How to Choose the Best Home Mortgage for You

Video Transcript

"There's no such thing as a single best home mortgage. I'm Richard Blake, and I'm here to help you choose the best home mortgage for you. There's several different loan mortgages out there, different loan programs available to different type of home buyers. For example, the loan programs that are offered are going to be different between first time home buyers, investment buyers, move up buyers, that sort of thing. One thing to consider, say for example, of a first time home buyer. There's so many different programs out there now, that allow you to purchase homes with less amount of money down, than in comparison to ten and fifteen years ago. Fifteen years ago, it was pretty standard that you had to have at least, twenty, twenty five percent down, in order to purchase a home. Whereas today, it's very common that you may only put five to ten percent down, to purchase a home, because that is available to us now, what you're going to want to do, is weigh what you can do with that extra money. For example, with a hundred thousand dollar property, if you put down twenty percent, that's twenty thousand dollars, but maybe you can get a interest rate that's only a tenth of a point higher, than what you would get, if you only put down, say ten thousand dollars. What you want to do, is can you get more money with the ten thousand dollars, in another investment, or another avenue? Possibly stocks, or just another investment that you know that you can get, let's say nine percent, for example. You might be better off only putting ten thousand dollars down on the property, and taking the other ten thousand dollars, and putting it into another investment, that's going to have a greater percentage of return, than what your interest rate is, so if your interest rate is six percent, and you can save that ten thousand dollars, and get an interest rate of six point one, then you may be better off in putting that ten thousand dollars into a fund, that's going to give you a return of nine percent, and there's about a three percent margin there. All of these things, is just personal preference on financing. I highly recommend that you speak with your local mortgage broker. They'll be able to give you all the information required, on any loan programs, that are available to you. I just wanted to throw out a couple of ideas. I'm Richard Blake, and I hope that helps you choose a good mortgage loan program, for your next purchase. Thank you."