Buying a home is one of the biggest decisions that you will probably make in your life. It is important to make sure that you research all parts of the home buying process to make sure you are making the right decision when buying a home. Make sure you know the answers to the following questions to ensure that you are well informed about the mortgage basics.
- How long does the mortgage process take? The typical mortgage process only takes between 30 and 45 days, although the actual timing will depend on the specific circumstances.
- What are interest rates and APR? The interest rate is the cost of borrowing money from a lender and is used to calculate the monthly payment to your lender. The lower the interest rate you get, the lower your monthly payments will be. The APR stands for the annual percentage rate, and is the interest rate plus any other fees that are associated with your loan.
- What are the most common types of mortgages? There are two common types of home mortgages, a fixed rate mortgage, and an adjustable rate mortgage. A fixed rate mortgage has the same monthly mortgage payment and interest rate for the life of the loan. An adjustable rate mortgage as an interest rate that changes over time, and fixed rate terms, which will cause your monthly payments to increase or decrease over time.
- What are discount and origination points? Discount points are earned for cash that is paid upfront to lower your loan interest rate. Origination points are administrative fees that are charged to process your loan and do not lower your interest rate.
For all of your mortgage and real estate needs in Southern California, contact Eastland Escrows in Covina, California. We can answer any of your mortgage questions to ensure you are buying the best home to fit your needs.