Now that you have found the perfect homesite at Lake Ridge, it’s time to start looking at building your custom dream home. Even if this isn’t your first time owning a home, mortgage rates can often be confusing. Hopefully we can clarify everything there is to know about home mortgages.
First of all, a home mortgage bridges the gap of the money you can put down on a home (or with a builder) and the amount that you still need to pay. It can have either an adjustable rate or a fixed rate. Adjustable rate mortgages have changing interest rates, meaning the amount of your payment can fluctuate monthly. Typically, there is a cap to how high the rates can go. A fixed rate mortgage means that the interest rates and your payments, will always stay the same. If you have any questions about which is right for you be sure to ask your lender.
The Annual Percentage Rate (APR) is the cost of a loan calculated by its yearly interest rate which includes the interest, points, mortgage insurance, and other fees associated with the loan. Escrow is the amount from your monthly payments that your lender puts towards various expenses like property taxes and homeowners insurance. Mortgage Insurance is beneficial towards your lender, not you. It is required if you pay less than 20 percent of the purchase price on a down payment and protects the lender if you default on your loan.
Have more home mortgage rate questions? You can always contact The Texas Land Man on Facebook, or leave a comment below!
