But how does it all work, and what do you need to know if you’ve never borrowed before?
There are a few types of home loans, but the main two are fixed-rate mortgages and adjustable-rate mortgages.
When you have a fixed-rate mortgage, your interest rate won’t change of the life of your loan. Your payments will remain the same (because your principal payment and interest don’t change).
The interest rate on a fixed-rate mortgage may be a little higher than it would be with an adjustable-rate mortgage, but that’s because you have the security of knowing your monthly payment will never go up.
When you have an adjustable-rate mortgage, your initial interest rate will probably be lower than it would with a fixed-rate mortgage. Your payments probably won’t always stay the same, though. Your lender will adjust your interest rate periodically after your initial term expires. (The initial term typically expires between 1 and 10 years after you get your loan.)
Your mortgage payment can go up or down based on annual interest rate adjustments.
Do You Need to Talk to a Lake City Realtor® About Buying Property?
Whether you’re buying a house, a farm, or a tract of timberland, we can help you find something that’s just right for your needs.
Call us at 386-243-0124 or contact us online. We may be able to help you find the perfect property in Lake City or the surrounding communities.
In the meantime, check out our:
- Waterfront residential
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- Land for land home combo