“Finding the right mortgage (and how to get the best mortgage rate can be a confusing process–especially for first time home-buyers.”

Buying a home is a huge financial commitment.  In this article, Deborah Kearns discusses the following six questions that can help you decide which is the right mortgage for you.

1. Should I get a fixed- or adjustable-rate mortgage?
2. Should I pay for points?
3. How much should I expect to pay in closing costs?
4. Do I qualify for any special programs?
5. How much can and should I put down?
6. Any other insights on how to get the best mortgage rate?

Each question provides detailed information to help you answer the question and find the right home mortgage financing needed to purchase the home of your dreams.

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

• Help students understand the importance of purchasing a home they can afford after all other home ownership costs–taxes, utilities, repairs, etc. are considered.
• Stress the necessity of “shopping” for a home mortgage and comparing both term of the mortgage and the effect of interest rates on total financing costs.

Discussion Questions

1. What factors affect the cost of financing a home that you would like to purchase?
2. How important is good credit when purchasing a home? Does it really make a difference if you have a good credit score or a bad credit score?  Explain your answer.
3. What steps can you take to make sure that you are getting the lowest interest rate when you finance your home?