The "Work For Your Beer Money" series is brought to you in partnership with Wyndham Capital Mortgage (NMLS # 2948), one of the nation's fastest growing mortgage companies.

Buying a home can be an intimidating process. Does it have enough bathrooms? Is it in a safe neighborhood? Will my hypothetical kids end up in a good school district? Will my dog have a good walking route? Where’s the closest brewery?
 
Aside from finding the perfect listing or builder to meet all of your demands, there are several financial decisions you need to make along the way. We spoke with Emma Wohl (NMLS #1431124), a loan officer at Wyndham Capital, to simplify mortgages for us. Read on to learn more. 

Before any house-hunting (we know, it’s tempting to stalk Zillow to find that special space), Emma recommends that you understand your mortgage options.
 
“There’s a common misconception that there are only two types of mortgages: a 15-year and 30-year,” Emma informed us. “There are actually several mortgage types (10, 15, 20, 30) that you can choose from to customize exactly what you need. As a general rule of thumb, the fewer years your mortgage is for, the more aggressive of a payment you will have. However, this will also eliminate thousands of dollars in interest that would otherwise be accrued over the additional years (and you will also pay your house off sooner!).”
 
Emma explained, “The 30-year mortgage is the most popular for a couple of reasons:

  • If you are self-employed or have a flexible income situation, this option allows you to keep a lower monthly payment with the option to pay off more based on that month’s income
  • You probably don’t want to throw all of your money at a mortgage. If investing peaks your interest, if you’re planning on having children, or if you are anticipating any additional expenses, it’s a safe bet to select a 30-year mortgage.”

That being said, Emma notes, “You can always make your terms shorter for any mortgage if you want to.” Let’s say your mortgage is $1,000/month, but you just got a rockin’ bonus AND a raise (you are kicking butt at your job! Go you!). You can always start paying $1,250/month instead your original $1,000/month to decrease the length of your loan. It’s all about being comfortable with the initial terms and modifying them as you grow into your house.
 
As a final note, Emma says, “Know that it is not mandatory to put down 20% on your home. This expectation can cause individuals to pull from their 401K or emergency savings accounts (remember, we don’t touch those!). Make sure you speak with a qualified loan officer to help you decide what is best for you.” 
 
Make sure you reach out to Emma or anyone else on the Wyndham Capital team to help you understand what type of mortgage is right for you, and cheers to finding the home of your dreams!

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