One of the first challenges that many buyers must face when purchasing a home is deciding on the best type of mortgage loan for their needs. Whether you may be buying one of the homes on Lake Nacimiento as your permanent residence or you’re interested in Lake Nacimiento real estate as a vacation property, understanding your mortgage loan options will make the home buying process much more streamlined! There are pros and cons to both the typical 30-year fixed rate mortgage loan as well as the shorter 15-year option. When buying a home in Lake Nacimiento, Oak Shores or Heritage Ranch, it is essential to first do your necessary research into the loan options available to you to best decide how to obtain that picturesque home of your dreams! Here are a few things to consider:
–Interest Rates. 30-year home loans will accrue much more interest over the life of the loan than the 15-year option. This is because the buyer will be paying the loan back over a much longer period of time and, mathematically, will always end up paying more in interest than those that choose a shorter-term loan.
–Monthly Payments. Conversely, the monthly payments for a 30-year loan will typically be less than what you would pay monthly under a 15-year mortgage. Because the life of the loan is spread out over many more years, the bank can afford to set the monthly amount due back from the buyer at a lower figure. In the end, you’ll be paying a lower monthly payment for a longer period of time – Versus paying a higher monthly payment over a shorter period of time.
–Other Expenses. It’s not just a fraction of the loan and your interest that gets rolled into your monthly mortgage payment each month! It’s imperative to keep in mind that, in addition, property taxes and homeowner’s insurance are also included in each month’s payment. Additionally, any community association dues or special assessments may or may not be included in the mortgage payment as well. While a 15-year loan may seem like a better option, remember to include these other payments rolled into your overall mortgage dues as well.
As you can see, it simply comes down to a bit of research into home loan options and a no holds barred study of your own finances to determine what may be best suited for you. As a longtime Lake Nacimiento real estate agent, I have helped many buyers navigate the sometimes tricky world of home mortgages. Should you have any questions about buying Lake Nacimiento real estate and how you can go about finding that lake house of your dreams, contact me today. All of my clients receive personal attention and prompt assistance to best service their real estate needs!
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.