EASY MORTGAGE, THINK HLZ!
Home Loan Zone is an independent mortgage brokerage company. That means we shop lending sources and loan programs through multiple lenders to find the best rates for our clients.
As an independent broker, we don’t have the high costs normally associated with larger banks, which means savings for our clients in the form of better rates and lower closing costs.
We work with many investors, allowing us to offer the best rates on all types of loans and loan programs.
What's Your Home Worth?
WHAT CLIENTS ARE SAYING
Finding out how much you can afford is the most important step to buying a home. Establishing your purchase power upfront, including how much money will be required for a down payment and closings costs, will help you make the right decision on which house is right for you!
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 also will depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing 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.
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 a loan product is by talking to us.
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 a combination of the index rate and a pre-specified margin. 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).
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 and how long you intend to keep your house. Home Loan Zone can help you evaluate your choices to make the most appropriate decision.
For most homeowners, the monthly mortgage payments are made up of 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 your county tax assessor and property insurance company.
The amount of cash needed depends on a number of factors. Generally speaking, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house.
- Down Payment: A percentage of the cost of the home that is due at settlement.
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.