Newlywed Mortgage Tips

Be perceptive of interest rates! You should get the lowest rate you can find (this should be obvious). Also, make certain you get a fixed interest rate. Variable rates are dicey because they can escalate after the opening rate closes.

Know what you can afford. There is no need to get into a hole right away. A good rule of thumb is you don't want your mortgage to exceed 20% of your income after taxes. Some will say 25%, but its best to play it safe in case something happens that leaves you strapped for cash.


If you are a veteran of the military your state could have a program that offers competitive rates. In addition to being qualified for a VA loan, which doesn't require a down payment, mortgage programs for veterans usually offer much lower rates than banks. The best thing to do is to find out if your state has a veteran's mortgage program.

Also, it would probably behoove you and your spouse to rent at first. A lot can change during the early years of marriage while the two of you are figuring out where you want to live and what you want. A big advantage of waiting is it allows you to save money which you can use on a down payment.

Including a down payment when attaining a mortgage can eliminate that annoying home owner's insurance expenditure. Home owner's insurance (not to be confused with home insurance) is a payment the banks charge when a client cannot pay for a down payment. The monthly home owner's insurance sum is affiliated with the monthly mortgage payment (note they are separate articles) and typically is extended over ten years. This independent principal protects the bank in case the home ever gets foreclosed.

Yet another benefit to waiting is it gives you time to improve your credit score, which will get you a better interest rate on your mortgage. To improve your credit score, obtain one credit card for each of you with a low limit and interest rate, and make a payment on it every month punctually.

Another significant point to take into account is getting a 15 year mortgage rather than a 30 year mortgage. Then, make bi-weekly payments rather than monthly. Doing this will make 13 payments a year instead of 12, and you will pay off a 15 year mortgage in roughly 11 years! And, you will also be creating indispensable equity in your home.


Most banks will be glad to help you with this. In fact, most banks have programs which will automatically take the money from your account bi-weekly (I have mine set for paydays). This is great because you don't have to be bothered with writing a check and lose sleep if your payment will make it on time. Just make sure the money is there!

Purchasing a home for the first time can seem daunting, but being patient will help in the long run. Remember, most importantly, to be patient when buying a home. There is a lot to think about and being hasty will not help you in the long run.