Mortgage rates are at 50-year lows and home prices are affordable. This is creating
a rare buying opportunity. Nobody knows how long
this will last so now is the
time to buy a home.
Shopping for a home loan is a big task but does not have to be overwhelming.
has the experience to guide you every step of the way through the mortgage
process. With thousands of loan products available, she
can help you sort through
the maze to find the loan that is right for you.
Read the articles and use the calculators and tools available
here to help you get
started then give Teresa a call to help you find the right lender and right loan for
Contact Teresa for
information on qualifying for special mortgage programs:
Ohio Heroes Program
Grants for Grads Program
First Time Homebuyer Program
MCC Credit Program
USDA Rural Housing
Home Financing Tips
Find Out What You Want in a Home Mortgage
found the home you want, but aren’t sure if you can afford it?
Or perhaps you want to reduce the rate on your existing mortgage.
are some tips to help:
What Will My Monthly Payment Be?
Your monthly payment depends upon the loan amount, the interest rate and the
term of your mortgage loan. You can reduce your payment by reducing the amount
of your mortgage or getting a lower interest rate.
You can also lower your payment
by choosing a 30-year term instead of a 15-year term.
What Term Should I Choose?
A 30-year mortgage
has a lower monthly payment, but you will build equity faster
and save on interest payments with a 15-year mortgage. For example a
year mortgage for $200,000 has a monthly payment of about $1,479, while the
monthly payment for the same 30-year mortgage
is about $955.
How Much Can I Afford per Month?
This depends on your financial situation. Many people spend between 25% to 50%
after-tax income on monthly mortgage payments. Under this rule, a person with
after-tax monthly income of $2,000 could afford to spend
between $500 and $1000
How Much Can I Borrow?
This depends upon the amount of a down payment you can make, the equity in
your home, the monthly payment you can afford, and current mortgage terms
How Much Should I Put Down?
The more money that
you are able to put down, the lower your monthly payments
will be. However, there are loan programs with low down payment requirements
make it easier to afford your first home.
Should I Get a Fixed or Adjustable Rate Mortgage (ARM)?
A fixed rate mortgage helps you
plan your finances by ensuring that your monthly
payment will stay the same. ARMs typically have a lower interest rate to start with,
and are good for people who would rather pay less at the start of the term knowing
that they will be able to afford more in the future.
With an ARM, your rate may
rise or fall over the term of the loan depending on market conditions.
About Mortgage Fees
lenders charge "points." A "point" equals 1% of your total loan
amount. Generally the more points you pay up front the lower your
will be. With a zero point loan, you pay only the closing costs. Closing costs
include (but are not limited to) such
charges as credit reports, loan document
preparation fees, and appraisals.
Mortgage pre-qualification. Why does it matter?
see if I can frame it this way...
Has ever happened to you? You’re out with friends and decide to grab dinner. There’s a new place
in town you’ve heard is fantastic. Rave reviews, amazing cuisine. Everyone’s excited.
You drive over, pay for parking, and sure enough,
there’s a crowd. The atmosphere is perfect, the menu looks incredible. Mouths water, you can’t wait. You step up to put your name
on the list and the hostess says:
“Name for your reservation?”
“Reservation? I had no idea they were required!” Awkward apologies.
They’re booked and you’re out of luck. Not even a seat at the bar. It’s embarrassing. Your friends are disappointed. So much for your
It’s not so different when you’re thinking of buying a home and you haven’t spoken to a mortgage professional in advance.
You can search, find the right home, negotiate a contract... then uh-oh. You find out you aren’t qualified.
If you’re thinking about
beginning a home search soon, let me help you avoid disappointment. You'll get a picture of your credit score, the type of rate you’d
pay, plus get the chance to correct any errors or problems on your credit report. A pre-qualification letter can have a direct impact
on your ability to negotiate, too.
Would you like a list of mortgage professionals I know and personally trust? Just email me at Teresa@TeresaButler.com
/ drop me a line at 614-565-8161 and I’d be glad to send you one.
Types of Mortgages
Fixed Rate Mortgages are familiar, conventional
home loans. Rates and terms remain constant over the term of the loan (usually 15, 20, 25 or 30 years). The down payment often is
anywhere from 3% to 20% down. The interest rate may be a little higher than some adjustable-rate mortgages, but the borrower is assured
the mortgage amount will not increase.
VA and FHA Mortgages are guaranteed by the Veterans Administration and the Federal House Administration.
VA mortgages are made to veterans, with little or no down payment. FHA insures first mortgages, enabling lenders to make loans at
a higher percentage of the sale price than they otherwise might be. VA and FHA mortgages may require private mortgage insurance.
Mortgages allows interest rate changes at agreed, pre-determined periods. Rising or falling rates are keyed to a financial market
index. While rate increases are at the lender's option, decreases are mandatory. Many lenders put caps on rates and payment. Initial
rates often are lower than conventional loans.
Assumable Mortgages permit the buyer to assume the mortgage obligations of the seller.
The down payment is the difference between the new purchase price and the existing mortgage balance. The interest rate on that particular
loan remains the same.
Bi-Weekly Mortgages are fixed-rate mortgage loans that require payment of principal and interest every 14 days.
This reduces the debt installments of principal and interest with the monthly payment of a 30 year fixed-rate mortgage cut in half
and paid every two weeks. Since most months are longer than every 28 days, the homebuyer ends up making 26 or 27 payments and makes
the equivalent of an extra payment every year. By taking a straight 30 year fixed monthly mortgage and making one or two extra payments
a year the borrower would have the same effect as the Bi-Weekly mortgage.
Balloon Mortgages have lower interest rates and monthly
payments than fixed-rate loans. Best for borrowers who plan to move or refinance within the loan term. May allow conversion to a fixed-rate
loan at term's end. Term: 5-7 year loans, amortized over 30 years. Repaid in equal monthly payments plus a "balloon" payment for the
Talk to Teresa Today for a free consultation to help answer your mortgage questions
Call or text: 614-5655-8161