Getting a mortgage in St. Louis can bring mixed feelings of excitement and anxiety. For instance, a married couple, Sandy and Bob, are about to start a family and decide to buy their first home. Sandy, who is pregnant, is due in early June. With both incomes combined, they are able to pay monthly bills and save extra cash for vacation and emergencies.  The couple decides to visit a local lender and find out what their options are for getting a mortgage in St. Louis.

The first step they take is calculating how much they can afford. The lender walks them through the process and discusses the best payment schedules to pay down their mortgage. Sandy and Bob decide to get their financial ducks in a row by setting up a payment schedule. The couple meets with the lender to talk about ways that they can lower their interest but still have some cash leftover for emergencies and savings. They learned that paying their loan on a bi-monthly basis would allow them to shave up to 5 years off of their payment period. Another option was to save money at the end of the year and make an extra loan payment at that time. This would give them the flexibility to have extra cash during the year if there was an emergency. Sandy and Bob chose the first option, which would give them a structured schedule of making payments twice a month. This allows them to pay off their mortgage in St. Louis faster. Once Sandy and Bob have paid for their home, they will be able to use the cash to save up for retirement and college tuition for their children.

Purchasing your first home can be a huge financial burden. Many people struggle while developing a financial plan. The best thing to do is set up a meeting with a mortgage specialist and figure out what your choices are. Each individual has their own unique situation, so it is important to find an option that fits your needs. For example, someone that has a 7% mortgage needs to consider refinancing their home or prepaying. However, if a person has a 4% mortgage, it is not crucial for them to prepay and they can find better ways to use their cash.

If you have high credit card debt, it may be a good idea to pay off your debt first and then start payments on your loan every 2 weeks. If your debt is stable, you have the choice of lowering your interest by paying off your home loan faster. One of the recommended ways to set up a bi-monthly schedule is to have it reflect your paycheck schedule.

Contact a Cornerstone loan officer today and we will guide you through the home loan process. If you are deciding to buy a mortgage in St. Louis, visit our website and check out our calculator tool, which will allow you to figure out how much you can afford.

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.