Vermont
Home Financing and
Mortgages
House
prices in Vermont have appreciated by nearly 47% in the five years ending 31
December 2003, against a national average of nearly 42%. House price
appreciation has been even more dramatic in 2003, with Vermont being ranked
7th highest in the country in terms of house price appreciation.
These statistics highlight the need to be quick off the mark when it comes
buying a home in Vermont and to have your finance sorted before you even
start looking around at property.
As a homebuyer you generally have two types of
mortgage from which to choose to finance your home purchase, either a fixed
rate or adjustable rate mortgages (also called an ARM).
As you would expect, throughout the life of your
mortgage (usually for periods of 10, 15, 20 or 30 years) your monthly
repayments stay fixed. Variable rate mortgages generally offer a fixed
interest rate for a period between 1 and 7 years. After this period
expires, the interest rate adjusts on an annual basis until the mortgage is
fully repaid. An ARM can be advantageous since it can offer a lower
interest rate at the start, allowing you to get a foothold in a market which
is as buoyant as Vermont’s.
There
is a lot more to mortgages than this. Many different mortgage packages are
available based on the basic principles of fixed or variable rate, each
package having its own advantages and disadvantages. Do your research
carefully using the Internet and a qualified real estate broker to ensure
you get the best deal for you. |
