Your Dallas TX Mortgage Explained
Much ado is being said about how so many homeowners have managed to lose their homes because of the weak economy and high interest rates. However, very few realize that not enough planning is more of a reason for the collapse of home loans than anything else. If you are planning to apply for a Dallas TX mortgage [http://mortgagesandhomeloans.net/dallas-mortgage/], you should make sure to consider all angles.
The most attractive of these angles is the fact that the Dallas property market is booming, in the midst of a recession. Now, this is amazing because it presents a unique opportunity for many to invest in real estate in a promising place. If you plan to jump on the bandwagon, all you really need to do is crunch the number properly. Make sure that you get the best possible terms based on your personal particular financial status.
In other words, you need to work with a realistic budget.
Let's take an example of a mortgage of about $149,00, which is the average amount for a Dallas home loan. The existing interest rate online brokers are offering is 4.875%. This rate can change depending on your credit score. If your credit score falls below 700 points, the lender could adjust your rate by as much as 1%. If you try to substitute numbers for percentage points, you will see that 1% is actually going top cost you hundreds of dollars.
However, for purpose of having an example, let's assume you have a good credit score. Based on a 30-year loan term, your monthly dues would amount to $798. If you would like to shorten your loan term to 20 years, the monthly installment would increase to $881. Again, we go back to your budget. If your budget can accommodate the higher amount, you should go for this because in the long run, you will be saving thousands of dollars by shortening the length of your loan.
Another aspect to consider would be the kind of interest rate you would be using. At present, you have a choice between a fixed or an adjustable interest rate. The fixed interest simply means that you have a constant figure to work with from the moment you start the loan all the way up to the end.
An adjustable rate mortgage (ARM) will fluctuate. Right now the interest rate are low which is a very good advantage, but this figure could change after a few years to an even lower percent, and still with ARM, you get to take advantage of that.
Obviously an ARM will work better for shorter loans while the fixed rate will work better if you plan to stay in your house for a long time. To know the interest rates that would be applied to you, and an accurate computation of your costs, log on to http://www.bankrate.com. You can also work with the Dallas Telco which is a local credit union which offers great service and impressive loan packages.
At the same time, include in your research the incentive homebuyers programs that the city and state government are offering. You can find out even more if you visit mortgagesandhomeloans.net [http://mortgagesandhomeloans.net/] which has a treasure cove of mortgage and home loan information you will find very useful.
The most attractive of these angles is the fact that the Dallas property market is booming, in the midst of a recession. Now, this is amazing because it presents a unique opportunity for many to invest in real estate in a promising place. If you plan to jump on the bandwagon, all you really need to do is crunch the number properly. Make sure that you get the best possible terms based on your personal particular financial status.
In other words, you need to work with a realistic budget.
Let's take an example of a mortgage of about $149,00, which is the average amount for a Dallas home loan. The existing interest rate online brokers are offering is 4.875%. This rate can change depending on your credit score. If your credit score falls below 700 points, the lender could adjust your rate by as much as 1%. If you try to substitute numbers for percentage points, you will see that 1% is actually going top cost you hundreds of dollars.
However, for purpose of having an example, let's assume you have a good credit score. Based on a 30-year loan term, your monthly dues would amount to $798. If you would like to shorten your loan term to 20 years, the monthly installment would increase to $881. Again, we go back to your budget. If your budget can accommodate the higher amount, you should go for this because in the long run, you will be saving thousands of dollars by shortening the length of your loan.
Another aspect to consider would be the kind of interest rate you would be using. At present, you have a choice between a fixed or an adjustable interest rate. The fixed interest simply means that you have a constant figure to work with from the moment you start the loan all the way up to the end.
An adjustable rate mortgage (ARM) will fluctuate. Right now the interest rate are low which is a very good advantage, but this figure could change after a few years to an even lower percent, and still with ARM, you get to take advantage of that.
Obviously an ARM will work better for shorter loans while the fixed rate will work better if you plan to stay in your house for a long time. To know the interest rates that would be applied to you, and an accurate computation of your costs, log on to http://www.bankrate.com. You can also work with the Dallas Telco which is a local credit union which offers great service and impressive loan packages.
At the same time, include in your research the incentive homebuyers programs that the city and state government are offering. You can find out even more if you visit mortgagesandhomeloans.net [http://mortgagesandhomeloans.net/] which has a treasure cove of mortgage and home loan information you will find very useful.
Source...