If you live in El Paso and are looking to purchase your first home, the process can be exciting but also stressful, especially for first-time buyers. We will lay out a simple but informative guide for you to follow when looking into home loans.
Rocky Mountain Mortgage Co. is El Paso’s largest mortgage company and has happily assisted the people of this town in financing their dream homes for decades. We offer in-house underwriting, which makes the loan process quick and easy for your convenience. If you’re interested in a free consultation, give us a call at (915) 593-3111 or contact us online today!
The Breakdown
Buying a home is one of the largest purchases you will make in your lifetime, and most people go through with this purchase using a home loan. In this section, we will break down the necessary steps of a home loan, from explaining the basics of a mortgage to shopping for a lender.
Mortgage
A mortgage is a fancy term for a home loan. It’s used to indicate the amount of money you need to borrow (including interest) to purchase the house. The mortgage is the price of the house subtracted from the down payment you make; the bigger the down payment, the lower the mortgage.
Rocky Mountain Mortgage Co. has an online calculator that we offer to the public to help calculate your potential mortgage loan to help you better organize your finances.
Loan Term
The loan term is the length of time you have to pay off your home loan. The length of the loan you choose will affect your interest rate, your mortgage payment, and the amount of interest you pay throughout the timeframe. Therefore, the loan term is very important when it comes to organizing your finances.
- Long Loan Terms- Usually around 30 years in length. Smaller mortgage payments but bigger interest payments.
- Short Loan Terms- Usually around 10-15 years in length. Lower interest payments but bigger mortgage payments.
Loan Type
When choosing the type of home loan you want to take out, you have to decide between a fixed-rate mortgage and an adjustable-rate mortgage. Your loan type will determine if your mortgage payment or interest rate will change over the loan term.
- Fixed-rate mortgage- One interest rate over the loan term; it won’t change. Because the interest rate doesn’t change, neither will your monthly payment.
- Adjustable-rate mortgage- The interest rate will change; however, it will start with a lower interest rate than a fixed. Your interest rate changes based on the conditions of the housing market.
Finding a Lender
Once you’ve sorted through the previous steps, it’s time to find a lender that suits you. This is an important step in your home loan journey. Your lender will be your guide through the mortgage process. Different lenders will offer different interest rates or charge different home loan fees. Our loan officers at Rocky Mountain Mortgage Co., located in El Paso, provide great estimates for home loans at low rates.
No matter if you’re a first-time buyer, growing a family, or moving to El Paso from out of state, Rocky Mountain Mortgage Co. has you covered. If you’re interested in taking out a home loan with us, call (915) 593-3111 or contact us online today.
