RHODES FINANCIAL MORTGAGE -
Loan Tips

The Application

There are several options out there, and sometimes it can be frustrating to sort through all of them. We recommend that you consult with one of our loan officers and then let us suggest some options for you. We will make you feel very certain and secure that we are working with your best interest in mind.

Program Selection
Be sure to choose the best type of program that meets your needs. There are several different options available to you. We look at different factors when making recommendations. How long do you plan to live in the home? For instance, let's say you buy a home that you plan to live in for the next 20 years. Fixed rate loans are approximately 7%, while adjustable rate mortgages (ARMs) are starting around 4%. You could save some money on the ARM , but probably only for the first few years. You will most likely spend more money during the life of the loan.

Paying Points
A point is 1% of the loan amount. Sometimes it saves you money to pay for points. Generally on a 30 year fixed Mortgage, one point will save you at least 1/4% of interest. Your 1% investment will be recouped about 5 years over a 30 year term, therefore you will gain approximately 6 times your investment back over the life of your loan.

Up-Front Fees
Never pay any fees up-front unless they are for additional services such as a credit report or appraiser. Mortgage brokers are only paid commission when a loan closes.

Closing Costs
There will always be some closing costs involved in your financing. Even though you may not pay any costs on a No-Fee loan, someone is paying the fees. On a Zero-Fee loan, you are simply given a higher interest rate to absorb the cost of the loan, and the fees are then paid by the lender. Sometimes this is a very effective way of financing. You really need to look at all of your options and one of our loan experts with any questions you may have.