A QUICK LESSON SO YOU CAN GET FAMILIAR WITH THE PROCESS…
We’re here to help you understand the process within minutes. Read below explanations of common mortgage related terms:
Take out a new loan on the home you already own. Homeowners will typically refinance when they can get a lower interest rate and/or a higher loan amount because the home is now worth more than when it was originally purchased.
FIRST TIME HOMEBUYER
If this is the first time that you are purchasing a home and it will be your primary residence, you may be eligible for lower interest rates and/or other valuable promotions.
You plan on using the home you are purchasing as your main residence. These loans typically have the lowest interest rates.
A home you will reside in, but is not your main home, e.g. a summer home or vacation home.
A home that you will not reside in. You will only rent it out to tenants.
The portion of the home purchase price that is paid by the buyer upfront. This is typically paid for in part as a deposit when the contract is signed, with the remainder paid at closing.
LTV is short for “loan to value,” i.e. the percentage of the total home price that the bank provides a mortgage for. The balance of the home price is paid in the form of a down payment.
Banks will obtain your official credit score based on your social security number. The score is based on several factors, such as the amount of debt you carry (mortgage, auto loan, credit card, etc.) and your history of timely bill payments.
FIXED RATE MORTGAGE
The most common home mortgage: A mortgage whose interest rate is locked in for the full term of the loan, typically 30 years. The monthly principal and interest payments stay the same throughout the entire period. Property taxes and insurance costs can fluctuate.
ADJUSTABLE RATE MORTGAGE
A mortgage whose interest rates and monthly payments fluctuate based on the interest rate at the time.
PMI is short for “private mortgage insurance,” an annual premium of approximately 0.5% to 1% of the total loan amount that some lenders charge for loans with an LTV of over 80%. Mint Capital helps homebuyers minimize or even avoid PMI payments on high LTV mortgages.