Mortgage lenders are chiefly concerned with your ability to repay the mortgage. To determine if you qualify for a loan, they will consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment.
Mortgage lenders will calculate an affordability analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
They also use a debt-to-income ratio, which are the housing expense, or front-end, ratio; and the total debt-to-income, or back-end, ratio.
Front-end ratio: The housing expense, or front-end, ratio shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income.
Back-end ratio: The total debt-to-income, or back-end, ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income.
Center State Mortgage offers the lowest interest rate on home loans and mortgages in Straten Island and New Jersey! They have professional staff that work hard to get you the home of your dreams! Choose Center State Mortgage for your next home loan or mortgage!
Saturday, November 21, 2009
Acceleration Clause
Acceleration clauses help to define the terms of the loan covenant. There are a number of terms that can be included in an acceleration clause. For example, the loan covenants may prohibit the buyer from reselling the property without the express permission of the lender. This ensures that the lender is able to secure payment of the outstanding balance in the event that the borrower wishes to end the business relationship. Another example of terms that are commonly found in an acceleration clasue is the disposition of the collateral used to secure the loan. Prohibiting the sale of collateral for the duration of the loan also helps to make sure there is some sort of assets to collect in the event that the borrower defaults in some manner.
The acceleration clause can also be used to spell out some of the common terms of compliance of the loan, while outlining the consequences that will ensue if the terms are not honored. As an example, the acceleration clause may specify the due date of the payments, and also include a list of steps the lender will take in order to penalize the borrower for late payments or failure to pay at all. This may include the application of a fixed amount if the payment is not paid within a specified time after the due date, all the way through termination of the loan and demand for full payment.
Center State Mortgage is your #1 source for the lowest interest rates on home loans and mortgages in Straten Island and New Jersey! They have professional staff who work hard to get you that perfect home! Choose Center State Mortgage for all your home loan and mortgage needs!
The acceleration clause can also be used to spell out some of the common terms of compliance of the loan, while outlining the consequences that will ensue if the terms are not honored. As an example, the acceleration clause may specify the due date of the payments, and also include a list of steps the lender will take in order to penalize the borrower for late payments or failure to pay at all. This may include the application of a fixed amount if the payment is not paid within a specified time after the due date, all the way through termination of the loan and demand for full payment.
Center State Mortgage is your #1 source for the lowest interest rates on home loans and mortgages in Straten Island and New Jersey! They have professional staff who work hard to get you that perfect home! Choose Center State Mortgage for all your home loan and mortgage needs!
Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Will you pay a 30-year fixed mortgage in 15-years?
Dave Ramsey mentions the statistic that more than 97% of people who planned to pay their 30-year mortgage in 15-years do not. He has seen from his personal experience running his program that people lack the will power to keep up regularly with mortgage payments.
Ramit also observes that many people believe that they are the exception to the rule. This can lead some to not prepare properly. You may plan on paying your mortgage in 15 years, but if you rely on pure will power, you can set yourself up for failure.
Center State Mortgage is your #1 source for the lowest interest rates on Thirty-year fixed rate mortgages! They have professional staff who will work hard, so you don't have to! Choose Center State Mortgage for your next home loan or mortgage in New Jersey and Straten Island!
Will you pay a 30-year fixed mortgage in 15-years?
Dave Ramsey mentions the statistic that more than 97% of people who planned to pay their 30-year mortgage in 15-years do not. He has seen from his personal experience running his program that people lack the will power to keep up regularly with mortgage payments.
Ramit also observes that many people believe that they are the exception to the rule. This can lead some to not prepare properly. You may plan on paying your mortgage in 15 years, but if you rely on pure will power, you can set yourself up for failure.
Center State Mortgage is your #1 source for the lowest interest rates on Thirty-year fixed rate mortgages! They have professional staff who will work hard, so you don't have to! Choose Center State Mortgage for your next home loan or mortgage in New Jersey and Straten Island!
Hybrid ARM
What Does Hybrid ARM Mean?
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
An adjustable-rate mortgage blends the characteristics of a fixed-rate mortgage and an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. The date at which the mortgage changes from the fixed rate to the adjustable rate is referred to as the reset date.
