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Welcome to Total Mortgage, a financial resource providing loan information and basic mortgage guidelines.
 Fixed
Rate Mortgages…
These mortgages are usually for 15 or 30 years. The interest rate
does not change during the entire term of the loan. Most of the
monthly payment goes toward interest the first years and very little
toward the principal. Most of the payment goes toward principal
and very little toward interest in the later years.
Adjustable Rate Mortgages…
The interest rate changes at pre-determined intervals, usually every
12 months with
Adjustable Rate Mortgages. The interest rate will increase or decrease
based on the current money market rate. The term of loan is usually
30 years and usually has payment "caps".
Balloon Mortgages…
The average homebuyer owns a home for between 5 and 7 years. Both programs meet those requirements by offering a fixed rate for 5 or 7 years. If you are still in the home beyond that time period, the program allows for you to convert the current market rate that will be fixed for the remaining 25 or 23 years.
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 Mortgage
Lender Guidelines…
Lenders usually define long-term debt, as monthly expenses extending
over 10 months Housing expenses should not exceed 25 percent to
28 percent of monthly income.
FHA Loans
Housing expenses = 29% of gross monthly income
Housing Expenses Plus Long-Term Debt = 41% of gross monthly income
VA Loans
Housing Expenses Plus Long-Term Debt = 41% of gross monthly income
Residual Income = Varies by location and family size
 Conventional
Loans
Housing Expenses = 25% - 28% of gross monthly income
Housing Expenses Plus Long-Term Debt = 33% - 36% of gross monthly
income
The Mortgage Loan Basics…
Property: the physical residence being financed.
Mortgage: the security created on the property by the lender
Borrower: the person borrowing for ownership of the property
Lender: the bank or other financial institution
Principal: the original size of the loan
Interest: a financial charge for use of the lender's money
Foreclosure: the possibility that the lender has to repossess
the property
The Downpayment…
Lenders usually require a downpayment of a portion of the cost of the property. The value of the property is an important factor in understanding the risk of the loan. The equity in a property refers to the value of the property minus the outstanding debt.
 Appraised:
an official appraisal of the value by a licensed professional
Estimated: an internal estimate of lender if no official
appraisal procedure exists
Actual: the real purchase price of the property
Reasons to Refinance…
- If you own your house long enough to benefit from lower rates with a higher rate loan.
- If you want unchanging mortgage payments, but have an adjustable rate mortgage.
- If you want to convert to a lower interest rate or add more protective
features
- If you want to build up equity more quickly by converting to
a loan with a shorter term.
- If you want to draw on the equity to get cash for a major purchase.
Total Mortgage Home Loans and Refinancing Company
Assumed mortgage - Balloon mortgage - Blanket loan - Bridge loan
- Budget loan
Buydown mortgage -Commercial loan -Equity loan -Foreign National
mortgage
Graduated payment mortgage loan -Hard money loan Jumbo mortgages
Participation mortgage -Reverse mortgage -Repayment mortgage
Seasoned mortgage -Term loan or Interest-only loan -Wraparound mortgage
Negative amortization loan -Non-conforming mortgage - Package loan
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