Thursday, June 27, 2013

Prescott, AZ Mortgage Banker - Important Questions to Ask About YOUR Mortgage


AmeriFirstFinancial, Inc. your LOCAL Prescott, AZ Mortgage Banker is here for you. Our LOCAL Prescott, AZ Mortgage Banker Branch of AmeriFirst Financial is proud to be staffed with Four Loan Officers, a Loan Officers Assistant, Processor and Administrative team. We are located in the Prescott Business Center at: 222 W. Gurley Street, Suite 202, Prescott, AZ 86301.

Our Prescott, AZ Mortgage Banker Loan Officers are here to guide you through each stage of the process and provide you with expert advice along the way.

We are committed to making the home loan process clear, informative and simple. At your LOCAL Prescott, AZ Mortgage Banker AmeriFirst Financial we understand that buying a home will be one of the biggest purchased of your life. That is why we are committed to providing you with the information you need to make well informed decisions.


Here are Important Questions to Ask About YOUR Mortgage

Q. Will my mortgage balance ever go up?
A. There are loan products, called negative amortization loans that allow you to make a low minimum payment that result in the mortgage balance increasing. When shopping for a mortgage, be aware that the low-payment feature on a negative amortization mortgage increases your balance, even if you make minimum payments. (Not offered by AmeriFirst Financial Inc.)

Q. Does my interest rate go up over time, and if so how often?
A. If you decide to get an adjustable-rate mortgage (AMR) your rate may start out low, and then adjust over pre- determined periods. Get a copy of your adjustment schedule, the index, and the margin on which the rate of adjustment will be based.

Q. Does my monthly payment go up over time, and if so how often?
A. Even on mortgages with principal and interest payments that don’t increase, your payments for property taxes and homeowners insurance may increase. Also, payment increases can occur on certain types of mortgages other than an adjustment to your rate. Find out if the mortgage you are looking at will have payment increases because if you can’t afford an increase, you should consider an alternate loan program to avoid losing your home.

Q. Could a scheduled payment be higher than the regular monthly payment?
A. Balloon mortgages, which are not very common, are mortgages with a final payment that exceeds the normal monthly payment, usually significantly.

Q. Will my scheduled monthly payment only cover interest at any point over the mortgage term?
A. Some mortgages allow you to make monthly payments that cover only the interest accrued during the month for a pre- determined amount of time. Payments will be lower than payments that include principal, but they do not reduce your mortgage balance, and the payment could substantially increase after the interest only period ends.

Q. If I pay off my mortgage ahead of schedule is there a penalty fee?
A. Most mortgages do not have pre-payment penalty fees. As you shop for a mortgage, be sure to find out if the mortgage you select will have a prepayment fee. If it does, find out how it will be calculated, and when you will have to pay it.

Q. If I make a late payment will there be a penalty fee?
A. If you do not make a payment on time you will be charged a late fee. Find out if your lender will give you a “grace period,” during which you can pay late without incurring a penalty fee.



Please feel free to stop by or call your LOCAL Prescott, AZ Mortgage Banker
AmeriFirst Financial, Inc.
222 W. Gurley Street, Suite 202, Prescott, AZ  86301
(928) 227-0586  |  www.amerifirst.us

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