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Nunzio Salafia's Blog

By - Nunzio Salafia - | Broker in Rochester, NY
  • What is a Buy Down?

    Posted Under: Home Buying in Rochester, Financing in Rochester  |  May 3, 2013 11:26 AM  |  150 views  |  No comments
    A Buy Down usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

    For more information visit the Salafia Sold Team at www.rochesterhomelocator.com
  • Equal Credit Opportunity Act

    Posted Under: Home Buying in Rochester, Financing in Rochester  |  April 24, 2013 1:34 PM  |  135 views  |  No comments
    The Equal Credit Opportunity Act is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

    For more information visit the Salafia Sold Team at www.rochesterhomelocator.com
  • A Definition of "Pre-Approval"

    Posted Under: Home Buying in Rochester, Financing in Rochester  |  April 8, 2013 11:00 AM  |  128 views  |  No comments
    A Definition of "Pre-Approval"

    A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. 

    Pre-approval should not be confused with "pre-qualification" which is simply a loan officer's opinion of whether a client would be approved for a mortgage and for approximately how much.

    For more info on Real Estate in Rochester, NY please contact The Salafia Sold Team. We are here to help you with Rochester NY homes for sale and surrounding counties. Visit our site 24/7 for any local Real Estate advice on homes from Greece NY to Brighton NY. www.rochesterhomelocator.com has become Rochester New York’s ultimate, no hassle site to viewing Real Estate.

  • The Definition of Truth-in-lending

    Posted Under: Home Buying in Rochester, Financing in Rochester  |  April 8, 2013 10:49 AM  |  117 views  |  No comments
    The definition of Truth-in-lending...

    A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.


    For more info on Real Estate in Rochester, NY please contact The Salafia Sold Team. We are here to help you with Rochester NY homes for sale and surrounding counties. Visit our site 24/7 for any local Real Estate advice on homes from Greece NY to Brighton NY. www.rochesterhomelocator.com has become Rochester New York’s ultimate, no hassle site to viewing Real Estate.

  • How Much Will it Cost to Buy This Home? courtesy of www.RochesterHomeLocator.com & www.FindRochester.com

    Posted Under: General Area in Rochester, Home Buying in Rochester, Financing in Rochester  |  March 1, 2011 7:24 AM  |  332 views  |  No comments

        Homebuyers can learn about the costs of borrowing by directing 
        their attention to the
        Good Faith Estimate of Settlement Costs (GFE).

    If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan. Click on www.RochesterHomeLocator.com to finds links to financial calculators and more.

    Nunzio Salafia
    SalafiaSOLDTeam
    www.FindRochester.com

    585-279-8232
 
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