A borrower should carefully consider his or her time horizon when choosing a hybrid arm and recognize the risks associated with the reset date, or the expiration of the fixed interest rate period. If there has been a large change in interest rates, this reset could create substantially large payments; however, typically the amount by which the interest rate can adjust is subject to an interest rate cap.
Center State Mortgage is your #1 source for the lowest interest rates on Hybrid ARM loans in Straten Island and New Jersey! They have knowledgeable staff that will work hard to get you your loan, so you can take it easy! Choose Center State Mortgage for your next home loan or mortgage!
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
An adjustable-rate mortgage blends the characteristics of a fixed-rate mortgage and an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. The date at which the mortgage changes from the fixed rate to the adjustable rate is referred to as the reset date.
A borrower should carefully consider his or her time horizon when choosing a hybrid arm and recognize the risks associated with the reset date, or the expiration of the fixed interest rate period. If there has been a large change in interest rates, this reset could create substantially large payments; however, typically the amount by which the interest rate can adjust is subject to an interest rate cap.
Center State Mortgage is your #1 source for the lowest interest rates on Hybrid ARM loans in Straten Island and New Jersey! They have knowledgeable staff that will work hard to get you your loan, so you can take it easy! Choose Center State Mortgage for your next home loan or mortgage!
Thursday, November 19, 2009
2/1 Buy-Down Mortgage
Mortgage buydowns -- what is that? You've probably heard the term before, but if you're like most people, it might not make a lot of sense to you. In part, the reason it may sound confusing is because a mortgage buydown rarely results in a permanent lower monthly payment nowadays; it's only temporary.
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Center State Mortgage is your #1 source for a 2/1 Buy-Down Mortgage in New Jersey and Starten Island! They offer the lowest interest rates in the market and work hard to help you get your home loand and mortgage! Choose Center State Mortgage for your next home loan and mortgage!
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Center State Mortgage is your #1 source for a 2/1 Buy-Down Mortgage in New Jersey and Starten Island! They offer the lowest interest rates in the market and work hard to help you get your home loand and mortgage! Choose Center State Mortgage for your next home loan and mortgage!
Negative Amortization (Neg. Am) Loan
Neg am mortgage loan programs are all the rage these days. Mortgage lenders offer 1% interest rates to applicants with deferred interest refinancing and negative amortization for cash out, home improvements, consolidating debts and equity credit refinance loans online. Many mortgage lenders are offering several variations of these cutting edge loan products for home purchasing and refinancing.
This is a deferred-interest loan which is very powerful -- and the most misunderstood mortgage program because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The power of this loan lies in the borrower's ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower's income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the "lean times", and then make higher payments when funds are readily available.
Center State Mortgage is your #1 source for Negative Amortization Loans in Straten Island and New Jersey! They offer the lowest interest rates and best home loan option on the market! Choose Center State Mortgage for all your home loan and mortgage needs!
This is a deferred-interest loan which is very powerful -- and the most misunderstood mortgage program because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The power of this loan lies in the borrower's ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower's income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the "lean times", and then make higher payments when funds are readily available.
Center State Mortgage is your #1 source for Negative Amortization Loans in Straten Island and New Jersey! They offer the lowest interest rates and best home loan option on the market! Choose Center State Mortgage for all your home loan and mortgage needs!
Adjustable Rate Mortgages (ARM)
How to Decide if an ARM Is Right for YouAn adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes.
If my payments can go up, why should I consider an ARM?
The initial interest rate for an ARM is lower than that of a fixed rate mortgage, where the interest rate remains the same during the life of the loan. A lower rate means lower payments, which might help you qualify for a larger loan.
How long do you plan to own the house? The possibility of rate increases isn't as much of a factor if you plan to sell the home within a few years.
Do you expect your income to increase? If so, the extra funds might cover the higher payments that result from rate increases.
Some ARMs can be converted to a fixed-rate mortgage. However, conversion fees could be high enough to take away all of the savings you saw with the initial lower rate.
Center State Mortgage is your #1 source for all your adjustable rate mortgage needs in Straten Island and New Jersey! You will find the lowest interest rates and the best brokers to help you get your home loan! Choose Center State Mortgage for all your home loan and mortgage needs!
