Gerry Goodman’s FREE Home Mortgage Calculator in Orange County CA
In today’s environment, you need to prepare yourself for proving your ability to repay and meeting every threshold lenders have in place to ensure the loans they are making are not risked. A checklist that every underwriter in every mortgage company uses with some variances identifies these Grade-A rules. It is advisable to discuss these details upfront with your loan professional so they can make your financial package conform to the underwriter’s checklist and our free home mortgage calculator in Orange County CA will thus give you an edge over other customers.
How is the monthly mortgage rates & payments applied to your mortgage loan in California?
A mortgage payment is composed of four parts: principal, interest, taxes, and insurance (PITI). It is generally paid on a monthly basis. When obtaining quotes from various mortgage lenders, it is essential to make sure one is comparing the principal and interest payments, which comprise your mortgage payment. These payments are usually due on the first of each month, with a 15-day grace period each month before a late fee is assessed.
According to your respective state’s and local government’s requirements, you also have to pay property tax on the real estate you own depending on its area. We would advise you to use this free home mortgage calculator to save money on your home loan.
A Loan-To-Value Ratio also referred to as LTV Ratio, is a comparison between the value of your loan and the value of your home. To determine your LTV, your lender will divide your loan amount by the lesser of the home’s appraised value or purchase price. Borrowers with lower LTV ratios usually qualify for lower mortgage rates than borrowers with higher ones. Borrowers who have a lower LTV ratio are considered less risky to lenders because they have more equity in their homes.
Borrowers with an extremely high loan-to-value ratio are considered “upside-down” on their mortgage. We would advise you accordingly once you utilize our accurate and reliable mortgage calculators in California.
Anti-discrimination lending laws help ensure equality among every mortgage applicant.Therefore, the loan application process includes details regarding their ethnicity, race, gender, etc. Lenders are required to collect this data by a federal law called the Home Mortgage Disclosure Act (HMDA). This data helps various policymakers to determine if lenders are serving the housing needs of their communities and to identify possible discriminatory lending patterns.
If you put less than 20 percent down on a home, most lenders require you to set up an escrow or an impound account. This requires you to pay beyond your mortgage payment to accrue for property tax and insurance payments. More often than not, your mortgage statement will show you how much you’ve accrued in your escrow account on a monthly basis.
Your Debt Ratio
In case you have consumer obligations such as a car payment preventing you, it is advisable to have a conversation with your loan officer and run these ratio numbers upfront. We can look at your financial statements and advise you regarding the debts that need to be fixed in order to move your file forward with the processing of your loan. Your debt ratio does not have anything to do with how much mortgage you might need to pay, therefore making it convenient for you to still figure the amount out through our free home mortgage calculator in Orange County CA.
Adjustable-rate mortgage (ARM)
A mortgage that does not have a fixed interest rate is called an Adjustable-rate mortgage. ARMs usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions. When interest rates increase, generally your loan payments increase and vice versa.
Conventional mortgage loans
Mortgage loans other than those insured or guaranteed by a government agency such as the Federal Housing Administration, the Veterans Administration, or the Rural Development Services are called conventional loans.
Loans that generally have repayment terms of 15, 20, or 30 years and the interest rate and the monthly payments stay the same during the life of the loan are called fixed-rate loans. You can calculate your mortgage for these and compare loans with our free home mortgage calculator in Orange County CA.
Private mortgage insurance (PMI)
Private mortgage insurance protects the lender against a loss in case a borrower defaults on the loan. When you acquire 20 percent equity in your home, PMI is canceled. These premiums can add $100 to $200 to your monthly payments, according to one of the best mortgage calculators in California.
A Lock-in is a written agreement that guarantees you, as a home buyer a specific interest rate on a home loan, provided that the loan is closed within a certain period. Usually, the agreement also specifies the number of points to be paid at closing.
This is the fees paid at a loan closing and it generally includes application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys’ fees; recording fees; estimated costs of taxes and insurance; and notary, appraisal, and credit report fees. Once you utilize our free home mortgage calculator, you can easily draw up a budget including these charges and decide accordingly.
If you plan to get a mortgage, be prepared to tell your lender in great detail about issues like deferred student loans, IRS debt, spousal support, alimony of any kind, co-signed debt and so on. But first, Don’t forget to be prepared and use our free home mortgage calculator in Orange County CA!
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