Mortgage 101 - Programs

mortgage process

Mortgage Programs and Rates

To select the right mortgage program, consider how long you plan to keep your home. If you plan to sell your home quickly in a few years, an adjustable rate loan  makes good sense. If you plan to keep the home for a long period, a fixed rate loan is more suitable.

With so many programs to choose from today, shopping for a loan can be overwhelming. Let Houston Capital's experienced mortgage professionals evaluate, educate and empower you to make an informed decision.

Understanding the relationship between rates and points enables you to select the best structure for your needs. Mathmatically, each point is equal to 1 percent of the loan amount (Example: 1 point on a $150,000 loan = $1,500). Loans are available with and without points. Paying a point lowers the interest rate, but should be done only when you plan to be in the home long enough to recoup the cost. Points are considered prepaid interest per the IRS and can be tax deductible. For additional information on tax treatment of points, click on  www.irs.gov/taxtopics/tc504.html

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