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| What determines whether rates go up or down? |
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| This is a tricky question. Part of the reason it is tricky is that there are so many different programs out there now, that there is not one definite answer. Some of the programs will be effected by certain changes in the stock market, while others are based internationally. We will be happy to explain in more detail once we determine the best program for your needs. |
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| PMI is Private Mortgage Insurance, or just Mortgage Insurance. PMI is required by the lender when the Loan to Value Ratio exceeds 80% on a loan. PMI basically protects the lender in the case of default on a loan. We have several ways to avoid PMI on loans even over 80%, be sure to ask your Mortgage Consultant about them. |
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| DTI is Debt To Income ratio. This is the ratio of the monthly income provided against the total monthly debt, including the potential new mortgage loan. This ratio varies depending on the loan program being used. There are maximum limits that are allowed on almost all programs. |
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| LTV stands for Loan To Value ratio. This is a ratio used to determine the percentage of the property value that the lender it willing to extend to a borrower on a certain property. There are many factors that can affect what LTV the lender will allow. |
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| ARM stands for Adjustable Rate Mortgage. There are several different types of ARMs available, depending on your exact needs. ARMs offer lower introductory rates, and are great incentives for many clients. |
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| How does an Interest Only Mortgage work? |
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| Interest Only mortgages have become very popular recently. There are many programs that offer the Interest Only option, but the basic idea is always the same. They are excellent programs for clients who are paid in bonuses, or just want to keep their monthly expenses as low as possible. IO loans can also be good for clients who wish to build equity quickly in their homes. |
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Be sure to ask me if one of these programs is right for you! |
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