15 Year Fixed Mortgage
What is a 15-year fixed mortgage?
A 15-year fixed mortgage is a loan whose interest rate stays the same for the duration of the loan. For example, on a 15-year mortgage of $300,000 with an interest rate of 5.75%, the monthly payments would be about $3,097.90. So, the interest rate of 5.75% stays the same for the life of the loan.
Who should get 15-year fixed mortgages?
People who desire a predictable, fixed deduction from their monthly budget, want a shorter loan term, and can tolerate a higher monthly payment are well-suited for 15-year fixed mortgages.
What are the advantages and disadvantages of 15-year fixed mortgages?
The pros of a 15-year fixed mortgage: it's a predictable monthly payment; the paydown on a 15-year fixed is half the time of a 30-year fixed; the rates are usually lower than a 30-year fixed mortgage; and it's relatively simple and maintenance-free once you lock the rate (you don't need to worry about rate fluctuation).
The cons of a 15-year fixed mortgage: monthly payments are quite higher than a 30-year fixed mortgage, therefore making these loans more difficult to qualify for, and the mortgage tax deduction on a 15-year fixed is less than a 30-year fixed.
Center State Mortgage is your #1 source for 15-year fixed rate mortgages! Center State Mortgage works hard to help you get the home loan that is right for you and that helps you get that home! Choose Center State Mortgage for all your home loan needs in Straten Island and New Hampshire!
A 15-year fixed mortgage is a loan whose interest rate stays the same for the duration of the loan. For example, on a 15-year mortgage of $300,000 with an interest rate of 5.75%, the monthly payments would be about $3,097.90. So, the interest rate of 5.75% stays the same for the life of the loan.
Who should get 15-year fixed mortgages?
People who desire a predictable, fixed deduction from their monthly budget, want a shorter loan term, and can tolerate a higher monthly payment are well-suited for 15-year fixed mortgages.
What are the advantages and disadvantages of 15-year fixed mortgages?
The pros of a 15-year fixed mortgage: it's a predictable monthly payment; the paydown on a 15-year fixed is half the time of a 30-year fixed; the rates are usually lower than a 30-year fixed mortgage; and it's relatively simple and maintenance-free once you lock the rate (you don't need to worry about rate fluctuation).
The cons of a 15-year fixed mortgage: monthly payments are quite higher than a 30-year fixed mortgage, therefore making these loans more difficult to qualify for, and the mortgage tax deduction on a 15-year fixed is less than a 30-year fixed.
Center State Mortgage is your #1 source for 15-year fixed rate mortgages! Center State Mortgage works hard to help you get the home loan that is right for you and that helps you get that home! Choose Center State Mortgage for all your home loan needs in Straten Island and New Hampshire!
Mortgage Calculators
If you are looking to get a loan you might be wondering about how much your payments will be and what kind of interest rate you can get. You could just call a mortgage consultant to get the information, but that can often be cumbersome and the mortgage consultant may pester you to get a loan when you may not be ready. The way to offset this is to use a mortgage calculator.
The Center State Mortgage Calculator can be used to determine monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Center State Mortgage is your #1 source for mortgages and home loans in Staten Island and New Jersey! They offer a comprehensive mortgage calculator that can calculate an accurate answer for your mortgage questions without directly speaking with a representative! Choose Center State Mortgage for all your mortgage and home loans needs!
The Center State Mortgage Calculator can be used to determine monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Center State Mortgage is your #1 source for mortgages and home loans in Staten Island and New Jersey! They offer a comprehensive mortgage calculator that can calculate an accurate answer for your mortgage questions without directly speaking with a representative! Choose Center State Mortgage for all your mortgage and home loans needs!
Thursday, November 12, 2009
Mortgage Checklist
Getting a home loan can be a complicated process, so let Center State Mortgage help you breeze through it and take some of the stress off your shoulders. Most mortages require certain information to get started. The following information is usually required during the loan process:
-Your Social Security number
-Current pay stubs or, if self employed, your tax returns for the past two years
-Bank statements for the past two months
-Investment account statements for the past two months
-Life insurance policy
-Retirement account statements for the past two months
-Make and model of vehicles you own and their resale value
-Credit card account information
-Auto loan account information
-Personal loan account information
If you currently own Real Estate:
-Mortgage account information
-Home insurance policy information
-Home equity account information (if applicable)
Center State Mortgage is your #1 source for the lowest mortgage interest rates in Straten Island. Let them help make getting your home loan fast, easy, and affordable. Choose Center State Mortgage today!
