Dream House Mortgage

A dream house mortgage can be summed up as any home loan that allows for the lowest payments and interest rate that is highly sought after by a single individual. They offer a borrower the luxury of purchasing a home that they intensely desire and consider to be their dream home. When typical lenders realize that a particular home is intensely desired, they persuade the home owner to sell off their current home and upgrade to their fantasy home, which may or may not be beneficial in the long run. Some dream house mortgages are designed for those that will do anything to purchase their fantasy home now, whether or not they can currently afford it.

One of the ways that enable a borrower to receive a dream house mortgage is through the use of the interest only mortgage. When making the early mortgage payments, much of the monthly payment is actually going towards interest for the first 5-7 years. So, in essence, utilizing the interest only option could be a valuable choice for getting into the home. Once the first 5-7 years has passed, additional amounts of principle payments should be added onto the interest only requirement. Some dream house mortgages allow for an increase in payments to include the principle after a set amount of years.

Dream house mortgages are designed to get the borrower into a house that they cannot currently afford, but may be able to afford once they receive a higher paycheck. The borrower always has the option to refinance the dream house mortgage or to resell the home. Many real estate investors will utilize the interest only payment option, and use the money saved to better upgrade the home and prepare it for resell at a higher price. In this case, the interest only payment is a wise option. If the borrower plans on living in the home for an extended period of time, then the fixed rate loan is the better choice.

Interest rates are directly determined by a borrowers credit score. It is advised that a borrower receive credit reports from all three nationally recognized credit reporting agencies before shopping around for dream house mortgages. The higher the credit score, the lower the interest rate. If a borrower discovers that their credit score is too low, they may want to consider paying off some of their debt before applying for a loan of any kind. The Bible says in Romans 13:8 "Owe no man anything". This is especially true with credit cards. The minimum payments strangle Americans daily in their financial lives. God does not want his children to be slaves to debt. He wants them to be free to follow His guided path. It is hard to follow a path from God, when confined to the walls of self made debt. Pay off the debt, the credit score will improve, thus allowing a more breathable dream house mortgage payment because of lower interest rates.