Mortgage Advice

Written by Tara Peris
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It would behoove any first-time home buyer to seek mortgage advice from multiple sources. Although the basic rules for buying a home apply no matter what, it helps to speak to as many people as possible when attempting to educate yourself about home loans. Opinions may not always agree, but you will gain a sense of where you stand and which path you should pursue.

Reconciling Accounts

It shouldn't be difficult to obtain an overview of how to choose a mortgage. There are several impartial online resources, many of which are government funded and intended to protect first-time buyers from harm. These resources will generally advise you to begin by examining your income and your credit history and by exploring your options with an online mortgage calculator.

From there, however, opinions vary as to which steps one should take. Depending on the site you search or the person with whom you speak, you are likely to get wildly different advice for choosing a mortgage. Truthfully, any first-time buyer would be well-advised to seek the assistance of a trustworthy, experienced lender. Once you understand your financial position, the best advice will come from someone who understands your goals and can apprise you of the various choices you have in attempting to meet them. Without knowing all of the details of your financial picture, making any concrete suggestions is virtually impossible.

Having said that, there are some things that hold true in almost any situation. In order to recoup all of the closing costs of your mortgage, you will most likely need to stay in the home for at least five years--the same is true of refinances and second mortgages. Also, if you can find a low rate, a fixed rate mortgage may be the best option. With this type of mortgage, you will be able to plan for the future accurately and keep a low rate locked in.

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