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Mortgage Rates Current Mortgage Rates Get Widgets
1. How do I know how much house I can afford? Answer
2. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3. How is an index and margin used in an ARM? Answer
4. How do I know which type of mortgage is best for me? Answer
5. What does my mortgage payment include? Answer
6. How much cash will I need to purchase a home? Answer
7. Why should I use a mortgage broker verse a bank? Can't the bank offer lower rates by cutting out the "middle man"? Answer
8. I had some credit issues, and I don't think I can get a mortgage now, should I even apply? Answer
9. I am behind on my mortgage, and my house has gone down in value. Should I just let them have it? Answer
10. Can't you get a cheaper rate by going to one of those websites that prices your mortgage with many different lenders at the same time? A website like Lending Tree? Answer

Q : How do I know how much house I can afford?
A : 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.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : 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.
 
Q : How is an index and margin used in an ARM?
A : 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).
 
Q : How do I know which type of mortgage is best for me?
A : 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. Mango Capital Corp can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : 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.
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    Q : How much cash will I need to purchase a home?
    A : 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
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    Q : Why should I use a mortgage broker verse a bank? Can't the bank offer lower rates by cutting out the "middle man"?
    A : Many banks and lenders offer wholesale rates to mortgage brokers, and retail rates to their own loan officers. They offer lower rates to mortgage brokers because they do not have the extra cost to hire staff, rent bank buildings and the likes. This leaves the ability for a mortgage broker to make a reasonable profit, while still offering the same, if not better rate than the bank could directly. The other advantage a broker has, is the ability to shop hundreds of wholesale lenders products and prices, while dealing with 1 particular bank often only has access to their own products and prices. We suggest you should always price shop. We have conveniently added some website links on our web page where you can get instant quotes from some of the largest banks in the country.
     
    Q : I had some credit issues, and I don't think I can get a mortgage now, should I even apply?
    A : There is no cost to have a loan consultations with us. We have access to many programs that are more tolerant to credit situations. If we cannot get a loan that meets your needs, we will at least give you some direction on next steps to repair or build your credit situation for the future.
     
    Q : I am behind on my mortgage, and my house has gone down in value. Should I just let them have it?
    A : NO! Let us do a free no charge consultation. There are many options available today that could stave off a potential foreclosure. Many lenders are reviewing existing mortgages for possible modifications to rate, balance, or forbearance which could either allow you to save your house, or at least get out of the situation with minimal damage to your credit ratings. We can help.  You can also call a non profit counseling group at 1-888-995-hope, or visit www.hopenow.com for additional information. Remember the wrong action today could haunt you for years. Make sure you explore every option available to you. Also be very cautious of who claims to be a "counselor". There are many organizations and individuals who are taking advantage of people in these difficult situations.
     
    Q : Can't you get a cheaper rate by going to one of those websites that prices your mortgage with many different lenders at the same time? A website like Lending Tree?
    A : Most of these sight are called "lead generators" or "lead aggregators". All they do is pass your information to several lenders for price quotes. This sometimes could be convenient, but it also has a underlying hidden cost. Most companies that run these websites charge a fee to the lender to participate. For instance if Mango Mortgage chose to participate, it would cost us an additional fee, that ultimately may be passed onto the consumer. We have tested many of these companies ourselves and have found many times you can get a cheaper quote from the same lender if you go to them directly, verse the quote that comes through some of these sites.