Q : Do you need a down payment to purchase a home ?
A : No, In most cases 100% financing is available. This is dependent on a number of factors such as credit.

Q : What are the advantages of a fixed rate loan ?
A : The interest rate can never change and this type of mortgage offers secure predictability when budgeting for the future.

Q : What are the advantages of an adjustable rate mortgage ?
A : Depending on the term you choose the interest rtae is typically lower than a fixed rate during the initial term. An adjustable rate be an excellent program to utilize if you know how long you will own the home.

Q : What is private mortgage insurance ( PMI )?
A : This is an extra monthly expense that is added to your payment if you finance over 80% of the sales price. Private mortgage insurance , insures the top 20% of the loan to the lender. Private Mortgage Insurance allows lenders to make high loan to value loans.

Q : Can private mortgage insurance be avoided ?
A : Yes , there are a number of creative ways to avoid mortgage insurance.
Examples
- Combining an 80% first mortgage with a second mortgage.
- Adding a pre payment penalty
- Accepting a higher interest rate.

Q : What needs to be considered when refinancing a mortgage to a lower interest rate?
A : There are three questions that need to be answered -
1. What is the total savings / month ?
2. How much will it cost to refinance ?
3. How long do I intend to own the home ?
- After answering these three questions Summit South Mortgage can advise whether or not to refinance.

Q : Can the costs of refinancing be rolled into the new loan amount ?
A : Yes , in most cases this can be accomplished.

Q : What is a Jumbo loan and how is it different than a standard conventional mortgage ?
A : Summit South Mortgage defines a Jumbo loan as any loan amount that exceeds $341,000.00. When the loan amount exceeds $341,000.00 the interest rate will increase do to higher risk.

Q : What is an interest only loan and why should I consider that as an option ?
A : An interest only loan offers the option of only paying interest rather than a standard loan requiring principle and interest.
Advantages
- Lower monthly payments ( helps manage cash flow )
- Maximizes annual tax deduction
- loan reamortizes when additional priciple is paid

Q : When wanting to finance 95% of a sales price, why would I choose an 80/15 combo over one single mortgage at 95%?
A : There are three main advantages to an 80/15 combo
1. Avoids private mortgage insurance
2. Lower monthly payment
3. Builds equity in property at an accelerated rate because 2nd mortgage typically has a 15 year term.

Q : Do I need good credit to buy a home?
A : No ; there are a number of mortgage programs that cater to individuals that have had credit problems.