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ECONOMIC SOUL |
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Have you been thinking
of buying a home, but don’t know how much you can afford? An important
rule of thumb: Your monthly mortgage payment should not exceed 30% of
your total income. Multiply your monthly rent or current mortgage by 200
to determine how much home you can afford. $______________ ____ X 200 =
$__________________
What does a mortgage consist of? A mortgage is a loan for the purpose of buying a home. The four basic components are Principle, Interest, Taxes and Insurance (PITI). What is a home equity loan? Often referred to as a second mortgage, a home equity loan allows you to borrow against the equity accumulated in your home. What are closing-cost? Closing cost involve a variety of expenses in addition to the purchase price, including such items as points, credit report fees, underwriting fees, processing fees, and title insurance. What are points? A point is equal to one percent of your mortgage loan. You may consider “buying down” your interest rate by paying discount points up front. What is an escrow account? An account held by the lender into which the home buyer pays money for taxes and insurance payments. There are 1st time homebuyer grants & gifts available up to $3,500. Police, Firefighters, Teachers and Nurses – you only have to pay a total of $500.00 for buying a home. You’ll need the following items to pre-qualify for a home loan: 1.) Past two years tax returns & W-2’S, 2 most recent paystubs, copy of divorce decree, copy of bankruptcy papers, sales contract and other documents as necessary. Visit my Website at www.HomeLoansByTracy.com to see if you are a candidate for refinancing or purchasing call me at 314-482-3570 and we can review your current situation. Tracy Larkins
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