West Virginia
Home Financing and
Mortgages
House prices in West
Virginia have appreciated at a markedly slower rate than the rest of the US.
House prices nationally appreciated by 41.81% in the
five-year period ending 31 December 2003, whilst those in West Virginia
appreciated by a mere 20.7%. Coupled with a negligible population increase
between 1990 and 2000, this means that homebuyers should enjoy a relatively
stable marketplace in which to choose their new home.
When it comes to financing a home purchase, a mortgage is the standard
method of raising funds. Mortgages essentially fall into two distinct
categories: fixed rate mortgages and variable rate mortgages (also known as
ARMs).
As the name implies,
fixed rate mortgages come with a fixed rate interest for the lifetime of the
mortgage, which can be 10, 15, 20 or 30 years’ duration. This makes monthly
budgeting and long-term financial planning much easier as you know exactly
how much you’ll be paying for the entire length of the mortgage.
An ARM mortgage features an initial fixed interest rate period, lasting
anything between 1 and 7 years, followed by a variable interest rate that is
adjusted annually for the remainder of the mortgage. ARMs tend to offer
lower interest rates during the initial fixed interest period making them
particularly attractive to first-time homebuyers.
Be sure to research the marketplace thoroughly before making any decision
which you may have to live with for a very long time! Use the Internet and
consult a real estate realtor to navigate through the huge number of
different deals and finance packages that are available. |
