BUYING A HOME
We champion and celebrate home ownership at Phoenix Mortgage Specialists, Inc.. We know that for many, buying a home is incredibly exciting but intimidating. A number of prospective home owners, due to debt, credit, or income, feel as though home ownership is unbearable, but often times, there is still hope. We have seen it happen time and time again.
Individuals have come to us uncertain and leave excited with the effectual expertise of Phoenix Mortgage Specialists, Inc. A new homeowner can greatly benefit from the logistic help of a mortgage company. We understand the weight of responsibility that comes with buying a home or taking on a mortgage of any kind. This understanding motivates us to do what we do best. We would love to help you find the best path through this process.
At Phoenix Mortgage Specialists, Inc. we have the privilege of helping individuals buy the homes of their dreams, and we celebrate their accomplishment and success. Home ownership in America is much easier to achieve than it was 50+ years ago. Buying a home consists of a series of decisions that ought to be made carefully, knowledgeably, and skillfully. The effects of debt, credit, income, family size, marital status are all examples of things that should be considered in the decision-making process. With that said, this is attainable with the professional help and resolve of Phoenix Mortgage Specialists, Inc.
HOW DOES A MORTGAGE WORK
We want our clients informed. We do not believe in withholding constructive advice and information about your mortgage and what it entails. On this page, we will seek to briefly and generally explain how it all works. We believe good customer service is not just about our loan programs, but it is about empowering you to understand as much as you wish to know about the financial reality in front of you.
A mortgage, also called a home loan, is usually scheduled for payment over a 30-year period, but there are many different time spans—from 10, 15, or 20 years—in which a mortgage can repaid. Your mortgage is typically split into two parts: capital and interest. Capital is the full amount you borrowed for the house, and interest is the fee you owe the lender for lending you the capital. Capital is also known as your “principal” and it may or may not be the full value or purchase price of the house. For example, your capital loan could be for 80% of the value of the house. This percentage can also be expressed in a loan-to-value ratio.
Interest rates along with your scheduled payment term dictate what your mortgage payment will be. For starters, interest rates can either be fixed or adjustable. A “fixed rate” is where the monthly interest calculation is unchanging for the life of the loan. An “adjustable rate” is an interest rate can fluctuate throughout the term of the loan—usually based on market rates.
Two other costs that are often factored into mortgages are property taxes and insurance. Property taxes are usually spread throughout the year and placed in a third-party escrow account until the time property taxes are due. Mortgage insurance is commonly added under certain circumstances and not always needed. For example, in conventional loans, as long as the buyer is able to “bring cash to the table” and provide a down payment of at least 20% of the mortgage, then there is no required mortgage insurance for the life of the loan.
Much of the mortgage process is searching, comparing, and choosing different lenders, rates, and options to find the most ideal choice for your given situation, but you do not have to do this alone. Call or message your mortgage specialists at Phoenix, today. We would love to help you choose the right loan and help you finance it the right way.
Phoenix Mortgage Specialists, Inc. is proud to serve all our clients across Georgia with premier mortgage services specially tailored to their respective preferences and needs. It is our greatest pleasure to be a consistent source of professional guidance and expertise for every prospective homeowner and every individual preparing to walk through this milestone in his or her life.
For any further inquiries beyond what is covered on this page, again, feel free to contact us. If you are still wondering, “How Does a Mortgage Work?” we would love to help clear things up and answer any of your mortgage-related questions or concerns. Thank you for choosing Phoenix Mortgage Specialists, Inc.