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1.	How do I know how much house I can afford? Answer
2.	What is an FHA 203k mortgage? Answer
3.	How much cash will I need to purchase a home? Answer
4.	How do I know which type of mortgage is best for me? Answer
5.	What does my mortgage payment include? Answer
6.	I have bad credit, and no down payment, can I still buy a home? Answer
7.	I have been late on my Mortgage, but still need to Refinance, do I still qualify? Answer
8.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
9.	How is an index and margin used in an ARM? Answer
10.	What is a Reverse Mortgage? Answer

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 an FHA 203k mortgage?
A :	An FHA 203k mortgage is used to purchase or refinance a primary residence, and will provide up to $35,000 to improve/remodel/renovate the property at the same time. This is a great loan to buy a home, especially a bank owned, REO, Foreclosure, or short sale home. With a purchase, your down payment of 3.5% is based on acquisition+improvements. For a refinance, you are not required to have home equity, as a matter of fact, your loan amount can be up to 110% of the appraised value of your home!

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

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. Premier Home Loans 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 :	I have bad credit, and no down payment, can I still buy a home?
A :	Yes, we have programs for all types of credit! We offer 100% financing with scores below 580! We will be happy to explain all of your options when you apply. Often times, after reviewing a full application and exploring all options, we are able to come up with a solution that will still allow you to buy a home with great rates!

Q :	I have been late on my Mortgage, but still need to Refinance, do I still qualify?
A :	YES, there are many factors that will go into underwriting your loan, and paying your mortgage on time is important, but not the only piece of the puzzle. An FHA loan may be your best bet, but we will work with you to make sure that you get the best loan possible

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	Let's face it, in the economy of 2009, why would you WANT an adjustable rate loan anyways? But in case it's all you qualify for, here's the answer: An ARM will have a certain fixed period of 1,3,5,7 or 10 years, and after that the rate will either adjust upward, or not at all, based on what your current index and margin will be. The margin is set at the time of loan origination. The index will change over time, and will go up and down.

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 :	What is a Reverse Mortgage?
A :	A reverse mortgage is a loan against your primary residence available to seniors over the age of 62. A Reverse is a hybrid product that is part mortgage and part insurance: It is based partially on the amount of equity in your home and partially on mortality tables. Essentially, the more equity, and the older the applicant, the larger the benefit that they will qualify for with a Reverse Mortgage. Premier Home Loans is committed to helping seniors fully understand ALL of the issues surrounding a reverse mortgage, and will help advise you to make an informed decision if a Reverse is right for you.