The need to know mortgage
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The Need to Know: Mortgage. Mitchel Ronacher , Isaac Hill, Adam Luehmann, Corey Plath. What is a Mortgage?. A Loan Legal signed agreement Foreclosure Monthly Payments. P.I.T.I. Principal Interest Taxes Insurance. Where do you find a Mortgage Lender?. Lender can be anyone!

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The need to know mortgage

The Need to Know:Mortgage

MitchelRonacher, Isaac Hill,

Adam Luehmann, Corey Plath

What is a mortgage

What is a Mortgage?

A Loan

Legal signed agreement


Monthly Payments

P i t i






Where do you find a mortgage lender

Where do you find a Mortgage Lender?

  • Lender can be anyone!

  • Financial Institutions

    • Wells Fargo and Chase Bank

    • Credit Union Mortgage association

  • Online mortgage



  • Method of paying is varied

Benefits of getting a mortgage

Benefits of getting a Mortgage

Builds credit

Builds equity


More pocket cash and security

Uniform residential loan application

Uniform Residential Loan Application





Other Income

Payment ability

Payment Ability

  • Goal

  • Not above 36%

  • Not above 28%



Itemized list of current debt

Real-estate based debt



Bank Balances

Security Account Statements

Retirement fund interest

Life insurance policies

Significant Pieces of personal property




Legal information

Legal Information

Other Debts or Income

What happens next

What happens next

  • Information is verified

    • Credit Report

    • Background Check

  • Underwriting

Pre approval letter

Pre-Approval Letter

After Verification

Amount approved to lend

You decide to accept or not

Good faith estimate

Good Faith Estimate

  • Outline of Costs

    • Credit Report Fees

    • Home Appraisal

    • Title Search Fee

    • Down Payment

    • Closing Costs

Truth in lending disclosure statement

Truth-in-lending Disclosure Statement

Amount being financed

Finance Charge

Payment Schedule

Annual percentage rate

Hud 1 settlement statement

HUD-1 Settlement Statement

  • Discloses

    • Fees of closing

      • Low range 3%

      • High range 7%

    • Services of closing

  • Given when closing date is set

The note

The Note

States you will repay the loan

You agree to the terms of payment

Explains the consequences of not paying

Mortgage or deed of trust

Mortgage or Deed of Trust

  • Third party transfer till full payment

  • Lender’s right to property

  • You promise

    • To keep your house in good repair

    • To maintain insurance on the property

The need to know mortgage


Signed by seller to transfer ownership

Held by third party till the loan is paid

You receive a copy as evidence at closing

Affidavits and declarations

Affidavits and Declarations

Declares the information you provide is true

States the house will be your main residence

States all needed repairs were made

Home buyer credit

Home Buyer Credit

  • First-Time Home Buyer Credit

    • Enacted by the Government in 2008

    • Available from 2008 to 2010

    • Provided a tax credit for the year you purchased your home

    • In some circumstances the credit had to be repaid

    • This tax benefit is no longer available

Mortgage credit certificate

Mortgage Credit Certificate

  • Mortgage Credit Certificate

    • Availability varies from State to State

    • A percentage of the interest you pay on your mortgage becomes a tax credit

    • The remainder of your mortgage interest still qualifies as an itemized deduction

    • Need to fill out tax Form 8396

Mortgage interest

Mortgage Interest

  • Mortgage Interest

    • Can be included in Itemized Deductions(Schedule A lines 10 and 11)

    • Limited to interest paid on $1,000,000 of home acquisition debt and interest on $100,000 of home equity debt

    • May be changed in upcoming years

Real estate taxes

Real Estate Taxes

  • Real Estate Taxes

    • Can be included in itemized deductions (Schedule A line 6)

    • Do not include itemized charges or charges for improvements that increase your properties value like

      • Monthly charges for garbage collection

      • Assessment to build a new sidewalk

Tax forms

Tax Forms

  • Schedule A


  • Form 1040


Get prepared

Get Prepared

  • Make sure you are ready



  • Get the scores you need

    • Experian

    • TransUnion

    • Equifax

  • Organize paperwork

  • Make time for the pre-approval

Five tips for buying a house

Five tips for Buying a House

Don’t buy if you can’t stay put.

Aim for a home you can really afford.

Buy in a district with good schools.

Get professional help.

Hire a home inspector.

Five mortgage mistakes

Five Mortgage Mistakes

Misunderstanding mortgage discount points.

Ignoring mortgage rates.

Failing to compare lenders.

Not considering various loan options.

Not understanding basic terms.

News article

News Article

The average 30-year fixed-rate mortgage was 4.32% with 0.7 points for the week ending Sept. 26, down from 4.5% a week earlier. A year ago, the 30-year fixed rate was 3.4%.

The average rate for a 15-year fixed-rate mortgage was 3.37% with 0.7 points. Last week the rate was 3.54%, and a year ago it was 2.73%.

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