MONROE, La (KNOE) - What type of mortgage do you recommend to your clients?
Courtesy: MGN Online
We always recommend a 15 or 30 year fixed mortgage. Also, if you do choose to get the 30 year mortgage we encourage you to pay it off early by paying one extra note a year. In 1929 only 2% of homes in America had a mortgage and by 1962 only 2% did not.
How much do you recommend putting down on a home?
We encourage you to put a minimum of 20% down to avoid having to pay PMI (Private Mortgage Insurance) payments. Of course the more you put down the lower your monthly house payment will be.
How do we know how much of a house note we can afford?
Don't let your American dream become a nightmare. Your house note should never be more than 25% of your TAKE HOME PAY. That amount includes taxes and insurance. Example: If you bring home $4,000 per month then your house note should not be more than $1,000 per month.
Is it a bad idea to rent?
No, not if you are paying off debt and saving up cash to put down on a home, this will set you up to WIN with real estate. Renters are also able to avoid repair and maintenance costs during this time. Another plus is that renters can simply move if their situation changes at anytime