Understanding
Your Mortgage
Home ownership. An integral component of the
American Dream. Whether you are a first time home buyer or have owned a home
before, most would agree that it pays to own the place you call home. But what happens when dreaded mortgage
terms are thrown around, and you find yourself overwhelmed in a sea of
confusing terminology? You are not alone! Most individuals find “mortgage
talk” anxiety producing, as mortgage terms are often not explained
clearly and thoroughly to potential buyers.
It is not surprising that the average New
Hampshire home buyer finds “mortgage talk” completely overwhelming
and confusing. The modern mortgage market is full of all different types
of mortgage loans meant to cater to the varied needs of home buyers.
Since new types of mortgage loans are constantly being introduced to New
Hampshire home buyers, how could they not find themselves unsure about
which way to turn?
Today’s New Hampshire mortgage market offers
varied mortgage loans in an effort to cater to the needs of potential
home buyers. In an attempt to provide more options and open doors for a
variation of buyer populations, different mortgage plans offer different
titles and details. Translation: as more types of mortgage loans are
continuously introduced, homebuyers often find the discrimination between
available plans both perplexing and unclear.
One of the most important steps that you can take as
a home buyer is to choose a real estate agent who is passionate, patient
and knowledgeable in terms of the varied details and stipulations associated
with the variations of New Hampshire mortgage loans. Matt Hicks, of Keller Williams Realty in New
Hampshire is a real estate agent who prides himself in taking a unique
approach to realty. He sympathizes with home owners in that he recognizes how
overwhelming mortgage loans can seem and seeks to make genuine connections with
customers. He also lives in New Hampshire and enjoys supporting individuals and
families in finding their New Hampshire dream home.
According to
Matt Hicks of Keller Williams in regards to the state he has come to love, “As
an individual who calls New Hampshire home, I think that this state is a
wonderful place to live. It is a great place in terms seeking work and quality
education. It is also a great place to raise a family and create life-long memories.
Whether you are seeking a location with a commutable distance to the mountains,
city or beach, you cannot do much better than New Hampshire.” In reference to
the New Hampshire mortgage market, Matt Hicks states, “New Hampshire is
the ideal place to buy a home, as the modern mortgage market in New
Hampshire offers a variety of mortgage loans in order to cater to the needs
of homebuyers. I enjoy summarizing “mortgage talk” into more simple
terms for customers, as once they get past the overwhelming aspects of the mortgage
market, most recognize that the terms and details of New Hampshire mortgage
plans are reasonable and truly make sense.”
All New Hampshire mortgage loans have one of
the following features. Some mortgages are fixed rate mortgages, which refers
to a fixed payment and fixed interest rate. Some mortgages are graduated payment
mortgages with a fixed rate but variable payment and other mortgages are
adjustable rate mortgages with a variable rate and variable payment.
There are basic principles common to all mortgage
loans. The first principle of a New Hampshire mortgage is that the home
is used as security in order to back up the loan; meaning that the lender can
force sale of the home if the borrower fails to make scheduled payments. The
second principle of a New Hampshire mortgage is that the larger the loan
in comparison to the value of the home, the more risk exists for the lender.
Often, the larger the loan in comparison to the value of the home, the more
expensive the loan will be. The third principle is that the interest earned by
the lender is always equal to the periodic interest rate times the outstanding
principle balance of the loan. The periodic interest rate, often a confusing
term for home buyers, refers to the annual interest rate divided by the number
of payments within one year, (usually one per month). The fourth principle
refers to the required payment, and states that the required payment is usually
larger than the interest due in an effort to ensure that some of the loan
principal is paid within each payment. Such a process is referred to as
Amortization.
As a real estate agent, Matt Hicks seeks to
help clients learn about the types of financing available and recognize that
some loans have more favorable terms than others. There are considerations
buyers must make in regards to their individual preferences and financial
situations.
If you or someone you know is looking to buy or sell
a home, please contact Matt Hicks of Keller Williams Realty. Matt can be
reached through phone at (603)660-2264 or through email at mhicks1988@hotmail.com.
