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Mortgage 101

If youu2019ve taken a look at our website, you probably know that weu2019re a great place to unload a house youu2019re having trouble affording before buying a fully refurbished one at a very affordable price.u00a0 However, we understand that not all of you are homeowners, and that some of you may be planning to purchase your first house.u00a0 As you prepare to take this step, itu2019s important to understand some of the language involved in buying and then making the payments on a new home.u00a0 This week, weu2019re going to discuss the mortgage.

All mortgages are the same, right?

Actually, there are several different kinds.u00a0 Here, weu2019ll mention two of the most common.u00a0 The fixed rate mortgage (or FRM) has the same interest rate for the entire term (usually 30 years) of the mortgage.u00a0 The nice thing about this option is its consistency; there are no surprises, and you have a set amount of monthly interest to plan around.u00a0 With an adjustable rate (or ARM) you generally start off paying less per month with a lower interest rate than you if you had an FRM, but both will go up and down (sometimes more than once a year) along with the rise and fall of the financial index theyu2019re linked to.u00a0 Examples of common financial indices are the Cost of Funds Index (or COFI), and Constant Maturity Treasury securities (CMT).

Where do I go to set up my mortgage?

There are several places you can go to get a loan and finance your home, including banks, mortgage companies, and credit unions.u00a0 There are even state government lending services out there.u00a0 As you choose which of these options is right for you, it helps to shop around and compare the different rates and prices before settling on the one that can provide you with the mortgage that makes the most sense for your situation.u00a0 A real estate agent can be a good person to discuss your options with; if youu2019ve chosen to purchase your home through us, this is a process we would also be happy to assist you with.u00a0 Itu2019s important to remember that getting set up doesnu2019t happen overnight: the loan approval process typically takes 3 to 6 weeks.

Once Iu2019ve chosen a lender and am good to go, what exactly does my mortgage include?

There are usually four parts to every loan.u00a0 The principal is the actual amount you borrowed, the interest is what you pay the lender for lending you the money in the first place, part of your monthly costs go toward homeowneru2019s insurance (in case of theft, a fire, or other damaging circumstances) and of course, property taxes for the city/county you live in.

We understand buying a home and setting up a mortgage can be an intimidating process, but the key to making a good decision is to understand your options.u00a0 Please feel free to contact us if youu2019d like to know more about buying, selling or financing home, weu2019re happy to help.

Crucial Questions

Make sure you're dealing with a reputable company that keeps their word, so you don't end up in a lose-lose situation.

If somone cannot answer yes to all of these questions, how can you trust them to do what they say?

Work with Express Homebuyers and you'll have both Peace of Mind and Cash In Your Pockets.

  • Do they have proof of $$ in the bank that shows they are making an honest offer?
  • Do they have an A+ rating by the Better Business Bureau?
  • Do they have video testimonials from actual customers that they can show you?
  • Will they provide up to a $10,000 cash advance to help with expenses when moving?
  • Do they have a physical office and staff to help you through the entire process, or are they just working out of their car?

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