A Guide to Buying a New Home: What You Need to Know
If you’re considering a brand new home, there are a few things you should know. Let’s walk through the process of buying a new-construction home, from start to finish, and discover some tips to make it a smooth experience. Step 1: Determine your budgetBefore diving into the homebuying process, it’s essential to evaluate how much […]
What can I do to improve my score?
Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change — but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model […]
Adjustable Rate Mortgages (ARM)
Adjustable Rate Mortgages (ARM)s are loans whose interest rate can vary during the loan’s term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions. The initial rate on an ARM is lower than on a fixed rate mortgage which allows you […]
Should I lock-in my loan rate?
It’s required that mortgage lenders provide you with a Truth in Lending (TIL) Statement containing information on your loan’s annual percentage rate, finance charges, the amount financed, and the total payments required. The TIL Statement may also contain information on security interest, late fees, prepayment provisions, and if the mortgage is assumable. If you have […]
What is “Truth in Lending” (TIL)?
It’s required that mortgage lenders provide you with a Truth in Lending (TIL) Statement containing information on your loan’s annual percentage rate, finance charges, the amount financed, and the total payments required. The TIL Statement may also contain information on security interest, late fees, prepayment provisions, and if the mortgage is assumable. If you have […]
Graduated Payment Mortgages
A graduated payment mortgage is a loan where the payment increases each year for a predetermined amount of time (such as 5 or 10 years), then becomes fixed for the remaining duration of the loan. When interest rates are high, borrowers can use a graduated payment mortgage to increase their chances of qualifying for the […]
Commonly Used Indexes for ARMs
6-Month CD Rate This index is the weekly average of secondary market interest rates on 6-month negotiable Certificates of Deposit. The interest rate on 6 month CD indexed ARM loans is usually adjusted every 6 months. Index changes on a weekly basis and can be volatile. 1-year T-Bill This index is the weekly average yield […]
Interest Only Mortgages
A mortgage is called “Interest Only” when its monthly payment does not include the repayment of principal for a certain period of time. Interest Only loans are offered on fixed rate or adjustable rate mortgages as wells as on option ARMs. At the end of the interest only period, the loan becomes fully amortized, thus […]
What type of loan program is best for me?
The many different types of home loans available can seem overwhelming. Should you choose a fixed rate, adjustable rate or government loan mortgage? The truth is there is no right answer. Choosing a loan type is an important decision that is best made after you have researched your options. Remember, taking the time to explore […]
Fixed Rate Mortgages
The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years and in most cases can be paid off at any time without penalty. This type […]
