Real Estate Mortgage Calculator
A mortgage is the foundation of nearly every home purchase. Most buyers need a mortgage in order to purchase a home in Lusby and surrounding areas. The good news is that there are quite a few solutions available, so you’re sure to find a mortgage that fits your budget and lifestyle. Review some common mortgage options, and calculate your predicted monthly payments based on the prices of homes you like in Lusby and surrounding areas.
Types of Mortgages
Generally speaking, there are two basic types of mortgages used by most homebuyers in Lusby and surrounding areas: conventional and government-backed. Determining which is right for you depends on a number of factors, including your credit score, the amount of your down payment, the location of the property, and much more. Kenneth Powell can help you find a lender that will explain your options in detail.
This is the standard mortgage you'll find at a bank or credit union. These are often used by buyers with good to excellent credit, and they require 20% down to avoid making PMI (private mortgage insurance) payments each month. Conventional loan rates can either be fixed or adjustable.
Government mortgages offer looser financial qualifications, and are often targeted to buyers with lower credit scores, down payments, or income. These loans are offered by government agencies such as the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Veterans Affairs (VA).
What Do Mortgages Include?
There are four main components to a mortgage payment, often abbreviated as "PITI."
Understanding Your Mortgage Options
Before you decide on any particular loan, take the time to do some research. Kenneth Powell's experts recommend meeting with at least two, if not three, different mortgage lenders to find the deal that works for your lifestyle. A component of your loan's affordability will be the type of interest rate.
You may hear "mortgage" and immediately think "30-year fixed." That's because this is the most common rate type on a conventional loan. The interest does not change for the life of the loan, unless you choose to refinance, so your monthly payments are predictable and stable.
An adjustable-rate loan offers the initial stability of a fixed-rate loan, with the interest rate fixed for a certain amount of time after the loan is originated. Then, the rate will change after that introductory period. You can often save money on monthly payments with a lower rate to start.