Real Estate Property Financing: When Should I Buy a House?

We realize that approaching your first mortgage can be daunting, so at MCity Mortgage we're ready to answer any questions you have about buying a house. The process of figuring out the specifics of your mortgage can be complicated, but the main priority is finding a monthly payment and total amount that fit your budget so you can easily pay off your home.

For most buyers, the hardest part of taking out a mortgage is saving up enough for the down payment. You can expect to pay up to 20% of the home's purchased price depending on the type of loan you're taking out (veterans may be able to take out a mortgage with zero down, for instance). This can be a huge amount of money ($40,000 on a $200,000 home), but some lenders are approving lower rates, particularly for those willing to pay for private mortgage insurance, or PMI. PMI insures the lender in case you are unable to pay, so you can see where lenders might see it necessary for borrowers unable to afford a higher down payment to purchase this. If you've got more questions about PMI or if you’re still asking When Should I Buy a House?, we can help you with that too.

First Mortgage Won't Cover It?

In some cases it may be advantageous to make use of secondary financing. If the loan-to-value ratio of your first mortgage - meaning literally the amount of money your loan is for in comparison to the dollar value of the home - is above 80%, usually lenders will have you purchase PMI. Often the best way to finance this is with a second loan, but even that can vary. If you find yourself in this situation, you'll have to assess the amount of money your home's value should increase (or decrease) by. Keep in mind that a second mortgage usually holds a higher interest rate than the first.

If this is your first mortgage and you have some questions about financing a real estate property or you just want to know what your mortgage payments will be like or what the rates are for a house today, we encourage you to contact us and we can help you get your first mortgage started. Give us a call at MCity and let us be the first mortgage company you think of when you're looking to mortgage a home.

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