Relocation Guide 2019-2020

G iven the competitive nature of the mortgage business, banks and other lending institutions are offering a variety of mortgage products that have made home buying simpler. Mortgages come with either fixed or variable interest rates. Fixed rates are typically one or two percentage points higher than variable rates, but the interest rate remains constant throughout the life of the loan. Variable or adjustable rate mortgages (ARMs) increase and decrease with the prevailing interest rates. These can be great bargains in good economic times, but can become expensive if interest rates jump. Variable rate mortgages are best for homeowners who expect interest rates to decline, plan to stay in their home five years or less, or are confident their income will increase in the years ahead. To protect homeowners, variable rate loans have “caps” that limit how much the interest rate can increase. Buying a Home Many lenders have online worksheets that can help you determine how much house you can afford. Generally speaking, house payments – including insurance and property taxes – should not exceed 28 percent of the household’s gross monthly income (income before taxes). Total household debt (including credit cards, mortgage, auto and other loans) should not exceed 36 percent of monthly income. Homeowners who can’t make a down payment equal to 20 percent of the sales price will likely have to purchase private mortgage insurance, which can add $50 to more than $200 to the monthly payment. This information is meant as a guide. Buyers should consult a Realtor or mortgage banker to determine what they can afford. Local Lenders Milwaukee is fortunate in that it has many local lenders who are knowledgeable about the southeastern Wisconsin market and can provide valuable assistance with a mortgage, includin g Associated Bank , Equitable Bank , Waukesha State Bank an d UW Credit Union . Mortgages Mortgages are available through mortgage brokers, banks, credit unions and savings banks. Whether you elect to work directly with a lender or through a mortgage broker, it is a good idea to get “pre-qualified.” This will help you definitively ascertain how much you can afford. It will give you a competitive advantage with sellers because you can present them with a document demonstrating that you will be able to pay the amount they are asking. F I N A N C I N G A H O M E EQUITABLE vertical island @discoverMKE.com / discovermilwaukee.com 65 Banking done right with your Local Bank Delafield | Hales Corners | Waterford | Wauwatosa | West Allis | Whitefish Bay 414.476.6434 TheEquitableBank.com Milwaukee’s Community Bank Since 1927 Member FDIC Whether it’s saving for college, managing your business or buying your first house, we have you covered