The hardest part of home buying is saying "no." The job of realtors and loan officers is to get you to say "yes," and they tend to be very good at it. The pressure only intensifies when you fall in love with a house. But saying "yes" too hastily can lead to some big mistakes, such as overlooking these five mortgage no-nos.
When you apply for a loan, the first thing a lender looks at is your credit report. A poor credit score may cause your application to be denied, or the loan's interest rate to be increased. Beat your lender to the punch-check your credit report before applying. If you find errors, they can be removed and your score will increase. If your score is low because of bad credit, you may want to delay your application. After six months to a year of making payments on time, your score will likely improve.
Lenders and government agencies offer numerous programs for first-time homebuyers. They're designed to help a wide range of borrowers, including people with poor credit or little savings. Research the various programs. Call lenders, check with local government housing offices, and scour the Internet. You'll be amazed at how many programs you'll find.
First-time homebuyers are often approved for more of a mortgage than they can afford. Before you accept a super-sized loan, figure out a realistic monthly payment. Factor in everything from retirement savings to grocery bills. A little budgeting now will prevent trouble down the road.
First-time homebuyers tend to be naïve. They choose the first lender who approves their loan application, afraid that they won't be accepted elsewhere. The truth is that many lenders will bend over backwards for your loan. Instead of cowering before a loan officer, do some comparison shopping and find yourself the best rate in town.
Unscrupulous lenders may fail to disclose fees during the application process. Instead, they wait until the closing, and inform the borrower that, in order to drop the fees, the loan will need to be rewritten. Avoid the problem by scrutinizing your Good Faith Estimate, which includes all the fees and costs, before signing a loan application.
It's not easy being a first-time homebuyer. There's much to learn, and when you find the house you really want, you feel pressured to make quick decisions. Just remember that a hasty "yes" means a mortgage no-no could be overlooked. It's an error no homebuyer-rookie or otherwise-can afford to make.
Showing posts with label first-time buyers. Show all posts
Showing posts with label first-time buyers. Show all posts
Sunday, January 17, 2010
Saturday, January 16, 2010
Is the Market Good to Buy a New Home?
Consistently timing the market is impossible; make your home-buying decisions based on what you want and what you can afford.
You read it everyday in the news: "Real estate values are down! It's a buyer's market!" If that's really the case, why are you and other would-be homebuyers feeling so nervous about buying a new home?
Congratulations if you're considering your first home purchase. It's an exciting time for you and a good time to buy, in general. Home values have cooled off, giving you the opportunity to consider and compare many properties that would meet your needs. If you have some reservations about buying in the current market, don't worry-it's perfectly normal.
You might be nervous about buying too soon and paying more than you should. This is a valid concern, but one that should be weighed against the risks of waiting too long to buy. You could end up seeing the home you want pulled off the market or bought by someone else. If you find that perfect home at a price you can afford, it may not be wise to hold out for a better price. As long as you plan to stay in the home for the long-term, any immediate changes in value should even out by the time you're ready to sell.
For existing homeowners, the decision to buy is somewhat more complicated. Selling your current home may not be easy. This can become a problem if you find a new home that you just can't pass up. You can try making your purchase offer contingent upon the sale of the existing home, but given the current market, that may not go over well with the seller. If your contingency offer is rejected, you'll need to decide if you can afford to carry both homes temporarily. If you and the bank agree that the answer is yes, you're probably in good shape to put in your offer.
In the meantime, do everything possible to speed up the sale of your existing home. Experts recommend making key upgrades, so that your home is different from the others on the market. Your real estate agent can provide some ideas for minor and major changes that would make the home more saleable.
You might also consider taking out some form of equity financing on the existing home. A home equity loan can fund major upgrades and improvements. A home equity line of credit (HELOC) can pay for minor updates and help you cover expenses if you end up carrying both homes at once
You read it everyday in the news: "Real estate values are down! It's a buyer's market!" If that's really the case, why are you and other would-be homebuyers feeling so nervous about buying a new home?
Congratulations if you're considering your first home purchase. It's an exciting time for you and a good time to buy, in general. Home values have cooled off, giving you the opportunity to consider and compare many properties that would meet your needs. If you have some reservations about buying in the current market, don't worry-it's perfectly normal.
You might be nervous about buying too soon and paying more than you should. This is a valid concern, but one that should be weighed against the risks of waiting too long to buy. You could end up seeing the home you want pulled off the market or bought by someone else. If you find that perfect home at a price you can afford, it may not be wise to hold out for a better price. As long as you plan to stay in the home for the long-term, any immediate changes in value should even out by the time you're ready to sell.
