b'MB-006 2020-21 Relo - Single Page_MB-706.qxd2/21/20219:08 PMPage 65FINANCING YOUR HOMEG IVEN THE COMPETITIVEMortgagesadvantage with sellers, because you can NATURE OF THEpresent them with a document demon-MORTGAGE BUSINESS,Mortgages are available through mort- strating that you will be able to pay the banks and other lendinggage brokers, banks, credit unions andamount they are asking.savings banks. Whether you elect to institutions offer a variety of productswork directly with a lender or through aConventional Mortgagesthat have made home buying simpler. Mortgages come with either fixed ormortgage broker, it is a good idea to getConventional loans with a down variable interest rates. Fixed rates arepre-qualified. This will help youpayment of less than 20% typically typically one or two percentage pointsdefinitively ascertain how much you canrequire the homeowner to purchaser higher than variable rates, but the rateafford. It will give you a competitiveprivate mortgage insurance to protect 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 muchMilwaukees Community Bankthe interest rate can increase. Since 1927Buying a Home Many lenders have online worksheets to help you determine how much house you can afford. Generally speaking, house paymentsincluding insurance and property taxesshould not exceedEQUITABLE 28 percent of household gross monthly income (income before taxes). TotalHere for you and all your household debt (including credit cards,Vertical Islandbanking needs:mortgage, auto and other loans) should not exceed 36 percent of monthlySavingfor collegeincome. Homeowners who cant make a down payment equal to 20 percent of the sales price will likely have to pur- Managingyour businesschase private mortgage insurance, which can add $50 to more than $200Buyingyour first houseto the monthly payment. This informa-tion is meant as a guide. Buyers should consult a Realtor or mortgage banker to determine what they can afford. Local Lenders Milwaukee has many local lenders who414.476.6434know the Milwaukee market and canTheEquitableBank.comprovide valuable assistance with aDelafield | Hales Corners | Waterford | Wauwatosa | West Allis | Whitefish Baymortgage, includingEquitable Bank ,Equal Housing Lender|Member FDICSummit Credit Union and Waukesha State Bank .@discoverMKE.com / discovermilwaukee.com 65'