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1. How do I know which type of mortgage is best for me? Answer
2. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3. What does my mortgage payment include? Answer
4. How much cash will I need to purchase a home? Answer
5. Once I complete an application, what should I expect? Answer
6. What is title insurance and why do I need it? Answer
7. What is PMI (Private Mortgage Insurance) and why do I need it? Answer

Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house.  One of our Mortgage professionals can help you evaluate your choices and help you make the most appropriate decision. To speak with Mortgage Professional call (518) 370-7280 or or click on apply now and complete the Information Requested under the Loan Center Menu to have a Mortgage Professional to contact you.
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to a Mortgage Professional at  1st National Bank of Scotia.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Cash required for closing generally is comprised of the following; 

  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement or closing.
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

    One of our Mortgage Professionals can help you determine your down payment and closing costs prior to applying for your loan.  They can be reached at (518) 370-7280 or email the Residential Mortgage Department to have a Mortgage Professional contact you.

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    Q : Once I complete an application, what should I expect?
    A : Your Loan Originator will contact you shortly after your application is completed.  They review your loan application package to make sure we have all necessary information and documentation so your application is processed quickly.  All processing and closing is done locally which means you are dealing with individuals that are familiar with the local community and local market trends.  Once your loan is approved, a Mortgage Processor will be assigned to your loan and will contact you to help you prepare for your mortgage closing.   

    Questions are encouraged.  Contact your loan processor or your Mortgage Professional at (518) 370-7280Contact us

     
    Q : What is title insurance and why do I need it?
    A : Title insurance is insurance against loss from defects in title to real property and from unenforceable mortgage liens.  There are two different policies available; a Mortgagee Policy and an Owners Policy.  The Mortgagee Policy is required when obtaining mortgage financing.  It protects the Lender's financial interest in real property against loss due to title defects, liens or other matters.  It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.  An Owners Policy, is optional, but suggested, it also is meant to protect an owners financial interest in the real property against loss due to title defects, liens or other matters.  It protects the Owners equity by providing a corporate guarantee against insured defects, paying all legal expenses to eliminate title defects, paying claims arising from errors in title examination and recording, and pays any loss from hidden defects in title and defects not of record. 
     
    Q : What is PMI (Private Mortgage Insurance) and why do I need it?
    A : PMI or Private Mortgage Insurance is default insurance on mortgage loans that protects the lender and is provided by a private mortgage insurance company.  PMI allows the borrower to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value (LTV) mortgage.  The insurance is not paid for the entire life of your mortgage.  The Home Owners Protection Act of 1998 requires PMI to be cancelled when the amount owed reaches a certain level or 78% of the home's original value.  If your loan balance is paid down to 80% of your home's original value, you can submit a request to cancel the PMI to your lender.  As long as you meet certain criteria, the insurance may be removed.

    PMI can be tax deductable.  Please check with your Tax Consultant to qualify for the tax deduction.