-Your Social Security number
-Current pay stubs or, if self employed, your tax returns for the past two years
-Bank statements for the past two months
-Investment account statements for the past two months
-Life insurance policy
-Retirement account statements for the past two months
-Make and model of vehicles you own and their resale value
-Credit card account information
-Auto loan account information
-Personal loan account information
If you currently own Real Estate:
-Mortgage account information
-Home insurance policy information
-Home equity account information (if applicable)
Center State Mortgage is your #1 source for the lowest mortgage interest rates in Straten Island. Let them help make getting your home loan fast, easy, and affordable. Choose Center State Mortgage today!
Mortgage Glossary Part 3
Housing Expense Ratio
The percentage of gross monthly income budgeted to pay housing expenses.
HUD-1 statement
A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
A combination fixed rate and adjustable rate loan - also called 3/1,5/1,7/1 - can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move or refinance, before or shortly after, the adjustment occurs.
Index
The index is the measure of interest rate changes a lender uses to decide the amount an interest rate on an ARM will change over time.The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. Some index rates tend to be higher than others and some more volatile.
Initial Interest Rate
This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It's also known as "start rate" or "teaser."
Installment
The regular periodic payment that a borrower agrees to make to a lender.
Insured Mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI).
Interest
The fee charged for borrowing money.
Interest Accrual Rate
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.
Interest Rate Buydown Plan
An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a mortgage.
Interest Rate Ceiling
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
Interest Rate Floor
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
Center State Mortgage is your #1 source for the best mortgage rate loans in Straten Island including: Chelsea, Clifton, and Concord. They are experienced specialists who really care about you and will help you through the entire process to make it fast and easy! Choose Center State Mortgage for your home loan needs!
The percentage of gross monthly income budgeted to pay housing expenses.
HUD-1 statement
A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
A combination fixed rate and adjustable rate loan - also called 3/1,5/1,7/1 - can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move or refinance, before or shortly after, the adjustment occurs.
Index
The index is the measure of interest rate changes a lender uses to decide the amount an interest rate on an ARM will change over time.The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. Some index rates tend to be higher than others and some more volatile.
Initial Interest Rate
This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It's also known as "start rate" or "teaser."
Installment
The regular periodic payment that a borrower agrees to make to a lender.
Insured Mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI).
Interest
The fee charged for borrowing money.
Interest Accrual Rate
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.
Interest Rate Buydown Plan
An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a mortgage.
Interest Rate Ceiling
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
Interest Rate Floor
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
Center State Mortgage is your #1 source for the best mortgage rate loans in Straten Island including: Chelsea, Clifton, and Concord. They are experienced specialists who really care about you and will help you through the entire process to make it fast and easy! Choose Center State Mortgage for your home loan needs!
Wednesday, November 11, 2009
Mortgage Glossary Part 2
Balance Sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.
Balloon Mortgage
A long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. A balloon loan will often have the advantage of very low interest payments, thus requiring very little capital outlay during the life of the loan
Biweekly Payment Mortgage
A plan to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The result for the borrower is a substantial savings in interest.
Bridge Loan
Short-term financing which is expected to be paid back relatively quickly, such as by a subsequent longer-term loan. also called swing loan or bridge financing.
Buydown
When the seller, builder or buyer pays an amount of money up front to the lender to reduce monthly payments during the first few years of a mortgage. Buydowns can occur in both fixed and adjustable rate mortgages.
Certificate of Eligibility
A government-issued document which indicates that a member of the armed forces who serves a certain number of days and is honorably discharged can apply for a Veterans Administration (VA) loan, such as a VA mortgage.
Closing Costs
These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
Compound Interest
Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the principal sum.
Conversion Clause
A provision in an ARM allowing the loan to be converted to a fixed-rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.
