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Frequently Asked Mortgage Questions

Mark Cappel
UpdatedApr 9, 2024
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    3 min read

Frequently Asked Mortgage Questions

How much can I afford to borrow?

How much home you can afford depends on the area you want to live, your income, your debt, your credit rating, and other financial factors that determine the size and type of mortgage you are applying for.

How much will my mortgage payments be?

The rule of thumb is to put down 5%, 10%, or 20% of the sale price. The more money you put down, the lower your mortgage payments will be.

Which is better: a 15- or 30-year loan term?

A credit check gives you an idea if your credit is strong enough to afford and maintain a mortgage. Without a credit check, you have no idea if your credit is stable enough to qualify for a loan.

Does it make sense for me to refinance?

Refinancing makes sense if current interest-rates are lower than the rate you are currently paying, you still have significant years left on your mortgage, and the cost to refinance does not outweigh the benefits of refinancing.

Which documents will a lender typically require to process my home refinance?

The documentation you will need for your home refinance include any income documents (30 days worth of pay stubs, past two W-2s, etc), payment slips (mortgages paid off, lingering debt), a copy of your homeowner’s insurance, and asset statements (checking/savings account statements, 401(k), stocks).

Which closing costs associated with my home refinance are tax deductible?

In most cases, the following closing costs are tax deductible: Points and Origination Fees. Consult a tax adviser for details on claiming these costs and if any additional deductions apply in your specific situation.

How much money should you put down on your home purchase?

The rule of thumb is to put down 5%, 10%, or 20% of the sale price. The more money you put down, the lower your mortgage payments will be.

How much home can you buy?

How much home you can afford depends on the area you want to live, your income, your debt, your credit rating, and other financial factors that determine the size and type of mortgage you are applying for.

What is the information you need prior to looking to purchase home?

Before you start shopping for a home, you need to itemize your debt, list your assets, and get your credit report to see if you can afford a mortgage.

What is debt consolidation?

A means of satisfying debt by structuring a plan whereby consumers pay back the money lent to them under a single loan/payment plan.

What are the first things to think about when considering debt consolidation?

You should start by assessing your income, fixed (regular) expenses, and variable expenses which include clothing and entertainment. After doing this you should be able to determine the extent of your need. Debt consolidation counseling is also available for more comprehensive assistance.

How does debt consolidation work?

Usually done in consultation with a counselor, borrowers may reduce the sum of their payments by assessing the financial condition of the borrower and realistically calculating a payment plan.

The mortgage market: what's new?

Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.

Mortgage rates April 3, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 3, 2024 stands at 6.82%. This 3 basis points increase from the previous week's rate.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 3, 2024 is 6.11%, indicating a 10 basis points decrease from previous week’s rates.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.

What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for April 6, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:

  • 30-year conventional loan is 6.95%
  • 15-year conventional loan is 6.13%
    Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,847. A 15-year mortgage would require a monthly payment of around $2,374.

Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.

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