
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
We Can Help You Find Financing
We
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
Our
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.
Do
not use commas when entering values.
Use the Tab key to move to the next box. Do not use Enter.
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Call
Anchor Realty Services, LLC at (561) 575-5539 or
E-mail: [email protected]
if we can help you to sell or buy a home! |