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Mortgage FAQ's
How much money will I need at closing?
Your closing costs will depend upon the sale price, the amount of your down payment and the various fees connected with the purchase of your home. Closing costs and escrow items include mortgage insurance, prepaid taxes, attorney's fees, title insurance, etc.
How much of a difference does a large down payment make?
The amount of down payment will affect your monthly payment and the type of loan product that will best meet your needs.
What are the pros and cons of getting an adjustable rate mortgage?
When interest rates are high, many borrowers choose an adjustable rate mortgage. This option will keep your monthly payment lower as you start out in your new home. When interest rates are low, choosing a fixed rate mortgage will lock in that low rate over the life of the loan. Other pros and cons:
- Adjustable rate mortgages may be assumable, conventional fixed rate mortgages usually are not.
- If you plan to sell in the near future, an adjustable rate mortgage may be best because you pay a lower rate at the beginning of an adjustable loan. Therefore, you'll incur less interest expense for the short time that you own your home.
- This decision should be thought out carefully. If interest rates rise, you may have higher monthly payments for a significant period with an adjustable loan.
PMC Homes recommends you talk to a mortgage professional with one of our 'Preferred Lenders' before making any decisions.
I have a choice of points or no points?
Yes, you do have a choice. The primary idea of points is to pay a fee at closing in order to lower your interest rate. Depending upon how long you keep your loan, you may save substantially more money over the life of the loan. Your mortgage professional can help you decide whether you should choose to pay points.
Must I wait to buy a home if I currently have debt?
Not necessarily. There are four major factors when considering an application: your employment and income, your assets, your credit record and the value of the home you wish to purchase. All these factors are considered when making a credit decision. Please do not hesitate to apply.
What mortgage expenses are associated with buying a home?
Your mortgage professional will provide you with a Good Faith Estimate (GFE) after you have applied for a loan. This disclosure outlines all costs associated with the loan closing. Many lenders charge an origination fee and a processing fee. Other fees associated with a loan closing may include, but are not limited to, your attorney's fees, filing fees, mortgage taxes, title search and title insurance. You may also be asked to pay real estate taxes and/or establish escrow accounts for real estate taxes and homeowner's insurance.
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