Top
FAQs

FAQs

A :  Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

A :  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.

A:  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).

A:  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. Midwest Family Lending can help you evaluate your choices and help you make the most appropriate decision.

A:  For most homeowners, the monthly mortgage payments include three separate parts:

  1. Principal: Repayment on the amount borrowed
  2. Interest: Payment to the lender for the amount borrowed
  3. Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

A:  The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Got more questions? We're here to help!

BECAUSE YOU DESERVE TO BE TREATED LIKE FAMILY

best local mortgage company des moines, iowa by cityview magazine

Get in touch with us!

Equal Housing Mortgage Loan Lender Equal Housing Lender

Midwest Family Lending Corporation
Company NMLS #4622
2753 99th Street, Urbandale, IA 50322
Phone: (515) 252-7107 | Fax: (866) 424-0683

midwest family lending cares, mflcares

MFLCares

What matters to you is important to us — and nothing more so than supporting the communities we love and serve. Because we don’t just work here….We live here too! We’re your neighbors coaching your kids’ Little League games, serving on local boards and distributing meals to those in need. We care about and support local causes that make our communities brighter each month through our MFLCares program. Check out our calendar to learn about the people and organizations making a positive impact and making the Midwest a great place to call "home."

Learn More
CIP & Patriot Disclosures   |   Mortgage Programs Near You