MORTGAGE RATES
Ask each Grand Rapid lender and broker for a list of its current mortgage interest
rates and whether the rates being quoted are the lowest for that day or week.
Be sure to get information about
Grand Rapid mortgages from several lenders or brokers. Know how much
of a down payment you can afford, and find out all the costs involved in
the loan. Knowing just the amount of the monthly payment or the interest
rate is not enough.
Ask for information about the same loan
amount, loan term, and type of loan so that you can compare the
information.
Some Grand Rapid mortgage lenders
require 20 percent of the home's purchase price as a down payment.
However, many lenders now offer loans that require less than 20 percent
down - sometimes as little as 5 percent on conventional loans. If a 20
percent down payment is not made, lenders usually require the home buyer
to purchase private mortgage insurance (PMI) to protect the lender in
case the home buyer fails to pay. When government-assisted programs such
as FHA (Federal Housing Administration), VA (Veterans Administration),
or Rural Development Services are available, the down payment
requirements may be substantially smaller. |
