Heartland Mortgage Corp. is committed to helping you find the
right New York mortgage product to fit your needs. We understand
that every borrower is different, and we offer a variety of
products to meet your individual requirements. We make the process
of securing a New York home mortgage simple and straightforward by
offering you the latest in financial tools that enable you to make
sound financial choice.
Frequently Asked Questions:
1. How do I know how much I can afford with a New York
Mortgage?
2. What is the difference between a fixed-rate New York Mortgage
loan and an adjustable-rate New York Mortgage loan?
3. How is an index and margin used in an ARM?
4. How do I know which type of New York mortgage is best for me?
5. What does my New York mortgage payment include?
6. How much cash will I need to purchase a home?
Q: How do I know how much I can afford with a New York
Mortgage?
A: Generally speaking, you can purchase a New York 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 New York mortgage 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 New York Mortgage
loan and an adjustable-rate New York Mortgage loan?
A: With a fixed-rate New York mortgage, the interest rate stays
the same during the life of the loan. With an adjustable-rate New
York mortgage (ARM), the interest changes periodically, typically
in relation to an index. While the monthly payments that you make
with a fixed-rate New York mortgage are relatively stable,
payments on an ARM loan will likely change. There are advantages
and disadvantages to each type of New York mortgage, and the best
way to select a loan product is by talking to your New York
Mortgage broker.
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). Give us a call we
would be glad to answer any New York Mortgage questions you have.
Q: How do I know which type of New York mortgage is best for me?
A: There is no simple formula to determine the type of New York
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. Heartland Mortgage Corp. can help you
evaluate your choices and help you make the most appropriate
decision.
Q: What does my New York 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
New York 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.
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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