So, you’ve found your dream home in the City of Lakes— what happens next? If you’ve already been pre-approved, you’ve already researched how much you can afford in a new home and prepared to take on a new monthly mortgage payment. But have you chosen the type of mortgage for your loan?
It’s important to gather all of the facts about mortgages in Northwestern Wisconsin and then choose the best one for you and your financial situation this year.
- Fixed-rate Mortgage
The fixed-rate mortgage, just as it sounds, maintains the same interest rate throughout the life of the loan. This type of mortgage is ideal if rates begin to rise, however, if they fall, know that your payment will stay the same.
- Adjustable-rate Mortgage (ARM)
Think of this as the opposite of a fixed-rate mortgage. This type of mortgage has a rate that changes over the life of the loan. An adjustable-rate mortgage typically begins with a low, short-term interest rate that lasts for a specific amount of time, then adjusts at pre-set intervals for the remainder of the loan.
- 30-year Mortgage
As a homebuyer in the Chetek WI area, you have undoubtedly heard of the 30-year mortgage. This is a common route to take, but buyers also have the option of choosing a shorter term loan— for example, a 10, 15 or 20-year mortgage. Taking on a shorter term loan will allow you to pay less in interest, but know that it will also push your payment higher than the typical 30-year mortgage.
Just as important as it is to shop around for the right type of mortgage for your new home in the City of Lakes, it is also important to shop for the right lender. Interest rates and terms will vary across lenders, so don’t be too quick to settle on the first to offer you a loan.
If you’re in need of a recommendation for a lender in the Chetek area or have questions about the home buying process this year, give us a call! We’re here to help!
Six Lakes Realty
Office: (715) 924-4806