Getting a home loan can be stressful and confusing, especially with so many forms to fill out and paperwork to sign. Luckily, Center State Mortgage is there to help! They will help make getting a home loan, fast, easy, and affordable. Choose Center State Mortgage for your home loan needs!
A financial statement that shows assets, liabilities, and net worth as of a specific date.
Balloon Mortgage
A long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. A balloon loan will often have the advantage of very low interest payments, thus requiring very little capital outlay during the life of the loan
Biweekly Payment Mortgage
A plan to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The result for the borrower is a substantial savings in interest.
Bridge Loan
Short-term financing which is expected to be paid back relatively quickly, such as by a subsequent longer-term loan. also called swing loan or bridge financing.
Buydown
When the seller, builder or buyer pays an amount of money up front to the lender to reduce monthly payments during the first few years of a mortgage. Buydowns can occur in both fixed and adjustable rate mortgages.
Certificate of Eligibility
A government-issued document which indicates that a member of the armed forces who serves a certain number of days and is honorably discharged can apply for a Veterans Administration (VA) loan, such as a VA mortgage.
Closing Costs
These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
Compound Interest
Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the principal sum.
Conversion Clause
A provision in an ARM allowing the loan to be converted to a fixed-rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.
Getting a home loan can be stressful and confusing, especially with so many forms to fill out and paperwork to sign. Luckily, Center State Mortgage is there to help! They will help make getting a home loan, fast, easy, and affordable. Choose Center State Mortgage for your home loan needs!
Mortgage Glossary Part 1
2/1 Buy Down Mortgage
The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long term rates; however, even keeping the loan in place for three full years or more will keep their average interest rate in line with the original market conditions.
Acceleration Clause
A provision that allows a lender to demand payment of the total outstanding balance or demand additional collateral under certain circumstances, such as failure to make payments, bankruptcy, nonpayment of taxes on mortgaged property, or the breaking of loan covenants.
Adjusted Basis
The base price of an asset or security that reflects any deductions taken on or improvements to the asset or security, used to compute the gain or loss when sold.
Affordability Analysis
An analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
Amortization
The gradual repayment of a mortgage loan, both principal and interest, by installments.
Annual Percentage Rate (APR)
Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. Often applied to mortgages, credit cards, and automobile financing.
Appraisal
A written analysis prepared by a qualified appraiser and estimating the value of a property.
Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
Assumability
A mortgage that can be transfered with no change in terms. If an assumable mortgage is transferred, the buyer assumes all responsibility for repayment. The original lender must agree to the transfer of an assumable mortgage.
All these terms may seem confusing! Let Center State Mortgage help you regain control and allow them to make your home loan process easy, fast, and affordable! Choose Center State Mortgage for buying your next home and give yourself peace of mind.
The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long term rates; however, even keeping the loan in place for three full years or more will keep their average interest rate in line with the original market conditions.
Acceleration Clause
A provision that allows a lender to demand payment of the total outstanding balance or demand additional collateral under certain circumstances, such as failure to make payments, bankruptcy, nonpayment of taxes on mortgaged property, or the breaking of loan covenants.
Adjusted Basis
The base price of an asset or security that reflects any deductions taken on or improvements to the asset or security, used to compute the gain or loss when sold.
Affordability Analysis
An analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
Amortization
The gradual repayment of a mortgage loan, both principal and interest, by installments.
Annual Percentage Rate (APR)
Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. Often applied to mortgages, credit cards, and automobile financing.
Appraisal
A written analysis prepared by a qualified appraiser and estimating the value of a property.
Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
Assumability
A mortgage that can be transfered with no change in terms. If an assumable mortgage is transferred, the buyer assumes all responsibility for repayment. The original lender must agree to the transfer of an assumable mortgage.
All these terms may seem confusing! Let Center State Mortgage help you regain control and allow them to make your home loan process easy, fast, and affordable! Choose Center State Mortgage for buying your next home and give yourself peace of mind.
Types of Loans
Thirty-Year Fixed Rate Mortgage
A 30 year fixed mortgage is possibly the most common type of mortgage loan. It has several characteristics that make it such a popular choice when financing a home purchase.
