Ethics in Real Estate: As your agent, I promise to adhere to a strict code of ethics in conducting any and all activities related to your sale or purchase of a home.In some businesses, simply doing what is legal may be good enough.But in my real estate practice I demand an ethical standard that goes above and beyond the legal requirements. The guiding principle of ethics comes from the Latin premium non nocere, meaning first do no harm. By adhering to strict ethical guidelines I will earn your trust. By establishing trust, I'll build a long term business model based on long term clients.
As a member of the National Association of REALTORS, I am bound by our code of ethics which you can find at: http://www.realtor.org/mempolweb.nsf/pages/code.
The Cost of Your Mortgage Loan
|
Money Isn't Everything
When considering lenders, factor in the level of service they will provide throughout the loan process. I'll be glad to provide a list of lenders who have successfully helped clients in the past. I also suggest that you ask friends and family in the area for their recommendations.
| |
The same care and consideration you give to finding the right house should be applied to your search for the right mortgage lender. For most home-buyers a major determining factor in selecting a lender is the cost of the mortgage loan. But how do you determine the cost of a mortgage loan?
Shopping for a Mortgage Loan
While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.
More than Just Interest
A number of fees are associated with the mortgage loan, including:
-
Appraisal - A carefully documented opinion of value by a licensed, professional appraiser.
-
Credit Report - A detailed report of your credit, employment and residence history prepared by a credit bureau. To get your credit score call a Mortgage Specialist 1-516-333-6455.
-
Principal - The amount owed on a mortgage which does not include interest or other fees.
-
Document Fees, Loan Fees and Processing Fees - Miscellaneous fees charged by the lender.
-
Discount Points - Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)
-
Origination Points - the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)
-
Interest Rate - A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.
|
Prepayment Penalty Mortgages (PPMs)
These loans restrict your right to prepay part or all of the principal in the loan's early years. A prepayment fee is charged by the lender to the borrower who wishes to pay part or all of the loan ahead of the regular schedule. The advantage of a PPM is that they often have a lower interest rate than other mortgages.
| |
Using the Annual Percentage Rate (APR) to Compare Mortgage Loans
The APR was designed to help borrowers understand the relative costs of a mortgage loan. The APR takes into account the various fees associated with the loan, which is why it is often higher than the interest rate. Understand that not all lenders calculate a loan's APR in the same way. That is why this should be only one of the factors used in selecting the best mortgage for you.
Locking-in Interest Rates
Another factor to consider when selecting a lender is whether the lender will lock-in the mortgage's interest rate and points. To learn more about your options call a Mortgage Specialist 1-516-333-6455.
|
How to Reduce Your Mortgage
One Additional Mortgage Payment a Year
There's a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan's principal.
This is the method being used by "Bi-Weekly Mortgage Reduction Services" and "Bi-Weekly Mortgage Savings Programs". Only, when you do it yourself, you don't pay a third party unnecessary set-up costs and fees!
Example: $100,000 loan, 30-year mortgage, 6.5% fixed interest rate
|
Extra Mortgage Payments/ Year |
Principal & Interest |
Additional Monthly Payment |
SAVINGS |
Total Paid |
# of Years |
|
0 |
$632.07 |
0 |
0 |
$227,542.98 |
29.92 / 359 mos. |
|
1 |
$632.07 |
$52.68 |
$29,088.02 |
$198,454.96 |
24.12 / 290 mos. |
|
2 |
$632.07 |
$105.35 |
$46,492.13 |
$181,050.85 |
20.5 /
246 mos. |
|
3 |
$632.07 |
$158.02 |
$58,320.95 |
$169,222.03 |
17.92 / 215 mos. |
|
4 |
$632.07 |
$210.69 |
$66,969.79 |
$160,573.19 |
15.92 / 191 mos. |
|
5 |
$632.07 |
$263.36 |
$73,607.77 |
$153,935.21 |
14.34 / 172 mos. | |
One-time Payment
It may not be possible for you to increase your monthly mortgage payment. Keep in mind that most mortgages will permit you to make additional payments to your principal at anytime. Perhaps, five-years after moving into your home you receive a larger than expected tax return, or an inheritance or a non-taxable cash gift. You could apply this money toward your loan's principal, resulting in significant savings and a shorter loan period.
Example:
With a $100,000, 30-year, 6.5% fixed interest rate mortgage loan, the borrower will pay a total of $227,542.98 to pay back the loan in 30 years. That equals $127,542.98 in interest payments.
If the same borrower makes a one-time $5,000 payment the first day of year 6, he/she will pay a total of $204,710.75 and pay off the loan in 27 years (324 months). That's a savings of $22,832.23 in interest.
Dynamic Mortgage Bankers are Licensed Mortgage Bankers, N.Y.S. Banking Department.
Also licensed in, PA, GA, FL, CT.
This site owned and operated by Agent Advertising.
|