Naperville Mortgage Financing: Buying More Home for Less Money
So you are interested in buying your new home in Naperville? Good for you. Naperville is consistently ranked as one of the best towns in the U.S. and was recently ranked the third most successful city in the United States by Zippia, a career resource website. The site credited Naperville’s high median income and low poverty levels as the keys to their ranking.
But, with every town that is desirable to live in, there is typically a high home sticker price that comes along with it. According to Zillow, the median home price in Naperville in August of 2016 was $373,500. Even though half of all Naperville homes are below this price, to many home buyers it will feel as if all homes in Naperville are above this price. In the last three months alone, 384 homes closed in Naperville with home prices between $375,000 to $750,00 (according to Redfin).
So how do you purchase your new home in Naperville without breaking the bank? Here are some mortgage tips that may help you buy more home for less.
Evaluate all down payment options. Naperville jumbo mortgage loans are available with as little as 5% down to a loan amount of $650,000. By putting less down, you may be able to eliminate other debt and improve your overall monthly cash flow. Sometimes it makes sense to put down less and keep more of your cash.
Consider an ARM (adjustable rate mortgage). These are not the scary ARMs that helped lead to the economic and housing collapse of the Great Recession. These are loans where the rate will be fixed for a period of 5, 7 or even 10 years. Sometimes, the rate savings will lead to sizeable monthly cash flow savings so consider ARMs in addition to fixed rates.
Review different PMI (private mortgage insurance) options. Not all PMI is created the same. Some PMI choices require a monthly payment for the first seven to ten years and some mortgage insurance options require one payment up-front with no monthly payment. Make sure your mortgage loan officer reviews these options with you.
United Home Loans has years of experience lending in Naperville and has employees that live and work there. Please contact us to help answer any questions you have about mortgage lending there.