Mortgage Rates

In truth, winding through the legitimate offers and types of mortgages is a specialty.  Some details will be offered below, while your best answer is to consult with someone who really understands them.  Give JEA Realty™ a call at (510) 304-5704 for expert assistance from a licensed REALTOR®.

The best mortgage for you depends upon a variety of factors.  Does the property have an excellent assumable loan?  How do you need payments structured?  How flat (or increasing) are your income prospects?  How does your credit history look, and what credit score will a lender use in evaluating your credit worthiness?

APR (Annual Percentage Rate)

is calculated by adding the interest rate, the discount points, the initial service charge, the premium paid to insure the mortgage, and certain other charges collected by the lender.
— Truth in Lending Act
 

Closing Costs

may include a lender's service charge or origination fee, cost of the title search, fees for preparing, notarizing, and recording the deed and the mortgage, and other items.  You will also be asked to make payments in advance for such items as taxes, property insurance, and interest to the end of the month.
 
Certain closing costs, such as recording fees and taxes, title examination, and credit reports, may be paid by the seller, or they may be shared between the borrower and the seller, depending on the terms of the sales contract.
 

Discount Points

Lenders can charge discount points to borrowers.  A point is $1 for every $100 of the mortgage amount.  Points are charged when the interest rate is lower than the yield required by investors who buy mortgage securities.  (Yield is the ratio of investment income to the total amount invested over a given period of time.)  Securities are "packaged," usually in portfolios of $1 million dollars or more, and bought and sold in the financial markets. This creates additional mortgage money to lend to other homebuyers.  The numbers of points charged varies in different places at different times and among different lenders.
 

Graduated Payment Mortgage

allows you to make lower payments during the early years of the loan.  As your income increases, your payments also gradually increase for several years, then level off and remain steady for the balance of the mortgage.  In effect borrow additional money during the early years of your mortgage by deferring interest payments.  This allows you to have smaller initial monthly payments.  The deferred interest is added to the loan balance in later years.
 

Initial Investment (Down payment)

The borrower's initial cash investment is the difference between the amount of the mortgage and the total cost of the home.  The total cost includes the purchase price plus closing costs, but it does not include prepaid items that you have to pay at settlement, such as real estate taxes and hazard insurance.  Some loan programs have fixed minimums for the buyers Initial Investment, often calculated as a percent of the total property cost.
 

Interest Rate

The interest rate a borrower pays for the mortgage is negotiated between the borrower and the lender.  Interest rates fluctuate daily, depending upon conditions in the mortgage market.

Call (510) 304-5704 for the assistance of a licensed REALTOR®.