Q:"Should I rent or should I buy?"

A:"There are many factors that go into this decision.  The advantages of home ownership are great.  

1. Being able to write off the interest on your loan.
2. Being able to take advantage of appreciation in the market.
3. Having a place to call your own.
4. Being able to add equity with improvments

With the new standards that have been set by lenders.  Most people can be approved for mortgage financing.  If you are employed, and have a good rental history you should look into being approved for your first home. 

 

Q:"What is the difference between a banker and a broker"

A:"A broker has access to thousands of loan programs from dozens of different lenders.  They have the ability to shop your loan around and find you the best rate or loan program.  The scope of what they are able to do is much greater than a bank because they have so many different lenders and loan programs to choose from.  If you are one day out of Bankruptcy or have had stellar credit your whole life a mortgage broker can find you the best deal for your money

 

Q:"What if my credit score is low?"

A:"Because Oak Hill Mortgage is a broker we can generally find a loan program for you even if your credit score is lower than you would like.  We have 100% financing even if you are one day out of bankruptcy.  We have loan programs that don't require us to verify your past rental history.  Even if you have no credit we can add non-traditional forms of credit to qualify you for the loan you want.  Oak Hill Mortgage is always willing to sit down with you and go over your situation."

 

Q:"What is the difference between a fixed rate and an ARM?"

A:"ARM stands for Adjustable Rate Mortgage.  Usually these loans have a fixed period and then can adjust every year after that.  For example a 3/1 ARM would be fixed for 3 years and could adjust every 1year after that.  The same would go for a 5/1 or 7/1 ARM.  The advantage to getting an ARM is that you will start with a lower interest rate during the 3,5, or 7 initial years of the loan.  If you are planning on selling the home or refinancing within the fixed rate period then it would be advantageous for you to take advantage of the lower interest rate.  If you are buying a home that you are planning on staying in until you own it it would be more advantageous for you to go with a 15,20,25,30, or even a 40 year fixed loan.

 

Q:"Why would I choose to go with a 40 year or an interest only loan"

A:"By extending the term of your loan out it will minimize the amount of your monthly payment.  The same goes for an interest first loan.  With both the 40 year and interest only loans you will take a little higher interest rate.  (Similar to taking a 30 year interest rate as opposed to a 15 year rate).  It is a great way to afford a little bigger home if you are willing to pay more interest in the long run.

 

Q:"What is the Pay-Option ARM that I have heard so much about?"

A:"The Pay-Option ARM is a very popluar product right now.  It gives you your choice of 4 different payments every month.  There will be a minimum payment option figured using an interest rate as low as 1%.  You also have an interest only option, a 15 year option and a 30 year option.  This is a great loan if you can use the money that you save to pay off high interest rate accounts or if you are able to invest the money into an account that will pay you a good return on your monthly investment.