About Our Services:
Getting a home loan can be a cunfusing process. Here is a short article on what to expect when applying for a loan, definitions of common mortgage terms and descriptions of the services we provide to help you move into your new home.
Frequently Asked Questions (FAQ):
What is the difference between a fixed mortgage and a variable rate mortgage?
A fixed mortgage is typically a more conservative loan that has the security of your interest rate being fixed for a specific period of time and does not adjust during the life of the loan. A variable loan will usually have a lower interest rate but will adjust to current mortgage market conditions after a specific period and will continue to the next period at the new rate. Both types of mortgages can be utilized to benefit you as the borrower depending on what your plans are with the home.
My current adjustable mortgage is going to adjust what should I do?
We can help you with the options you have to avoid costly adjustments on a variable rate loan. There are many refinance options you can do to reduce your current mortgage payment as well as reduce the amount of debt you have. If you are interested in the specifics on what we can do just fill out the quick application on this website.
What is private mortgage insurance?
Typically you will have private mortgage insurance if you have less than 20% of equity in your home. Private mortgage insurance was designed to reimburse a mortgage lender up to a certain amount if you default on your loan and your house isn't worth enough to entirely repay the lender through a foreclosure sale. In some cases PMI can be tax deductible and is not necessarily a bad thing, in fact you can usually cancel the policy with your lender if you have a great payment history or your property has gained enough equity to be below the 20% threshold.
How much of a down payment do I need to purchase a home?
Technically you do not need to put any money down to buy a home. It varies on what you want your interest rate to be and how much home you are buying. The more down payment you have the lower the interest rate will be and the more options you will have when choosing the proper mortgage type for you. But you do not have to put any money down, there are many 100% financing options available for many instances.
What is a FICO score?
A fico score is the score that is given to rate your credit history. There are many things that make up your FICO score such as, amount of balances, payment history, how many accounts are open, and collections, judgments and other public records. This score is ultimately that starting point of which mortgage products you qualify for.