How do I know how much I can afford?
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.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
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.
We at Gold Trust Mortgage believe in providing you with several mortgage options that you can compare so you can make an informed decision. You will be able to see how a fixed rate loan will compare with an adjustable rate mortgage. We will also help you compare mortgage interest rates, points and many other loan options so that you will be able to find the type of mortgage that best fits your needs and plans for the future.
The main problem with adjustable rate mortgages or ARM is that your monthly payments can be very unpredictable. ARM is great of the interest goes down because that means the monthly payment goes down. But, when the interest rate goes up, then the payment can become difficult to manage. The higher payment can make the family budget highly problematic.
Gold Trust Mortgage Can Help Consolidate Debt
If you are having debt problems, you may be able to find a way to fix your situation by using your home equity for consolidating your debt. Being able to understand how you can use your home’s equity to consolidate debt can help you take control of your finances and manage it better.
What is Home Equity?
Your home’s equity is the principal of your home mortgage that has been paid in addition to the value of your home as it appreciates. In order to find out how much your home’s equity is, all you need to do is to take the amount of your home’s valuation and deduct the mortgage you owe from that valuation.
When it comes to mortgages, the goal of almost every home owner is to find one that has the lowest interest rate available. Gold Trust Mortgage has been named by the Wall Street Journal as the lending mortgage lender with the most competitive interest rate.
When the interest rate is lower on your mortgage these are some of the benefits:
- Lower Monthly Payments – Monthly mortgage payments can eat up a large chunk of the family budget and if you are able to find ways to lower your mortgage payments, it gives you some extra money to spend on other important things like education, health, repair work and much more.
- Lower Percentage Points – Any slight lowering of percentage points off the mortgage interest rate can have a big impact on the reduction of the total interest expense that will be spent for the home.