Frequently Asked QuestionsShould I get a 15- or 30-year mortgage?Because of the different amortization (payment) schedules, the 15- year mortgage is superior to the 30-year mortgage. The principle and interest payments are approximately 25 percent higher on the 15 year mortgage, but if you can financially commit to the 15-year payment, you will be happy in fifteen years to have your mortgage completely paid off. If you feel uncomfortable with the higher payment, you can make an additional payment per year on the 30-year mortgage and gain a similar benefit. Should I choose automatic payment deduction? I strongly recommend that you utilize the benefits of the automatic payment deduction if available. You save yourself from the added time and inconvenience of writing a check and mailing it in each month. Usually, there is no additional charge for this service and your mortgage payments will never be late.
What is jumbo loan? Jumbo loans are mortgages that exceed the maximum loan amount establish by the Federal National Mortgage Association (FNMA) and Freddie Mac . Currently any loan over $300,700 for a single-family residence is considered a jumbo. Jumbo loans may go up to as high as $2 million.
How long does it take to get a loan? You will get an approval decision from Fannie Mae within 24 hours of receiving your completed application. Please note this is NOT just a prequalification based on the opinion of a loan officer, but an actual approval. How much do I have to pay in out-of-pocket expenses to apply for a mortgage loan? Your out-of-pocket expenses will be $65 for the credit report and approximately $350 for the appraisal for a total of $415. Charges will be shown as paid at the time of closing.
What are points? A point is one percent of the principal amount of the outstanding mortgage balance at the time when you take out the loan. If you get a $100,000 loan, one point is going to be $1000.
How does my business income figure in when I am applying for a loan? If you are self-employed you need to submit both personal and business tax returns for the past two years. You will also need to provide two credit reports: a personal one and one for your business. I have some credit problems. Is it still possible to get a loan? I can help obtain a mortgage for you even if you have had credit problems in the past. The interest rates vary depending on the extent and seriousness of the problem. (email me with particulars).
I've only had my job for eight months; is that a problem? Generally a 24-month consecutive employment history is required. However, depending on your circumstances, your employment income may still be acceptable (i.e. recent college graduate, or job/career change with proper explanations.) How do I know if I need mortgage insurance? Mortgage insurance is required if the cash downpayment does not equal a minimum of 20% of the loan amount.
|