Basic Mortgage Questions

Best home mortgageOne of the most important things in a person’s life is finding a place to live that is comfortable and fulfills their needs. This may involve renting or purchasing a home. There are many pros and cons regarding owning vs renting and is such a personal preference that I leave it up to each party. Try renting for 6 months or a year and see what you think would be best for you.

When renting there is no worry about taxes, various types of insurance, upkeep and so forth. In some cases, utilities are included in the rent and you can move at any time. The cons of renting include being unable to make changes to the property to fit your own décor, together with rent that can be raised and restrictions such as ‘no pets allowed’.

Purchasing a home include pros of being free to change decorations, add on structures, and do other things to make the property fit your personal tastes. The cons are that this is an investment requiring monthly payments, interest, taxes, repairs and other expenses. It is important to investigate all mortgage questions prior to making a commitment.

The home a person purchases depends on one’s financial ability to pay a certain amount each month, on a regular basis, that fits in with a person’s budget. It has

been proven, over the years, that property is an excellent investment if the commitment is made with a full understanding of the terminology involved.

Common home purchasing terminology:

• Fixed Rate Mortgage – the interest rate and Principle and Interest (PI) portion of the payment will not change during the life of the loan

• Adjustable Rate Mortgage – the interest rate is usually fixed for a certain term (up to 10 yrs) is common and the payment (PI) can be increased/decreased with fluctuating interest rates during the loan term

• Points – extra money paid at initiation of the loan that buys down the initially rate hence lowering the rate and amount of the (PI) payments

• Amortization – the time process of paying off a loan through structured payments which involve the amount and structure of each payment

• Interest Rate – percentage that is charged in the real estate market, currently rates are in the low 4’s at time of this printing

• APR (Annual Percentage Rate) – annual interest rate used to calculate your monthly payments – other lender fees may also be included

It is important when purchasing a home to consult with a Mortgage Broker or lender who will help you with any mortgage questions you may have. They will assist in determining if you qualify, what you can afford to spend and what type of mortgage fits your financial needs. Purchasing a home is an investment and can allow building equity as well as provide an income tax deduction for interest and points paid.

If you are ready to examine what owning would look like for you and your family please give Jeff a call (513) 346-4070 X 10or send him an email at

About Jeff Steinacker

At The Mortgage Network of Ohio Inc., we believe that you should have more than one option for a Mortgage. We will take your application, work every possible scenario, then offer you options of loan programs available to meet your needs. Jeff can be reached at 513 346 4070 x10 or
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