Years ago when I purchased my first house I applied for a Veterans Administration Mortgage (VA). At the time it was the only mortgage that allowed the seller to pay all of my closing costs. I was much younger than I am now and I relied on my real estate agent to guide me through the process. With his help, I asked the seller to pay all of my costs to close and in return I paid him his asking price. By choosing not to use my savings toward down payments and closing costs I eliminated my opportunity to negotiate a lower price on the house. Since then, mortgage products and regulations have changed and most mortgages allow the purchaser to negotiate closing costs.

There are many factors involved in determining what is the best mortgage and interest rate. You must estimate how long you are going to stay in the house and then compare that to the rates you are being offered. For example, if you know you are only going to stay in the house a short period of time, say 5 years, then you would want to calculate the pay back period for paying points the get a lower rate. Obviously, you must feel comfortable with the person and company you are dealing with. Beyond that, compare the APR (annual percentage rate) on the different mortgage options you are looking at. This will tell you what the lender is charging to originate the mortgage.

A foreclosure in your area affects price when it becomes the predominant form of sale in the area that is used for comparable sales. Allen Park currently has 35 homes for sale out of a total of 98. This figure is lower than half of the homes for sale as listed by the Downriver Association of Realtors. A more accurate assessment would be how many foreclosures are within a specified distance from your house. I can provide at no cost a market analysis of your house and give you my opinion of its current value.