Find the Best Home Loan for Me and My Family
Finding the best home loan may seem like a search for Big Foot, a Pink Unicorn, or the Loch Ness monster; a quest for something that does not exist other than in fairy tales, folk lore and days of yester-year.
Well, we have great news for you, the best home loan does exist and is a real opportunity for you to own that perfect home for you and your family. While there may not be a one-size fits all model, the best home loan will be custom tailored for you to meet your goals and expectations.
How do I find the best home loan?
There are countless ways that a home loan can be put together to help provide financing for a home, and every family or person buying a home has their own unique goals and expectations that are part of the home loan experience. To find the best home loan, you first need to ask yourself a few key questions:
- How long do I plan on staying in this home?
- What is the maximum monthly housing payment that I am comfortable making each month?
- Does the maximum housing payment include PITI (property taxes, homeowners insurance)?
- Do I plan on making additional principal payments to the loan to pay off faster than 30 years?
- What is the total out-of-pocket amount that I would be comfortable bringing to closing?
- Does this out-of-pocket expense include estimates for closing costs and prepaid items?
- What is most important to me about the home financing experience?
By having a clear answer to these questions, you will be able to equip your loan officer or mortgage planner with the information that they need to help you find the best home loan. At Dallas Mortgage Planners, we understand that each individual and family are unique by their own specific goals and situations, and we treat each client in that way.
Best Home Loan Tips and Food for Thought
The shorter the time frame that you plan on staying in your home, the less likely you will be to benefit from paying points. Reason being, paying a discount point to get a lower home loan rate will lower the monthly payment, but will also increase the overall cost of the loan. The end result is that you may have a lower payment, but it may take longer to recoup the upfront costs of the loan. If your time frame to keep the house is 2-4 years, you may even want to consider having the lender credit your fees at the expense of a slightly higher monthly payment. What may cost you only $10-20 per month, could save you thousands of dollars in costs on the front-end, allowing you to keep more of your savings intact.
It is still possible to get a combo loan (80-10-10/80-15-5) by using a first and second mortgage. Not only is it still possible, in many cases, it is the best home loan option. Some of the key features:
- No mortgage insurance
- Ability to waive escrows (pay your taxes and insurance on your own, separate from the mortgage payment)
- Make additional principal payments to the second loan to eliminate the higher interest rate. End up being left with one loan at a historically low rate and have plenty of equity in your home
We would love to be a resource for you during this exciting time and are confident that we can help you find the best home loan. Call us today at (972) 499-0454 and we are happy to help guide you in the right direction to the home loan that fits YOUR unique goals.
Learn more about how we help our clients and complete the short form below to find out YOUR best home loan.
Updated: August 2, 2016