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The Need to Know:MortgageMitchel Ronacher, Isaac Hill, Adam Luehmann, Corey PlathWhat is a Mortgage?A Loan

Legal signed agreement

Foreclosure

Monthly Payments

P.I.T.I.Principal

Interest

Taxes

Insurance

Where do you find a Mortgage Lender?Lender can be anyone!Financial InstitutionsWells Fargo and Chase BankCredit Union Mortgage associationOnline mortgageAAAmortgage.comQuickenloans.comMethod of paying is varied

Benefits of getting a MortgageBuilds credit

Builds equity

Freedom

More pocket cash and security

Uniform Residential Loan Application

IncomeEmployment

Investments

Other Income

Payment AbilityGoal

Not above 36%

Not above 28%

ExpensesItemized list of current debtReal-estate based debt

AssetsBank BalancesSecurity Account StatementsRetirement fund interestLife insurance policiesSignificant Pieces of personal property

LiabilitiesLoans

Legal InformationOther Debts or Income

What happens nextInformation is verifiedCredit ReportBackground CheckUnderwritingPre-Approval LetterAfter VerificationAmount approved to lendYou decide to accept or notGood Faith EstimateOutline of CostsCredit Report FeesHome AppraisalTitle Search FeeDown PaymentClosing CostsTruth-in-lending Disclosure StatementAmount being financedFinance ChargePayment ScheduleAnnual percentage rate

HUD-1 Settlement StatementDisclosesFees of closingLow range 3%High range 7%Services of closingGiven when closing date is setThe NoteStates you will repay the loanYou agree to the terms of paymentExplains the consequences of not payingMortgage or Deed of TrustThird party transfer till full paymentLenders right to propertyYou promiseTo keep your house in good repairTo maintain insurance on the propertyDeedSigned by seller to transfer ownershipHeld by third party till the loan is paidYou receive a copy as evidence at closingAffidavits and DeclarationsDeclares the information you provide is trueStates the house will be your main residenceStates all needed repairs were madeHome Buyer CreditFirst-Time Home Buyer CreditEnacted by the Government in 2008Available from 2008 to 2010Provided a tax credit for the year you purchased your homeIn some circumstances the credit had to be repaidThis tax benefit is no longer availableMortgage Credit CertificateMortgage Credit CertificateAvailability varies from State to StateA percentage of the interest you pay on your mortgage becomes a tax creditThe remainder of your mortgage interest still qualifies as an itemized deductionNeed to fill out tax Form 8396

Mortgage InterestMortgage InterestCan be included in Itemized Deductions(Schedule A lines 10 and 11)Limited to interest paid on $1,000,000 of home acquisition debt and interest on $100,000 of home equity debtMay be changed in upcoming years

Real Estate TaxesReal Estate TaxesCan be included in itemized deductions (Schedule A line 6)Do not include itemized charges or charges for improvements that increase your properties value likeMonthly charges for garbage collectionAssessment to build a new sidewalk

Tax FormsSchedule Ahttp://www.irs.gov/pub/irs-pdf/f1040sa.pdfForm 1040http://www.irs.gov/pub/irs-pdf/f1040.pdfGet PreparedMake sure you are readyhttp://www.zillow.com/http://www.bankrate.com/calculators/mortgages/mortgage-loan-points-calculator.aspxGet the scores you needExperianTransUnionEquifaxOrganize paperworkMake time for the pre-approvalFive tips for Buying a HouseDont buy if you cant stay put.Aim for a home you can really afford.Buy in a district with good schools.Get professional help.Hire a home inspector.

Five Mortgage MistakesMisunderstanding mortgage discount points.Ignoring mortgage rates.Failing to compare lenders.Not considering various loan options.Not understanding basic terms.News ArticleThe average 30-year fixed-rate mortgage was 4.32% with 0.7 points for the week ending Sept. 26, down from 4.5% a week earlier. A year ago, the 30-year fixed rate was 3.4%.The average rate for a 15-year fixed-rate mortgage was 3.37% with 0.7 points. Last week the rate was 3.54%, and a year ago it was 2.73%.

Read more from JSOnline:http://www.jsonline.com/business/mortgage-rates-hit-9-year-low-freddie-mac-reports-b99107307z1-225357992.html#ixzz2gXgTtZol