Thursday, June 21, 2012

Teachers and home loans: The time is right

Teachers are a great credit risk. The profession is respected and teachers are looked upon as stable employees. Stable employees, means good credit risk. Even with recent education layoffs, most teachers have a solid job, with little chance of getting fired. These and other factors make the chances of getting a home loan quite good for teachers.

Did we mention that mortgage rates are at all-time lows? That's right. Mortgage home loan rates are at the cheapest in history. This makes a perfect storm for buying a home.

If you are a teacher, and not a homeowner yet, what are you waiting for?

The current rate for a 30 year mortgage is 3.66% You read that right. That's cheap. Not too long ago they were double digits. If you bought a home in the late 70's or early 80's, chances are it was over 12 percent.

This very low mortgage rate makes it quite reasonable to buy a home. Yes, the loans are not as free-flowing as they were five years ago. You need good credit, a good income, and probably close to 20% down. But if you can manage it, there may not be a better time in years to come for a home loan.

Public school teachers have other options not available to the general public. HUD has teacher programs that make buying a home even cheaper. Go to: Home Loans for Teachers for more information on teachers and home loans.

Here are some general home buying tips when shopping for a mortgage. The big banks may give you the best interest rate deal, but they are probably a little more selective. Try a big bank first, then shop around. Try a smaller bank. If you are turned down from a large bank, try again at a smaller one. Even local. At this time, they may be more willing to help you get a mortgage. The downside is that they may charge you a little more. But with rates so low, a little more is not much. It is better to be pre-qualified for a mortgage when home shopping. You will know exactly what you can afford.

If you are a teacher who is still renting, what are you waiting for? Get into your own home!

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