Washington
Home Financing and
Mortgages
House prices in Washington State have
tended to appreciate more slowly than in the rest of the US. In 2003, for
example, there was a 5.51% appreciation in house prices in Washington State
compared with nearly 8% nationally. These figures indicate that Washington
homebuyers should have a wider choice of homes from which to choose than in
other areas of the US.
When it comes to financing your home
purchase, generally you have two choices: a fixed or variable rate mortgage
(also known as an ARM).
By choosing a fixed rate mortgage you pay a
fixed rate for the entire duration of the mortgage for a
fixed period of 10, 15, 20 or 30 years, though 15- and 30-year loans are the
most popular mortgage terms.
An ARM offers a
fixed interest rate period of between
1 and 7 years at the start of your
mortgage. When the fixed rate period ends, a variable rate kicks in and this
is adjusted annually for the remainder of the mortgage. Since ARMs generally
offer a lower initial interest rate, they can be attractive to first-time
homebuyers.
Washington State also offers many home
ownership assistance programs, aimed mainly at first time homebuyers. These
programs include financial assistance or other affordable housing options,
both of which can help gain a foothold on the property ladder.
The number of deals and programs on offer
makes it essential to do your research properly so you can make an informed
choice. The Internet and a real estate broker can be invaluable resources
for this.
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