To some people, Mortgage can be a scary word. It shouldn't be! Not only is GETTING a mortgage crucial to you, it is also important that you UNDERSTAND exactly what your dealing with. Lets start at the very begining.
Your home is collateral for your mortgage loan, which is also a legal contract you sign to promise that you'll pay the debt, with interest and other costs, typically over 15 to 30 years. To repay the debt, you make monthly installments or payments that typically include the principal, interest, taxes and insurance, together known as PITI.
Principal ~
The principal is simply the sum of money you borrow to buy your home.
Before the principal is financed you can give the lender a sum of cash called a down payment to reduce the amount of money that will be financed.
Interest ~
Usually expressed as a percentage called the interest rate, Interest is what the lender charges you to use the money you borrow.
As well as the given rate, the lender could also charge you points, and additional loan costs. Each point is one percent of the financed amount and is financed along with the principal.
Principal and interest comprise the bulk of your monthly payments in a process called amortization, which reduces your debt over a fixed period of time. With amortization, your monthly payments are largely interest during the early years and principal later. In addition to your principal and interest, your mortgage payment could include money that is deposited in an escrow or trust account to pay certain taxes and insurance.
Generally, if your down payment is less than 20 percent, your lender considers your loan riskier than those with larger down payments. To offset that risk, the lender sets up the escrow account for those expenses, which are rolled into your monthly payment.
Taxes ~
The taxes are property taxes your community levies based on a percentage of the value of your home.
The tax is generally used to help finance the cost of running your community, say to build schools, roads, infrastructure and other needs. You must pay property taxes even if you don't need an escrow account and even after your mortgage is paid off.
TYPES OF MORTGAGE LOANS
Cash ~
Buyer pays all cash for property, with no financing involved.
30-year fixed-rate mortgage loans ~ (Most Common)(AkA Conventional )
The advantage of a 30-year fixed-rate mortgage loan is that:
15-year fixed-rate mortgage loan -
The advantage of a 15-year mortgage is that:
Adjustable Rate Loans (ARM) ~
Initial Fixed Period ARM's ~
Government Loans ~
2. Veteran Affairs Loans (VA)
3. Rural Housing Services Loan (RHS)
4. State & Local Loan Programs
There are still even more possible loans than the ones i've listed here! Look around First!
Shopping for a loan is not really very different from shopping for a car or another large purchase. It is vital to shop around in order to find the best deal for yourself.
The more lenders you talk with, the wiser consumer you will become. Remember, it is YOUR money we are discussing. They are not doing you a favor; this is strictly a business arrangement.
Tell them you are shopping around: they will respect your honest, open attitude.
I hope this information helped anyone who was confused about mortgages. If you have any further questions, or would like me to refer a great mortgage loan officer. Please feel free to call me at any time!
Make it an awesome Day!
Glen
610.792.3000
Owning a home can bring all kinds of rewards your way, whether they are personal or financial. There is also a personal satisfaction that comes with knowing that you yourself have a piece of the American Dream.
If you or someone you know is struggling with the decision to buy, please take a minute to read and fully understand what I believe to be the 4 most important benefits of buying your very own home!
1. Appreciation - Real Estate values generally rise over a period of years.
2. Tax Advantages - Homeowners are able to deduct mortgage interest and property taxes as an expense against income. Also, residential investors may write off cost recovery or depreciation.
3. Being a Tangible Asset - Real Estate is seen by lenders as not only low risk, but also durable and marketable. This means that lenders are much more willing to loan a high percentage value. This then allows owners to benefit by having control over an entire "high-value" asset with a low initial investment or down payment.
4. Real Estate is Marketable - Homes can be sold at a predictable price to a dependable group of available buyers, provided that enough time is allowed to expose the home to those buyers.
Real estate provides its owner with valuable control and management of its value. The following is a list of the most common motivations that often inspire people to make the leap to homeowner.
•Owning your home provides some buyers with a deep sense of security. Many people I've encountered believe it gives you a feeling of having roots and belonging to a community.
•You can make your own decisions about design and décor'.
•You have the ability to invest in upgrades that will bring you pleasure, and may also add value to your property over time.
•You have control over your piece of property. You are not answering to a landlord.
Usually the question is whether a person should rent or buy. There are many different factors that influence this decision such as how long a person intends to stay at a specific address. The decision to buy has as much to do with personal needs as it does with the financial reasons as well. Do the math to understand the ramifications.
Take TIME to understand your own motivations before you rush into this decision.
Homeownership has its DEFFINATE rewards!
Make it an awesome Day!
Glen
610.792.3000
WWW.GlenRussell.Com
Most People are as individual as the homes they plan on selling. So obviously setting a price is different for every type of home!
If you live in a Subdivision
If your floorplan is similar to every house around you and / or built around the same time, Check out recent sales in your subdivision to give you a quick idea of what your home is worth.
