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How Much Mortgage Can I Get?

posted by Stephen Katz @ 2:28 PM
Tuesday, April 26, 2011

The difference between the cost of the house and the amount of cash you have to put down is filled by one or more mortgage loans. A mortgage loan differs from other types of loans in that the loan is secured by the property you are buying. In other words, the lender does not have to depend on your word to assure that the loan will be repaid. If for some reason you cannot or are unwilling to make your payments on time, there is a legal procedure called “Foreclosure” through which the lender takes over the property or will have it sold to satisfy what you owe. That is the main reason the terms on mortgage loans can be much more liberal than on a credit card or other unsecured loan.
The loan terms you get will depend on two main factors: the economy and your personal risk assessment. The primary effect the economy has on your loan is to determine the interest rate. Interest rates rise and fall according to the supply and demand of money in the financial markets coupled with the forecasted rate of inflation. Rates also vary for different kinds of mortgage loans. In almost all cases, “fixed-rate” loans will be more expensive than “adjustable-rate” loans.
The better you look to the lender, risk-wise, the lower your interest rate and costs will be… and the more likely you are to get a low down-payment loan. A lot will depend on your credit score which is a good indication to the lender of your ability/willingness to pay your loan payments on time. Credit score is a number that condenses the information on your credit report to a scale between 400 and 850. It may make you uncomfortable that someone has reduced you to a number, but the risk of extending you a loan based on some criterion. Credit scores are not perfect, but they are an improvement over judging you based on more superficial criteria, such as your family status, or social class. Indeed, you can always take steps to improve your credit score.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 —

For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs.
Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions.

Consistently a top producer, Stephen is a Mortgage Bankers Association “Diamond” Award winner, a Georgia Mortgage “Top Gun” and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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