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Q : How do I know how much house I can afford?

A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. 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. Give us a call, and we can help you determine exactly how much you can afford.

Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?

A : 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 the best way to select a loan product is by talking to us.

Q : How is an index and margin used in an ARM?

A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q : How do I know which type of mortgage is best for me?

A : 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. Rubiola Mortgage and Realty can help you evaluate your choices and help you make the most appropriate decision.

Q : What does my mortgage payment include?

A : 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.

Q : How much cash will I need to purchase a home?

A : 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

Mortgage Bankers Association of America Consumer Information
Federal Reserve Board Consumer Information
Homebuyer Education by Freddie Mac
United States Postal Service Official Movers Guide
U. S. Department of Housing and Urban Development – Buying a Home
Fannie Mae – Home Buying Process
Consumer Handbook of Adjustable Rate Mortgages

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Preferred Industry Professionals

Key Title Group is a locally owned and operated Central Texas based title insurance company. We close both residential and commercial real estate transactions throughout every county in the State of Texas. Key Title Group is passionate about maintaining a high level of integrity, experience and service.
Contact: Phone (210) 858-0688 Email contracts@keytitlegroup.com
Address: 7701 Broadway Street, Suite 106
San Antonio,TX 78209

Rubiola Mortgage Company| 1600 NE Loop 410 Suite 222 | San Antonio, Texas 78209 | Ph: 210.828.6007 | NMLS# 348049
JC Rubiola | NMLS#: 270635 | JC@rubiola.com
Louis Rubiola | NMLS#:242351 | louis@rubiola.com