A: Generally, borrowers are able to purchase a home with a value of two or three times their annual household income. The purchase price of a home will be determined by your employment history, credit history, current savings and debts, and the amount of down payment you feel comfortable with. We can help you determine how much you can afford and discuss what monthly mortgage payment you are comfortable with.
A: With a fixed-rate mortgage, the interest rate stays the same for the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. Monthly payments made with a fixed-rate mortgage never fluctuate. Principle and interest payments on an ARM loan will change.
A: An index is an economic indicator that lenders use to set the interest rate for an ARM. The interest rate is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
A: There is no simple formula to determine the type of mortgage that is best for you. Several different factors are considered when determining the best type of financing for you, such as credit score, monthly liabilities, and monies in the bank.
A: The monthly mortgage payments include
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Homeowners Insurance: Insurance chosen by you to cover your home in the event of an accident.
Property Taxes: Yearly taxes are divided by 12 months and included in your mortgage monthly.
Mortgage Insurance: This insurance is required on all loans with a loan to value greater than 80%. There is no mortgage insurance on VA loans.
CONSUMER COMPLAINTS AGAINST MORTGAGE-RELATED COMPANIES AND INDIVIDUALS DOING BUSINESS IN TEXAS
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT-OF-POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS.
A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM.
FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV."