To qualify for a mortgage, a borrower must meet a lender's pre-determined set of criteria, which may include credit history, income, employment, and assets.

Before a borrower may obtain a mortgage loan secured by real estate, the property must meet certain lender-set conditions in addition to personal qualifying criteria.

Your mortgage payments are as follows:

Each payment on a Conventional 30 or 15-year fixed-rate mortgage, which includes both principal and interest, is split into two sections.

Principal: The first part of the interest rate is applied to the loan's initial balance.

Interest: The second part is the interest paid on the money borrowed to purchase the house.

Amortization: Every month, the amount paid in interest decreases as the amount paid against the principal balance increases. 

Other types of mortgage payments include interest-only payments or a teaser rate.

In any case, before proceeding with a particular option, it is crucial to have a clear understanding of the overall payment and terms.

Mortgage Programs:

Mortgage programs and terms may vary, based on the down payment and/or monthly budget that a borrower has been approved for. The qualifying standards for federally subsidized mortgages, such as FHA or VA loans, are less stringent.

Closing Costs/Fees

Whether or not a home owner wants to pay points in exchange for a reduced interest rate determines the total cost of getting the mortgage. 

Fortunately, the government has placed a range of consumer protection initiatives to help homeowners understand their options during the mortgage pre-qualification process. Please keep in mind that there may be additional closing expenses such as appraisals, pre-paid property taxes, premiums and interest, HOA dues, and insurance are some of the other out-of-pocket expenses.

Mortgage Rates:

Mortgage rates may change frequently, so be sure to lock in your rate when the timing is right. 

Whether you're looking for the best price or trying to figure out the difference between the Rate and the APR, Arc Home is here to help.