Got Mortgage Questions? Get Simple Answers

Jul 25, 2013

Whether you’re trying to refinance, are selling a home and buying another, or you’re interested in buying your first home, one thing is for sure: you have questions. This can certainly be a complicated process but it doesn’t have to be. It all boils down to how much information you have at your disposal. The more information you have, the easier the process will be and the better able you will be to make an informed decision about what’s right for you.


Is Now the Time to Refinance?

Let’s begin by considering the options of a family who currently owns a home, wants to stay there, and is considering refinancing. It’s true that interest rates are at historic lows and so it is a good time to refinance for most people. Interest rates are not expected to go any lower generally, however, that may not be true for you specifically. For example, if your credit is not great but it’s improving and you expect it to be considerably different a year from now, then it may be worth it to wait a year and get a lower interest rate. Or if you expect to get a significant raise in the next year or so, then you may get better terms then as well.


I’m Selling a Home and Buying One – How Does the Process Work?

This question is a complicated one and it depends on a number of factors. Typically, when someone purchases your home the money they or their lender pays will first pay off your existing mortgage, then fees associated with the closing, and if there are excess funds you’ll receive that money. As a result, it probably makes more sense for you to sell your home and use the proceeds to put a down payment on a new home. Additionally, if you buy a home before you sell your old one then you will be responsible for both mortgage payments until your home sells.


On the other hand, many homeowners wonder what to do when they sell their home and they haven’t got a new home to move into. One option is to rent a smaller home while you wait to find the perfect home. You can also set terms of the sale that the new owners can’t move in for a certain amount of time – hopefully long enough to find a home. However, you may find the perfect home and discover they have similar terms and you can’t move in right away. Either way, this is certainly a complicated situation with many things to consider.


How Much of a Mortgage Can I Afford?

New homeowners have even more to consider, as they’ve never been through the process. To start with, visit and find out how much your mortgage would be if you bought a home in the price range you’re considering. This is a good starting point to help you decide how much you can afford. You can then take your other expenses into consideration, find out how much you’ll need to put down, and start looking for your dream home!

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