TSINGHUA UNIVERSITY ALUMNI ASSOCIATION IN GREATER CHICAGO AREA
| Copy right: Tsinghua University Alumni Association in Greater Chicago Area |
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Question:
Why should I buy a home, instead of rent one?
Answer:
Your home is your ultimate investment. When you rent a house, your money is
gone forever. But when you own your home, you can deduct the cost of your
mortgage loan interest from your federal income taxes, and usually from your
state taxes. This will save you a lot each year, because the interest you pay
will make up most of your monthly payment for most of the years of your
mortgage. You can also deduct the property taxes you pay as a homeowner. In
addition, the value of your home may rise so you will actually make money.
Renters are getting farther and farther behind because property values are
rising, so the sooner you buy a home, the better off you'll be.
Question:
What is the difference between a fixed-rate loan and an
adjustable-rate loan?
Answer:
With a fixed-rate mortgage, the interest rate remains the same over the course
of the loan. With an adjustable-rate mortgage (ARM), the interest can change
periodically. Monthly payments on a fixed-rate mortgage remain relatively
stable and offer predictability. On the other hand, payments on an ARM loan
are likely to change, although they generally offer lower initial rate.
Question:
How do I know what type of mortgage is best for me?
Answer:
There's no single way to determine what type of mortgage will work the best for
you. The choice requires us to look what a number of different factors,
including how long you plan to keep the house, as well as your current
financial status.
Question:
When does it make sense for me to take out an ARM loan?
Answer:
An ARM may make sense if you are confident that your income will increase
steadily over the years. Another possible scenario may be if you anticipate a
move in the near future and aren't concerned about potential increases in
interest rates.
Question:
Am I allowed to pay off my loan ahead of schedule?
Answer:
Yes, you always have the option of sending an extra payment or payoff your
loan. If your program is no-prepayment penalty, your payoff amount will be
principle plus the interest. If your program has pre-payment penalty, than your
payoff amount will be principle plus the interest plus pre-payment.
Question:
What is escrow account?
Answer:
Mortgage escrow accounts are special accounts set up in which money is held
to pay property taxes, fire and hazard insurance premiums, mortgage
insurance premiums, and other escrow items.
Escrow accounts ensure that these items are paid in a timely fashion. They
guarantee that there is always enough money to pay these bills when they are
due so that the homeowner avoids the risk of lapsed insurance coverage or
delinquent taxes. With escrow accounts, homeowners do not have to worry
about coming up with several large, lump sum payments, each with different
due dates, throughout the year.
Borrower has lower rates and down payments because of escrows protect the
interest of investors of home mortgage loans.
Lender usually does not pay interest for the money in escrow account.
The question and answer here is for general reference only. Contact me at
shirleyjiang@mortgage-prosperityco.com for your own scenario. Consult your
CPA for tax issue and your attorney for legal issue.
Why should I buy a home, instead of rent one?
Answer:
Your home is your ultimate investment. When you rent a house, your money is
gone forever. But when you own your home, you can deduct the cost of your
mortgage loan interest from your federal income taxes, and usually from your
state taxes. This will save you a lot each year, because the interest you pay
will make up most of your monthly payment for most of the years of your
mortgage. You can also deduct the property taxes you pay as a homeowner. In
addition, the value of your home may rise so you will actually make money.
Renters are getting farther and farther behind because property values are
rising, so the sooner you buy a home, the better off you'll be.
Question:
What is the difference between a fixed-rate loan and an
adjustable-rate loan?
Answer:
With a fixed-rate mortgage, the interest rate remains the same over the course
of the loan. With an adjustable-rate mortgage (ARM), the interest can change
periodically. Monthly payments on a fixed-rate mortgage remain relatively
stable and offer predictability. On the other hand, payments on an ARM loan
are likely to change, although they generally offer lower initial rate.
Question:
How do I know what type of mortgage is best for me?
Answer:
There's no single way to determine what type of mortgage will work the best for
you. The choice requires us to look what a number of different factors,
including how long you plan to keep the house, as well as your current
financial status.
Question:
When does it make sense for me to take out an ARM loan?
Answer:
An ARM may make sense if you are confident that your income will increase
steadily over the years. Another possible scenario may be if you anticipate a
move in the near future and aren't concerned about potential increases in
interest rates.
Question:
Am I allowed to pay off my loan ahead of schedule?
Answer:
Yes, you always have the option of sending an extra payment or payoff your
loan. If your program is no-prepayment penalty, your payoff amount will be
principle plus the interest. If your program has pre-payment penalty, than your
payoff amount will be principle plus the interest plus pre-payment.
Question:
What is escrow account?
Answer:
Mortgage escrow accounts are special accounts set up in which money is held
to pay property taxes, fire and hazard insurance premiums, mortgage
insurance premiums, and other escrow items.
Escrow accounts ensure that these items are paid in a timely fashion. They
guarantee that there is always enough money to pay these bills when they are
due so that the homeowner avoids the risk of lapsed insurance coverage or
delinquent taxes. With escrow accounts, homeowners do not have to worry
about coming up with several large, lump sum payments, each with different
due dates, throughout the year.
Borrower has lower rates and down payments because of escrows protect the
interest of investors of home mortgage loans.
Lender usually does not pay interest for the money in escrow account.
The question and answer here is for general reference only. Contact me at
shirleyjiang@mortgage-prosperityco.com for your own scenario. Consult your
CPA for tax issue and your attorney for legal issue.
昌盛贷款公司是芝加哥郊区著名的贷款公司，代理美国大
部分的贷款产品。公司业主姜晓莉博士是有超过十年的行
业经验。她诚实，守信，耐心的工作风格是您找到满意贷
款的保障。以下问题已供参考。如有具体情况，可与昌盛
贷款公司联系。
Prosperity Co.
Residential & Commercial Mortgage
630-305-9207 (o) 630-479-6545 (c)
www.mortgage-prosperityco.com
部分的贷款产品。公司业主姜晓莉博士是有超过十年的行
业经验。她诚实，守信，耐心的工作风格是您找到满意贷
款的保障。以下问题已供参考。如有具体情况，可与昌盛
贷款公司联系。
Prosperity Co.
Residential & Commercial Mortgage
630-305-9207 (o) 630-479-6545 (c)
www.mortgage-prosperityco.com
