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| 1. |
How do I know which type of mortgage is best for me? Answer |
| 2. |
How do I know how much house I can afford? Answer |
| 3. |
What does my mortgage payment include? Answer |
| 4. |
How much cash will I need to purchase a home? Answer |
| 5. |
When I refinance my home, can I save money on closing cost? Answer |
| 6. |
Is it a Mistake to pay extra on your mortgage? Answer |
| 7. |
How do I increase the value of my property? Answer |
| 8. |
What is automated underwriting and how does it work? Answer |
| 9. |
What are the benifits of automated underwriting? Answer |
| 10. |
What is a credit score? Answer |
| 11. |
Is credit scoring new? Answer |
| 12. |
Can my score be improved? Answer |
| 13. |
What if I don't have any credit references on my credit report or just a few accounts. Will I have a credit score? Will I be able to get a mortgage loan? Answer |
| 14. |
What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer |
| 15. |
What is Habitat for Humanity? Answer |
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Q
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How do I know which type of mortgage is best for me? |
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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. Gainesville Mortgage can help you evaluate your choices and help you make the most appropriate decision.
Give us a Call--- Our Money Team Can Help You!!! |
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How do I know how much house I can afford? |
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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, 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.
Our Money Team is Ready to Help You!!! |
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What does my mortgage payment include? |
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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.
Experience the New Level of Service we are known for... |
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How much cash will I need to purchase a home? |
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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 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
Call Our Mortgage Professionals Today!!! |
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When I refinance my home, can I save money on closing cost? |
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When refinancing your mortgage, the closing cost are about the same as when you purchased your home. However, you can save a considerable amount of money if you have the original survey. The closing agent can use yours instead of ordering a new one, which cost quite a bit of money. You can also get a discount on the lenders title insurance policy if you have a copy of your owners policy that you received when you purchased your home. Remember, you do not need to get another owners policy. And in many cases it is not necessary to get another termite inspection.
Call Our Money Team Today!!! |
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Is it a Mistake to pay extra on your mortgage? |
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The $25,000 Mistake caused by the "Myth-Conception" of Mortgages
Let's take a look at costly misperceptions held by millions of Americans.
- Most people believe making extra principal payments on their mortgages saves them money.
- Most believe mortgage interest is an expense that should be eliminated as soon as possible.
- Most believe home equity has a rate of return and enhances their net worth.
- Some homeowners are lured into thinking that bi-weekly payment plans are the answer.
- Others rely on a 15-year mortgage with higher monthly payments rather than a 30-year term.
In actuality, such methods are not the wisest ways to accomplish a "free and clear" home. Through our strategy you can accumulate sufficient cash in a conservative, tax-deferred mortgage acceleration plan. If homeowners deposited any extra principle payments in a separate, liquid, and safe side fund, instead of giving them to their mortgage company, they would accumulate enough money to pay off the mortgage in as short a time frame as possible. Let me illustrate.
The $25,000 Dollar Mistake Millions of Homeowners Make
If I were to take out a new $150,000 15-year mortgage, my monthly payment would be $1,433.48. Equivalent to fifteen ANNUAL payments of $17, 202. However because of the tax benefit I receive (by deducting the interest on my mortgage payment on Schedule A of my tax return) Uncle Sam is in essence paying part of my annual mortgage payment with money I would have paid in taxes. This saves me $3,935 in taxes. This results in a net after-tax annual mortgage payment of $13,267.
A homeowner consistently pays more mortgage interest each year with a 30-year mortgage than with a 15-year mortgage. Most people view this as a negative. That's why borrowers are motivated to take out a 15-year mortgage-in order to pay as little interest as possible
There is a Better Alternative
If we take the annual difference between the net after-tax payment on a 15-year mortgage and a 30-year mortgage each year, (see illustration below) and deposit that money in a tax-deferred, interest-bearing side fund (let's assume an 8% return), you will notice that by year fifteen, the conservative side fund will have accumulated $25,159.00 more than needed to pay off the mortgage!
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(1) |
(2) |
(3) |
(4) |
(5) |
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30-Year |
15-Year |
30-Year |
Difference |
Difference |
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End |
Mortgage |
Mortgage |
Mortgage |
Between |
Earning |
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of |
Loan |
Net Payment |
Net Payment |
Net Payment |
8% |
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Year |
Balance |
After Tax |
After Tax |
After Tax |
Compounding |
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1 |
$148,747 |
$13,267 |
$9,223 |
$4,044 |
$4,224 |
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5 |
$142,605 |
$13,943 |
$9,380 |
$4,563 |
$26,188 |
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10 |
$131,587 |
$15,155 |
$9,662 |
$5,493 |
$69,499 |
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15 |
$115,171 |
$16,960 |
$10,081 |
$6,879 |
$140,330 |
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$78,325 |
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Excess Cash Beyond Mortgage Balance = $25,159 |
Do you see why I refer to this as the $25,000 mistake millions of Americans make? You can imagine what a bigger mistake it is if your mortgage is greater than $150,000.
This concept should illustrate that it would be better to use a side fund instead of paying extra principle on the mortgage because it follows the 3 Rules of Prudent Investing. Why?
Because the Liquidity (#1), the Safety (#2), the Rate of Return (#3), and the Tax Benefits you would achieve from your money available in the side fund account far outweigh any hypothetical disadvantages-especially in the event of a financial emergency (refer to my article "Can a Mortgage Actually Save Your Life?").
To maximize the results of successfully managing equity, I recommend using a mortgage with an interest-only payment option and have a plan to follow that can help provide the discipline to set aside the difference in the mortgage payments.
