If you’re like most people, you’ll need to take out a mortgage loan to purchase a home in Aspen.
But how much do you really know about mortgage loans? Could you define the standard terms that lenders use, and do you know the ins and outs of borrowing?
4 Things You Need to Know About Mortgage Loans
When it comes to mortgage loans, it’s tough to keep tabs on what’s what—laws change, and so do many lenders’ practices over time.
Some things stay the same, though, so it’s a good idea to gather as much knowledge as you can so you’re an informed consumer when you buy your next home.
Know the “lingo.”
- Loan amount: how much you borrow.
- Mortgage rate: how much you pay in interest.
- Term: the number of years it takes to repay a mortgage loan.
- Locking: the term used by lenders when they guarantee you a certain interest rate.
- Closing costs: lender fees and amounts of money you must pay to others when you purchase your home.
Mortgage rates change quickly.
Mortgage rates are low right now, but there’s always some fluctuation. A rate you hear in the morning may not even be the same that afternoon.
Lenders are all different.
All lenders charge different rates and fees. There are no regulations that require different lenders to offer the same interest rates (there are plenty of other laws governing them, though), so what one bank offers you, another may balk at.
You can still get a loan with a low down payment.
If you’re using a VA loan, you don’t need a down payment at all. If you’re using a certain type of FHA loan, you probably won’t need 20 percent of the home’s selling price as a down payment. The point is that low-down-payment loans are still available, and if you need to find a lender who can help you, just ask us; we’ll point you in the right direction.
Are You Buying a Home in Aspen?
While you’re here, you can also browse our:
- Basalt real estate listings
- Carbondale real estate listings
- Snowmass real estate listings
- Woody Creek real estate listings