PA Homes for Sale
Mortgage Basics
If you are in the market for a new home, or would like to refinance your current mortgage, the information in the links below is sure to help you out.
I'm buying my first home
So you are interested in purchasing your first home? Great. We're here to help. Click here for a wealth of information to become an educated first time home buyer.
I'm buying my next home
Have you outgrown your current home and are looking for an upgrade? Or are you looking to downsize your current property? Here is all of the information you need to get the process started.
I'm refinancing my home
Want to get a better rate on your current mortgage, or do you need some liquid funds for a large purchase or upgrade on your home? Use this link for all you need on information on refianancing.
I'm buying my first home
Buying your first home making you nervous? Get information and tools for beginners right here.
Q&A for first-time home buyers:
What can I afford to buy?
Calculate the estimated mortgage payment
Several formulas exist to help determine how much a lender will allow a consumer to borrow. One of the more accurate formulas is a front- and back-end ratio. It states that the buyer can afford as much as 28 percent of his or her gross-monthly income toward the monthly mortgage payment, assuming that the consumer's other debt payments(credit cards, car loans, student loans, etc...) are less than or equal to 8 percent of his or her gross-monthly income.
To better understand this formula, assume a gross-family income of $5,000 a month. The front-end ratio or maximum monthly mortgage payment is (28 percent of $5,000) $1,400. The back-end ratio is (8 percent of $5,000) $400. Therefore, the buyer can afford a $1,400.00 monthly mortgage payment as long as monthly debt payments are less than or equal to $400. If debt payments exceed the back-end ratio, it will reduce the monthly mortgage payment dollar for dollar. For example, if debt payments are $500, the maximum monthly mortgage payment a person could afford would be reduced to $1,300.
Planning for Home Maintenance Costs
You don't think about future maintenance costs when buying a home, but you should. Whether buying an older home or a newly constructed home, equipment can be faulty and costly to repair.
Usually a home's purchase price can be used to project maintenance costs. The recommendations for annual maintenance costs range from 1.5 to 4 percent of the home's original cost. While this is not always true, especially when the purchase price of a home is three-quarters of a million dollars, it is a good rule of thumb for the average home buyer.
Since most home buyers are focusing on making the down payment and not saving for future repairs, a home warranty provides a good back-up plan.
Most home warranties cost between $300-$400 and will cover many major home systems and built-in appliances for one full year after close. A home warranty will either pay to repair or replace a covered item and the homeowner pays a minimal deductible rather than the full cost of repairs. It's an easy way to manage your home's finances and plan for those unexpected repairs.
Do I have enough money to buy my first home?
We offer a range of mortgage programs, and we'll help you determine which can work for you – some of our loans require little money down. You'll also need to consider closing costs and the escrow account for taxes and insurance. But don't get overwhelmed: it's a snap to figure out how much money you'll need, using our handy Affordability Calculator.
What about my less-than-perfect credit report?
Our special solutions program can help:
- We offer loan options ideal for those who have a few "dings" on their credit report.
- We try to work with every customer to develop an individual mortgage program - we call it your personalized rate, because no two are alike.
- So we try to develop a custom program based on your credit worthiness.
What's the best loan program for me?
That depends on a number of factors, including:
- How long you'll stay in the home;
- How much money you'll put down;
- How you'll finance the closing costs.
For information on the loan programs and rates available, visit Loan Programs on the Coldwell Banker Mortgage website.
What are the tax benefits to owning a home?
You may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, such as points. And your property taxes could be deductible. You should consult your tax advisor for more information. If you're renting right now, you may want to take a look at our Rent vs. Buy Calculator.
What do I need to know about the mortgage loan process?
Just this — you've come to the right place for a loan process that's fast, clear, and even fun! We've worked hard to simplify the process and provide the best loan experience anywhere, online or off. Too good to be true? Not at all. Click here to find out How We Do It.
What can I expect after I become a homeowner?
