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Securing a mortgage for the first time can be a frighteningtime in your life. You want to make sure you understandwhat is going on so the mortgage lender cant takeadvantage of your lack of knowledge.

In spite of numerous laws and regulations it is stillbetter to have a very least a basic understanding of theideas and systems of the mortgage industry.

There are many different deals, incentives and programs forthe first time mortgage buyer. Its important to look ateach of these in detail to find out if they are worthwhile,and if so, if they are ideal for you and your circumstanceswhen it comes time to mortgaging your first home.The old saying if it seems too good to be true it probablyis should be kept in mind at all times.

There are whole range of starter mortgage plans dependenton your situation now and what you anticipate will happenin the future. This is not like buying a new computer gameonce you have made a decision you will usually find it willbe difficult to change your mind. Probably one of the mostpopular starter mortgages is a fixed rate mortgage. Theseare available for periods of 30,20,15 or 10 years,depending on the lender and situation.

This means that the mortgage rate and the payment ratewill remain the same and will not change throughout theduration of the mortgage. Usually the rate will be at aslightly higher rate than the current market rate asthe lender will have to anticipate changes due to marketfluctuation in the future.

These fixed rates are perfect for first time buyers if youplan to live in the home or property for more than 10 yearsand if you like certainty rather than change in yourmonthly payments and budget.

its sort of like knowing what your rental payments will befor several years, many new owners find this comfortingespecially when first putting a foot on the property ladder.But If you plan on staying put in your home only for ashorter time, maybe you intend to upgrade latter on a shortterm first time buyer mortgage might be the better choicefor you ?

If you dont want your mortgage to be the same for the next10-30 years or feel that the current fixed rates offered isover estimated and does not really effect the true estimateof interest rates in the future, you might opt for aadjustable or variable first loan.

The interest rate and the cost of most first time buyermortgages will still remain the same for a specific numberof years, then after the initial period the payment andinterest rate has the likely hood of fluctuating annually,dependent on the market rate.

Homeowners who have owned homes a number of years canrecall the times when we had higher interest rates than weare experiencing at the moment but dont forget a mortgageis a longer term commitment so think carefully beforejumping in to any deal.

These variable type mortgages are ideal if you needstability at first, but can cope with or accept changeslater on. It can also be more flexible if you plan onstaying put for the duration of the fixed part of themortgage but planning a move or an upgrade in a few yearstime.

There are different programs both state or federal offeredby different mortgage lenders that provide other optionsto first time buyers. This type of mortgage could offerreduced interest or maybe points if it is your first homeor if you have had a home for a few years (usually three)There are also incentive options for that can help youobtain the credit you need to get into a first home.You will find Federal schemes, such as the FHA (FederalHousing Administration) schemes as well as more localizedprograms both State and those funded by mortgage companies.

If you are a veteran (former military) and looking atbuying your first home youre catered for as well withspecial veteran programs. The Division of Veterans Affairshas arranged a program for you that will guarantee some ofthe most popular first time buyer mortgages (such as the 30or 15 year fixed rate loans).

There are a number of mortgage companies and brokers thatwant to help you find a loan. But never forget, this is aserious commitment on your part and my effect future plans.It will be in your interest to have a basic knowledge ofeverything presented to you when looking for the first timedeal and you must check out all the options before choosingthe deal for you.

Talk to family members and friends, get their views about aspecific loan or use their contacts and experience or askthem to refer you to a trusted mortgage brokerage. Justbecause youre new to this, it doesnt mean you have to becompletely clueless does it?

Show you know the basics and tell mortgage experts that youhave some idea what youre really need for this they willat least know you have some idea of the process involvedwhich will help them and you find a better deal quicker andmore effectively. This means your step into property willnot be fraught with problems and regrets.