Home Loan Guide

ESTIMATE YOUR MORTGAGE PAYMENT:

Your total monthly house payment is more than just the mortgage.  Make sure to consider the following expenses when estimating your house payment:

  • Principle and Interest – depends on your loan amount, interest rate and loan term ( length of time to pay off a mortgage ).  Common loan terms are 30 Year Fixed Rate Mortgages and 15 Year Fixed Rate Mortgages.
  • Mortgage Insurance – Mortgage Insurance may be required when the down payment is less than 20%.
  • Property Taxes – The local assessor’s office is the best resource to use for estimating property taxes. Take the annual amount of property taxes and divide by 12 to estimate the monthly amount.
  • Homeowner’s Insurance – It’s important to shop for homeowner’s insurance as rates can vary from one company to the next.
  • Homeowner’s Dues – Planned Unit developments and Condo Associations often require monthly dues.

UNDERSTANDING YOUR CREDIT

  • Your credit and credit score can have a significant impact on your home mortgage rate and costs to obtain a mortgage loan. To improve your credit, stay current on all of your monthly payments.
  • Be careful on making a big purchase before applying for a home loan.

FIXED OR ADJUSTABLE RATE MORTGAGE?

  • FIXED RATE:
    Your principle and interest payments stay the same for the term of the loan if you choose a fixed rate mortgage.  Fixed rate mortgages can give you a predictable house payment and added security.
  • ADJUSTABLE RATE:
    Principle and interest payments often start out lower than a fixed rate mortgage, but your principle an interest payment can increase quickly.