One of the key features of a 30 year fixed mortgage is its fixed interest rate. When you acquire the loan, the interest rate that you get at that time is the interest rate that you keep for the duration of the loan. Your only option to change the interest rate is if you choose to refinance. If you are able to lock a great interest rate when getting the mortgage, you are set. That is the rate for the next 30 years, assuming that you own the house that long.
Adjustable Rate Mortgages (ARM)
ARM. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling), which might be reset annually. ARMs usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.
2/1 Buy Down Mortgage
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Negative Amortization (Neg. Am) Loan
A gradual increase in mortgage debt that occurs when the monthly payment is insufficient to cover the interest due, and the balance owed keeps increasing (at least in the first few years).
Center State Mortgage is your #1 source for home loans and mortgage needs! They have an experienced and successful track record to make your home loan process fast, easy, and affordable. Choose Center State Mortgage for your home buying needs!
A 30 year fixed mortgage is possibly the most common type of mortgage loan. It has several characteristics that make it such a popular choice when financing a home purchase.
One of the key features of a 30 year fixed mortgage is its fixed interest rate. When you acquire the loan, the interest rate that you get at that time is the interest rate that you keep for the duration of the loan. Your only option to change the interest rate is if you choose to refinance. If you are able to lock a great interest rate when getting the mortgage, you are set. That is the rate for the next 30 years, assuming that you own the house that long.
Adjustable Rate Mortgages (ARM)
ARM. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling), which might be reset annually. ARMs usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.
2/1 Buy Down Mortgage
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Negative Amortization (Neg. Am) Loan
A gradual increase in mortgage debt that occurs when the monthly payment is insufficient to cover the interest due, and the balance owed keeps increasing (at least in the first few years).
Center State Mortgage is your #1 source for home loans and mortgage needs! They have an experienced and successful track record to make your home loan process fast, easy, and affordable. Choose Center State Mortgage for your home buying needs!
How to Get a Loan
Once you select us to obtain your home loan, you'll be amazed at how quickly and simply the loan process moves. With Center State Mortgage, you can expect professional service that is fast and easy!
Throughout the loan-application process, we provide you with regular updates. They are there for you, with updates and status inquiries sent to you on a regular basis. They are also available for any questions you may have and are ready to assist you with any problems you may run into.
Here's an overview of the loan-application process
STEP ONE -- Apply Now! Getting started is easy
Once you have selected a home to purchase and have a contract with the seller, expect Center State Mortgage to work quickly and efficiently to get you that loan. At the appropriate time they'll order a property appraisal for you.
STEP TWO -- Your Loan is Approved and Funded
Your Real Estate Agent or the Seller will choose an Escrow or Title company to give you the funding you need. Center State Mortgage will coordinate with the escrow team and you'll sign the final papers at their office.
Center State Mortgage is your #1 source for home loans and mortgages! They have all the tools you will need to make buying your home fast and easy. What's better than that? Visit Center State Mortgage today and get on track to buying your home!
Throughout the loan-application process, we provide you with regular updates. They are there for you, with updates and status inquiries sent to you on a regular basis. They are also available for any questions you may have and are ready to assist you with any problems you may run into.
Here's an overview of the loan-application process
STEP ONE -- Apply Now! Getting started is easy
Once you have selected a home to purchase and have a contract with the seller, expect Center State Mortgage to work quickly and efficiently to get you that loan. At the appropriate time they'll order a property appraisal for you.
STEP TWO -- Your Loan is Approved and Funded
Your Real Estate Agent or the Seller will choose an Escrow or Title company to give you the funding you need. Center State Mortgage will coordinate with the escrow team and you'll sign the final papers at their office.
Center State Mortgage is your #1 source for home loans and mortgages! They have all the tools you will need to make buying your home fast and easy. What's better than that? Visit Center State Mortgage today and get on track to buying your home!
Home Purchase Basics
Congratulations on your decision to buy a new home! As a homeowner, there are many important decisions to be made, especially if it is your first time purchasing a home. Here are some basic hints and tips.
A home purchase may be your largest financial transaction to date, so it's important to make the right decisions and to keep an eye on the details. By using a professional real estate agent the entire process should be smooth, efficient, pleasurable, and most importantly fast!
Your Real Estate Agent should:
1) Preview homes for you and decide which ones are the best for your price range.
