Are you looking to take out a mortgage for your home purchase in Oshkosh, Wisconsin? If you proceed wisely and learn as much as possible about the various mortgage options that are available to you, you will be in a much better position to protect your financial and personal interests. This is especially important considering that your home is most likely the single biggest investment you will make in your lifetime.
With that in mind, let’s look at four essential considerations you should keep in mind when shopping for a mortgage in Oshkosh, Wisconsin:
What's in this article?
Type of Mortgage
What kind of mortgage is right for you? Should you get a fixed-rate or adjustable-rate mortgage from your mortgage lender in Oshkosh, Wisconsin? What factors might influence the future rate and terms after the initial period if you go with the latter?
Or is a balloon mortgage the right option for you? While this type of mortgage can be highly beneficial under some circumstances (and generally because it is interest-only for a fixed period), you should be prepared to pay much higher monthly payments in the future.
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Mortgage Term
What mortgage term is best for you? Fixed-rate and adjustable-rate mortgages are often available in various payment periods, and the shorter the term, the higher the monthly payments. Of course, a shorter mortgage term translates to fewer overall payments and your ability to pay it off sooner.
The typical conventional mortgage term is thirty years, but you can find options ranging from less than ten to forty years (or more!) When determining the mortgage term for an adjustable-rate mortgage, it is important to look at the whole term and the frequency at which the rates will change (every year, every three years, or every five years).
Mortgage Rate
We are currently witnessing near-historically low mortgage rates. A 30-year fixed-rate mortgage now has an annual percentage rate (APR) of 3.007%, while a 15-year fixed-rate mortgage has an APR of 2.189% (Source: NerdWallet).
Since these low rates can make a big difference in your monthly payments and the overall costs over the mortgage term, it makes sense to pay close attention to trends, professional forecasts, and the like.
While fixed-rate mortgages allow you to lock in these favorable terms for the loan term, adjustable-rate mortgages do not. However, the latter typically have lower rates at the onset. That is something you might want to keep in mind as you look for a mortgage company in Oshkosh, Wisconsin.
Down Payment
Although a 20% down payment is generally expected, you can opt to put down more (or, if allowed by the lender, less).
Of course, the more money you put down, the lower your monthly payments would be, and vice versa.
With that said, with the average home price in Oshkosh at $158,417, many homebuyers are forced to put down less money due to the difficulties of amassing so much cash for a down payment.
Conclusion
When choosing a mortgage for your home purchase in Oshkosh, Wisconsin, you’ll want to be an educated buyer and keep these four essential considerations in mind. The more you know about what mortgage option is best for you, the better off you will be.
Are You Looking for a Top-Rated Mortgage Lender in Oshkosh, Wisconsin?
If you are looking for the premier mortgage lender in Oshkosh, Wisconsin, you can count on Compass Mortgage. We will carefully review all your options with you to make sure you feel 100% comfortable throughout the process. Contact us at (877) 793-9362 or fill out the form on our website to get in touch with our experts.