What First-Time Homebuyers Need to Know About Mortgages

The Road to Owning Your First Home

Buying your first house is exciting, but the mortgage paperwork can feel overwhelming. Here is a simple breakdown of how home loans work.

The Down Payment Your down payment is the amount of cash you pay upfront. While a 20% down payment is traditional, there are many programs designed for first-time buyers that allow as little as 3% or 5% down.

Key Budget Factors - **Interest Rate**: This determines how much the bank charges you to borrow the money. Lower rates mean lower monthly payments and less total cost over time. - **Loan Term**: Most home loans are either 15-year or 30-year terms. 30-year terms offer lower monthly payments, while 15-year terms let you pay off the house faster and save money on interest.