| Can I pay off my loan ahead of
schedule? |
| Yes. By sending in extra money each
month or making an extra payment at the end of the year, you can
accelerate the process of paying off the loan. When you send extra money,
be sure to indicate that the excess payment is to be applied to the
principal. Most lenders allow loan prepayment, though you may have to pay
a prepayment penalty to do so. Ask your lender for details. |
| Are there special mortgages for
first-time homebuyers? |
| Yes. Lenders now offer several
affordable mortgage options, which can help first-time homebuyers,
overcome obstacles that made purchasing a home difficult in the past.
Lenders may now be able to help borrowers who don't have a lot of money
saved for the down payment and closing costs, have no or a poor credit
history, have quite a bit of long-term debt, or have experienced income
irregularities. |
| How large of a down payment do I
need? |
| There are Albuquerque New Mexico mortgage options
now available that only require a down payment of 5% or less of the
purchase price. But the larger the down payment, the less you have to
borrow, and the more equity you'll have. Mortgages with less than a 20%
down payment generally require a mortgage insurance policy to secure the
loan. When considering the size of your down payment, consider that you'll
also need money for closing costs, moving expenses, and possibly -repairs
and decorating. |
| What is included in a monthly
mortgage payment? |
| The monthly mortgage payment mainly
pays off principal and interest. But most lenders also include local real
estate taxes, homeowner's insurance, and mortgage insurance (if
applicable). |
| What factors affect mortgage
payments? |
| The amount of the down payment, the
size of the mortgage loan, the interest rate, the repayment term and
payment schedule will all affect the size of your mortgage payment. |
