First Savings Bank

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house. Down Payment: A percentage of the cost of the home that is due at settlement. Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.

For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Your Mortgage Loan Officer will work with you to determine the best option for your particular financial situation.

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and we can help you choose the right product.

There are many things that effect how much a borrower can afford. Job tenure, credit, down payment, debt ratios are just a few. Credit is probably the most important factor of all. The higher your credit score the more you may be able to afford. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Contact your local branch and ask to speak with a Mortgage Loan Officer, and they can help you determine exactly how much you can afford.