Community MortgageMortgage Company in Portland, OR

Home Buying Process

If you have purchased a home before you may be familiar with the process. If you are a first time buyer, the experience can be confusing, frustrating, and intrusive. What most people don't realize is that all mortgage lenders play by almost identical rules - those established by the Department of Housing and Urban Development, better known as HUD. We use the rules in your favor.

Once upon a time the majority of mortgages were based on 30 years with a fixed interest rate. You had to be employed for several years, and your income as compared to your debts had to exceed a certain percentage. You had to put 15 to 20% down, and pay certain closing costs. The big changes came during the 21% rates of the Carter years.

Refinance

Refinancing your home may benefit you in several ways. It is always best to look carefully at your goals, evaluate the costs involved, and make sure the end result meets these goals. Refinancing to lower your payment - Ideally, you would take advantage of a lower rate to reduce your payment. But remember, there are costs involved in closing the loan. You should consider what these will be, and how long it will take to offset them. The term is also important. You may reduce your payment, but increase the term, costing you more money in the long run. These are just a few things to consider.