The biggest mystery in the home-buying process can be the financing. Most homeowners buy a home with the help of a mortgage loan. Understanding mortgage loans can take some effort, but a savvy consumer will make that effort.

Mintz Homes would love to talk with you about the fastest way to get pre-approved for a mortgage loan – so we can get started house hunting! We can connect you with multiple highly reputable lenders that specialize in Central Maryland.

Below, we have outlined some basics of the mortgage process. Explore the handy mortgage calculator at the bottom of the page.

Most mortgage loans fall into this category.

  • Borrowers will be asked to choose either a fixed rate or a variable rate mortgage loan (an or adjustable rate mortgage, has an interest that adjusts upwards over the life of the loan)

  • A conventional mortgage loan is for amounts below $453,100. Over that amount, they are considered “jumbo” loans

  • Banks accept down payments of 3-20% of the total loan amount on conventional loans, depending on the credit standing of the borrower

  • Mortgage loans are generally made in 10, 15, 20, and 30-year terms

  • Mortgage insurance (PMI) is required until the borrower’s equity equals20%

Federal Housing Administration (FHA) loans are federally-backed loans that make home ownership possible for a broader range of borrowers.

  • All FHA loans are fixed-rate loans

  • Maryland borrowers may qualify for up to $517,000 (or $679,650,

    depending on the county (Please ask for details.)

  • The down payment on an FHA loan may be as low as 3.5%

  • Mortgage insurance is required for the life of the loan

  •  There is an upfront cost for mortgage insurance, usually included in the loan’s

    closing costs

Veterans Administration (VA) loans help make home ownership affordable for America’s veterans. Only active duty veterans qualify for these loans.

  • No down payments are required

  • No mortgage insurance (PMI) is required

  • The law limits

    • out-of- pocket

    • closing costs charged on VA loans

  • Multiple properties may qualify for VA loans, as long as the total amount borrowed does not exceed VA loan

Jumbo – or non-conforming – loans will be for amounts greater than the local maximums for government-backed loans.

  • On jumbo loans, borrowers typically must come to the table with

    down

    payments of 20-30%

  • Mortgage insurance (PMI) may be required, depending on the

    creditworthiness of the borrower

  • Jumbo loans have historically carried higher interest rates. At 2018 market

    rates, however, the interest charged on these loans can be very close to

    that for conventional loans.

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Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
3.5%
Enter a value
Term in years
Number of years you have to pay.
years
Enter a value
Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
Enter a value
Property tax
Enter your property tax here if you know it.
per year
Enter a value
Home insurance
Most lenders require home insurance. Enter its price here.
per year
Enter a value
PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
Enter a value

Your total monthly payment


$

Principal & Interest
$
Home insurance
$
Property taxes
$
PMI
$