New home buyers learn how to choose between short-term and long-term mortgage financing programs
Changes in the real estate and mortgage industry have brought about many new financing programs for homeowners. The process can be overwhelming and confusing to first time homebuyers.
Real estate experts and mortgage specialists were invited to speak at a recent workshop for new homebuyers in Ingham County. Mark Goedert is a real estate expert who has been in business for over 50 years; he explained various mortgage terms, income tax incentives and first-time homebuyer programs.
Mark answered one person’s question about long-term versus short-term financing. “Some home buyers will choose a shorter loan term to save on the amount of interest paid over the life of the loan; with a shorter term, monthly payments will be higher. In some cases, the buyer cannot qualify for a mortgage that requires the higher monthly payment; therefore, they need to finance their home with a longer term mortgage with a lower payment.”
Someone asked about making additional principal payments; Mark answered, “Most lenders allow you to pay extra principal payments without a pre-payment penalty; be sure to ask if your mortgage allows early pay-off. Another program encouraged by lenders is bi-weekly mortgage payment plan where they automatically withdraw the funds from your bank account in the amount of ½ a payment every two weeks. This adds up to one additional mortgage payment per year to dramatically shorten the loan term and reduce the total interest paid on the loan.” Read more tips from Mark Goedert about mortgage and financing at http://first-timehomebuyerprogram.blogspot.com/
Mark Goedert of Goedert Real Estate provides information to home buyers and investors as well as affordable home listings and search tools to help with the process. Use the mortgage calculator to determine your monthly payment. Visit http://www.under100000realestate.com/ to learn more.
Contact:
Mark Goedert
1324 N. Main
Adrian, MI 49221
517-403-1603
markgoedert@goedertrealestate.com
This press release was submitted by Right Now Marketing Group, LLC
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