Seattle, Washington, nicknamed “The Emerald City,” is a shining city on the Pacific Coast. Steady precipitation keeps the area green and lush. Visitors and residents enjoy shopping for fresh seafood at local farmers’ markets, having lunch at the famous Space Needle and going to professional sporting events featuring Seattle’s exciting teams.
Buying a house and applying for a mortgage go hand in hand. Here’s a guide of some terms you might run into applying for Seattle mortgages.
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| Population 563,374 | Median Age 35.4 yrs | Household Size: 2.08 |
| Avg Home Value: $259,600 | July High: 75.4°F | January Low: 35.2°F |
Seattle Mortgages
One of the hardest parts about financing your home is understanding and negotiating your mortgage. Sometimes it may seem the bank or creditor doesn’t have your best interests at heart. We can help. Here are some helpful explanations of common terms you will come in contact with when applying for Seattle mortgages.
Adjustable rate mortgages, also known as variable rate mortgages, are one option for those looking for a loan for a shorter amount of time. Adjustable rate mortgages are a great option for those looking to repay a loan within 10 years of when the mortgage is issued. Adjustable rate mortgages usually begin their terms with a period of fixed interest rates. The fluctuation of the interest rate can be dependant on many factors, so most lenders will set maximum and minimum interest rates with you.
Fixed rate mortgages are for long terms, usually 15, 20 or 30 years. During the life or term of the loan, the interest rate and the monthly payments stay the same.
An Escrow Company is usually a neutral third party that will hold money or documents for the duration of the loan.
Watch out for hidden costs and fees associated with your mortgage. The lowest interest rate might not yield the cheapest mortgage. Some common costs include escrow fees, loan origination fees that come from processing the loan, and closing costs that can include anything from attorneys’ fees, recording fees and appraisal fees. You should also be aware of any prepayment fees, or fees that can be incurred by paying more than the monthly payment.
Starting early and preparing beforehand to get a mortgage can save you plenty of time, effort and headaches. Good luck!
By Brian McEwan
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A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®