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The
decision to buy a home can be one of the most valuable
and important investments one can make. Therefore it is
important that you are familiar with the mortgage process
so that you can wisely finance your home. Essentially,
a mortgage is just a loan that is used to finance the
purchase of property. The property itself is used as security
to ensure repayment until you have repaid the entire amount
plus interest.
There are many types of mortgages on the market and finding
the right one can be an overwhelming project. The best
approach is to divide the process into manageable tasks.
Sit down with a mortgage professional and examine the
advantages and disadvantages of all available options
to determine which product is best suited to your current
situation and future plans.
Independent Mortgage
180 Needham Street Suite A
Newton, MA 02464-1508
Dick J. Lee
Mortgage Advisor / Partner
Tel: (617) 906-5505
Fax: (617) 965-9188
Mobile: (508) 277-9939
Email: DLee@ind-mortgage.com
Website - www.dicklee.net
"Be sure to Mention "Justin Liu" for special discounts toward closing costs"
How to Find
the Right Mortgage
- Estimate
how long you expect to live in the house. If the answer
is less than three to five years, consider an Adjustable
Rate Mortgage (ARM), which typically starts out with
a lower rate. If you plan to live in your new home
longer than five years, a fixed-rate mortgage offers
protection against rising interest rates.
- Shop
around for mortgage rates. Banks, credit unions, and
mortgage companies all offer mortgages. Compare at
least six lenders in your area.
- Add
up all the costs for each lender. Include fees, points,
closing costs, etc., to arrive at the total mortgage
cost for each lender.
Mortgage
Terms
- Amortization
Period:
The period of time after which, if all monthly payments
are made on time and in full, the loan will be paid
out.
- Down
Payment:
The amount of money provided by you, the purchaser
toward the price of the property (not including legal
fees or other acquisition costs).
- Interest
Rate:
The actual cost of borrowing money, charged as a percentage
of the outstanding amount owed. Usually compounded
on a monthly basis.
- Mortgage
Amount:
The total amount of money to be borrowed by you, the
purchaser, and applied toward the price of the property.
- Prepayment
Privileges:
The right of the borrower to pay out all or part of
the outstanding principal before it comes due.
- Term
of the Mortgage:
The period of time during which the loan contract
is active. During this period, you the Borrower makes
periodic payments (usually monthly) to the lender
and at the end of the term the balance of the loan
becomes due and payable.
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