Is A Texas Home Mortgage Or A Texas Reverse Mortgage In Your Future?

Texas home owners and first-time home buyers have a great number of different options when it comes to financing their homes. Most home owners and buyers select some type of a Texas home mortgage to get them into their homes and meet their financial needs. Older home owners can choose a Texas reverse mortgage as an option for receiving the equity from their homes while they live in the home.




Which Texas home mortgage is right for me?




Home owners have two basic options for a Texas home mortgage, and they are a fixed-rate loan and an adjustable-rate loan. A fixed-rate loan keeps a consistent interest rate that is charge for the life of the loan, so that your monthly payments remain at a set amount. This makes it easier to budget for a house payment, because there will be no fluctuating payment amounts.




A fixed-rate Texas home mortgage comes with certain terms, so you can choose a shorter fifteen- or twenty-year mortgage or select the more common thirty-year fixed-rate mortgage. The advantage to the shorter term is that you will pay much less interest over the life of the loan than you would with a longer term, but the monthly payment amount is usually higher than it would be over a thirty-year term. A thirty-year fixed Texas home mortgage term length provides for a usually reasonable monthly payment, but it comes at the price of more money being spent on interest for the term length.




Adjustable rate mortgages charge interest only for a predetermined length of time, often five years, after which the Texas home mortgage payment will adjust according to the interest rate at the time, and the payment will increase accordingly. This may be a good loan instrument for you if you plan on staying in the home for five years or less, and then selling or refinancing. However, if you plan for a long-term stay in the home, you will want to ensure that you will be able to handle this type of Texas home mortgage monthly payments after the rate adjustment occurs, because it is typically quite a bit more per month than the interest payment alone.




A Texas reverse mortgage is possible if you are at least sixty-two years old, own your home and it is your primary dwelling for at least half of the year. The bank will start giving you the equity that you have earned in the home in monthly installments that you can use for any purpose you wish. At the end of the period of the loan the bank essentially owns the home.




It is a great idea to work with a knowledgeable home mortgage broker who can explain each of these loans in greater detail and give you the information you need to decide which Texas home mortgage loan instrument is best for you.

Anne is studying to be a real estate agent in Texas home mortgage. Currently, she is taking classes and learning all there is to know about Texas reverse mortgage and home loans.

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