Utah
Home Financing and
Mortgages
Latest statistics from
the Office of Federal Housing Enterprise Oversight
show that Utah ranked last in terms of percentage house appreciation in the
five years up to 31 December 2003. Stable market conditions such as these
mean it is a good idea to start thinking about buying a home in Utah before
the upturn in the economy leads to inflation-busting price rises.
There are two types of mortgage you can use to finance your home purchase,
namely fixed rate or adjustable rate mortgages (also called ARMs).
A fixed rate mortgage usually extends over a 10-, 15-, 20- or 30-year term,
with 15- and 30-year loans being most favored by homebuyers. As the name
implies, your monthly repayments stay fixed for the life of your mortgage.
With variable rate
mortgages, the rate is generally fixed 1, 3, 5 or 7 years and the interest
rate adjusts annually for the remainder of the life of the mortgage.
Although fixed and
variable rate mortgages are the two main types of mortgage, lenders offer
many different deals. In addition, in Utah you’ll find a range of
homeownership assistance programs offered by organizations such as the Utah
Housing Corporation, US Department of Housing and Urban Development and
local non-profit agencies, primarily aimed at first-time buyers.
Before deciding which
mortgage to choose, do your homework using the Internet and by consulting an
experienced real estate broker. Ensure you understand the advantages and
disadvantages of each mortgage and/or home purchase program to ensure you
get the deal best suited to your needs.
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