| 1. |
Why should I select Residential Savings Mortgage, Inc. for my mortgage? Answer |
| 2. |
Can I get approved if my mortgage is late, or my credit scores are low, or I am unable to verify my income? Answer |
| 3. |
What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 4. |
How is an index and margin used in an ARM? Answer |
| 5. |
How do I know how much house I can afford? Answer |
| 6. |
How do I know which type of mortgage is best for me? Answer |
| 7. |
What does my mortgage payment include? Answer |
| 8. |
How much cash will I need to purchase a home? Answer |
|
Q
:
|
Why should I select Residential Savings Mortgage, Inc. for my mortgage? |
|
A
: |
Residential Savings Mortgage, Inc. is a Licensed Correspondent Lender with access to the wholesale mortgage rates, which are significantly less than most retail lenders and banks. We maintain relationships with over 100 sources which offer the lowest rates and diversified products in the mortgage industry. Our files are processed and approved in-house, decreasing the numbers of days you have to wait for a decision or your loan's closing. Along every step of the approval process you can contact your loan officer and/or processer to receive updates and confirm your closing date. Our efficiencies, competence and commitment to excellent service will make you a customer for life! |
| |
|
Q
:
|
Can I get approved if my mortgage is late, or my credit scores are low, or I am unable to verify my income? |
|
A
: |
At Residential Savings Mortgage, Inc. you will benefit from our experience and diligence. Given the current economic state, many customers have varying circumstances, and for such we offer many different mortgage solutions tailored to meet your every need. Regardless of your current mortgage history, credit scores or ability to document income, we will attempt to complete your request. All customers, regardless of qualifications, will be treated in a consistent manner that emphasizes respect and commitment to completing their request. |
| |
|
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. A fixed-rate loan provides security due to the payment remains fixed. An ARM loan usually allows for a lower initial interest rate for the first few years of the loan, but the payment and rate can increase at the end of the fixed-rate period. The best way to select a loan product is by calling us and talking to a mortgage professional to discuss your current needs and future goals. |
| |
|
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 the sum of the indexed rate and the margin. During the life of an ARM loan, the margin usually remains constant and the index is variable. The index is usually subject to change on a monthly or yearly basis. 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). An ARM mortgage may provide more benefit for financing that will be short-term due to a lower initial interest rate. Please contact the mortgage professionals at Residential Savings Mortgage to discuss the many options available for ARM products. |
| |
|
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 and income, credit history, current savings and debts, and the amount of down payment you are able to make. You may also be able to take advantage of special loan programs for home buyers that allow exceptions to standard underwriting guidelines. Give us a call, and we can help you determine exactly how much you can afford. |
| |
|
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, your currently monthly bills and how long you intend to keep your house. Residential Savings Mortgage, Inc can help you evaluate your choices and help you make the most advantageous decision. Please call our office, toll free 866.872.8310, to discuss your financing options. |
| |
|
Q
:
|
What does my mortgage payment include? |
|
A
: |
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.
Please contact our office, toll free 866.872.8310, to discuss how we can lower your current payment and interest rate. |
| |
|
Q
:
|
How much cash will I need to purchase a home? |
|
A
: |
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 houseDown Payment: A percentage of the cost of the home that is due at settlementClosing Costs: Costs associated with processing paperwork to purchase or refinance a house |
| |