Frequently Asked Questions

Here's some of the mortgage-related questions we run into most frequently in our practice. For answers more specific to your situation or additional questions, feel free to get in touch.

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 the best loan product for you is by talking to us.

How do I know how much house I can actually afford?

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount you can borrow also depends upon your employment history, credit history, current savings, current debts, and the amount of down payment you are willing and able 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.