Choosing The Right Home

Choosing the right home to purchase isn't a decision that should be make quickly, there are many factors to consider before taking the plunge and buying a home. What ever type of home you choose the good news is you can afford more of a home because current mortgage rates are near all-time lows. 30 year mortgage rates are averaging 3.75 percent but you can find lenders quoting 30 year rates as low as 3.375 percent if you're willing to pay points up front.

There are several different types of homes one can choose from, single family, townhome, condo, fixer upper, etc. Depending on what stage of life you're in will probably be the biggest deciding factor on what type of home to choose. Each type of home has a different initial cost to buy, ongoing costs to maintain, and comes with it's pros and cons.

Single Family-Home

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

Show Advertiser Disclosure

The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #401822

5.661%

15-Year Fixed

5.375%

$7,500

Includes 0.875 points for $3,500

Lender Fees: $4,000

$3,242 /mo

Next >

NMLS #1025894

5.805%

15-Year Fixed

5.625%

$4,680

Includes 0.995 points for $3,980

Lender Fees: $700

$3,295 /mo

Next >

NMLS #6606

6.022%

15-Year Fixed

5.875%

$3,792

Includes 0.948 points for $3,792

Lender Fees: $0

$3,349 /mo

Next >

NMLS #1025894

6.839%

30-Year Fixed

6.750%

$3,664

Includes 0.741 points for $2,964

Lender Fees: $700

$2,595 /mo

Next >

NMLS #399799

6.854%

30-Year Fixed

6.750%

$4,436

Includes 0.777 points for $3,108

Lender Fees: $1,328

$2,595 /mo

Next >

NMLS #401822

6.884%

30-Year Fixed

6.750%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$2,595 /mo

Next >

NMLS #3030

6.889%

15-Year Fixed

6.750%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,540 /mo

Next >

NMLS #6606

6.963%

30-Year Fixed

6.875%

$3,580

Includes 0.895 points for $3,580

Lender Fees: $0

$2,628 /mo

Next >

NMLS #3030

7.602%

30-Year Fixed

7.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,797 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

Single family-homes are one unit structures that have open space on all four sides and are not attached to any other home. Single family homes come in many different styles and sizes, giving you many options to choose from when you're searching for the home that suits you best. Since these homes usually are more expensive than other options types of homes and require more maintenance inside and outside.

Condominiums (Condos)

Condominiums have separate living spaces that may be attached or detached to one another. Newer condos usually have special features like a common area, fitness center possibly a recreation area. Condo buildings belong

to an association made up of all of its owners of the individual condo units.

An association is in charge of determining rules and regulations of the building as well as the monthly assessment fees that are used to maintain the common areas. Since the association handles the up keep of the building, owning a condo has very low physical maintenance for the owners but you do pay a monthly fee to pay for the convenience. On top of the monthly fee you also have to pay your mortgage and any taxes property taxes assessed to your condo.

Townhomes

Townhomes are usually attached to each other, are vertical in design and sometimes have an attached garage with one or more parking spaces. Townhomes are also typically two stories and the living space usually downstairs and the bedrooms are upstairs. Townhomes can be part of a homeowners association like a condo. You can pay a monthly maintenance fee and have the benefit of not having to deal with exterior maintenance by yourself.

Fixer-Upper

Fixer-uppers can be any type of home that is in need of either extensive repairs or updating. The price point to purchase a fixer-upper is usually much less than a comparable home that doesn't need repairs or updating. If you're willing to put in "sweat equity" you can put your personal touch on the home and in the process create equity. Buyers of a fixer-upper need to be prepared for additional costs due to the repairs or updating the home needs. Be sure to get the home professionally inspected and figure out what the costs will be to repair or update the home.

Getting a Pre-Qualifying Letter

Whatever type of home you decide on the next step is to figure out how much home you can afford. A mortgage broker can help you through this process using industry standard practices. Once you figure out how much home you can afford, and how much home your comfortable with paying for each month, ask the mortgage broker for a pre-qualifying letter. This letter will show real estate agents and sellers that you a series buyer that is ready to purchase a home.