Frequently Asked Questions

What are the components of a mortgage payment?

A monthly mortgage payment consists of four (4) parts combined as PITI. P is Principle, the amount of money you are borrowing for your purchase; I is Interest, the amount charged from the Lender for loaning you the money; T is Taxes, the annualized real estate taxes pro-rated for one (1) month; I is for Insurance, the annualized home owner's insurance policy pro-rated for one (1) month.

What does LTV mean and why is it important?

LTV stands for Loan-To-Value. For example: If you are putting $20,000 down on a home you are purchasing for $100,000, your LTV = 80/20. Typically, when your LTV is higher than 80/20 (85/15, 90/10), your Lender will charge you an additional premium to compensate for what they perceive to be "risk".

How do I make sure I am not over paying for a home?

The front line level of protection is enlisting a Buyer's Agent. A seasoned Agent capable of accessing and interpreting MLS data will guide you to a fair purchase price. Additionally, your Lender will perform an appraisal to ensure that the sales price and loan amount are in line with their appraised value.

first time home buyer?

When a Seller has their home for sale, they have enlisted an Agent, the Listing Agent, to work for them. It is imperative that you have your own Representation by enlisting a Buyers Agent to fight for you, negotiate for you, and make sure you are getting a fair deal, especially if you are a first time Buyer. Commissions are almost always paid for by the Seller, so the service of a Buyer's Agent for you is free. Read More »