When you’re buying a loft or condo for sale in DTLA, you’ll most likely have to get a mortgage loan – most of us do! But that means you’ll probably have plenty of questions for your lender. Check out these three common mortgage questions so you know what you’re getting into.
3 Common Mortgage Questions, Answered
A lot of people ask:
- Why is my interest rate higher than what I saw on the commercials or online?
- Is a 30-year, fixed-rate mortgage my only choice?
- What’s private mortgage insurance?
#1. Why is my interest rate higher than what I saw on the commercials or online?
When you visit a lender’s website, the rates you see offered are the best possible rates. Not everyone qualifies for those rates, unfortunately. A lot of factors go into your interest rate, including your credit score, your loan-to-value ratio and more. It’s really about how big a risk the bank thinks you are.
#2. Is a 30-year, fixed-rate mortgage my only choice?
You have plenty of choices when it comes to mortgages. You might end up getting an adjustable-rate mortgage, which can make your payments fluctuate, or you may choose one with a fixed-rate (where your interest rate and your payments stay the same over the entire life of your loan).
Related: What is an Adjustable-Rate Mortgage?
#3. What’s private mortgage insurance?
Sometimes your lender will make you purchase private mortgage insurance – usually when you’re putting down less than 20% of the home’s purchase price. (The exception: A VA loan, which doesn’t require anything down but also doesn’t require PMI.)
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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