If you live in an OLDER neighborhood
As time goes on, and neighborhoods get older, the homes within them can either not change at all, or change drastically. Because of this, you will most likely NOT be able to find truley comparable homes. In this case it's probably best to use a realtor to help you choose what's best.
If You Decide To Sell Your Own Home
Check out homes who have sold in your neighborhood within the past 6 months, including those that are currently for sale. This is how possible buyers will also prospect the worth of your home.
Another idea is to take a trip down to City Hall where they can provide you with public records with all previous home sale information for almost all communities.
Just a few tips to help you get started.
For More information & For all of your real estate needs, Call me anytime! 610.792.3000
Make it an awesome Day!
Glen Russell
Due to the hurricane that is supposed to hit our area on Saturday, Limerick Community Day is currently CANCELLED.
It will be rescheduled, and I will let you know as soon as I know anthing else.
Stay Safe & Dry This Weekend!
Make it an awesome day!
Glen Russell
610.792.3000
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Seving all of Montgomery, Berks and Chester County with a team of 9. My team & I have been the No. 1 Sales Team at Keller Williams Realty Group for 2 consecutive years.
** The Glen Russell Team has been the Number 1 Sales Team at Keller Williams Realty Group for 2 consecutive years! **
* Why hire 1 agent, when you can have an entire team? With the Glen Russell Sales Team, you get a whole team of professionals working for you. We never run out of time for you, because each of us is responsible for a specific process in the purchase of your home. Together, our combined efforts add up to superior customer service
* Glen offers specials & promotions to best fit your needs! These include learning how to sell your property yourself, while it's listed and pay no commission, a flexible commission schedule, the ability to cancel your listing at any time, a "no pressure" presentation, no advanced fees of any kind, and learning how to stage your home.
* There are a variety of offers ONLY Glen can give! Such as: "Your home SOLD or I'll BUY it, GUARANTEED!" "If you are unhappy for Any reason with the home you buy, I will BUY it back or sell it for FREE!" There is also Right Now Access, when you have priority access of every home and/or new listing just as if you were a MLS realtor!
The Glen Russell Team list and sell real estate in: Montgomery, Chester, and Berks County.
ONE SATISFIED CLIENT AFTER THE NEXT....
"The Team excelled at customer service. Getting back to us and answering all of our questions were no problem for them. We would use Keller Williams Realty & The Glen Russell Team again! We couldn't think of one thing they could improve upon." The Faiths
"We had a unique situation and the Team never gave up trying to find the right home for us. We have used the team more than once. Several of my family members have used the Glen Russell team for their real estate needs. They did an excellent job overall and always stayed in touch with us." - The Schaeffer's
"We had found a home we really wanted soon after listing ours. Glen calmed our fears of not being able to move forward by guaranteeing the sale of our home in writing so we could put in a firm offer with no contingency. Even better, the Team sold our home for more than our asking price in time to close on our new house. When we sold our first home with Glen, he offered an 18th month guarantee. If we were not satisfied he would sell our house for free. We decided to move within the 18 months, and his team sold us the home we always wanted - for FREE! Thanks Glen Russell Team!" The Santangelo's
"The very best realtor I've ever had; he's exceptional! Glen Russell helped me out so much. I can't say enough good things about all he did for me. He was always there to answer any question I had, and made me so relaxed during the whole process. He sold both of my homes in 3 days!!!!! The Glen Russell Team will never let you down." Dawn Wrenfrow 2005
"The Glen Russell Team excels at following up with phone calls and attention to detail. I felt like I was taken care of and someone was always in my corner. I would use The Glen Russell Team again. - Megan Bell
"In these uncertain times in the real estate market, we turned to the Glen Russell Team to sell our house. Having used the Glen Russell Team in the past, we knew that Glen and his team would be aggressive in marketing our house. To our delight, we received an acceptable offer within 10 days of listing the house. We were hoping for it to sell quickly, but never dreamed it would have happened so fast. We give thanks and credit to Glen and his team for marketing and ultimately selling our house. The entire selling process could have been a stressful time for our family, but thanks for Glen, it was a seamless transaction. It just goes to show you, if you hire the right realtor, your house will not sit on the market even during a slow period." Yvonne Rantz 2008
"I have had the distinct pleasure of working with the Glen Russell Team twice. The first time was to sell my mother's house. During this extremely stressful time, Glen was always available to take my call and answer every question I had. He had a list of contractors available, and I used several of them to work on the house. They all did great work and were very reasonably priced. Glen made solid suggestions and by following them, the house sold in 2 hours at our asking price. A year later, I went to the team again, but this time to sell and purchase a home for my family. I worked with Coleen and she was always willing to answer any of my questions and handle everything that i threw at her. She was extremely professional and such a pleasure to work with. Again, with the suggestions from Glen we were able to sell our home in 5 days. After a lot of hard work, this team put my family in our dream home! I have been tremendously pleased and satisfied with the energy of the Glen Russell Team. I would recommend this team of professionals to anyone buying or selling a house." Pam Myers 2005
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