|
Frequently
Asked Questions
How Much House Can
You Afford?
A good rule of thumb is that you
can qualify for a house that is about two and a half times your
yearly income (before taxes) --- depending, of course, on other factors
like your debt ratio or credit history.
What Types of Loans Are There?
Loans can have a fixed interest
rate for the life of the loan or a variable interest rate (or
Adjustable
Interest Rate - ARM) which may start off with a lower interest rate and
then go up or down over the life of the loan as the economy changes.
How Much of a Down Payment Will
You
Need to Buy a House?
This depends on a number of factors including:
What is a Lock-In?
"Locking in" your rate or
points at the time of application or during the processing of your loan
will keep the rate and/or points from changing until settlement or
closing.
What is an Escrow Account?
Your monthly mortgage payment will
be used to repay the money you borrowed plus interest. Part of your
monthly payment may be deposited into an escrow account (also known as a
reserve or impound account) so your lender or servicer can pay your real
estate taxes, property insurance, and mortgage
insurance.
What if
You Have Had Credit
Problems?
The Loan Officers at All-American
Mortgage offer a free credit analysis with each pre-qualification.
There are loan programs to match most credit and financial situations.
Why Would
You Need Mortgage
Insurance?
Private mortgage insurance and
government mortgage insurance is to protect the lender against default.
It may enable the lender to make a loan which the lender considers high
risk. Lenders often require mortgage insurance for loans where the
down payment is less than 20% of the sales price.
Ca. Dept. of Real Estate, Real Estate
Broker: # 01807067  |
