Frequently Asked Questions
How Much of a Down Payment Will I need to Purchase a Home?
What's the difference between a Fixed-Rate Loan and an Adjustible-Rate Loan?
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.
How Do I Know What House I Can Afford?
How Do I Know Which Type Of Mortgage Is Best For Me?
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. Goldwater Bank can help you evaluate your choices and help you make the most appropriate decision.
What Does My Mortgage Payment Include?
For most homeowners, the monthly mortgage payments include three separate parts:
How Is An Index And Margin Used In An Arm?
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).