F.A.Q. - Frequently Asked Questions

 

 

 

Please find helpful questions and answers below:

 

 

 

Question:  How do I know how much home I am qualified for?

 

Answer:  You can usually purchase a home valued at two to three times your gross annual income.  The amount that you can borrower will also depend upon other factors which include: credit history, employment history, liquid savings and debts, as well as the amount of down payment that your are willing and/or able to make.  In addition, you may also be able to take advantage of first time home buyer programs to purchase a home with a higher value.  If you would like to know exactly how much you can afford please give us a call and we will be happy to let you know.

 

 

 

 

Question:  What is the difference between a fixed rate mortgage and an adjustable rate mortgage?

 

Answer:  A fixed rate mortgage will have the same interest rate over the life of the loan.  An adjustable rate mortgage (also known as an "ARM") is usually fixed for a pre-determined period of time - say 1, 3, 5, 7, or 10 years.  After that initial period of time is over the loan will "adjust" based upon the "index" that it is tied to plus a "margin" which is determined at the time that the loan is originated.  A fixed rate mortgage is relatively stable because the principal and interest payments are always the same for the life of the loan while the payments on an adjustable rate mortgage will likely change after the initial fixed period ends.  There are definitely advantages and disadvantages to both of these programs so the best way to find out more is to call us to discuss your personal scenario.

 

 

 

 

Question:  What does an index and a margin mean on an adjustable rate mortgage? 

 

Answer:  The "index" is an economic indicator that lenders use to set interest rates on an adjustable rate mortgage.  Generally speaking, the interest rate that you pay is a combination of the index rate and a pre-determined margin which is set when the loan is originated.  Common indexes are the "COFI" (Cost of funds index) the LIBOR (London Inter bank offering rate index) the "MTA" (Monthly Treasury Average index) and the One Year Treasury Bill.   

 

 

 

 

Question:  Which mortgage is best for me?

 

Answer:  Every person and family has a unique set of financial conditions and circumstances that are specific to them.  Many different factors must be considered when selecting the best mortgage for you.  The easiest and quickest way to answer this question for you is to call us and speak with us directly.  We can help evaluate your current situation to help you make the most appropriate decision.

 

 

 

 

Question:  How much will my monthly mortgage payment be?

 

Answer:  There are usually 3 components that make up a mortgage payment.  Principal & interest, property taxes, and homeowner's insurance are usually the 3 elements that combine to make up your monthly mortgage payment.  In some cases, you could decide to pay your property taxes and your homeowner's insurance on your own, and thus exclude these numbers from your monthly mortgage payment.  There could also be a 4th element which is known as "mortgage insurance."  Mortgage insurance is usually required by the lender whenever you put less than 20% down on a home OR finance more than 80% of the sales price/appraised value of the property.  Mortgage insurance was designed to protect the lender in case of default on the mortgage.

 

 

 

 

Question:  How much cash will i need to purchase a home?

 

Answer:  The amount of out of pocket money depends on a number of items. Generally speaking, though, you will need to supply:

     Earnest Money:  The deposit that is made when you make an offer on the home.

     Down Payment:  The portion of the sales price that is not financed which is due at closing.

     Closing Costs:  The costs associated with providing you with a new mortgage to purchase or refinance a home.

 

Keep in mind that there are programs that allow for very little or no money down, so please call us if you are unsure.

 

 

 

Question:  What is the fastest way to get my application started?

 

Answer:  You have a few options here.  You may call us directly at to get started on your application immediately.  You may also start your application online by clicking here: 

 

 

 

Question:  I have an urgent question... Can I speak with someone immediately?

 

Answer:  Of course.  We regularly provide our cell phone numbers to our borrowers should they have urgent questions outside of normal business hours.  If your question is urgent, please feel free to contact Joel or Terry at anytime. 

 

Joel:  1.609.238.1492 (mobile)

Terry:  1.856.261.8824 (mobile)