Adjustable rate mortgages have more flexible qualifications but less stability. The interest rate is not fixed and will change as the market changes. This may feel like a risk, but it is possible for an individual with an adjustable rate mortgage to wind up owing less than one with a fixed mortgage. This type of loan is great for first time buyers who are not sure if they will remain in the home longer than seven years or do not qualify for a fixed rate mortgage.
Other benefits that come along with owning a home are deducting payments on mortgage loan interest from your taxable income, customizing the house to your liking without worrying about security deposits or landlords, and the knowledge that the check you write each month is now an investment and not a loss.
FHA loans are funded by private lenders but are insured by the Federal Housing Administration in order to encourage lenders to give loans to applicants who would not generally meet their standards. This is an avenue for first time buyers who would not usually qualify for a fixed rate mortgage. FHA loans are a desirable since they require low down payments and have low fixed interest rates.
The best way to get over first home fears is to get started. Apply online today and contact up to four lenders about your first home loan.