Hybrid adjustable rate mortgages (ARM) generally have a fixed term / variable term such as 5/1 ARM. 5 would be 5 years at the fixed teaser rate. 1 would mean it adjusts ever 1 year after the initial 5 years is over. Once the adjustment period starts, the new rate Read more…
The debt-to-income ratio helps determine the maximum amount that lenders are willing to lend to you. Debt is everything that you currently owe including credit cards (food, entertainment, transportation, health care), car payments, and student loans. Income is the gross income amount before taxes including salary, investment income, and royalties. Read more…
After your initial conversations with a rebate realter, they will suggest neighborhoods where you might be interested in living at whether it is Manhattan, Brooklyn or Queens. Then the search begins with the type of house you are looking for where the real estate agent shows you inventory of homes Read more…
Now that you have selected a home within your purchase price, hopefully you have done some homework on the additional out of pocket expenses that you have to come up with besides securing a mortgage loan. 10% to 20% for down payment. It is generally the preferred range for a Read more…
A good mortgage broker helps to make the closing of a mortgage loan as seamless as possible. Friends, who are homeowners, and your buyer rebate agent will be able to recommend mortgage brokers who they have worked with locally. Interview a few mortgage brokers before choosing to work with one Read more…
Your agent, who will be guiding you through the buyer rebate on your home purchase, should also be able to recommend real estate attorneys that they have worked with. Request someone who is responsive with returning calls, responding to emails, and meeting deadlines. In general, the real estate attorney will Read more…
Lenders are informed of buyer rebates to comply with federal law. Lenders do not allow for money to be given to the buyer after the closing. Imagine: You are lending $80 dollars to the buyer with a $20 dollar down payment to buy a $100 home. How would you feel Read more…
Upon 3 days of receiving your loan application, the lender will issue a loan estimate letter to you. It will include every feature of the loan to help you understand the scheduled repayment amounts that you are responsible for. The 3 page form is standardized by the federal government. Take Read more…
Adjustable rate mortgages (ARM) often come with low initial interest rates, then the rate increases to a higher market rate set against some type of Fed index after the initial teaser period expires. An ARM may be right for you if you plan on paying off the full loan in Read more…
Closing cost estimates for co-op sellers are only for reference. The exact cost to the seller will be different on the closing cost details provided by the seller’s lender and attorney. Pay attention to the broker’s commission and taxes. These closing cost line items are a percentage (%) of the Read more…