top of page

What Clients Ask The Most

Here’s everything you ever wanted to know about real estate financing, but were too afraid to ask. Got a question regarding our services or mortgage options? Check out some of the most frequently asked questions to find answers to your inquiries. If you can’t find the answers you need, feel free to contact us to get more information.

Bathroom

How do I know how much house I can afford?

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.

What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include three separate parts:

Principal

Repayment on the amount borrowed

Interest

Payment to the lender for the amount borrowed

Taxes & 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.

A Homes Dining Area

How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

Earnest Money

The deposit that is supplied when you make an offer on the house

Down Payment

A percentage of the cost of the home that is due at settlement

Closing Costs

Costs associated with processing paperwork to purchase or refinance a house

Family Real Estate

What is the difference between a fixed-rate loan and an adjustable-rate loan?

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.

Done Deal

How is an index and margin used in an ARM?

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).

How do I know which type of mortgage is best for me?

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.  Vintage Home Loans can help you evaluate your choices and help you make the most appropriate decision.

bottom of page