If you have built up your savings and figured out your long-term plans for the future, you may feel ready to purchase your first house. And while this can be an extremely exciting time, the process of reviewing Atlanta first time home buyer programs can be arduous. There are many factors to consider when deciding which mortgage will work best for you. At BrightPath, we will use our expert knowledge and analysis to get you into the house of your dreams.
Budgeting for Your Atlanta First Time Home Buyer Program
Budget is key when reviewing Atlanta first time home buyer programs. While mortgage calculators can be a great tool to help you get a general estimate of what to expect, you need to think beyond your monthly payments. There are additional fees including mortgage insurance, property taxes, upkeep and other costs that can drive up the price.
After taking these extra expenses into account, you might worry that you do not have the necessary finances to qualify for an Atlanta first time home buyer program. However, there are mortgage options that make it easier for you to be eligible.
Adjustable Rate Mortgages
Adjustable rate mortgages are one of the most popular options for Atlanta first time home buyer programs because they offer low introductory rates. This allows you to put less money down to get into your first house, which you may need if you have an alternative credit history that prevents you from qualifying for other types of loans.
However, there are some risks associated with adjustable rate mortgages. Since the interest can fluctuate throughout the loan term, it is possible for your rate to rise and become too expensive for your budget. While you may be in the position to refinance before your interest resets, it is important to discuss rate caps with your lender, which can place short-term restrictions on rate increases.
Fixed Rate Mortgages as an Atlanta First Time Home Buyer Program
if you plan to live in your home for a longer period, a fixed rate mortgage is a better option for your Atlanta first time home buyer program. With a fixed rate mortgage, the interest rate, principal payments and interest payments can be regulated for the term of the loan. This stability will help you with budgeting since the monthly amount is guaranteed to stay the same. Fixed rate mortgages also allow you to set the term for the loan, so you can choose a 10-, 15-, 20- or 30-year loan term based on your financial situation.
Choosing Loan Terms for Your Mortgage
If you decide to pursue a fixed rate mortgage, it is important to factor in your long-term goals and monetary circumstances when setting the loan term. If you have less money to put down up front, then a longer-term mortgage will lower your monthly payments to make it more affordable. However, you may end up paying higher interest while lengthening the time it will take to build equity in your home. With a shorter term, you will pay less interest on the loan but drive up the cost of your monthly payments.
At BrightPath We Can Help You Choose the Right Mortgage for You
When it comes to finding your Atlanta first time home buyer program, it can be difficult to know where to begin. The experts at BrightPath will work with you to find the mortgage that best fits your needs. Contact us today to schedule a free consultation.
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