realtyreport
It All Adds Up
Mortgage brokers work with a variety of clients: First-timers looking to enter the housing market, homeowners looking to upsize or downsize their present living arrangements, people entering into their first joint property arrangements; others going their separate ways; and a multitude of other situations. Whatever your circumstance, it's always wise to refresh yourself on some basic mortgage matters.
HOW MUCH MORTGAGE CAN I AFFORD?
Determining affordability involves a formula that tabulates how much money you gross versus how much you owe, and how much you'll need for your mortgage payment, property taxes, heating costs, etc. Mortgage brokers are skilled in making these calculations.
HOW MUCH DO I NEED FOR A DOWN PAYMENT?
In order to qualify for a conventional mortgage, lenders usually require a minimum down payment of 20 percent. If you put down less than 20 percent, most lenders will require you buy Private Mortgage Insurance to protect the lender in the event you default on the loan. Low and no down payment plans also exist: Ask for details.
HOW MUCH SHOULD I BUDGET FOR MY MOVE?
In addition to the down payment, you'll need to budget for closing costs, home inspection fees, legal costs, taxes, property insurance and moving costs. Mortgage brokers are educated in the additional expenses, and can give you an idea of how much to budget.
WHO CAN HELP ME ARRANGE MY MORTGAGE?
While mortgage brokers don't fund or service loans directly, they do provide insight, advice and direction on the best financing available for the borrower's needs, selected from a pool of hundreds of loan products on the market.
If you are, or someone you know is, looking for answers on how mortgages work, please do not hesitate to call.
