One of the biggest investments a person will ever make is their home, and that requires a mortgage in Delray Beach. Many factors affect the home buyer’s final decisions. There is the size to consider, alongside location and the overall cost of the house. However, finding a home is only the first step. Once buyers have set their sites on the house, they’ll need to start looking for mortgages. The mortgage helps buyers finance their homes, as very few people have the assets to buy a home all at once. The downside for beginners is that there is a lot of options and a ton of confusing terms.
Terminology 101 for a Mortgage in Delray Beach
Adjustable Rate Mortgage
This mortgage option has a fixed-rate interest loan. The catch is that the interest is only fixed for a certain amount of time. After about 3 to 5 years, the rate will adjust to whatever the interest rates are at current. Afterward, if the interest rates in the market fluctuate, so will the buyer’s rates.
Bi-Weekly Mortgage
Instead of paying the loan every month, buyers can choose to pay every two weeks. More traditional loans are monthly payments, consisting of a total of 12 payments per year. With a bi-weekly mortgage, buyers will pay half of their normal payment on each interval. Per year, this option adds up to 13 regular payments, which also helps buyers pay off their mortgage faster.
Closing Costs
When the buyer finally settles on a home and a mortgage, they will need to pay closing costs. These are fees that the buyer pays during the process, consisting of attorney fees, recording fees, and more.
If you’re new to buying a mortgage in Delray Beach, there’s no need to fret. At Ace Mortgage Loan Corp., we understand the process can be strenuous and downright confusing. Fortunately, that’s where a high-quality and professional mortgage lender in Delray Beach comes in hand. We work side by side with our clients to ensure that they’re choosing the best options for their time in life, finances, and careers. Instead of blindly accepting, allow our team to help you with the necessary terminology so that you know what you’re signing up for. Call 954-777-5115 today to get the house of your dreams!