What type of mortgage is right for you?

June 3rd, 2013

Woman carrying moving boxesMoving can be both exciting and stressful, but don’t let mortgage worries keep you from pursuing your dream home. No matter whether you are looking at a single-family house, condo, or townhome, there are mortgage options available in Bucks County.

The thought of a mortgage can be overwhelming when you see a large lump sum of cash that you will owe. But this is going to be financed over a much longer time than other purchases you have made.

One of the first steps is to evaluate your current monthly expenses. Consider things such as credit card debt, car payments, student loans and any other money you owe or need to pay on a regular basis. From there you can determine how much you have left in your budget for your monthly mortgage payment.

First, let’s look at 15- and 20-year fixed mortgages. With this product, the interest rate remains the same for the duration of the loan. Monthly payments are then calculated to ensure the loan is paid off fully by the end of the pre-determined term.

Another option would be a 30-year term which gives you the ability to stretch out the payments over a longer time, but with this option, the rate is fixed for the first 15 or 20 years, after which time the loan would convert to an adjustable rate for the remaining term.

Even armed with this knowledge it might still seem complicated. That is why our team is here to talk you through the process. We want to show you how to evaluate your expenses and look at the payments you would have so you can feel comfortable with the 15- 20 year fixed mortgage or if the 30-year team that converts to the adjustable rate is the better choice.

In addition, we keep all mortgages in-house for the entire life of the loan and never sell them to another institution. This means any time during the life of the loan we can answer questions or help you with issues that arise.

But we know you still might have questions, so ask us here and we are glad to answer. Also, if you are a veteran home buyer, we would love to hear your tips and feedback on what you learned when you were looking for a home.

There is always someone at our local branch offices to talk with you and you can also contact our residential mortgage specialist Michelle Byrne.

Michelle K. Byrne

The First National Bank & Trust Co. of Newtown
Corporate Officer/Residential Mortgage Officer

215-860-9100 ext. 3055
mbyrne@fnbn.com