Freedom First Advice Center

The housing market always goes through its ups and downs. During the pandemic, homeowners and homebuyers alike were able to benefit from record-low interest rates. Now, as inflation continues to soar and the Federal Reserve raises rates to offset the climb, the market is cooling down.

The combination of higher home prices and rising interest rates are forcing many would-be homebuyers out of the market. While conventional fixed-rate mortgages reign king during periods of low rates, other home loan options shine in uncertain markets. One of these loans is an adjustable-rate mortgage or ARM.

With the ability to lock in lower introductory rates, ARMs are making a comeback. Is an adjustable-rate mortgage the right solution for you?

Deciding to purchase a home is exciting and a bit nerve-racking. It’s a big decision that can impact your life and finances for years to come. But it also provides the opportunity to improve your home life and build equity in the property.

One of the most common questions prospective buyers ask is, how much cash is needed upfront? While a first mortgage will handle most of your financing needs, it’s these initial costs that keep homeownership at bay for so many.

The following guide outlines the upfront and ongoing costs prospective homeowners should prepare to cover as they progress through the homebuying process.

If you’re preparing to purchase your first home, you’re probably scratching your head more than you anticipated. Between the complex terminology and variety of home loan options, the home-buying process can become confusing rather quickly.

One area that first-time homebuyers struggle the most to understand is their monthly mortgage payment. Unlike a car loan, it’s not as clear-cut. And most real estate websites and financial calculators only focus on the principal and interest portion of your payment – which can be very misleading.

Before you get your hopes up and realize that the house you’ve been eyeing is out of your price range, take a moment to familiarize yourself with the components of a mortgage payment.

Homeownership offers a multitude of fiscal benefits. Aside from the obvious, a place to live, you can build equity in the property and eventually live rent-free. But owning a home is also a significant investment that can last for decades.

Today, most mortgages have terms that extend up to 30 years or more. While this makes the monthly payments affordable, decades of interest payments can add up to a substantial sum.