Maximum Mortgage Concepts

At Maximum Mortgage Concepts, our goal is to get you approved for the best mortgage that meets your needs. Varying circumstances dictate different loan types.

Why do so many mortgage companies try to make mortgages seem difficult and complicated? A mortgage is all about enabling you to realize the pride of home-ownership.

Whether you're just starting a family. . . or just looking for a little more breathing room Maximum Mortgage Concepts can help you realize your dreams.

Now, let's learn a little bit about mortgages. Let's start out with some common terms:

Fannie Mae (FNMA) - Fannie Mae is a quasi-governmental agency which was created in 1938. Its mission is to provide financing to home-buyers by buying mortgages in the secondary market.

Freddie Mac (FHLMC) - Freddie Mac was created in 1970 to purchase conventional mortgages in the secondary market.

Ginnie Mae (GNMA) - Is the governmental agency which purchases the majority of FHA and VA loans.

Conventional Mortgage - This is a mortgage for people who have managed their credit fairly well and have histories of paying their bills on time. Conventional mortgages usually require a down payment of 5%, however, the lower the down payment the better the credit history must be.

FHA or VA loans - These loans are government insured loans available for lower down payment amounts. FHA (Federal Housing Administration) allows down payments as low as 3.00%. You may even be able to get some assistance in making that down payment, but you should call Maximum Mortgage Concepts to learn more about programs which are available. VA (Veterans Administration) loans are available to eligible veterans with no down payment. There are certain restrictions to both programs, so call or e-mail us for more information about them.

Interest rate - Usually just called "rate" is the cost you pay for borrowing money. Whether you are buying a house, a car or charging something on your credit card, you pay interest. The lower this number is, the less you are going to pay in interest.

Points - A point is simply 1% of your loan amount. People usually think of points as "discount points" which you can pay to buy down your "rate". For example, if your mortgage is for $100,000 and you are buying one discount point, it would cost you $1,000. You may also be charged "origination points" which is a charge for doing your loan. Most refinances are done with "no points".

Refinance - When you refinance, you are paying off your old mortgage with a new mortgage. You might want to refinance if the interest rate is lower. For example, if you have a mortgage at 9% and the current rate is 7.5%, it might be a benefit to refinance. Another reason to refinance is to get cash from your home. 

Buy-down - This is what happens when you purchase "discount points". Your rate is "bought down" to a lower level.

Equity - Equity is how much of your home you own. As an example, if your home is worth $200,000 and you still owe $100,000 you would have $100,000 of equity in your home. A portion of that would be available to you if you were to refinance.

Pre-qualification - Pre-qualifying is when a lender asks you about your income, assets (bank accounts, etc.) and liabilities. You will then be pre-qualified to buy a home for a certain amount based on your Debt to Income.

Pre-approval - After your application has been taken, you can be pre-approved. With a pre-approval, the lender looks at your credit report, verifies your employment and completes the majority of the loan approval process before you buy your home. This gives you more purchase power when you submit an offer to a seller.