Pennsylvania
Home Financing and
Mortgages
Whether you are a first-time buyer or an existing
homeowner, Pennsylvania has many organizations that can offer you lower
interest rates on loans, reduced closing costs and help with down payments.
The Pennsylvania Housing Finance Agency is one agency that can help
homebuyers throughout the state. But there are several other agencies that
can help. Dauphin County’s Affordable Housing Program offers first-time home
buyers up to $5,000 towards a down payment or closing costs. The Pittsburgh
Housing Authority also has a homeownership program that helps first-time
buyers.
Perhaps the most frustrating part about buying a new
house is securing a good mortgage. The majority of people can’t simply write
a check for the price of their new house. They need to borrow. There are a
wide variety mortgages out there to help you secure the financing you need
to buy a new home.
A 30 year fixed mortgage, which has a fixed interest
rate, is a type of mortgage loan that is repaid by the borrower making 360
equal monthly payments over a period of 30 years. Since the borrower's
payments are 'fixed', the borrower can expect to make the same monthly
payment for the entire term of the loan. A 30 year mortgage loan is the most
widely accepted program used to finance a residential purchase.
Another type of mortgage is one where the interest rate changes over the
term of the loan depending on the prevailing interest rate. An Adjustable
Rate Mortgage (ARM) is a mortgage loan that is most widely known for its low
starting interest rate (when compared to the 30 & 15 year mortgage loans).
This 'low' introductory rate is used to calculate the mortgage payment for a
specified period of time. Once this introductory period is over, the
interest rate is adjusted periodically the yield on the one-year Treasury
Bill. |
