Options
Financing is always an issue when you consider building or remodeling a home. Atlantic Building Company is prepared to help you evaluate the advantages and disadvantages of all your financing options.[/TBS_SPAN] [TBS_SPAN size=”6″]
Cash, Check, or Charge
For smaller home improvement projects that wouldn’t benefit from the advantages of a loan, we will gladly accept cash and/or check.[/TBS_SPAN] [/TBS_ROW] [TBS_ROW fluid=”y”] [TBS_SPAN size=”12″]
Mortgage Terms
Here are a few mortgage terms that will be helpful in exploring your options:
Adjustable Rate Mortgage (ARM): A mortgage loan in which the market conditions determine fluxuations in the interest rate. Changes in the interest rate are determined by a financial index. ARM loans have a cap or a limit on how much the interest ratecan change.
Amortization: Repayment of a mortgage loan with equal periodic payments of both principal and interest. The payments are calculated so that the debt is paid off at the end of a fixed period of time.
Annual Percentage Rate (APR): A term that expresses the cost of a mortgage as an annual rate. The APR is normally higher than the advertised interest rate because it includes interest, points, and other finance charges. The APR is used to compare different types of mortgages.
Balloon Mortgage: a short-term mortgage loan of equal monthly payments in which a large final payment (balloon) is due on a specified date. The final payment is equal to the remaining balance of the loan.
Conventional Loan: A mortgage loan made by an approved lender in which the borrower’s ability to repay the debt is not insured by a government agency such as the FHA or VA.
Equity: The amount of the home that you actually own. Equity is the difference between the market value of the home and what you still owe on it.
Housing-to-Income Ratio: A ratio that compares all your monthly housing expenses to your monthly income. Normally, housing expenses are equivalent to 28 percent of your monthly income. This ratio is used by the loan to see if you qualify for a mortgage.
Mortgage: A legal document that pledges you r property as security for repayment of the Mortgage loan.
Mortgage Broker: A real estate financing professional who brings homebuyers and sellers together arrange funding and negotiate contract.
Total Debt-to-Income Ratio: A ratio which compares all of your monthly debt payments, such as credit cards and car payments, to your monthly income. Normally, your monthly debt payments are equivalent to 36 percent of your monthly income. This ratio is used by the loan officer to see if you qualify for a mortgage loan.[/TBS_SPAN] [/TBS_ROW] [TBS_ROW fluid=”y”] [TBS_SPAN size=”12″]
Loans
There are many different types of lending options available for you to choose from. We recommend you consult with your financial advisor or accountant to determine what is best for you. We have also provided the name of a mortgage broker, The Greater Mortgage Corporation, that has assisited many of our clients with their financial needs.[/TBS_SPAN] [/TBS_ROW]