Page 42 - Network Magazine Winter 2019
P. 42

             Mortgages, Spelled Out
Picture the spelling bee in your mind. The elementary school-aged child stands under the bright light, alone lis- tening intently as the pronouncer provides the history of the word the child is required to spell. The voice echoes through hidden auditorium speakers, “its background is both Old French and Latin; the root word is ‘mort.'" Then there's silence.
“Mortgage. M o r t g a g e; Mortgage” spills the child nervously into the microphone. Rightfully so; it’s one of the most commonly misspelled words in the English language.
Logic and reason suggest the process itself should then be equally as challenging; and lonely, right?
No and No.
First, let’s do a quick little test. Don’t worry; there’s no right/wrong answer no pass/fail; only bragging rights among friends.
Grab a pen or a pencil and a blank sheet of paper. Ok; close your eyes. No cheating now... Don’t look at your wristwatch (if you don't wear a watch because Apple or Samsung tell your time don’t look at your phone). Spin that watch under your wrist. Flip that phone over.
Now open your eyes. The task? Sketch a detailed picture of your watch/phone screen. Artistic talent is not a criterion.
You have 15 Mississippi’s; without a watch or phone timer, you’ll have to do it like we did on the school playground... count it out loud or in your mind; it’s part of the test. Ready, set... GO.
Did you manage to draw each and every detail? Is the sketch higher or lower than the standard you quickly advanced yourself credit for? Here’s a good question... did you draw the actual time and date?
Right. Items we interact with time and time again on
a daily basis. When asked to sketch a rendering with elementary distraction we find it harder a task than we initially thought. Now imagine nothing was more impor- tant; life depends on it.
Ok. Let’s go get a Mortgage.
Wait. Wait. Do we want to put no money down or a
lot of money down? Do we want to borrow a lot or just a little? What’s the best use of our money? Are you a first-time buyer or is this your 2nd or 3rd time buying a home? Are you a Veteran? What is a transfer tax in the State of Pennsylvania and how much is it? Appraisals... cool... I get a copy, right? Can I afford all of this? What effects do real estate taxes have on the process? Just what is a title company/closing attorney and what crucial, important role do they play? What’s a flood zone? What are points and do they benefit the lender or me? How does all of this work in the present market conditions?
We will need to choose a type of loan, a term for that loan and the type of rate. We can choose among conventional, FHA, VA, Rural Housing (USDA), first-time buyer, construction, swing or Jumbo. All of these
loan programs offer solutions to meet specific needs; individual needs. Some require little to nothing out of pocket while others are tailored to what you determined is best for you. Terms are available between 10 and 30 years each with options for fixed or adjustable rates.

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