Besides unpacking boxes? You can expect that we'll continue to provide first-rate support and service. Go online anytime to monitor your loan activity, like principal, escrow, and taxes. And of course, we're always here to help: contact us by email or by phone.
I'm buying my next home
Learn more about moving on to your next home or buying a second home.
Q&A for Repeat/Experienced Buyers:
I want to move up to a better home. What can I afford?
Each buyer is unique - and we'll help you find out just what you can afford. You already know that monthly income and financial obligations are most important in determining your price range. It's simple to make an estimate: just run the numbers for yourself using our Affordability Calculator.
I'm buying a second home. Is it a different process?
No. Whether you need to be near the water or in the mountains, a vacation home offers an opportunity for fun and relaxation - and we make it just as easy to obtain a mortgage. But keep in mind you'll need to identify sources for your down payment, since you're not selling your current house and using the proceeds, and you'll need to expect a larger monthly obligation for housing expenses. We'll work with you to create a customized loan program with the best combination of rate, points, and closing costs for your needs - we call it our personalized rate because no two are alike!
What about my less-than-perfect credit report?
Our special solutions program can help:
- We offer loan options ideal for those who have a few "dings" on their credit report.
- We try to work with every customer to develop an individual mortgage program - we call it your personalized rate, because no two are alike.
- So we try to develop a custom program based on your credit worthiness.
Will I need an appraisal on my new home?
Not necessarily. You may qualify for a more streamlined loan process. We can look at your credit history and consult our property assessment model to determine if we can complete your loan application without an appraisal.
Do I have to pay Private Mortgage Insurance (PMI)?
Private Mortgage Insurance is not required on our loan programs for down payments of 20% or less, however beginning with your first payment we will collect a monthly Low Down Payment Fee in lieu of PMI.
Once your loan reaches 78% of the original appraised value of the property or sales price, whichever is less, this fee will no longer be required.
What if I don't sell my current house?
You may qualify for a new loan without even selling your current home. We'll help you determine what might work for you. It's simple to run the numbers for yourself on our handy Affordability Calculator. You may also want to discuss a bridge loan - give us a call at (888) 308-6558.
What if I'm building a home?
If you are working with a builder within a sub-division or development and just making carpeting, lighting and appliance selections for a brand-new home, you can probably obtain a standard mortgage loan. But if you're hiring contractors, electricians, plumbers, and painters, you probably need a construction loan, which provides funds to pay subcontractors as work progresses. For more information on construction loans, give us a call at (888) 308-6558.
I'm refinancing my home
Is now the the right time to refinance? Find out more information right here.
Q&A for Refinancers:
Is now the time to refinance?
Each homeowner is unique – and we'll help you determine if it's the right time for you to refinance. Effective refinancing typically means lowering your current mortgage loan rate by at least one percent. You might also want to consider changing the length of your loan or receiving cash from the equity in your house. It's simple to see what will work for you, just run the numbers for yourself using our Refinance Calculator.
Is refinancing the best choice for my financial goals?
If you want to increase cash flow, refinancing to lower your monthly payment could help. See what will work for you using our Refinance Calculator.
Can I reduce my monthly payment if I refinance?
Quite possibly. To get a good idea of what your new monthly payment would be, use our Refinance Calculator.
Can I shorten the loan term if I refinance?
Yes, as long as you qualify. For instance, you may be able to reduce your mortgage loan term from 30 years to 15 years.
Can I refinance and use the cash for an addition to my home?
Absolutely. Many people borrow against the equity in their homes to make improvements.
How much of my home equity can I use?
Up to 90 percent of the appraised value of your home can be used to make home improvements. The equity you can use is based on the value of the home and what you currently owe, subject to applicable state laws.
Can I still refinance even if I don't have much equity?
Yes, up to 90 percent loan-to-value (LTV) if you want to refinance your house for a new rate and term. A reappraisal of your property may be required.
What will it cost me to refinance?You will have closing costs associated with refinancing your loan, including points and processing fees. You may have the option of rolling these costs into the loan amount to reduce your cash out of pocket. To evaluate your options, use our Refinance Calculator