Home Buying and Mortgage FAQ’s, with Ashley Borden
Ashley Borden, with Residential Mortgage Services, joins The Round Table Podcast to share your frequently asked questions when it comes to home buying and mortgages.
Each day, our clients at RMS Mortgage ask us questions about buying a home. Below are some questions! Please watch the video to hear the answers!
Questions: “With all the competition is it better to wait as a buyer for the summer months than to jump into spring market?” There will always be home buyers competing so do not let this scare you. With the rates still historically low, we urge every buyer to stick with the home buying search. You never know when the ‘right’ house will become available.
“I have $10,000 to invest in my home purchase, should I keep in bank or apply towards down payment.” A $10,000 difference in down payment will shave about $50.00 per month of a mortgage payment. We have to see if a 0% down payment program is a viable option to answer that question. You may feel more comfortable keeping this in the bank or investing. However, if you do have to put money down, there are great low down payment options for 1st & repeat buyers for as low as 3% down.
“What is an ARM (adjustable rate mortgage)?” An ARM stands for Adjustable Rate Mortgage which means that the period the rate is fixed is for a given amount of time typically 5 years, 7 years or 10 years. After that fixed period, the rate may adjust but there are caps on how high it can adjust. In a rising rate environment, you may want to take advantage of an ARM vs. fixed rate for a lower payment. Consult your Mortgage Advisor and ask plenty of questions to determine if this product is right for you.
“What is the quickest way to build credit to be ready to purchase a home within 3 to 6 months?” Look at the credit limits on your credit cards and always try to pay down your accounts by at least 50%. Watch the credit inquiries/pulls and do not close any debts. Ask a mortgage professional for advice before you try to tackle this on your own.
For More Information
To learn more about Residential Mortgage Services and the services they provide, visit: ashleyborden.rmsmortgage.com.