- How much will I qualify for? The standard rule of thumb is two to three times the total combined household income, assuming average credit scores and debt load.
- What if I had credit problems? No problem. Tim's Team offers loan programs for credit challenged customers.
- What are fixed-rate and adjustable-rate mortgages? Fixed-rate mortgages come with an interest rate that remains unchanged during the entire term of the loan. Tim's Citywide Team offers fixed-rate loans with a repayment term up to 40 years. Adjustable-rate mortgages (sometimes referred to as an ARM), have rates that can change at predetermined intervals relative to market interest rates.
- What is a reverse mortgage? For seniors 62 and older, reverse mortgages leverage home equity and provide monthly cash payments, which can be used for any purpose. No monthly payments are ever made as long as you live in the home.
- What does "amortization" mean? Amortization is the duration of the loan, splitting principal and interest into equal payments to pay off the debt.
- What are "points"? Points, also called loan discount points, are pre-paid interest on your loan. Paid at the closing, each point equals 1% of the mortgage amount.
- What does "APR" stand for? APR, or Annual Percentage Rate, is the actual cost of the mortgage – factoring in points and other credit costs. The APR is a good comparison between actual loan costs.
- What is a "buy-down"? A buy-down occurs when a lender lowers the interest rate on a loan (for a fee) during the first few years of a loan.
- What are "caps"? Caps are the pre-determined interest rate limits that an Adjustable Rate Mortgage (ARM) can increase or decrease.
- What is "locking in"? Locking in is your lender's guarantee that the interest rate quoted will not change before closing, regardless of market conditions.
- What does "PITI" mean? PITI stands for Principal, Interest, Taxes, and Insurance. These components comprise a monthly mortgage payment.
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