Every home comes with a price, and most of the time, the home you want comes with a larger price than you were expecting. So how can you make the home you want more affordable? There are a few different mortgage options that can help in this type of scenario.
Mike Berris, director of mortgage banking at Quicken Loans, offers some advice about different ways to lower your monthly mortgage payments on your future home.
- PMI (Private Mortgage Insurance) Buster – If your down payment is less than 20%, Quicken Loans offers an option for you to reduce, or in some cases, completely get rid of, your monthly PMI payment. There will be a slight bump in your interest rate, but you’ll never have to worry about paying the mortgage insurance company.
- ARM (Adjustable-Rate Mortgages) – Despite what you may have heard, ARMs are a great home loan option to help lower your monthly costs. Quicken Loans, as well as other lenders, have ensured that ARMs are, in fact, a safe and secure option. Lenders typically offer five-, seven- and ten-year ARMs, allowing you to keep a low interest rate (and low monthly payment) for the first five, seven or ten years of your loan; this is another great way to help you get into your ideal home.
These are just a few ways you can make buying your dream home a reality. Make sure to explore all of the available options to make your first home more affordable. Watch the entire video below from the Quicken Loans First-Time Home Buyer Google Hangout for more information below.
Have you found a way to lower your monthly payments? Share in the comments section below!