Parrot on a PorchA Journey Toward the Little Mansion Dream

Owning a home is something that many people strive for. Not only does a home give you a feeling of wealth, it also provides a sense of ownership. However, most people can’t afford to pay for a home outright so they take out a home mortgage to make owning a home a reality. When you are ready to purchase a home, you will need to pay close attention to the interest rates home mortgages are currently carrying.

The first thing that you should know about interest rates on home mortgage is that they can be fixed or variable. A fixed interest rate means that the interest rate will stay the same through the life of the loan. Therefore, if you lock into a low initial interest rate, you will be set up nicely to pay much less in interest while you hold the loan. On the flip side, a variable interest rate means that your home mortgage interest rate can fluctuate while you hold the loan.

There are advocates for both types of interest rates so your situation will determine which type is the best for you. If you like knowing that your interest rate will remain the same then a fixed rate might be the best for you. However, if you are comfortable with your interest rate fluctuating and possibly going lower than your initial rate at some point during the life of the loan, then you might want to choose a variable rate.

Interest rates are basically unavoidable when taking out a home mortgage but you can keep your rate low by comparing rates from different lenders before locking into a loan. You can also minimize the amount of interest you pay by making additional payments each year to shorten the length of your mortgage.

And just like that, our housing loan application has just been placed this morning.  But no, not with Pag-ibig just like I’ve been blogging about but with a bank.  The Seller (who’s our Ninong) suggested that we try inquiring in a certain bank after he got irked by Pag-ibig’s demand for a few extra requirements.  So this morning, we visited the referred bank and after discovering that 1.) we can get approval advise within 5 days 2.) they offer lower interest 3.) maximum term is 25 years 4.) we have all of their required application requirements and 5.) the approximate monthly amortization is within our set budget….without second thoughts, the husband and I agreed to give it a go.  For now, the husband can puff some cigars in nervousness as we have one week to pray for a reasonable appraisal which can consequently lead to a higher approved loanable amount.  We’re keeping our fingers crossed and we’re keeping the faith.