The following topics are covered below:
A mortgage represents a loan or lien on a property/house that has to be paid over a specified period of time. Think of it as your personal guarantee that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial picture.
The month-by-month allocation of your monthly payment to the loan's interest and principal is called an amortization schedule. With most loans you pay off the interest on the loan before you pay off the principal (or the actual amount you borrowed). Your lender will provide an amortization schedule to show you how the percentage of your principal paid off increases with every payment, while the percentage of interest decreases.
There are a variety of mortgage options for you to choose from when selecting a mortgage. Choices range not only from fixed rate to variable rate mortgages, but also from the funding source of the mortgages as well. Here is a breakdown of some of the funding sources and what they are:
In addition to the basic funding sources for loans, there are many types of loans in terms of their ammortizaion schedule, interest amounts, etc. Here is a breakdown of some of the more popular choices:
One of the most important things you can do when looking to purchase a new home (or refinance your current mortgage) is to do your homework and make sure you're getting the best deal. Afterall, this is your money we're talking about, and even a fraction of a percent can mean thousands of dollars over time.
Above you'll see a list of current rates based on national averages. In fact, if you were to call three different lenders - don't be surprised if you get three different rates. Keep in mind, that there is much more to a mortgage than the rate that you are quoted over the phone. Here are just a few things that may also factor into any rate you are quoted:
As you can see - there are quite a few factors that can go into a rate that you are simply 'quoted' over the phone. It helps to speak with several lending institutions to get all of these answers and more before making any decisions whatsoever. Finding a mortgage company you can trust is very important
Click Here to use our free calculators. These are meant to help give you a better understanding of what your payments will be as well as several other options.
The following Calculators are available to you:
When comparing the services of multiple lenders - the best tool to do so would be the "Good Faith Estimate" (GFE). This document is a relatively standardized form that is meant to include all of the information that a specific lender is offering you from closing costs to the rate you have been quoted. It is important to compare all of the information to ensure you are getting the best product possible.
When applying for financing - most lenders use your credit score as a qualifying tool to help determine not only how much money a borrower can finance, but at what interest rate. It's crucial for consumers to stay on top of their credit scores - especially as the incidence of 'identity theft' continues to grow. For a free copy of your 'Credit Report' and consultation on what these numbers mean - CLICK HERE.
The following are free resources regarding the mortgage process, mortgage products, and mortgage basics that can help:
The mortgage process can be quite overwhelming with the number of lenders, products, and the amount of money that is involved. If you would prefer to speak with someone directly about your mortgage questions without any pressure - don't hesitate to contact us via email or our Toll Free Number. Also, you can CLICK HERE with any specific questions and we will be happy to get you answers as soon as possible.