How do I know how much house I can afford?Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your down payment, employment history, credit history, current savings and debts. What is the difference between a fixed-rate loan and an adjustable-rate loan?With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. How do I know which type of mortgage is best for me?There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. What does my mortgage payment include?For homeowners, the monthly mortgage payment may include up to three separate parts:1) Principal: Repayment on the amount borrowed.2) Interest: Payment to the lender for the amount borrowed.3) Escrow: Taxes & InsuranceMonthly payments are normally made into a special escrow account for items like homeowner’s hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.How much cash will I need to purchase a home?Generally speaking, you will need to supply:1) Earnest Money: The deposit that is supplied when you make an offer on the house.2) Down Payment: A percentage of the cost of the home that is due at settlement.3) Closing Costs: Costs associated with processing paperwork to purchase or refinance a house. What geographical locations do you serve?We serve Knoxville and the immediate surrounding counties.Don't see your question? Please email us for more information on mortgages.Let us know if you are looking to buy a home or refinance.
Interested in buying a home? While the process can seem overwhelming, at times, we make every effortto make it as seamless as possible. We offer fixed rate terms up to 15 years.