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| Can I pay off my loan ahead of schedule? | |
| Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details. | |
| Are there special mortgages for first-time homebuyers? | |
| Yes. Lenders now offer several affordable mortgage options, which can help first-time homebuyers, overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities. | |
| How large of a down payment do I need? | |
| There are Ann Arbor Michigan mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and possibly -repairs and decorating. | |
| What is included in a monthly mortgage payment? | |
| The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes, homeowner's insurance, and mortgage insurance (if applicable). | |
| What factors affect mortgage payments? | |
| The amount of the down payment, the size of the mortgage loan, the interest rate, the repayment term and payment schedule will all affect the size of your mortgage payment. | |