| 1. |
How do I know how much house I can afford? Answer |
| 2. |
What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 3. |
How do I know which type of mortgage is best for me? Answer |
| 4. |
What does my mortgage payment include? Answer |
| 5. |
How much cash will I need to purchase a home? Answer |
| 6. |
Can I really purchase a new home without a down payment? Answer |
| 7. |
I am considering refinancing to lower my monthly payments, can I take cash out to pay off other detbs and credit cards? Answer |
| 8. |
Is an FHA mortgage only for first time buyers? I have a 601 score and am not sure if I can get approved for a conventional loan, but I've owned a home before. Answer |
|
Q
:
|
How do I know how much house I can afford? |
|
A
: |
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. Give us a call, and we can help you determine exactly how much you can afford. |
| |
|
Q
:
|
What is the difference between a fixed-rate loan and an adjustable-rate loan? |
|
A
: |
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
| |
|
Q
:
|
How do I know which type of mortgage is best for me? |
|
A
: |
Conventional, FHA or VA? Well, there is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Priority Mortgage can help you evaluate your choices and help you make the most appropriate decision. |
| |
|
Q
:
|
What does my mortgage payment include? |
|
A
: |
For most homeowners, the monthly mortgage payments include three separate parts:
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
PMI - Required if you have less than 20% equity
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
| |
|
Q
:
|
How much cash will I need to purchase a home? |
|
A
: |
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
Earnest Money: The deposit that is supplied when you make an offer on the house
Down Payment: A percentage of the cost of the home that is due at settlement
Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
Some loan programs that are available do not require any down payment, or your down payment can be a gift. Tell us your situation and you can decide for yourself on whether to put money down or not. |
| |
|
Q
:
|
Can I really purchase a new home without a down payment? |
|
A
: |
Yes! We have several options for those borrowers who wish to begin their home ownership now, instead of waiting to save for a down payment. Our experience with purchase loans help to make the loan transaction as smooth as possible.
Even with lenders tightening up on guidelines - there are still programs available with a down payment. Another popular option right now is an FHA loan. That does require 3% down payment, however, it can be in the form of a gift from a relative or the seller. |
| |
|
Q
:
|
I am considering refinancing to lower my monthly payments, can I take cash out to pay off other detbs and credit cards? |
|
A
: |
In most cases if there is enough equity in your current property we can take the cash out to give back to you so you may do whatever you wish. Most clients truly benefit when they can lower their overall debt load and combine some bills that are just simply too difficult to pay off.
We are very experienced in the refinance market and can find the right option for your scenario. Interest rates are very low right now, so please give us a call for a free quote! |
| |
|
Q
:
|
Is an FHA mortgage only for first time buyers? I have a 601 score and am not sure if I can get approved for a conventional loan, but I've owned a home before. |
|
A
: |
Good question - FHA is not just for First Time Buyers. And another positive thing about FHA is that they do not have a credit score requirement. Some lenders do require certain score requirements - but if you have very good compensating factors that we can prove, an FHA loan may give you the best overall payment for that credit score. |
| |