Depending on what type of mortgage you receive some mortgages come with prepayment penalties which sometimes is 2 to 4 percent of the existing loan amount. You should read your paperwork thoroughly to make sure you are aware of the possible penalties that are attached to the loan.
A fixed rate mortgage monthly payments will be steady while adjustable rate mortgages payments will vary over time. Adjustable rate mortgages typically has an initial fixed lower rate than that a comparable fixed rate mortgage. The initial fixed rate period is followed by adjustment intervals.
If you’re a first time homebuyer looking for the lowest possible payment an adjustable rate loan might be the answer. An FHA loan may be another option since they only requires you to put 3.5% down payment on the loan.
Check out the interest rate you have on your current loan, find out home much your home is really worth, if your “underwater” on your current mortgage, get a copy of your credit history and credit score, start identifying potential lenders, get all your income paperwork ahead of time.
Born and raised in Maryland, and currently reside in Baltimore City. I have an extensive knowledge of Baltimore & Howard County and the surrounding areas. I provide customers with all the information they will need to purchase a new home or refinance their current mortgage.
Federal Hill Mortgage
904 Light Street
Baltimore, MD 21230
Federal Hill Mortgage Company, LLC (aka “FHM”) is licensed by the Maryland Commissioner of Financial Regulation as License # 13876, by the Virginia State Corporation Commission as License # MC-4455, by the Pennsylvania Department of Banking and Securities as License # 45125 and by the District of Columbia Department of Insurance, Securities, and Banking as License # MLB176351. Individual NMLS # 1152613. FHM NMLS # 176351.