CALENDAR OF

EVENTS

Saturday, October 6th

Join us at Mountain Magic in Downtown Buchanan from 10am to 5pm

Monday, October 8th

Colonial Mortgage will be closed for Columbus Day

Saturday, October 20th

Join us at The Bank of Fincastle Fall 5K & 10K Run at Central Academy Middle School

1. How do I know how much house I can afford? Answer
2. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3. How do I know which type of mortgage is best for me? Answer
4. What does my mortgage payment include? Answer
5. How much cash will I need to purchase a home? Answer
6. Can I get a mortgage if I’m self-employed? Answer
7. Can I get a loan if I do not have a down payment? Answer
8. Can I get a loan if my credit score is only OK? Answer
9. What is a “DTI ratio,” and why is it important? Answer
10. What is PMI? Do I need it? Answer
11. What are closing costs? Answer
12. What are points? Answer

Q : How do I know how much house I can afford?
A : 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 employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : 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. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How do I know which type of mortgage is best for me?
A : 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. Colonial Mortgage Company LLC can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like 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.
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    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
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    Q : Can I get a mortgage if I’m self-employed?
    A : Absolutely. In fact, a large percentage of our customers are self-employed. We review the same financial information for self-employed customers as we do for traditional employees.
     
    Q : Can I get a loan if I do not have a down payment?
    A : Yes, there are programs (FHA, USDA, VA loans) that will allow you to purchase a home with little or no money down. We also have options where your down payment (in part or in full) can be a gift from family or friends.
     
    Q : Can I get a loan if my credit score is only OK?
    A : Yes. While your credit score is important, we look at a variety of factors to understand your overall financial picture. If your score is above 640, we can help you find the loan that works best for you. And we can even offer guidance on how you can improve your credit score for the future.
     
    Q : What is a “DTI ratio,” and why is it important?
    A : It’s a debt-to-income (DTI) comparison, and it’s one of the many factors we consider as we determine what programs, loan amount, and loan rates you qualify for.
     
    Q : What is PMI? Do I need it?
    A : PMI is private mortgage insurance, and it’s only applicable if you are borrowing 80% or more of the appraised value of a property.
     
    Q : What are closing costs?
    A : Closing costs are simply fees that cover the costs for the professional and legal services that have to happen to process your loan. This could include an origination fee, appraisal fee, credit report, attorney services, title insurance premium, underwriting, courier fees, government recording fees, and your initial homeowners insurance and real estate tax payments. We’ll review each fee in detail with you so that you’re clear on each and every one.
     
    Q : What are points?
    A : Simply put, points are a way to purchase a lower interest rate than the standard rate offered at the time. We can help you determine whether it makes sense for you to purchase points to lower your rate or not.
     

    Questions?

    Call Us Today!

    (540) 966-3100

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    Current APRs

    15 Year

    20 Year

    30 Year

    4.750%

    4.990%

    5.199%

    * Rates are based on fixed terms as well as on credit score of 740, a loan amount of $160,000 and a loan value of 80% or less of appraised value.