Mortgage Information

If you're like most buyers, a home is the most expensive purchase you'll ever make, and you'll probably need some form of financing.

There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.

 

 

.

Use the mortgage calculators below to assist you in making some decisions around financing your new home.

Mortgage Qualification Calculator

This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.

 

Mortgage Payment Calculator & Amortization Table

This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage.

 

Tax Savings Calculator

This is an extemely helpful calculator which lets you know how much the purchase of a home will save you each year in taxes.  For example, if your estimated savings are $2400/year that equates to a savings of $200/  month.  Review this if you think your payment might be a bit higher than you would like or think that renting would be less expensive than buying.

 

If you read the business section of your favorite newspaper or magazine regularly, you are well aware that easy mortgages are becoming a thing of the past unless you have suitable credit. The past few years have provided a mortgage feast for “sub-prime” buyers (those who might have poor credit, no credit and or no cash to put down on a purchase). Many of these buyers selected or only qualified for “adjustable rate” mortgages with interest rates that can, and have, gone up recently. The result has been a recent large increase in foreclosures which has forced lenders to reevaluate their underwriting practices. Mortgages are available but guide lines are stricter. Homes are appraised very closely (benefiting buyers) to be sure that buyers don’t “overbuy” and become “upside down” in their mortgages if they have to sell their new home in a short period of time.

Here are some things I’d like to suggest to you in these somewhat challenging times:

  1. Don’t deal with internet lenders (many of which are going out of business every day).

  2. Deal only with local lenders with solid credentials (I can recommend some to you if you are unaware of them).

  3. Don’t take the lender that offers the lowest interest rate until you have checked and compared their fees charged to originate a loan for you.

  4. Delay any major purchases (automobile, large appliances etc.) until you have closed on your new home.

  5. If you suspect or know that your credit score is low, start paying a bit more than required on your revolving credit each month. Think about taking advantage of the many offers to consolidate your high interest rate
    cards at a lower rate. Don’t be even a day late on any of your payments.
    If you are caught up in high student loan repayments, look into the many
    opportunities to refinance them at lower rates and with lower payments

Experiment with the calculators on this page.