Mortgages

Mortgages Made Simple.

A mortgage is a loan for which you pledge the title to your home as the collateral.  It consists of four main components.

Principle: the repayment of the original amount borrowed.

Interest: the cost of borrowing the principle amount.

Taxes: Real Estate taxes paid to the local government agency (optional).

Insurance: Homeowner's insurance on the home and mortgage insurance to protect the mortgage company (optional).

Mortgages come in ALL shapes and sizes to meet your financial needs.

Conventional Mortgage: Loan that is not insured or guaranteed by the Federal Government.

FHA Mortgage: a low down payment (around 5%) and insured by the Federal Government. 

Conforming: Loan amount that conforms to government service standards and is below an established dollar amount. 

Jumbo Mortgage: Loan the exceeds the conventional loan limit for amounts up to ten million dollars. 

Fixed-Rate Mortgage: charges the same interest rate over the life of the loan. 

Adjustable-Rate Mortgage: The interest rate fluctuates, based on the economy and market rates. :-(

Balloon Mortgages: Offers a low initial interest rate that is fixed for 5-7 years until the balloon payment is due to pay off the entire balance. 

Shared-Appreciation Mortgage: a below market rate in exchange for profits of the home when sold.  

Getting Approved:

Applying for a loan can be a smooth, efficient process - if you have a good loan officer.  A good loan officer will be attentive to your needs, assisting you with your loan from start to finish. Approval should take between three to four weeks.  You can speed up the loan process yourself by providing the following information:

Copies of all bank statements

Copies of all accounts, including stock brokerage accounts

Most recent pay stubs

W2 form for the past 2 years

If you are self-employed, your last two years of tax returns and a profit-and-loss statement.