As you step onto the road of homeownership, it may become evident, securing a mortgage to finance the purchase of your property is a necessity. A mortgage loan can give you more mobility and options as you search for a home best fitting your wants and needs.
To secure a home loan, you’ll need to start with a pre-approval process in which you submit an application containing your ID information, credit history and financial information. Once you’re approved by your lender, you’re able to better budget for your home purchase and narrow down the home search.
Your monthly mortgage payments are comprised of four main units: tax, interest rate, insurance and the principal loan balance. The principal is the sum of money borrowed from the lender, while the interest rate is a fee attached onto the principal balance by the lender for borrowing their loan.
Mortgage lenders may also collect property taxes owed to the state on your behalf. Homeowners insurance is often required when you take out mortgage loans to protect your home in the case of perils and payment is collected by your lender.
A mortgage term is the length of time you agree to repay your loan balance. The most common mortgage term is 30 years, which offers lower monthly payments; however, shorter terms are available, often between 10 and 25 years.
Shorter terms come with higher monthly payments, but you can save thousands of dollars on interest.
Before committing to a mortgage loan, consider speaking with a lender to explore loan options best fitting your situation.
I'm John Mahan, Sales Associate with William Raveis Real Estate, Harwich Port Office.
Throughout his childhood, John Mahan spent summers on Cape Cod at his parents’ home in Dennis Port. His intro to the Cape was, as he puts it, when his parents “carried me down the stairs at Sea Street Beach when I was a week old.” With a lifelong connection to Cape Cod, it seemed only natural for John and his wife, Mary, to move to Harwich – where they still reside – with their two young children in 1996.
Prior to moving to Cape Cod, John lived in the Worcester-Auburn area where he worked for Mass Electric for 10 years and was a member of the International Brotherhood of Utility Workers. When John and his family moved to the Cape, he worked at NSTAR for six years.
John began his career in real estate in 2002 when he joined Team Waystack Realty in Harwich Port. He has been a consistent top producing realtor in the Harwich area for the past 20 years. John’s approachable demeanor, combined with an integral understanding of the Cape Cod residential real estate market, have allowed him to build trusting, long-term relationships with his clients – both sellers and buyers.
