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How do I know how much house I can afford? Answer |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 3. |
What is PMI and is it always necessary if I don't make a 20% downpayment? Answer |
| 4. |
How do I know which type of mortgage is best for me? Answer |
| 5. |
What does my mortgage payment include? Answer |
| 6. |
How much cash will I need to purchase a home? Answer |
| 7. |
What are the advantages of dealing with a mortgage broker instead of the bank which has my checking and savings accounts? Answer |
| 8. |
My builder or Realtor offers an in-house mortgage lending service. Wouldn't it be best to deal with them? Answer |
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Q
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How do I know how much house I can afford? |
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Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs allowing you to make little or no downpayment. Give us a call, and we can help you determine exactly how much you can afford. |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? |
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With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
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What is PMI and is it always necessary if I don't make a 20% downpayment? |
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Private Mortgage Insurance (PMI) is essentially default insurance paid for by the borrower to protect the lender in case of a default. It is typically required when a borrower's equity in the home is less than 20% of home.
However, for borrowers whose credit and debt to income ratios qualify, PMI can be avoided. This can substantially reduce the payment and potentially offer tax advantages over PMI.
Be sure to ask us if you qualify! |
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How do I know which type of mortgage is best for me? |
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There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Excel Financial Group, LLC can help you evaluate your choices and help you make the most appropriate decision. |
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What does my mortgage payment include? |
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For most homeowners, the monthly mortgage payments include three separate parts:
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
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How much cash will I need to purchase a home? |
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The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
Earnest Money: The deposit that is supplied when you make an offer on the house
Down Payment: A percentage of the cost of the home that is due at settlement
Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
Prepaids: Your first year of homeowner's insurance and sufficient funds to establish an escrow account for property taxes and homeowner's insurance. |
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What are the advantages of dealing with a mortgage broker instead of the bank which has my checking and savings accounts? |
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A mortgage broker typically maintains relationships with numerous banks. This means we can offer a wider variety of potential mortgage solutions. Our clients also benefit from our ability to shop around for them and obtain the best combination of rates, points and closing costs. And what's even better? The banks pay us for helping you out!
By working with the professionals at Excel, you'll have somebody working for you that does only mortgages. We don't sell insurance, stocks, bonds, mutual funds, CD's or other financial products. |
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My builder or Realtor offers an in-house mortgage lending service. Wouldn't it be best to deal with them? |
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Not always. By remaining independent, we never lose track of who's interests we represent - yours. The Realtor's or builder's own mortgage company is there to serve their interests, not yours. Also, in-house lenders don't need to have the same high service standards. Business is "given" to them and, as a consequence, is much more likely to be taken for granted.
Our business comes from referrals. This means we'll always do the best job possible for you, because we need your help to continue growing. Let us show you the difference. |
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