Important things you should know before purchasing your home.
Calculate Your Expense
Depending on the amount you have saved for a down payment, your mortgage payment should typically be no more than 28% of your monthly income, and your total debt should be no more than 36%, although debt ratios have some flexibility, depending on the mortgage type you choose.
You can calculate your monthly housing budget by taking your total income, then subtracting:
Fixed expenses (car payment)
Variable expenses (credit cards or utilities)
Monthly savings
The result is the money you could have available to budget for housing.
Increase Your Credit Score
The better your credit score the better your interest rate will be. Your credit score has an impact on your monthly payment. Even the slightest increase will improve your rate.
Save for Extra Costs
You will need to save for extra costs such as your down payment and closing costs.
A down payment of 20% or more helps you avoid PMI (Private Mortgage Insurance) and lowers your monthly payment.
Closing costs are typically 3% – 5% of the total home cost.
You can count on us to help you simplify the refinancing process
Refinancing is an option to lower your monthly payments, pay off your loan quicker, and reduce your overall interest expense . Always make sure to analyze the costs and benefits before you apply.
When you refinance, you replace your current mortgage with a new mortgage with a lower rate. With a traditional refinance, you can typically expect:
Lower interest rates
Lower monthly payments
Longer or shorter minimum loan terms
More fixed-rate options
Your Mortgage Options
Fixed-Rate Mortgage: interest rate never changes
Adjustable-Rate Mortgage (ARM)[1] : lower starting rate that may increase or decrease over time
FHA Loans for expanded eligibility and low down payments
Veterans Affairs Mortgages for U.S. military service members
Affordable lending products that offer low down payment options