In summary; The key is to understand how to have interest work for you rather than against you.
* The above information is from "Missed Fortune 101" by Douglas Andrew, a Financial Planner with over 30 years experience. Available at local bookstores and Amazon.com
Choose Gainesville Mortgage... |
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How do I increase the value of my property? |
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The biggest factor that can affect property value -- market conditions -- are outside of your control. But other factors -- including the condition of the property, certain home improvements and neighborhood stability and safety -- are not.
For example, specific home improvements can increase your property value above the cost of the improvements themselves, such as remodeling a kitchen, adding a bathroom, finishing a basement or upgrading landscaping. Just be sure that quality pays with remodeling. A bad remodeling job will do little to boost your property value.
If you live in a high-crime area, an organized community watch program not only will lower the crime rate but can enhance property values, too. It also helps to live in an area where other homeowners are upgrading their homes, which can help pull up your property value, too.
The bottom line is to measure the cost of any improvements you want to make against the overall values in your neighborhood. If you overimprove for the neighborhood, you may not necessarily recover your costs or boost your property value significantly.
Your Hometown Mortgage Lender... |
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What is automated underwriting and how does it work? |
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Automated underwriting is a computer-based method that enables mortgage lenders to process loan applications in a quicker, more efficient, objective and less costly manner.
The lender enters information from the borrower's application into its own computer system. This information is then communicated electronically to an automated underwriting system, like Fannie Mae's Desktop Underwriter, and a credit report is obtained. The automated system evaluates different pieces of information and gives the lender a recommendation about whether or not the loan meets the criteria for approval. In Desktop Underwriter, a loan that does not appear to meet the criteria for approval is referred to the lender with advice about areas where additional information could be helpful. The lender considers the recommendation, along with the information gathered, and makes a final decision. The lender always makes the final decision, not the automated system.
We are the Oldest Family Owned Mortgage Business in Gainesville... |
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What are the benifits of automated underwriting? |
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Using an automated underwriting system streamlines and speeds the review and approval process. And because each loan is evaluated in the same, objective way, lenders are able to identify more qualified borrowers and make more loans. Fannie Mae's Desktop Underwriter, for example, looks at the unique profile of every loan applicant and is able to evaluate a borrower's strengths as well as potential risk factors. For example, a borrower may have successfully managed credit in the past, which would be considered a strength. This same borrower may also have accumulated a lot of debt or only be making a small down payment. These factors could be considered potential risks to the lender. The automated underwriting system, however, is able to evaluate all of this information in a way that recognizes that a borrower's strengths in one area can offset other risk factors. As a result, more borrowers are able to qualify---and be approved---for mortgage loans.
Our Mortgage Professionals are Here to Help You Now!!! |
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What is a credit score? |
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A credit score, more specifically, a credit bureau score, is one of many pieces of information that the lender will use when evaluating a mortgage loan application. A credit score is a summary of a borrower's credit report and a numerical measurement that reflects a borrower's management of credit. Your credit score is based on the records complied by credit bureaus and includes the information reported each month by your creditors, such as the amount of existing credit you have and your payment history. A credit score considers all of the information in the credit report and converts this information into a number that helps the lender determine the likelihood that you will repay your loan on time.
We are a State Licensed Approved Lending Institution for FHA, V/A, and Conventional Mortgages... |
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Is credit scoring new? |
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Banks and other lenders have used credit scoring for over 30 years for credit cards and other types of consumer loans, such as automobile and home equity loans. Now, credit scoring is being used in mortgage lending.
We are Specialist in Mobile Home Financing---Call us Today!!! |
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Can my score be improved? |
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The answer is, over time, certainly. But it may be difficult to immediately "fix" your credit score. The most effective way to make sure that you have the best possible credit score is to manage the credit you already have in a responsible manner. You can do this by following two simple rules.
1. Avoid becoming delinquent on any of your credit obligations credit cards, automobile loans, or other installment loans.
2. Avoid overuse of your credit cards and other credit accounts.
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What if I don't have any credit references on my credit report or just a few accounts. Will I have a credit score? Will I be able to get a mortgage loan? |
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You can obtain a mortgage loan even if you have limited credit references or no credit at all on your credit report. It is also not a requirement for you to have a credit score in order to obtain a mortgage.
Even if you have limited credit--as little as one reference--a lender can still obtain a credit score for you. If you have little or no credit references on your credit report, the lender will work with you to develop what is called a "nontraditional" credit report that will contain information on how you manage financial obligations like rental payments, utility payments and other items that do not normally appear on a credit report.
We are just a Phone Call away or you can Apply On Line---It's Easy!!! |
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What is the difference between a fixed-rate loan and an adjustable-rate loan? |
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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.
Gainesville Mortgage is here to serve you. How can we Help?
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What is Habitat for Humanity? |
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Habitat for Humanity
Habitat for Humanity International is a nonprofit, nondenominational Christian housing organization.
Habitat houses are purchased by the homeowner families. Three factors make the houses affordable to low-income people worldwide:
- Houses are sold at no profit, with no interest charged on the mortgage
- Homeowners and volunteers build the houses under trained supervision
- Individuals, corporations, faith groups and others provide financial support
Homeowner families are chosen according to their need; their ability to repay the no-profit, no-interest mortgage; and their willingness to work in partnership with Habitat.
How much does a Habitat house cost?
The average cost a Habitat house in the United States is $46,600.
Habitat houses are affordable for low-income families because there is no profit included in the sale price and no interest charged on the mortgage. Mortgage length varies from seven to 30 years.
Visit http://www.habitat.org for more information.
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