| 1. |
Why should I use a Mortgage Broker? Answer |
| 2. |
Penny Phillips is a "CRMS", what does that mean to me? Answer |
| 3. |
How is an index and margin used in an ARM? Answer |
| 4. |
How do I know which type of mortgage is best for me? Answer |
| 5. |
What does my mortgage payment include? Answer |
| 6. |
While my refinance loan is in process, do I need to continue to make my mortgage payment? Answer |
| 7. |
How do I know how much house I can afford? Answer |
| 8. |
What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 9. |
What is AMBA? Answer |
|
Q
:
|
Why should I use a Mortgage Broker? |
|
A
: |
A professional mortgage broker is trained to assist a consumer in obtaining the best real estate loan available according to a particular consumer's needs. Mortgage brokers are not tied to one source of funding, but are able to obtain funds from a wide variety of investors who offer hundreds of loan programs. |
| |
|
Q
:
|
Penny Phillips is a "CRMS", what does that mean to me? |
|
A
: |
A CRMS, or Certified Residential Mortgage Broker, is professional designation bestowed by the National Association of Mortgage Brokers. This designation originated out of The National Association of Mortgage Brokers’ commitment to promote the highest degree of professionalism for its members, and provide ethical and professional standards against which mortgage brokers can be measured.
Penny’s CRMS designation is a testament to both her personal, and professional, ethical standards.
There are currently only seven mortgage brokers in the state of Alabama who have achieved this designation. |
| |
|
Q
:
|
How is an index and margin used in an ARM? |
|
A
: |
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR). |
| |
|
Q
:
|
How do I know which type of mortgage is best for me? |
|
A
: |
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Southchase Mortgage can help you evaluate your choices and help you make the most appropriate decision. |
| |
|
Q
:
|
What does my mortgage payment include? |
|
A
: |
For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowedInterest: Payment to the lender for the amount borrowedTaxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. |
| |
|
Q
:
|
While my refinance loan is in process, do I need to continue to make my mortgage payment? |
|
A
: |
Yes! Do not do anything that might negatively affect your credit rating. If you have any questions please call your Southchase Mortgage loan officer. |
| |
|
Q
:
|
How do I know how much house I can afford? |
|
A
: |
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford. |
| |
|
Q
:
|
What is the difference between a fixed-rate loan and an adjustable-rate loan? |
|
A
: |
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
| |
|
Q
:
|
What is AMBA? |
|
A
: |
The Alabama Mortgage Broker Association (AMBA) is a nonprofit trade organization made up of mortgage brokers and other professionals in related industries. Upon joining the Association, each member agrees to adhere to a Code of Ethics which governs the manner in which a mortgage broker conducts his daily business. |
| |