Homes and land for sale in Lane County Oregon

Mortgage Information

Thirty year fixed rate loans are typically 360 payments (30 years) of the same amount over the life of the loan.  Your rate stays the same through the entire term unless you refinance the loan.  Shorter loans (20 or 15 year repayment loans) can save you thousands in interest over the life of your loan while at the same time giving you a fixed rate. You pay a higher payment each month to save that amount but you'll also build equity at a faster pace than someone with the same loan amount over a 30-year period.

An adjustable rate mortgage, also known as an ARM, could give you the option to have even a lower payment but they are not fixed for the life of your loan. Depending on the term some are fixed for 2 years or for 5 years. If the rates go up then your rate goes up but at the same time if the rates go down your rate can go down. You always have the option to refinance your ARM into a fixed rate after the fixed portion of the loan is finished.

While many lenders will finance 100% of your mortgage, a down payment can give you a lower interest rate and payment. The larger the down payment, the lower the rate and lower the monthly payment you will have to pay. Assuming all things are equal, someone with a 20% down payment will pay less per month than someone with a 10% down payment. Coming in with a down payment gives you more equity as collateral while financing the rest. To a lender, if you have a down payment you are a safer investment then a person without one. 

Credit quality will affect rates. Lower credit scores will generate a higher rate and the higher the credit score the lower the rate that a person will get. Someone with a high credit score is perceived to be a lower risk than someone with a lower credit score. Having a lower credit score shouldn't discourage you as a lender will evaluate your application as a whole and will take into account any unforeseen events that have dropped a person's credit score. It will not be the sole factor determining if you are eligible for financing

Another factor in determining your interest rate and term is your Debt-to-income-ratio also referred to as your DTI ratio. If your monthly income is substantially higher than your current monthly obligations you will have more disposable money to repay your loan.  The higher your obligations, the higher the rate will be and the higher the payment. Your gross monthly income (income before taxes are taken out) is used to determine your DTI ratio.

For more information on how we can help you please call us at: 541-741-9977.

Visit the Oregon Real Estate Properties office at:

541 Willamette St. Ste 402
Eugene, Oregon 97401
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