If you’re like most buyers, it’s been a while since you last dove into the housing market. Maybe you’re looking for your first condo for sale in DTLA, or maybe you’re buying your second, third or subsequent place – but no matter what you’re doing, it’s safe to say that the mortgage market has changed a bit since the last time you were involved.
Here’s what you need to know about getting a mortgage in 2019.
2019 Mortgage Advice
As you start looking at condos and lofts for sale in DTLA, keep in mind:
- A fixed-rate mortgage isn’t always best
- You don’t always need 20% down
- Interest rates are expected to stay fairly stable this year
A Fixed-Rate Mortgage Isn’t Always Best
While your parents probably got a fixed-rate mortgage, it might not be the best choice for you. In fact, if you think you’re buying a “starter” home now, you might benefit more from an adjustable-rate mortgage, or ARM. That’s because you’ll likely save a couple hundred dollars on your mortgage each month, at least until your interest rate adjusts (usually, that’s 5, 7 or 10 years from when you sign for the mortgage). If you plan to sell rather than live in your condo forever, an ARM might be the better choice.
You Don’t Always Need 20% Down
There are a lot of instances in which you can get a mortgage loan with as little as 3.5 percent down. (If you’re a veteran, you could even qualify for a VA loan – and that means you can buy a home with nothing down.) If you don’t have 20 percent of a condo’s purchase price to put down, don’t sweat it – just talk to your lender about programs that require a lower down payment.
Don’t forget, though, that if you put down less than 20 percent, you’ll likely have to buy private mortgage insurance (unless you have a VA loan, which doesn’t require you to buy it). Your monthly payments will probably be higher, too.
Related: What is Private Mortgage Insurance?
Interest Rates Are Expected to Stay Fairly Stable This Year
The Federal Reserve was raising rates for the past two years, and they continued to do so in January – but now, it looks like rates will drop a bit and then stay stable for the rest of the year. Check out this article for more information.
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
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