Category Archives: Karen Lower News

Your Mortgage Questions Answered

Does the term “amortization” leave you perplexed? Are you unsure how preapproval differs from prequalification? If so, you’re not alone. Here are some mortgage basics to help you become more familiar with the process.

What’s the difference between prequalification and preapproval?
Getting prequalified is often the first step when searching for a home. You supply basic financial information, such as your income, assets and debts, and the lender then provides a preliminary estimate of the amount for which you may qualify.

Preapproval involves an in-depth look at your finances and usually requires an application fee, but this process brings you closer to determining your potential interest rate and monthly payment. Being preapproved also puts you in a better position in a competitive market because it shows you have your finances in order.

What is amortization?
Amortization is the process of paying off a home loan’s principal and interest over time within a consistent, planned repayment schedule. In the beginning, a large portion of each payment goes toward interest, but as the loan matures, larger amounts go toward paying down the principal.

What types of loans are there?
Fixed and adjustable rate mortgages operate as their respective names imply. The former has a rate that stays the same for the life of the loan. The latter’s rate may start low, but it can increase after a predetermined period or depending on market conditions.

Government-guaranteed mortgages include FHA and VA loans. These are usually easier to qualify for and typically require lower down payments than other types of loans.

Fastest Growing American Cities

Cities all over the United States are experiencing unprecedented population swells. Fueled by a general migration to urban areas, these boomtowns are supported by steady job growth and thriving home markets. Here are four standouts whose numbers are on the rise.

Seattle-Tacoma
A healthy tech industry seems to be tempering the rain in the Pacific Northwest. The promise of employment in the Seattle-Tacoma area is strong and home price growth is even more robust, and together they help make this soggy city one of America’s fastest-growing regions.

Cape Coral-Fort Myers
Occupying the peak spot in Forbes’ 2017 list of America’s fastest-growing regions is Cape Coral-Fort Myers, Florida. This area is especially popular among retirees. With the near year-round sunshine, exceedingly low tax rates and virtually nonexistent crime, it’s not hard to see why.

Dallas-Fort Worth
In terms of projected job growth, the DFW area is proving everything is bigger in Texas. The housing market is also solid, which may explain why four out of five of the fastest-growing southern cities are in the Lone Star State. Perhaps not surprisingly, two of them are Dallas-Fort Worth suburbs.

Denver
Farther west, Denver takes the prize for highest home price growth. The strong economy and seasonal amenities make this Colorado capital a go-to for savvy real estate investors.

Of course, thanks to a tech economy that’s growing at breakneck speeds, these four cities aren’t the only ones undergoing serious expansion. As tech industries continue to advance, expect to see more parts of the country experience new growth and development.