or even a year, renting may be the best option. We also know that in the long term, buying a house saves money. However, what about the in between?
Due to the current low mortgage rates, renting costs exceed the cost of buying a home in just two and a half years. This means if you plan on staying in the same place for three years or more, it could be time to look into buying a home. Not only do you save money, but with buying a home you gain equity with each mortgage payment and receive tax deductibles.
What are my mortgage options?
Here is a quick overview of some of the mortgage options available with Arbor Homes:
What resources can I use to learn more?
If you have questions about loans, mortgages, or the home buying process in general, contact Arbor Homes about speaking with one of our trusted lenders. We are here to help you along the home buying journey!