PR. No Points. Closing Costs. Balloon Loans. FHA. VHA. 1003. These are some of the terms you might wonder about as you wind your way through the maze of financing your home.
You may see or hear advertisements promising low closing costs, loans for people with less than perfect credit, or interest rates that sound like they should be for savings accounts instead of mortgage loans. Who should you believe?
The purpose of this section of our website is to help you cut through the clutter, and help you learn about the different types of mortgages available, what some of the important parts of a mortgage are, and how you can get the mortgage that best fits your needs.
Of course, we know that you’re not going to get all of your questions answered by reading the pages here. That’s why we encourage you to speak to one of our mortgage consultants about any questions or concerns you might have.
At Capital Mortgage Advisors, we don’t want to force you into a loan program that doesn’t meet your needs. Instead, we want to work with you to help you understand all the options, and make the best choice possible for your situation.
How Your Credit Affects Your Ability to Get a Mortgage
Two couples purchasing identically priced houses with the same down payment may end up with very different mortgage payments. The difference is that one couple has perfect credit, while the other has had some credit problems in the past. Find out how your credit score affects your ability to obtain the type of loan you want (and how to get some suggestions for improving your credit score) in our Credit FAQ.
Different Types of Mortgage Loans
Whenever you see quotes for current mortgage rates, you usually see both an interest rate and an APR, or annual percentage rate. The two are often different. Sometimes, you’ll even see what appears to be the same mortgage interest rate quoted with different APRs. Find out how annual percentage rates are calculated, and what they mean
FHA Mortgages – An Option to Consider
Credit is tighter than it has been in years, which can make it more difficult to qualify for or refinance a mortgage. That’s why many people are taking out FHA insured mortgages. They typically require a lower down payment, and offer competitive interest rates.
Whenever you see quotes for current mortgage rates, you usually see both an interest rate and an APR, or annual percentage rate. The two are often different. Sometimes, you’ll even see what appears to be the same mortgage interest rate quoted with different APRs. Find out how annual percentage rates are calculated, and what they mean.
Mortgage Loans for the Self Employed
If you are self employed, or don’t have a regular salary income, you can still obtain a mortgage at a reasonable interest rate. Capital Mortgage Advisors offers Stated Income loans, and other programs for individuals whose income varies over time.
Cash Requirements and Closing Costs
You’ve saved up for the down payment on your new home, and now you’re ready to get a mortgage. How much cash will you need to complete the transaction? How much can you expect to pay for closing costs? How about any other money you’ll need? Find the answers in our frequently asked questions about cash at the closing table.
What Expenses Will I Face When I Get a Mortgage?
In addition to the interest you pay against the money you borrow, there are other fees and expenses involved in getting a loan, including discount points, origination fees, and PMI. Depending on how you structure your loan, you may be able to avoid paying some, or all, of these costs.
What is a Reverse Mortgage?
Reverse mortgages are a relatively new option for seniors that want to use the equity in their homes to provide monthly cash flow they can use for living expenses. Unlike most loans, reverse mortgags do not require any repayment until your home is sold, or you move out.
Glossary of Mortgage Terms
From Abstract to Underwriting, definitions of common terms you may encounter when applying for a loan, or at the closing table.