Your Top Mortgage Questions Answered
Getting a mortgage is one of the most stressful parts of buying a home, and it can be hard to get the answers you need in order to understand the mortgage process more fully. To help, this article has put together some of the most frequently asked questions that Motley Fool members ask, along with guidance to point you in the right direction. From mortgage brokers, banks, and loan terms to rates and credit history, find out what you need to know below.
Several factors go into how much you can borrow on a mortgage. Your income plays a key role, and your credit score also comes into play in determining what interest rate you'll be able to get on your mortgage and therefore how big the monthly payments are likely to be. The type of mortgage you get also plays a factor, with some lenders limiting how much they'll want to lend to 80% or less of the home's value, while other special programs allow you to borrow between 95% and 100% of the value of the home if you qualify.
What you pay each month on your mortgage depends on the length of mortgage you choose and its interest rate, along with ancillary costs you pay through your mortgage lender. The longer the repayment period, the smaller the monthly payment, so 30-year mortgages have smaller payments than 15-year mortgages. Many lenders incorporate real estate taxes into the payment you make, holding money in escrow until your tax bill comes due. This calculator can help you determine mortgage payments.
Source: Fool.com
