What are the benefits of owning your own home?
 
Being a homeowner gives one a sense of stability and permanence. It also helps build a sense of security as you watch the value and the equity in your home grow overtime. This equity can be a good source to provide funds for many future needs such as college tuition or retirement. You are not subject to periodic rent increases and the interest you pay may be deductible from your taxes, in some cases up to 100%.
 
Do I need a down payment?
 
Not necessarily! There are many programs available that will provide 100% financing for those who qualify. Yet, planning ahead and saving for a down payment is a good idea. For those who don’t qualify for 100% financing, it can be the determining factor in whether or not you can purchase your home. Having a down payment not only lowers the amount of money that you must borrow, thus lowering your monthly payment, in many cases it can prevent you from having to purchase home loan insurance. Home loan insurance, or mortgage insurance (MI), is insurance that protects the lender against loss if the borrower should default on the home loan.
 
What is my interest rate going to be?
 
Interest rates vary from case to case and are based on several factors such as credit scores, loan to value of house, and the loan program. But as a rule of thumb, the better the credit score the lower the interest rate.
 
What are closing costs?
 
The closing costs on a loan may include: mortgage broker’s fee, processing fees, recording fees, taxes, attorney fees, lender fees, credit report cost, settlement fees, title searches, and title insurance. Homeowners insurance and setting up escrow accounts are some of the other costs that can be expected at closing. Many loan programs will incorporate these closing costs into the loan amount.

You may contact an Alexander Mortgage, LLC loan officer by calling 866-534-8850 between the hours of 9 a.m. and 5 p.m. CST, or email lucy@alexandermortgagellc.com at any time to have one of our loan officers contact you.