Q: What is the largest home loan I can qualify
for? A: Most mortgage lenders will qualify you for a mortgage amount
of about 2 to 2 1/2 times your gross salary.
Q: How can I reduce my payments over the life of
my mortgage? A: Reducing the length of your loan (for example: a 15-
or 10-year term versus a 30-year term) will drastically reduce the interest you
pay over the life of your loan. You may also make additional principal payments
to reduce the interest paid.
Q: How accurate is the mortgage calculator?
A: The mortgage calculator gives you a very accurate look at the principal and interest
payments on your loan. However, if applicable, you must remember that any taxes
(such as city tax and county property tax) and insurance will also be added to your
monthly payments.
Q: How much can I expect to pay at closing?
A: Typical closing costs can range from 3 to 8 percent of your total loan amount.
A safe estimate is 8%.
Q: When should I consider refinancing my mortgage?
A: Lenders normally recommend refinancing a mortgage if the market rate is one or
more percentage points below the rate on the loan.
Q: What is a "point?" A: In lending
terms, a point is equal to 1% of your loan amount. Paying points up front can lower
your overall interest rate.
Q: I want to lock in my mortgage interest rate,
but I'm concerned that the building process will exceed the time I can hold the
rate. What do I do? A: Your
Mortgage Consultant
can work with you to lock in your rate for the time it takes to build your Taylor
Morrison Home. In fact, the "Builder's Best" loan product actually locks-in your
loan for a period of up to 360 days while you build your home (available in most
locations). Other lenders will also be able to extend the lock-in allowance for
a new construction mortgage - just ask!
Q: I've been in my Taylor Morrison home for four
years. Is it a good time to refinance? A: If your current interest rate
is one or more percent below your financing rate, you should look into refinancing.
To get a detailed look at the pros and cons of refinancing, please contact your
Home Mortgage Consultant.
