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    • Zionsville, IN – Choosing the Right Mortgage

    Zionsville, IN – Choosing the Right Mortgage

    Buying a home in Zionsville, IN is a huge commitment that requires a lot of planning. One of the biggest and most complex parts about preparing for your home purchase is finding a lender and getting approved for a home loan. However, before you start mortgage shopping, there are a number of questions you need to ask yourself.

    • What is my five to ten year plan?
    • How long do I plan to live in this particular home?
    • How important is it to me that I am debt-free?
    • Can I afford to take some financial risks?

    Once you can honestly and thoroughly answer these questions, you can begin looking around for a mortgage that will complement your unique situation. How you finance your home purchase is a huge decision that shouldn’t be taken lightly. While I’m sure you’re eager to sign on the dotted line and get settled into your new Zionsville, IN home, we encourage you to take time to evaluate all of your options before accepting an offer.

    Once you find the perfect Zionsville, IN home, you will need to decide if you want to finance it with a 15-year or 30-year mortgage. A 15-year mortgage will have a significantly lower interest rate, but your monthly payments will be twice as high as that of a 30-year mortgage. Most homebuyers enjoy the flexibility of taking out a 30-year mortgage with the option to make extra payments when their budgets allow.

    If interest rates continue to climb, you may want to consider an adjustable rate mortgage (ARM). Your interest rate is fixed at first, but begins fluctuating as market conditions change. Therefore, while you may get stuck with a high interest rate when you buy your home, you can potentially take advantage of lower rates down the road.

    If you’re short on cash for a down payment to buy your Zionsville, IN home, consider an “80-20” loan. A standard mortgage funds 80% of the purchase price, and a second loan finances the 20% down payment. This method of obtaining a home loan eliminates the need for private mortgage insurance since you are making a down payment of at least 20%.

    There are several other options you have as a homebuyer, and there will be additional questions that come up throughout the mortgage application process. As Zionsville, IN real estate agents, we can help you address any concerns that surface along the way. It’s our job to steer you towards success whether you’re a first time homebuyer or a seasoned pro. Please let us know once you begin your home search in earnest. We’d be happy to help!

    Rodney & Amanda Heard
    Heard Real Estate Team

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