2021 Best Mortgage Lenders Mortgage rate comparison
The Pros and Cons of a 30-Year Fixed Rate Mortgage
Because 30-year fixed rate mortgages come with lower monthly payments, they are the most popular mortgages in the United States. As with all loans, however, there are pros and cons.
Pros | Cons |
---|---|
Lower monthly payment | Higher interest rates |
Less monthly budget stress | Takes longer to build equity |
Makes expensive property more affordable | Overall more expensive |
May qualify for a mortgage interest reduction | |
Easier to qualify |
Common Mistakes Young Homebuyers Make
Becoming a first-time homeowner is exciting, and can also be a bit nerve-wracking. As a young homeowner, avoiding some of the pitfalls of first-time homeowners can help make this major investment that much easier.
Underestimating Yourself
A lot of young people grew up associating home-ownership with their parents, and to some extent they still do. It seems like something you do in your late 30s or in middle-age, when you’ve really built up a sizable nest egg.
Not Understanding the Actual Costs
The sticker price of the house and the monthly mortgage estimates aren’t the only costs of owning a house, and if you don’t factor in all of the expenses, you can easily find yourself getting in over your head.
In addition to the monthly mortgage payment and the closing costs of buying a new house, you also need to factor in homeowner’s insurance, utility bills, and property tax. In addition, you should have some sort of rainy day fund set aside for emergency repairs.
Top 5 Lenders for Young Homebuyers
Lender | Required Credit Score | Best Feature | Visit Site |
---|---|---|---|
500+ | Low fixed mortgage rates from 2.994% APR |
View Rates | |
620+ for most loans | Highest customer satisfaction in the US | View Rates | |
620+ | Technology-based platform | View Rates | |
620+ | Basic mortgage information is available without a signup | ||
Varies | Works with nearly any type of property | View Rates |
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https://www.top10mortgageloans.com/?utm_source=google&kw=compare
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