Mortgage Basics 101

Understanding mortgages can be difficult, which is why we’ve put together some information to guide you through the mortgage basics.

You don’t need an advanced degree in economics to understand the financing of your home. A crash course in mortgage basics will suffice, and First Bank has the resources to help you learn the ins and outs of a mortgage.

What is a mortgage? According to Investopedia, at its most basic, a mortgage is a loan used to purchase a house. While this definition may seem simple enough, home loans are complex. There are many different types of home loans and each can have varying terms and interest rates.

Types of mortgages. Mortgages can be broken down into two main categories—fixed-rate and adjustable-rate—and each category can include different loan types. Fixed-rate mortgages are popular because the interest rate stays the same throughout the life of the loan and they typically have less complicated terms. Adjustable-rate mortgages are loans in which the interest rate can change. Adjustable-rate mortgages typically have lower initial interest rates than fixed-rate mortgages, which means your initial monthly payments will be lower.

Getting a mortgage. Before you apply for a mortgage, it helps to understand the types of mortgages available to you, how much house you can afford, and what you will need to apply. And one of the best ways to find out this information is to use mortgage tools from First Bank, from mortgage calculators to application help, we make the process of purchasing a home as simple as possible. Mortgage Basics

Help from First Bank’s Mortgage Center

By visiting our Mortgage Center, you can get the benefits of a crash course in mortgage basics through a host of services, including:

Mortgage Know-How. This is a collection of blogs, articles, tips, and guides for first-time or experienced home buyers, builders, or refinancers.
Calculators. Use these tools to calculate how much house you can afford, determine whether you should refinance or not, decide to buy or rent, or figure out how much you can save by increasing your mortgage payment.
Application Help. We give you the opportunity to fill out a mortgage application online to expedite the process, but if you need help with the application, simply contact one of our home loan experts.
Loan Comparisons. See a comparison of all our different loan options, so you can select the one that is right for you. Choose from conventional, government, jumbo, professional, or construction mortgages.
Find a Loan Officer. Enter your location to see the nearest First Bank home loan officers to you, or fill out a short form to have a First Bank specialist contact you within 48 hours regarding your mortgage.

Once you’re up to speed on all the mortgage basics and ready to go ahead and fill out a mortgage application, simply use our easy online application.

Find a First Bank near you to learn more about a mortgage.

Loans subject to credit approval.

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Sources:

Investopedia: http://www.investopedia.com/university/mortgage/

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Mortgage Basics 101

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