For existing homeowners, the decision to buy is somewhat more complicated. Selling your current home may not be easy. This can become a problem if you find a new home that you just can't pass up. You can try making your purchase offer contingent upon the sale of the existing home, but given the current market, that may not go over well with the seller. If your contingency offer is rejected, you'll need to decide if you can afford to carry both homes temporarily. If you and the bank agree that the answer is yes, you're probably in good shape to put in your offer.
In the meantime, do everything possible to speed up the sale of your existing home. Experts recommend making key upgrades, so that your home is different from the others on the market. Your real estate agent can provide some ideas for minor and major changes that would make the home more saleable.
You might also consider taking out some form of equity financing on the existing home. A home equity loan can fund major upgrades and improvements. A home equity line of credit (HELOC) can pay for minor updates and help you cover expenses if you end up carrying both homes at once
Monday, December 14, 2009
First Time Home Buyers
Nothing beats the thrill of buying your first home. One of the biggest purchases you'll ever make, a new home offers you the chance to build equity, while creating a place for family memories. But you can wind up overspending on your mortgage and home repairs if you're not careful.
A cardinal sin of the first time homebuyer is to fall in love with a home that's too expensive. It's easy to walk into a home that's outside your price range, set your heart on buying it, and then do whatever you can to make it happen.
Even in this subprime mortgage crisis, some banks may still be willing to lend you more than you can afford, especially if you have good credit. To avoid this pitfall, get yourself pre-qualified before you go house shopping. Create a budget to determine exactly how much you can comfortably afford. Don't overextend yourself, since there's more to home costs than just a mortgage.
When you find a home that you like, carefully consider all the potential expenditures-not just the mortgage. Take a look at the utility bills that the previous owner paid for the property. Ask your insurance agent how much it will cost to insure the dwelling. If there's a huge lawn and many gardens, think about all the potential landscaping costs you'll have. If there's a long driveway, consider the cost of snowplowing in the winter.
Plan future changes that you might want to make to the home, as well. If you want to add on a screen porch or a downstairs addition, it may be more cost effective to purchase a home that already has those amenities.
Many first time homebuyers purchase a fixer-upper, with grandiose plans of performing an enormous makeover. That's fine, but make sure that you have the money and time to embark on such an undertaking. Most home improvement projects wind up costing twice what you initially budget for. Plus, if you're not experienced at this type of work, it will suck up hours of your time.
You may want to consider splitting up the tasks. Perform some of the manual labor yourself, then hire a professional for skilled jobs like plumbing, wiring, or floor refinishing. It'll be well worth the investment.
You want to love your new home, not feel trapped in it. Before you sign any mortgage documents, take a step back, and budget your money and your time. Be realistic about what you can afford as a first time homeowner to put into your house. The smarter you are before you close on a new home, the happier you'll be when the deed is done and the deed is yours.
Center State Mortgage is your #1 source for mortgage and home loans for first-time buyers in New Jersey and Staten Island! They have the background and experience to get you the perfect home loan! Choose Center State Mortgage for all your home loan needs!
A cardinal sin of the first time homebuyer is to fall in love with a home that's too expensive. It's easy to walk into a home that's outside your price range, set your heart on buying it, and then do whatever you can to make it happen.
Even in this subprime mortgage crisis, some banks may still be willing to lend you more than you can afford, especially if you have good credit. To avoid this pitfall, get yourself pre-qualified before you go house shopping. Create a budget to determine exactly how much you can comfortably afford. Don't overextend yourself, since there's more to home costs than just a mortgage.
When you find a home that you like, carefully consider all the potential expenditures-not just the mortgage. Take a look at the utility bills that the previous owner paid for the property. Ask your insurance agent how much it will cost to insure the dwelling. If there's a huge lawn and many gardens, think about all the potential landscaping costs you'll have. If there's a long driveway, consider the cost of snowplowing in the winter.
Plan future changes that you might want to make to the home, as well. If you want to add on a screen porch or a downstairs addition, it may be more cost effective to purchase a home that already has those amenities.
Many first time homebuyers purchase a fixer-upper, with grandiose plans of performing an enormous makeover. That's fine, but make sure that you have the money and time to embark on such an undertaking. Most home improvement projects wind up costing twice what you initially budget for. Plus, if you're not experienced at this type of work, it will suck up hours of your time.
You may want to consider splitting up the tasks. Perform some of the manual labor yourself, then hire a professional for skilled jobs like plumbing, wiring, or floor refinishing. It'll be well worth the investment.
You want to love your new home, not feel trapped in it. Before you sign any mortgage documents, take a step back, and budget your money and your time. Be realistic about what you can afford as a first time homeowner to put into your house. The smarter you are before you close on a new home, the happier you'll be when the deed is done and the deed is yours.
Center State Mortgage is your #1 source for mortgage and home loans for first-time buyers in New Jersey and Staten Island! They have the background and experience to get you the perfect home loan! Choose Center State Mortgage for all your home loan 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!
Subscribe to:
Posts (Atom)
