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Adjustment Date
The date that the interest rate changes on an adjustable rate mortgage (ARM).
Adjustment Period
The period elapsing between adjustment dates for an adjustable rate mortgage.
Amortization Term
The length of time required to amortize the mortgage loan expressed as a
number of months. For example, 360 months is the amortization term for a 30- year fixed rate mortgage.
Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowl- edge and analysis of the property.
Assessment
A local tax levied against a property for a specific purpose, such as a sewer.
Assumption Fee
The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.
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Choosing among the many houses for sale is hard enough. You also need to choose the right mortgage in today's market. So many choices! Although there are hundreds of different mortgages available, they all fall into a few basic varieties. Some may fit perfectly into your situation; others may be unwise or unattainable. By narrowing your choices, the process of picking the right mortgage becomes much easier.
The mortgage advisors at Vintage Group Mortgage are there to help you better understand the process of purchasing a mortgage, and to make sure that you get the best mortgage for your particular situation.
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How large a mortgage will you be able to get?
Lenders use many factors to determine how large a mortgage they will give you. Lenders generally prefer that your housing expenses (including mortgage payments, insurance, taxes, and special assessments) not exceed 33 to 36 percent of your gross monthly income.
Other long-term debt (monthly payments extending more than 10 months) added to your housing expenses should not exceed 40 to 50 percent of your gross monthly income. In addition, lenders want to know about your employment and credit history. This includes finding out about your job and income and how well you handled and repaid loans in the past.
How much money will you need for a down payment and closing costs?
Many loans are available with no down payment in today’s market, but lenders sometimes expect you to make a down payment. Closing costs are often 2 to 3 percent of the total price of your home, but vary with many factors.
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Mortgage interest rates are still the lowest in years. Whether you are looking to reduce your rate, shorten your loan term, or borrow extra money for home improvements, refinancing may be right for you.
Refinancing is basically exchanging one mortgage for another… usually for the purpose of benefiting financially!
Refinancing often lowers the interest rate on your loan, and refinancing can convert equity into cash.Securing the lowest rate can be challenging.
While you can’t predict or guarantee what rates will be, observing daily 10 year bond fluctuations are fairly reliable indicators of adjustments or possible trends. A mortgage broker will help you “lock in” the final interest rate on your loan.
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