Khan Home Loan

Right now, we are generally recommending fixed rate loans. The future interest rates are impossible to predict, but given how low rates are currently we feel that the most likely direction for rates to head is higher. However, since adjustable rate loans have a fixed period (for example a 5/1 ARM will have a fixed rate for five years and then subject to adjustment thereafter) they may be a fit for borrowers that have a high degree of confidence that they will not stay in the home or loan beyond the fixed time frame.

APR is intended to display the total cost to borrow over the loan amortization period. The APR includes the interest charges, fees associated with origination of the loan, and on-going fees such as mortgage insurance. Because of the importance of considering all costs, we recommend that borrowers not only focus on the interest rate but the APR as well.

From a lending perspective, the value of the property is the lesser of the sales price (in the case of a purchase transaction) or the appraised value. There are many internet sites that can provided an estimated value, and those can be helpful, but they should not be relied upon beyond obtaining a “ballpark estimate”.

Definitely, but generally the better credit profile you have the better terms you will get. Although you don’t have to have perfect credit, there are some credit profiles that will not be acceptable to lenders but we do encourage all borrowers to check their options with a lender.

"If you are buying your first home, you should generally expect to pay 1.45% of the purchase price toward annual property taxes. Regarding property insurance, the best way to get an estimate is to contact your insurance agent as these rates can vary widely (however, if you need a quick estimate you can use $35 per $100,000 of home value as an annual amount).If you are moving, you are should use what you are paying currently as a percent of the market value of the home as your starting point. If you are refinancing, you should use what you are paying currently. Additional information… These amounts typically only increase over time and are collected both at closing to cover pending amounts due and then monthly thereafter. Once you have applied for and been approved for a loan, we will work with your insurance agent to finalize the insurance premium and we will work with the title company to finalize the property tax amount."

There is not a pre-set timeframe for when the escrow portion of your monthly payment changes. At least yearly, the servicer will perform an analysis of the amounts needed to pay for property taxes and insurance coverage and determine if enough money is being collected to meet those needs. Based on this analysis your payment could be increased or decreased. The servicer will provide adequate notification to allow you to adjust your payment.

"Your ability to qualify for the loan depends on a wide range of factors, here is a bit of text from the U.S. Government Agency called the Consumer Financial Protection Bureau. Lenders are required to verify and document that … the consumer has a reasonable ability to repay the loan, considering such factors as the consumer’s income or assets and employment status (if relied on) against: The mortgage loan payment Ongoing expenses related to the mortgage loan or the property that secures it, such as property taxes and insurance you require the consumer to buy Payments on simultaneous loans that are secured by the same property Other debt obligations, alimony, and child-support payments. The rule also requires you to consider and verify the consumer’s credit history."