Understanding Mortgage

While buying a home, mortgage loans are the best way by which you can have a dream house quickly. However, the terms are sometimes confusing and people back out thinking it may be complicated with a lot of paperwork. A mortgage in Wareham Ma is the easiest to get provided you find a dependable lender. Read our blog to get a better understanding.

For most citizens of America, a home is their biggest dream, and they go to any length to fulfil it. Homes can be easily procured by taking a mortgage. So, let us learn about the basics of a mortgage. What is it and how can mortgage in Wareham Ma help aspiring homeowners to have a house of their own?

What is Mortgage?

It is a loan that is taken to finance a home. This is also known as a Mortgage loan, an easy way to buy a house without full upfront payment.

People aspire to buy homes but do not have the full money to pay for the house out of their pocket, choose this process of payment. This is also used by some investors to free up funds for investing elsewhere. 

However, there are some qualification criteria for being eligible for a mortgage. The person taking a mortgage loan should have a stable income. The debt-to-income ratio should be 50% and all credit scores should be good. For conventional loans, the score should be 620 and for FHA loans 580. 

Difference between Loan and Mortgage

A loan is a financial agreement where one party receives a lumpsum and has to pay back within a term. This could be for anything. 

A mortgage is a loan specifically finance for purchasing a property. However, this is a secured loan with collateral which the borrower keeps with the lender in case of inability to pay back. When it comes to the property, or a home purchase, the collateral is your home and if you are unable to pay it the lender, they will take possession of your property as a foreclosure. 

When the mortgage loan is approved your lender hands over a sum which you pay for the property. You agree to pay back over a certain period with the decided interest and once that is achieved you fully own your home. 

In a mortgage, there are two parties involved, the lender and the borrower. A lender is a financial institution or a credit union like http://www.pctfcu.org/. 

The borrower is of course one who applies for the mortgage. 

Two factors determine the interest rate.

One of the current market rates and the level of risk taken by the lender to lend you the money. 

The current market rate is not in your hand.

However, what kind of a borrower you appear to be for the lender is dependent on you. If your credit score is high, then the lender finds you dependable. 

Nevertheless, if your DTI is low that will give you more money to make the mortgage payment. Then you are a low-risk investor for the lender and the interest rates too will be lower. 

The amount of money you can borrow is related to your affordability and the fair market value of the home is decided after an appraisal. The lender cannot lend an amount higher than the appraisal value of the home. 

A mortgage is extended to the borrower through verification. 

Some terms that you should be familiar with while taking a mortgage are:

Amortization is how the payment is broken up in the repayment period. A part of each monthly mortgage payment will also include the interest amount to be paid to the lender and the other part will go for repaying the loan balance or loan principal. 

Down Payment: The upfront money you pay to purchase your home. A large down payment means lower monthly payments. 

Escrow: As account set by the lender to meet the expenses of homeowner insurance and property tax deducted from the monthly payment and kept separately for this purpose. Not all mortgages need this option. 

Conclusion

Learn more about mortgage in Wareham Ma and avail the best from PCT Federal Credit Union. Contact us to get personal assistance of the best plans. We are there to help with the best mortgage options.

Five Reasons to Say Yes to Checking Account

From safety to convenience, proper financial planning can ultimately help get your personal finances in order. Read on to find out the top five reasons why you should have a checking account:

• Safety and Protection

Stacking cash at home can involve several understandable risks. Consumer bank accounts at credit union or federally insured institutions, offer protection subjected to each account ownership category. Basically, it means your money is in safer hands and you can store it safely for any purpose.

• Convenience

Where else can you cash your pay check if you do not have an account of checking Wareham. For credit unions, you need to visit the specific bank for encashing the check. Now, if you regularly have to drop in a check in the same financial institution, it is better to open an account with the bank/credit union where you can set up direct deposit through your employer.

• Bill Pay

From rent to utility, monthly bills cannot be ignored. Paying those bills without a bank account will not just be an expensive procedure but also extremely tiresome. With a checking account, you can issue checks or set up automated bill payments that can make your life way easier!

• Debit Card Convenience

Carrying a debit card of your checking account is a brilliant replacement to that of carrying the cash.  Even if your card is lost or stolen, you can make way for the new one without losing any money. And, do we really need to stretch on the convenience to pay with debit.

• Budgeting Tools

Withdrawals, purchases, and all other debits and credits are automatically enlisted on the bank accounts. The credit union will send you the monthly statement report of your spending accounts. This is an excellent way to find out where you can fine-tune your personal budgeting choices and save a few bucks more every month.

With PCT Federal Credit Union, you can enjoy the convenience of no minimum balance on the checking accounts along with no fees on activities such as -

• First Box of Basic Checks
• Visa® Debit Card
• Online Banking
• Unlimited Check Copies (via Online Banking) Bill Pay
• Mobile Banking
• eStatements
• Mobile Check Deposit 

Established in 1962, PCT Federal Credit Union aims to offer exceptional financial services at the best economical rates. Their high quality, personalised, convenient functionalities make it a loved credit Union of Wareham. Visit http://www.pctfcu.org to find out more.

Different Kinds of Checking Accounts

A checking account is a type of bank account that lets you to write checks using the money you deposit. However, with the advancement of technology, most people opt for ATMs and debit cards more than they write checks. Yet, checking accounts are the easiest type of account especially for small, frequent expenses as well as to receive direct deposits. And for the same reason, checking accounts are more preferred in daily life. In case you want to invest in personal finance in terms of checking in Wareham, you need to know the different types of checking accounts and their respective pros and cons.

a)    Standard Checking Account

Suitable for: Customers who want reliable brick-and-mortar service
   
Features:

     Multiple ATMs and branches available
     Includes online banking

Limitations:
•    Minimum balance required to wave off the monthly fee
•    Overdraft and ATM fees

b)    Online Checking Account

Suitable for: Where in-person bank services are not required

Features:
     Lower fees
     Higher interest rates

Limitations:

•    Limited/no access to branch locations

c)    Business Checking Account

Suitable for: Business owners
   

Features:    

     Higher spending and withdrawal limits
     Tools for tracking business expenses

Limitations:

•    Higher minimum balance requirements and fees
•    Fees on excess transactions and cash deposits

d)    Premium Checking Account

Suitable for: Large deposit amounts

Features:

     More complimentary bank services
     Some interest earned on deposits

Limitations:

•    Higher minimum balance requirements and fees
•    Interest rates are currently very low

e)    Student Checking Account
Suitable for: Qualifying high school and college students   

Features:
     Low/no monthly fees
     Good introduction to personal finance

Limitations:

•    Age limits or enrollment requirements apply
•    Low spending and withdrawal limits

f)    Senior Checking Account
Suitable for: Qualifying seniors
   
Features:
     Waived monthly fees
     Free checks and no-fee money orders

Limitations:

•    Low availability
•    Often include "perks" which are not important or required

g)    Second-Chance Checking Account

Suitable for: Customers with bad banking histories who can't get other accounts
  
Features:

     Useful for rebuilding credit
     Low opening deposit requirements

Limitations:

•    Low availability
•    Includes monthly fee

Checking Accounts at Credit Unions are quite similar to those at the banks, the only difference being that here the membership is restricted by region or trade. For example, consumers looking for membership of checking in Wareham can knock at PCT Federal Credit Union. The credit union can be contacted by visiting their webpage http://www.pctfcu.org/ or by calling them at 508-291-0777.