Financing Your Property

Are you finally settled on the idea of buying a home? The next step is to find out how large a mortgage you're approved for. This depends on a variety of factors, such as credit history, gross and net income, your debt ratio, and your initial down payment. Have a talk with us to figure out just what you can be approved for. In the meantime, feel free to read our brief mortgage guides below.

How Do Mortgages Work?

Buying a home is a large investment, and you probably don't have the hundreds of thousands of dollars you need to purchase the house up front. That's where big lenders, you, and ourselves come together. Lenders generally ask that you have a stable financial background and that you put forward a small portion of the home price, and in exchange, they'll loan you the rest of the money you need to purchase your house.

This loan is called a mortgage, and, as with all loans, your mortgage comes with a variable or fixed interest rate. Today, the rate is around 3.5%. Your mortgage is typically repayable over a 30-year period, but depending on the lender, it may last longer or even shorter. If you sell your house before the 30 years is up, you don't even have to pay off the balance of your mortgage, only the interest.

How Much Do I End Up Paying?

Here's an amortization chart (also called a mortgage calculator) for a 30-year loan for $100,000, fixed at a 3.5% interest rate*. It may sound like you're overpaying by a lot, but keep in mind that this mortgage below is being paid over three full decades. At any time, you can pay off the full debt and save yourself from potentially costly interest charges. Try the mortgage calculator on the right side to see how much you'll pay and how much you can afford.

* The information displayed in this chart is interest-only. Actual APR may be higher and varies based on closing costs and other fees.

Make an Appointment

Have any questions? Concerns? Think you're ready to talk with an agent about buying or financing your home? Click here.
Capitol Mortgage Calculator
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†This estimate does not include property tax, insurance, HOA, or any additional fees associated with owning a home.