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How do I know how much house I can afford? Answer |
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What if my credit score is too low? Answer |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
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How is an index and margin used in an ARM? Answer |
| 5. |
How do I know which type of mortgage is best for me? Answer |
| 6. |
What does my mortgage payment include? Answer |
| 7. |
How much cash will I need to purchase a home? Answer |
| 8. |
What can I do if I don't have money for downpayment or closing costs? Answer |
| 9. |
What if I want to find out about the right loan for me but don't want to depend on you for my answers, is there some place I can get my questions answered?
Answer |
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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 for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford. |
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What if my credit score is too low? |
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Your credit score can be improved with concise common sense strategies.
Please check out this site for information that will help you with your debt management. |
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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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How is an index and margin used in an ARM? |
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An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR). |
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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. Mans Inc 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 borrowedInterest: Payment to the lender for the amount borrowedTaxes & 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 houseDown Payment: A percentage of the cost of the home that is due at settlementClosing Costs: Costs associated with processing paperwork to purchase or refinance a house |
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What can I do if I don't have money for downpayment or closing costs? |
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Obtaining closing costs and downpayment money is the number one reason that many people do not apply for a home. The fact is there are loan programs that allow you to finance 100% of the purchase price of the home and obtain upto 6% of the sales price of the property from the seller as a contribution towards the closing costs. In addition, if a downpayment is required you can get a gift from a downpayment assistance program. One which I find very useful is the Nehemiah downpayment assistance program. Please visit www.getdownpayment.com for more information or ask me about Nehemiah when you call. |
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What if I want to find out about the right loan for me but don't want to depend on you for my answers, is there some place I can get my questions answered?
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Of course I would like for you to ask me any questions about the loan process or different types of loans available. Many people today however, want to do their own research before making a commitment to work with a loan officer. If this is your situation then please visit www.homeloanlearningcenter.com. This website is sponsered by the Mortgage Bankers Association and contains no advertising to influence you. I do hope that you would return to me for any additional questions you might have. You can reach me at (703) 738-9307 office or (443) 852-1584 on my cellular phone. |
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