Is Now the Right Time for a Mortgage?

right time

As top mortgage brokers in Utah, we at Altius Mortgage and our partners at Mortgage Ogden are here to do more than just give you some money and usher you out the door. Rather, we provide a comprehensive experience that walks you through every step of getting a mortgage loan.

This means that beyond our actual loan services, we’re also here to provide expertise on important areas of the mortgage world. One of the biggest and simplest areas here: Is the time right for you to buy a house? Let’s look at several factors that might influence your answer here.

Long Term Goals

What are the goals you’ve set long-term, both for yourself and your family (if you have one)? Are you looking to have your housing situation also function as an investment, and are you able to do so? Do you want more control and customization over the place you live in? If so, getting a mortgage could be right for you. On the flip side, if you move around a ton and don’t have some of the time and funds it takes to properly own a home, you might consider waiting.

Needs and Desires

Going a little deeper, you need to look at the actual practical needs and desires you have for a home. Those with outdoor pets will need decent yard space, for instance, while those with young children might need more room for once those kids grow up. Once you’ve determined the things you truly need, consider the desires you have in other areas as well.

Financial Preparedness

Also vital during the early stages of deciding whether or not to get a mortgage? Assessing whether you’re financially ready. You don’t need 20 percent down no matter what to own a home, but it’s great to have at least some chunk of money to put down up front. You can use basic mortgage calculators, like ours at Altus Mortgage, to assess your financial situation and how it fits with a given mortgage.

Market Conditions

A related area here is the mortgage market, particularly current mortgage rates. Rates fluctuate up and down at various times during the year, and if they’re in a favorable place at a given time, that might be the right period in which to pounce. On the other side of that coin, unfavorable conditions might dictate you should wait a little and then revisit.

Season Considerations

Down similar lines, there may be certain seasons where things are busier or lighter. Spring and summer are generally considered the busier time for home buying and selling, with fall and winter generally seeing lighter loads. But that doesn’t mean you can’t get a house at any time of the year – more inventory means more competition and also more homes, where the slower season may have fewer homes available but will also come with fewer buyers on the market.

For more on deciding whether a mortgage is right for you, or to learn about any of our other mortgage services, speak to the pros at Altius Mortgage today.

Down Payment Average Basics

down payment

There are several important parts of a given mortgage situation, and for many people, the down payment is chief among these. As the largest chunk of cash you’ll be asked to put down at once during the mortgage process, many buyers naturally worry about having the proper down payment amount.

At Altius Mortgage and our partners at Mortgage Ogden, we’re here to help. Our loan center contains numerous options for buyers, from experienced real estate flippers to first-timers. If you’re worried about the down payment, let’s look at some basics and averages that might set your mind at ease.

Down Payment Basics

To understand a down payment, you have to consider what’s actually happening in a mortgage loan situation: Your lender is giving you money, taking a small risk that you’ll repay it properly over the agreed upon period – with the benefit of interest to make up for this small risk. But in many cases, that’s not quite enough of a carrot; this is where the down payment comes in.

The down payment is not considered part of financing. Rather, it gets you immediate equity in the home you’re buying – you immediately “own” that percentage of the home. This kind of investment helps protect lenders and sellers alike.

Down Payment Averages

Many buyers, particularly first-time buyers, have hear a few myths when it comes to down payments. The biggest one? That you absolutely can’t get a mortgage without 20 percent of the purchase price placed down in cash.

This couldn’t be further from the truth. There are programs out there with extremely low down payment requirements, and even some with no such requirement at all. Per the National Association of realtors, median down payments for first-time buyers over the last several years has only been about 6 percent. Averages in most locations tend to range between 5 and 10 percent.

Calculating Down Payments

Calculating what amount you might need for a down payment is extremely simple with a basic calculator or even some napkin math. You simply take the purchase price of the home, then multiply it by whatever percentage you’re looking at putting down to see what the amount you’ll need would be. You can also reverse this and figure out what kind of percentage your budget allows you to put down on homes within a given price range.

For more on down payments, or to learn about any of our other mortgage services, speak to the staff at Altius Mortgage today.