QUESTIONS & ANSWERS
What are the main types of mortgages?
The most common mortgages are fixed- and adjustable-rate mortgages.
Fixed-rate mortgages offer the stability of regular monthly payments over a given length of time, or term. Many people feel these are ideal because they make it easy to budget family financesARM) programs offer you the flexibility of an initial interest rate and payment lower than a standard fixed-rate mortgage. ARM mortgages may also be a great option for home buyers who do not plan to stay in their current home for a long period of time.
How are real estate taxes calculated?
Real estate taxes, or real property taxes, are the annual ad valorem taxes assessed by local governments on land and any improvements, including buildings and utilities. The money raised by this tax goes to support schools, fire and police services, libraries, parks, public transportation, roadway maintenance and social services. Locally voted bond issues for specific projects are also included.
Is life insurance good for mortgage protection?
If you are the primary wage earner in your family and you carry a current mortgage on your home, it is important that you consider risk management in the event that something bad were to happen to you. This is especially important if you do not have adequate savings for your family to pay bills and live comfortably in the event of your death.