Choosing
a Loan
Here
are some important questions to ask when shopping for a home loan:
1.
Is the loan assumable? Under what conditions can it be assumed?
2. Does the rate fluctuate? How?
3. Can the original borrower be fully released? Is there a charge?
4. Is there a pre-payment penalty? Is there a minimum pre-payment amount?
What happens if the loan is paid off early?
5. Is there a Private Mortgage Insurance (PMI) requirement? Can it be removed?
How?
6. Can taxes and insurance be paid separately from the loan payment? Can
this arrangement be changed by the borrower or by the lender? How ?
Down
Payment Options
1. Personal Savings
2. Gift Letter
3. Personal Reserves/Sellable Assets
4. Home Equity
5. Joint Ownership
I
Can Help You Find Financing
I
work with many mortgage brokers throughout the area and can inform
you of different financing alternatives and help you arrange appropriate
financing.
Borrowing
enough money to buy a house can be intimidating. your sales agent
can guide you through the process. Below is a listing of some of
your options when choosing a lending institution, and deciding on
what kind of loan to obtain. Look over the information, and we can
discuss which ones might be right for you.
A
Mortgage
A
mortgage is a loan for the cost of the property. The title is held
by the lending institution until you pay the loan back according
to its terms. The length of time you have to pay it back, under what
circumstances you can repay early, the interest rates you pay for
use of the loaned money, and other terms, are all spelled out in
the contract for your mortgage. You will be expected to put some
cash money into your purchase, and you may have to prove to the bank
that you have enough other money to make your payment. Some mortgages
are assumable, meaning the person you sell the house to can assume
your debt, and take over the loan payments.
Down
Payment
The
down payment on your home will guarantee the lender that it will
not lose money if you fail to pay your debt. The lender requires
the mortgage to be less than the value of the house, so that the
loan will be paid back if the house has to be sold. The down payment
makes up the difference between the cost of the house, and the loan
you can get to purchase it.
The
Conventional Rate Mortgage
This
is a mortgage with an interest rate that stays the same until the
mortgage is paid off. The exact terms of repayment, and the specific
interest rate available at any given time, is variable. You can call
institutions to find out their interest rates, or we can do it for
you. We help you calculate how much you can expect a bank to loan,
given your personal financial picture.
The
Adjustable Rate Mortgage (ARM)
An
ARM is a loan with interest changing at different periods of time.
The rate changes may be predetermined and fixed, or they may be based
on variable factors, such as the one-year Treasury Security Index.
The
FHA Loan
FHA
loans are insured by the Federal Housing Administration. This makes
this a very low risk loan for the lender. These loans are designed
to encourage lenders to make loans for residential properties. The
terms are also favorable for the buyer, and are worth consideration.
The
VA Loan
These
programs offer long-term financing to eligible veterans or their
surviving unmarried spouses, with little or no down payment required.
VA loans are guaranteed by the Veteran's Administration.
Mortgage
Estimator
My
online mortgage estimator below will figure out your mortgage
payment. Input all the appropriate information, then
click on "Calculate" to see your payment amount,
or click on "Amortize" to see the periodic payment
breakdown. Please note: Actual costs may vary depending on
your lender. This calculator is designed to provide a guide
only.