1) Preview homes for you and decide which ones are the best for your price range.
2) Show you homes that fit your individual needs and wants
3) Help you make the right decision on which is considered a "good buy" by determining the market and probable causes that may increase or decrease the value of your home over time.
Negotiate the best deal for you. With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This is a very important step in the process, ultimately, it could determine whether or not you will get the home.
Your Mortgage Broker and Loan Officer should:
1) Help you make the right decision about which loan to choose from, depending on your needs and circumstances.
1) Help you make the right decision about which loan to choose from, depending on your needs and circumstances.
2) Keep you up-to-date on the entire loan process
3) Keep your Real Estate Agent informed of our loan progress
4) Get you the best loan at the lowest interest rates to save you money!
Center State Mortgage is your #1 source for home loans and home purchasing needs! Count on them to help the transaction go smoothly! Visit Center State Mortgage today and get on the road to your purchase of a new home!
Why Use a Broker?
Independent mortgage brokers have had a significant positive impact on the lending industry. Today, the use of a professional mortgage broker is one of the key strategies used by sophisticated borrowers because it helps them receive the best loan to fit their needs that they may not find utilizing other sources.
What is a Mortgage Broker?
A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. By having access to multiple loan options and additional resources, you can be assured that a mortgage broker is an asset to any type of real estate transaction.
What Do Mortgage Brokers Do?
In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. To many, the most important aspect of a mortgage broker is to ensure total quality care for the loan application and to make sure there are no kinks and that no problems will emerge. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options. In short, brokers are responsible for handling the small, yet important details.
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That's why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.
Center State Mortgage is your #1 Source for all your home loan and mortgage refinancing needs! You will find that they have countless resources to help ensure a safe and quality-laden transaction when you are looking to purchase a home. Visit Center State Mortgage Company today!
What is a Mortgage Broker?
A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. By having access to multiple loan options and additional resources, you can be assured that a mortgage broker is an asset to any type of real estate transaction.
What Do Mortgage Brokers Do?
In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. To many, the most important aspect of a mortgage broker is to ensure total quality care for the loan application and to make sure there are no kinks and that no problems will emerge. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options. In short, brokers are responsible for handling the small, yet important details.
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That's why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.
Center State Mortgage is your #1 Source for all your home loan and mortgage refinancing needs! You will find that they have countless resources to help ensure a safe and quality-laden transaction when you are looking to purchase a home. Visit Center State Mortgage Company today!
Center State Mortgage Company
Center State Mortgage has built a strong reputation as an outstanding mortgage brokerage firm, serving the lending needs of real estate professionals, builders and individual homebuyers throughout the state. Their professionalism and compassion for clients is what drives them to be even more successful.
They're a full service mortgage broker with an experienced staff offering expertise in every area of mortgage lending...from purchase to refinance to construction lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs. Throughout the entire process the employees are there with you, providing you updates, conflict resolution, and other services to ensure the transaction goes smoothly. They also offer a special Mortgage Manager service if you are considering refinancing your mortgage.
And, now it's their pleasure to offer all of their exceptional mortgage services online. This new service is specifically designed for the busy client, you can look up mortgages, loan options, and other services, any time you want.
They offer the best mortgage tools available on the Internet - easy, convenient, on-line shopping for the best loan programs and most current rates available, together with the assistance of an experienced, "live" loan officer who is there to guide through any or all steps of the loan process to ensure that your transaction is flawless and smooth.
They're a full service mortgage broker with an experienced staff offering expertise in every area of mortgage lending...from purchase to refinance to construction lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs. Throughout the entire process the employees are there with you, providing you updates, conflict resolution, and other services to ensure the transaction goes smoothly. They also offer a special Mortgage Manager service if you are considering refinancing your mortgage.
And, now it's their pleasure to offer all of their exceptional mortgage services online. This new service is specifically designed for the busy client, you can look up mortgages, loan options, and other services, any time you want.
They offer the best mortgage tools available on the Internet - easy, convenient, on-line shopping for the best loan programs and most current rates available, together with the assistance of an experienced, "live" loan officer who is there to guide through any or all steps of the loan process to ensure that your transaction is flawless and smooth.
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