Learn more or get started on a Home Mortgage.
Email us for information about your loan needs!
A mortgage is the largest purchase of most people’s lives. If you are ready to make your ownership dreams come true, Home & Mortgage and LendUS is here to help!
What is a House Mortgage Loan?
Simply stated, a house mortgage loan is:
- A financial agreement in which a homebuyer receives the necessary funds to purchase a house
- The money comes from a lender who receives a legally binding promise of repayment.
- A house mortgage loan is usually paid back in monthly installments consisting of interest and a principal.
- The principal is the repayment of the original borrowed amount.
- The interest covers the accrued cost of borrowing that principal amount over the previous month’s time.
A mortgage payment usually also covers:
- Property taxes
- Hazard Insurance
- Private Mortgage Insurance (PMI)
Local governments receive property tax payments as a percentage of the property’s value. Mortgage insurance protects the lender if the borrower defaults on the loan, while hazard insurance protects both lenders and borrowers from significant property damage causing severe financial loss.
PMI is sometime not required on a house mortgage loan when a borrower puts at least 20% down toward the home purchase. In some cases, it can be cancelled as the borrower repays the loan.
The Lowest Home Interest Rates Possible
It’s important for borrowers to consider the potential cost of interest over the lifespan of a typical mortgage. For example:
- If you put 10% down to borrow $300,000 at a 30-year fixed interest rate of 4.33%, you will end up paying approximately $213,000 in interest on top of the loan’s principal amount.
Now, let’s now take a look at how you can get a home mortgage loan with the lowest home interest rates possible…
How to Get a Home Mortgage Loan Subprime Rate
If you are looking to get a home mortgage loan with the lowest possible interest rates, here are a few proactive steps you can take:
- Increase your credit score. The higher your number, the lower most lenders will go with interest rates on a home mortgage loan. Many lenders consider a credit score in the mid-700s (or higher) to be ideal for granting subprime interest rates.
- Increase your savings. Ideally, lenders want to see at least six months’ worth of “in-case” payments in a borrower’s accounts. Additionally, borrowers must plan for maintenance and other costs, both immediately and periodically.
- Consider Loan Length and Income. In the case of our $300,000 home example, a 15-year mortgage can save $115,000 in interest costs versus a 30-year loan. However, your loan amount might need to be less because payments will be higher.
- Know Your Home Mortgage Loan Options. Consider options such as FHA-backed loans, VA Loans (for veterans and their families), as well as other lending choices before making a final decision.
Use our Home Loan Mortgage Calculator
To get a home mortgage loan with the best interest rates, a good rule is to find a home that costs no more than 2.5 times your annual income. We welcome you to use our home loan mortgage calculator tool in order to get a more detailed estimate based on your unique situation and needs. Our free home loan mortgage calculator will help you get a good feel for the home you can afford while staying within your financial means.
Mortgage Pre-Qualification vs Pre-Approval
Once a borrower has a basic financial foundation and a plan-of-action, it is time to begin mortgage pre- qualification, which is different than pre-approval. Before the approval process takes place, a borrower must submit his or her financial portfolio to a lender. A portfolio usually includes total debt, total income, and any assets (liquid or otherwise) that can offset lender risk.
Whether you need a 203k rehab loan or a bank statement loan, the lender uses the financial portfolio information a borrower provides to get an idea of the size of the mortgage for which the borrower can qualify.
In this regard, mortgage pre-qualification vs pre-approval comes down to the depth of the lender’s research into the information you provide. The pre-qualification process gives you the opportunity to discuss your goals and needs with your lender. In turn, your lender can explain the mortgage options and terms you qualify for and which are best suited for your situation.
Possible online or over phone
Usually done in person
Pre-Qualifying is a smart idea because it helps give you a general idea of how much home you can afford. This way, you can focus your time and attention on houses that are within your means. To learn more about the pre-approval process for a mortgage loan, we welcome you to visit our Pre-Approval Steps page.
Your Expert Home Mortgage Lender!
At Home & Mortgage and LendUS, we believe every borrower deserves the opportunity to realize his or her dream of homeownership. Our lending professionals are committed to providing you with the support to help you make the most informed, responsible decision. We are proud to be the home mortgage lender in San Diego and BEYOND for both first-time homebuyers and seasoned investors looking for loans on income property. If you would like to discuss your situation with a home mortgage lender in San Diego, we welcome you to contact us today!