Buying a Home in Anchorage Is More Affordable with New Mortgage Options

Posted by Dan Wolf on Thursday, January 15th, 2015 at 1:06pm.

For first-time homebuyers, buying a home in Anchorage has been somewhat elusive as home prices increase. Now there are some new mortgage options and programs to help young buyers and others searching for an Anchorage starter home. According to a recent article by Money, borrowers who take out a FHA mortgage will save an average of $1,000 on mortgage insurance premiums. The White House announced the government will lower insurance fees from 1.35 percent down to 0.85 percent. Borrowers who put down less than 20 percent on a home have to pay mortgage insurance to protect lenders if the borrower were to go into foreclosure. In addition to the lower costs for mortgage insurance, first-time homebuyers in Anchorage can take advantage of the Fannie Mae and Freddie Mac program for buying a home with 3 percent down.   

Lengthening your loan term

Another way to get a more affordable mortgage is to see if you qualify for a 40-year fixed rate mortgage. According to a Zillow piece, the 40-year mortgage gives you an extra 10 years to pay off the loan compared to a 30-year mortgage. If you want to own your Anchorage home outright by the time you retire, count backwards from your full retirement age. If you plan to retire at age 67, you could take out a 40-year up to age 27. If you are going to retire at age 70, that gives you until age 30 to take out the mortgage with a longer loan term.

Choosing a shorter loan term

If you want to save money in interest, some realistic options include the 15-year fixed rate mortgage or a 20-year term that some lenders offer. Older first-time buyers who don’t want to carry mortgage debt into retirement may opt for the higher mortgage payments knowing the will pay off the debt in half the time of a typical 30-year mortgage.

Affording more home

No matter what mortgage you choose, you will be able to afford a nicer home in Anchorage while interest rates are low. A good Anchorage Realtor can help you hunt for entry-level homes that match your budget.

At Wolf Real Estate, we encourage clients to become pre-qualified for a mortgage loan. We help first-time homebuyers and others find their dream homes in Anchorage Alaska. Whether you are looking for a first home or a retirement home, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com.

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