Choosing The Right Home Mortgage In Sacramento

The major types of loans that borrowers find available include fixed rate mortgages, adjustable rate mortgages, interest only mortgage, negative amortization mortgage and balloon payment mortgage. 

Each of these new home mortgage types has different advantages and disadvantages. Selecting the right home mortgage in Sacramento through sites like, for your particular financial situation should be done after reviewing the major factors in each of the above loan types to find one that fits.

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How much can you afford?

This is a critical factor in choosing a new home mortgage that will enable you to meet your financial obligations easily without undue financial stress on you and your family. Lenders often use a guideline for affordability of your proposed home purchase based on 2.5 times your annual salary, but this figure can vary depending on the lender and upon the level of your income. 

It may also be affected by other characteristics such as your credit score, the economy of the region or the country, and whether it is a new home or a pre-owned home.

What other factors enter into the type of mortgage selected?

In addition to reviewing your ability to repay the new home mortgage, other factors are important in selecting the mortgage type for which you should apply. 

You will also need to look at your debt load and whether you have excessive credit card debt or other payments. Your job history may be reviewed to see whether you typically stay with an employer or whether you bounce from job to job. 

If you have moved several times in the recent two year period, you will probably need to be able to explain why that was necessary to a potential lender.

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