Types of Mortgages

Despite all the complexity of different types, all mortgages come down to two options. Either the homebuyer is paying off the house with the mortgage or they are paying off the interest for the house on the mortgage. Both of these options have their benefits and drawbacks. Only the homebuyer can decide what is best for them.

It is important to know which one you are getting. Unfortunately, unscrupulous lenders have lent money to homebuyers on interest only loans that they could not otherwise afford. This unscrupulous lending led to the housing crisis that remains today. This does not mean all interest loans are bad. On the contrary, they serve a specific purpose and are great for that purpose.

How the mortgage affects you

This is where things get more complicated. Some loans allow for no money down. Other loans have lower interest rates. While yet other loans are assumable. These are all important things to know about the type of loan you are getting. It is important to discuss with your lender what the loan means to you before agreeing.

Don’t be afraid to ask the lender questions. Ask them if you can transfer the loan. Ask the lender if there are penalties for paying off early. Ask them if the home will be paid off at the end of the loan.

You have a right to know all the terms of your mortgage. A good lender will readily answer your questions.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

A first time homebuyer is defined as someone who has not owned a home previously.  There are other special financial situations that will still let you take advantage of the first-time homebuyer status, such as withdrawing funds from your retirement fund to use as a down payment. There are special circumstances when it comes to withdrawing money from your IRA to purchase a home.  You may want to discuss this with your account administrator or your lender.

In order to qualify for the $8,000 Stimulus Tax Credit, you should first understand the guidelines.  The credit is available for qualified first-time home buyers.  This tax credit does not have to be repaid, but on December 1, 2009 this great opportunity ends.

A few other bits and pieces about the tax credit:  The credit is equal to 10% of the purchase price of your home up to $8,000.  Single taxpayers with an annual income or no more than $75,000 and married couples up to $150,000 have the opportunity to take advantage of this tax break.

For an individual or couple looking to get into a new home, the time to act is now.  Your lender or your real estate agent can give you more information about the tax credit as well as your financing options.  There are a number of different options available to you, so get moving because Tulsa mortgage has a first time home buyer tax credit waiting for you.