What is a Mortgage? A mortgage is a loan for buying or building a home. When you get a mortgage, you borrow money from a lender and promise to pay it back over time. It's a secure way to finance a home and achieve your dream of homeownership.
How is My Monthly Payment Calculated? Your monthly mortgage payment includes four main parts: principal (the amount borrowed), interest (the fee for borrowing money), taxes (property taxes set by your local government), and insurance (required home insurance). Many people use an escrow account to conveniently include taxes and insurance in their monthly payment.
What is an Appraisal? An appraisal is an expert's estimate of a property's value, done by a licensed appraiser. It involves a property inspection and researching similar sold properties. Lenders require appraisals to ensure the loan amount is appropriate for the home's value.
What is PMI? Private Mortgage Insurance (PMI) is required for a conventional mortgage when your down payment is below 20%. It protects the lender in case of loan default. Avoid PMI by making a 20% down payment or exploring other loan options.
Why Lock in Your Interest Rate? Since mortgage rates can change, you can "lock in" a specific rate for a set time (usually 30-60 days), sometimes for a fee. This ensures you get a good rate even if market rates rise.
What is APR? Annual Percentage Rate (APR) is the yearly cost of your loan, including interest and finance charges. It's usually higher than the interest rate and helps compare true borrowing costs between lenders.
Mortgage vs. Rent: What's the Difference? Renting means paying to live in someone else's property, whereas a mortgage is paying back a loan for a home you own. With a mortgage, you build equity in your own property.
What are Mortgage Points? A point is 1% of your loan amount, paid upfront to lower your interest rate. It's beneficial if you plan to stay in your home long enough to offset the upfront cost.
Should I Refinance My Mortgage? Consider refinancing if you can get a rate at least 2% lower than your current one. This can significantly reduce your monthly payments. Use a refinance calculator to estimate savings.
Does a Co-Borrower's Credit Score Matter? Yes, both credit scores are considered, and the lowest is used. If the co-borrower's income isn't needed, you might opt for the person with the higher score alone.
Buying a House with Student Debt? It's possible if your debt-to-income ratio is within limits. Different loan products have varying requirements.
Can Self-Employed Individuals Get a Mortgage? Yes, with business tax returns, regulatory information, a business license, and a CPA certification. Check our website for full requirements.
Getting a Mortgage Without a Credit Score? You can through manual underwriting, which requires additional documentation and might take longer.
Pre-Qualified vs. Pre-Approved: What's the Difference? Pre-qualification is an informal estimate of how much you could borrow. Pre-approval is more formal, involving preliminary underwriting and potential loan approval.
How Does Interest Rate Affect a Mortgage? Higher rates mean higher payments and more total interest paid. Lower rates save money both short and long term.
How Long to Close on a House? On average, it takes about 30 days, but this can vary based on several factors.
When to Lock Your Interest Rate? You can lock in your rate once your loan is approved, usually after finding the home you want to buy.
What is a Mortgage Note? A mortgage note is a contract outlining your loan terms, including amount, interest rate, repayment schedule, and penalties.
We make the home loan process as simple as possible.