Interest Rates: What Every First-Time Home Buyer Should Know
Understanding interest rates is crucial for any first-time home buyer, as interest rates directly impact monthly payments and the total amount paid over the life of a mortgage.
An interest rate is essentially the cost of borrowing money, expressed as a percentage of the total loan amount. This rate is determined by multiple factors, including your credit score, the loan amount, loan term, and current market conditions.
Fixed-rate mortgages offer the security of a consistent interest rate and monthly payment for the entire loan term. On the other hand, adjustable-rate mortgages (ARMs) often start with a lower interest rate, which can change over time based on market trends, potentially leading to higher future payments.
Navigating the complexities of interest rates can feel overwhelming, but understanding how they work can save you significant money over the life of your loan.
At NIHFCU our home loan specialists are here to help you find an excellent rate. If you have questions about interest rates or any aspect of financing your first home, reach out to us today.
Rates, fees and terms as of April 28, 2024 and subject to change without notice
