You don't
have $150,000 in cash lying around? Then chances are your purchase
of a home will depend on your ability to borrow 80 percent or more
of the money you'll need.
Before the
1929 stock market crash, cash purchases of homes were the norm. Or
if money was borrowed, it was on a term that typically didn't last
much more than five years. That made payments relatively steep,
which is part of the reason so many homes were lost in the Great
Depression.
After World
War II the U.S. government created a mortgage program that allowed
veterans to make affordable payments over a 30-year period.
Today, the
30-year fixed-rate mortgage, while still the most common way to buy
a home, is just one of many financing options available. Indeed,
many mortgages today are almost custom-tailored to individual needs.
Mortgage
lending is a highly competitive field. Information on mortgage
rates, which can change daily, is available in local newspapers,
through mortgage brokers, from individual lenders and at the
Lending Center. When you're shopping for a loan, interest rates
tell just part of the story. You'll also need to study the various
fees lenders charge.
Your RE/MAX
real estate professional can recommend lenders to check in with
prior to beginning any serious house hunting so you'll know exactly
what you can afford.
