South Carolina
Home Financing and
Mortgages
The average home price is South
Carolina is on the rise. Although still relatively cheap, home prices in the
Charleston area rose to $227,942 in 2003 from $215,831 in 2002, according to
the Charleston Trident Association of Realtors. With interest rates at all
time lows, now is the time to purchase a house in South Carolina. With
prices on the rise, homeowners are also opting to make improvements on their
house. Taking out a home equity loan can be the most cost-effective way to
increase the value of your home by making improvements. Borrowers with
sufficient income who need help with the upfront costs of buying a home can
find assistance through the South Carolina State Housing and Development
Authority.
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. |
