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financial matters

Thursday, October 12, 2006


FREQUENTLY ASKED QUESTIONS ON MORTGAGE


  • How much can I afford to borrow?
    How much home you can afford depends on the area you want to live, your income, your debt, your credit rating, and other financial factors that determine the size and type of mortgage you are applying for.
  • How much will my mortgage payments be?
    The rule of thumb is to put down 5%, 10%, or 20% of the sale price. The more money you put down, the lower your mortgage payments will be.
  • Which is better: a 15 or 30 year loan term?
    A credit check gives you an idea if your credit is strong enough to afford and maintain a mortgage. Without a credit check, you have no idea if your credit is stable enough to qualify for a loan.
  • Does it make sense for me to refinance?
    Refinancing makes sense if current interest-rates are lower than the rate you are currently paying, you still have significant years left on your mortgage, and the cost to refinance does not outweigh the benefits of refinancing.
  • Which documents will a lender typically require to process my home refinance?
    The documentation you’ll need for your home refinance include any income documents (30 days worth of pay stubs, past 2 W-2s, etc), payment slips (mortgages paid off, lingering debt), a copy of your homeowners insurance, and asset statements (checking/savings account statements, 401K, stocks).
  • Which closing costs associated with my home refinance are tax deductible?You should start by assessing your income, fixed (regular) expenses, and variable expenses which include clothing and entertainment. After doing this you should be able to determine the extent of your need. Debt consolidation counseling is also available for more comprehensive assistance.
  • How does debt consolidation work?
    Usually done in consultation with a counselor, borrowers may reduce the sum of their payments by assessing the financial condition of the borrower and realistically calculating a payment plan.

If you are buying a home for the first time and want to have your doubts cleared on the subject you can read
'First Time Home Buyers Information'

1 Comments:

At 6:04 AM, Blogger Steven James said...

Hey Susan. Found your article to be of great help. Keep posting. Cheers !!

 

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