What Is an Amortization Schedule?

An Amortization Schedule lists the Interest and Principal by each Repayment until the loan is paid off at the end of the Amortization Period. The Periodic Payment is the total payment due each time. The majority of each payment at the beginning of the term will be interest and very little applied to principal.

Can you change your amortization schedule?

There are several ways to change your amortization schedule for your mortgage. The first is to refinance and change the rate, term or loan amount. The second way is to pay additional payments or increase the amount applied to principal. The third way is to put a large amount down on your mortgage after your purchase or refinance and request a recast.

What is a 30 year amortization schedule?

A 30 year amortization schedule is a simple table that produces a mortgage payment with compounding interest over a 30 year period which is 360 payments over the term of the loan.

How do you calculate principal and interest?

The interest on the loan is amortized if principal (P) dollars and interest (i) dollars are repaid over a the length of the term of 12 (n) monthly payments of (A).

How to choose a mortgage lender

How to choose a mortgage lender - Cain Mortgage Team

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There are hundreds of financial institutions out there. When you think about traditional lenders, banks and credit unions are the first ones most people think about. However, today there are many more, and better, options to consider to borrow money.

Different lenders have different terms and conditions they offer for loans and they have a bearing on your capability of repayment. Their varying business models create distinct underwriting processes, fees, and interest rates. No doubt this has a bearing on the amount you will be required to repay on loans and have an impact on the experience you have with your mortgage.

The same way lenders screen borrowers before deciding on an application, it’s vital to be well informed before signing a contract to purchase a home. As you shop around for mortgage loans, consider local mortgage lenders because of their familiarity with local Attorneys and Appraisers, which will make the process smoother. Additionally, local mortgage lenders are more accountable to you because they are local and live in that community.

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Compare Lender interest rates

An essential factor when evaluating lenders is their interest rates. The interest rate will determine the payment and the overall interest you pay over the life of the loan. So, it is an important factor but not the only one as you will see below.

Ideally, the company with the lowest interest rates is the one you’ll consider dealing with, resulting in an overall cheaper loan repayment. However, some lenders attract customers with lower rates but rely on other miscellaneous fees to increase the cost of the loan.
Before selecting a mortgage company, do your due diligence to determine if there are any additional costs such as administration fees, discount points, origination fees, and more.

A good mortgage lender will be completely transparent about its fees and costs. This material will influence your decision-making process. On the other hand, if prices are unclear or hidden in small print, that’s a red flag that this lender may be untrustworthy.

Relationship and Communication

Although a low rate is very important and can save you money, it is also a great idea to place a high priority on the individual who will be helping you with your mortgage! Not all Loan Officers are equal and it is critical to work with someone who you can trust, is helpful and is an excellent communicator. Many people will only consider rate when selecting a mortgage lender and the experience is awful due to the individual or company not placing a premium on the relationship or understanding the importance of communicating throughout the process.

Establish a budget

Before obtaining a mortgage, ensure that you’ll be able to afford regular monthly installments. Choose a target payment that leaves some wiggle room in your monthly budget, and keep in mind other financial goals.

Getting a mortgage loan you can afford includes balancing the money you want to borrow, your repayment length, interest rates, and other miscellaneous costs. Contact the / to see how we can serve you best.

Knowing your maximum budget is easily calculated with a mortgage calculator or by speaking with a mortgage professional. The larger the loan and interest rate, the higher the payments. Don’t stress your finances too thin. A loan officer who is working in your best interest will walk you through this process and help you determine the best and most affordable loan for you.

Pre-qualify for a loan

Pre-qualifying for credit gives you a sneak peek of what kind of offers you could receive. With pre-approvals from selected mortgage lenders, you’ll have personalized loan offers based on your initial requisites and variating terms.

Mortgage lenders perform a credit check during the process that often doesn’t impact your credit score. During the pre-qualification process, basic information, including social security number, monthly debt, income, and personal contact information is required.

Some of the best independent mortgage lenders use different criteria than a traditional bank or credit union to evaluate how likely a person is to repay a loan. This could improve your chances of approval, even with a credit history most mortgage lenders wouldn’t consider.

While there are so many mortgage lenders to choose from, it takes a considerable amount of effort to find the company that suits your financial needs. Prepare all your documents in advance and focus on finding the right mortgage company for your family.

Call The Cain Mortgage Team today at 803 261 9267 to discuss or answer any questions you may have!