Doing It Right: First Time Home Buying

Mortgage Tips

Tip 1:	Shop Around as a First Time Home Buyer
Tip 2:	Obtaining Your First Mortgage
Tip 3:	Finding First Time Home Loans
Tip 4:	Low Down Payments for First Time Home Buyers
Tip 5:	Enjoying Your First Time Home Buying Experience
Tip 6:	Top 3 Reasons to Use a Real Estate Agent When Buying Your First Home
Tip 7:	Flexible First Time Home Loans
Tip 8:	Refinancing Your First Home Mortgage for a Better Rate
Tip 9:	Interest Only Mortgages
Tip 10:	Doing It Right: First Time Home Buying

Home Equity Loan Tips

Applying For a Mortgage Tips

Home Loan Tips

Mortgage Calculator Tips

General Mortgage Tips

Personal Mortgage Insurance (PMI) Tips

Refinance Mortgage Rate Tips

General Refinance Tips

Tip 10: Doing It Right: First Time Home Buying

Don't be tempted into buying a home that is too expensive for you when first time home buying. A real estate agent may show you homes that are really more than you can afford comfortably, and you need to stay within your budget and not make offers on the homes you can't really afford to live in. Below are some tips to buying a home you can afford.

To determine how much you can actually afford, start with what you pay now for renting. Could you afford to pay more? Do you need to pay less than that amount? Remember that a mortgage payment will include taxes, and home owners insurance.
Consider where you want to live? You may not get exactly the home you want as a first time home buyer, but you should be armed with information about neighborhoods, school districts and anything else that is important to you.
Don't get a mortgage that is too expensive, has a high interest rate or that penalizes you for making a prepayment Make sure you are using a reputable mortgage broker, and you should not have much difficulty.

<< Tip 9: Interest Only Mortgages

Mortgage Knowledge

Standard ARMS and the Differences

A few options are available to fit your individual needs and your risk tolerance with the various market instruments.

ARMs with different indexes are available for both purchases and refinances. Choosing an ARM with an index that reacts quickly lets you take full advantage of falling interest rates. An index that lags behind the market lets you take advantage of lower rates after market rates have started to adjust upward.

The interest rate and monthly payment can change based on adjustments to the index rate.

6-Month Certificate of Deposit (CD) ARM
This program has a maximum interest rate adjustment of 1% every six months. The 6-month Certificate of Deposit (CD) index is generally considered to react quickly to changes in the market.

1-Year Treasury Spot ARM
This program has a maximum interest rate adjustment of 2% every 12 months. The 1-Year Treasury Spot index generally reacts more slowly than the CD index, but more quickly than the Treasury Average index.

6-Month Treasury Average ARM
This program has a maximum interest rate adjustment of 1% every six months. The Treasury Average index generally reacts more slowly in fluctuating markets so adjustments in the ARM interest rate will lag behind some other market indicators.

12-Month Treasury Average ARM
This program has a maximum interest rate adjustment of 2% every 12 months. The Treasury Average Index generally reacts more slowly in fluctuating markets so adjustments in the ARM interest rate will lag behind some other market indicators.




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