Purchasing A Home
As you evaluate whether to rent or buy a home, here are some things to keep in mind:
- The lower your mortgage rate, the less interest you will pay over the term of your home mortgage (with a fixed rate mortgage)
- The more rents go up, the more you may save by owning a home (with a fixed rate mortgage)
- The longer you plan to stay in your home, the more likely it is that you would benefit by buying rather than renting*
Our Affordability Calculator can give you a rough estimate of how much you can afford to pay each month on a mortgage. For a more precise estimate, call ZABE Mortgage to get pre-qualified.
*The interest you pay on a mortgage may be tax deductible as well. Consult your tax advisor about the deductibility of mortgage interest.
Refinancing a Mortgage
The decision to refinance your mortgage depends on your financial situation. Some reasons include:
- Refinancing at a lower interest rate to lower your monthly payment.
- Obtaining a stable principal and interest payment by converting from an adjustable rate mortgage (ARM) to a fixed rate loan.
- Consolidating high interest debt (credit cards, student loans) by using the equity in your home to obtain cash.
Call ZABE Mortgage to learn more about how you may be able to benefit from refinancing.
An FHA loan is insured by the Federal Housing Administration (FHA), an agency of the U.S. government.
Because one of the FHA’s goals is to help more people become homeowners, FHA-insured loans have smaller down payments and other benefits:
- Down payments as low as 3.5%
- Lower closing costs
- Easier credit qualifying
- You may be able to use money received as a gift toward your down payment
A VA loan is a mortgage that is guaranteed by the U.S. Department of Veterans Affairs (VA). The VA helps active military, veterans and eligible surviving spouses become homeowners by enabling VA-approved lenders to offer loans with these benefits:
- No down payment*
- No private mortgage insurance premium
- No pre-payment penalties
ZABE Mortgage is a VA-approved lender with more than 25 years of experience. Call ZABE Mortgage to learn more about VA loans.
The Mortgage Process
Here are some of the key steps in the mortgage process:
- Check your credit report and scores
- Get pre-qualified for a mortgage
- Apply for a mortgage
- Prepare for closing
- Attend closing
The mortgage process will be a bit different depending on whether you are purchasing a home or refinancing. For details, read about the home buying process or the refinancing process.
Call ZABE Mortgage or apply online to get pre-qualified.
Amortization is when you gradually pay off your mortgage over the years by making regular payments.
- At the beginning, most of the monthly payment goes toward paying off interest
- As time goes on, more of the payment goes toward principal
- At the end of the loan term, all principal and interest is repaid
An Amortization Schedule of your loan shows you how much principal and interest you are paying each month on your loan.