A mortgage is another word for a home loan. Mortgages are designed to help people purchase real estate where there is an existing home or for building a new home. When you take out a mortgage, you’re borrowing money from a financial institution with the promise to repay the loan over time. It’s secure home financing that can help people achieve their homeownership goals and dreams.

There are various options out there in the world of mortgages:

Fixed-rate mortgages - The interest rate on a fixed-rate mortgage remains constant throughout the term of your loan, which means your payments will always be the same. You lock into a specific interest rate, which will not change until the term is up. The amount you pay towards interest will be large at first, but will gradually decrease as you make payments. This option is generally favorable if the current rates are low.

Adjustable-rate mortgages - The interest rate on an adjustable-rate mortgage will fluctuate, which means the interest portion paid on your monthly payments will change.

Government-insured loans - These loans are insured by the government, and typically include FHA loans and VA loans.

Conventional loans - These mortgages are not guaranteed by the federal government

Traditional loans usually require documents that verify your employment, income and assets, and may include:
-Your Social Security number
-Pay stubs for the last two months 
-W-2 forms for the past two years
-Bank statements for the past two or three months
-One to two years of federal tax returns
-A signed contract of sale (if you've already chosen your new home)
-Information on current debt, including car loans, student loans and credit cards

The market can be unpredictable. From the day you apply for a mortgage to the day you close, mortgage rates could change. And if they rise, it can increase your payment dramatically. That’s why mortgage lenders offer the ability to “lock in” your interest rate. This guarantees a specific rate for a period of time, usually 30 to 60 days and sometimes for a fee. Locking in your interest rate helps you get a great rate even if the market shifts.

A point (also called discount point) is a percentage of the loan amount. One point equals 1% of the loan. That means one point on a $100,000 loan is equal to $1,000. Points are fees a borrower can pay the lender at closing to buy down the mortgage interest rate.

Yes, if you can afford it and if you plan to stay in your home for a least a few years. Paying points to buy down your interest rate is a viable way to lower your monthly payment and possibly increase the loan amount that you can afford to borrow. However, if you only plan to stay in your home for two years or less, your monthly savings may not be enough to recoup the cost of the points you paid up front. This is a good subject to talk about with your loan officer and your financial advisor before making a decision.

You may want to consider refinancing if you are interested in paying off high-interest-rate debt, shortening the length of your repayment term for your mortgage or lowering your monthly mortgage payment.

Generally speaking, one or more of the following conditions needs to be present before you should consider refinancing your mortgage:
-Mortgage interest rates are falling
-Your home has significantly appreciated in market value
-You've been making payments on your original 30-year mortgage for less than ten years

In most cases you do need to have your house appraised in order to refinance. However, depending on the circumstances, an appraisal may not be required. Consult your Loan Officer to find out if an appraisal is necessary before you start the refinancing process

An escrow account allows us to pay the required insurance and/or taxes on your property for you. You pay a portion of your taxes and/or insurance premiums as part of your monthly mortgage payment. Then, when taxes and/or premiums are due, we'll pay them on your behalf with the money in your escrow account.