Buying A Home With FCM
Many of the nation’s leading mortgage companies are too complex and bureaucratic. FCM has the buying power of a national lender, with the support center to deliver its product in half the time, without the “big bank” hassle! On average our loans, from origination to close, happen in less than 3 weeks.
What To Expect With A Home Loan
Knowing what to expect when getting a home loan can make finding and financing your first home an exciting and rewarding experience. If you obtain a mortgage to help buy your home you will repay more than you borrowed. In addition to your interest rate, term and loan amount, how much you repay is determined by several factors. Here are the components you need to know:
The interest rate is the percentage of your loan amount we charge you to borrow money to buy your home. Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today’s rates.
One point equals 1% of your mortgage amount. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments. Points are usually tax deductible. (Consult a tax advisor on the deductibility of interest.)
The amount that includes all charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan. This charge covers items including fees, document preparation, underwriting costs, and other expenses.
Your loan term is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. And if you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer-term mortgage.
Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR enables you to compare mortgages of the same dollar amount by considering their total annual cost.
Your monthly mortgage payment is typically made up of four parts:
- Principal is the amount of money you borrowed.
- Interest is the cost of borrowing the money.
- Taxes are the property taxes charged by your local government. Typically we collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.
- Insurance refers to homeowners or hazard insurance that provides protection against property damage due to wind, fire or other risks. Like taxes, insurance costs are typically collected and paid from an escrow account.