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FINANCING
YOUR NEW HOME
Choosing a
Loan
Here are some important questions to ask when shopping for a home loan:
1. Is the loan assumable? Under what conditions can it be assumed?
2. Does the rate fluctuate? How?
3. Can the original borrower be fully released? Is there a charge?
4. Is there a pre-payment penalty? Is there a minimum pre-payment amount?
What happens if the loan is paid off early?
5. Is there a Private Mortgage Insurance (PMI) requirement? Can it be
removed? How?
6. Can taxes and insurance be paid separately from the loan payment? Can
this arrangement be changed by the borrower or by the lender? How ?
Down Payment
Options
1. Personal Savings
2. Gift Letter
3. Personal Reserves/Sellable Assets
4. Home Equity
5. Joint Ownership
I Can Help
You Find Financing
I work with many mortgage brokers throughout the area and can inform you
of different financing alternatives and help you arrange appropriate financing.
Borrowing enough money
to buy a house can be intimidating. your sales agent can guide you through
the process. Below is a listing of some of your options when choosing
a lending institution, and deciding on what kind of loan to obtain. Look
over the information, and we can discuss which ones might be right for
you.
A Mortgage
A mortgage is a loan for the cost of the property. The title is held by
the lending institution until you pay the loan back according to its terms.
The length of time you have to pay it back, under what circumstances you
can repay early, the interest rates you pay for use of the loaned money,
and other terms, are all spelled out in the contract for your mortgage.
You will be expected to put some cash money into your purchase, and you
may have to prove to the bank that you have enough other money to make
your payment. Some mortgages are assumable, meaning the person you sell
the house to can assume your debt, and take over the loan payments.
Down Payment
The down payment on your home will guarantee the lender that it will not
lose money if you fail to pay your debt. The lender requires the mortgage
to be less than the value of the house, so that the loan will be paid
back if the house has to be sold. The down payment makes up the difference
between the cost of the house, and the loan you can get to purchase it.
The Conventional
Rate Mortgage
This is a mortgage with an interest rate that stays the same until the
mortgage is paid off. The exact terms of repayment, and the specific interest
rate available at any given time, is variable. You can call institutions
to find out their interest rates, or I can do it for you. I can also help
you calculate how much you can expect a bank to loan, given your personal
financial picture.
The Adjustable
Rate Mortgage (ARM)
An ARM is a loan with interest changing at different periods of time.
The rate changes may be predetermined and fixed, or they may be based
on variable factors, such as the one-year Treasury Security Index.
The FHA Loan
FHA loans are insured by the Federal Housing Administration. This makes
this a very low risk loan for the lender. These loans are designed to
encourage lenders to make loans for residential properties. The terms
are also favorable for the buyer, and are worth consideration.
The VA Loan
These programs offer long-term financing to eligible veterans or their
surviving unmarried spouses, with little or no down payment required.
VA loans are guaranteed by the Veteran's Administration.
Contact
CLAY HAVILAND
or call
561 746-4466
for all your Real Estate
Selling, Buying or Rental needs.
201
North U.S. Highway 1, Suite D-2, Jupiter, FL
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