Frequently Asked Questions

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage is a home loan option with a particular interest cost for the entirety of the loan. Even if you have a fixed-rate mortgage the monthly payment amount may fluctuate during the life of the loan. A fixed-rate loan offers a fixed term (for example, 15 or 30 years) as well as a fixed interest rate, so the monthly amount for the payment of principal and interest will not change during the term of the mortgage. However, your monthly mortgage payment may also include interest, taxes, and insurance. While your principal and interest amounts will not change, the amount needed for taxes and insurance may.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage is a home loan option with a particular interest cost for the entirety of the loan. Even if you have a fixed-rate mortgage the monthly payment amount may fluctuate during the life of the loan. A fixed-rate loan offers a fixed term (for example, 15 or 30 years) as well as a fixed interest rate, so the monthly amount for the payment of principal and interest will not change during the term of the mortgage. However, your monthly mortgage payment may also include interest, taxes, and insurance. While your principal and interest amounts will not change, the amount needed for taxes and insurance may.

I’ve heard about getting a Pre-Qualification, but what’s the advantage if I haven’t even started looking for a house yet?

  • You wouldn’t go shopping for a new car without knowing how much you can afford. Why would buying a home be any different?
  • Pre-Qualification Today = Less Stress House Shopping Tomorrow
  • Let’s face it. One of the most stressful things about buying a home is adjusting to your new mortgage payment. Knowing your family’s financial boundaries before shopping for your new home can make the process go much more smoothly.
  • Your pre-qualification is an essential tool when house shopping, because it…
  • Determines what homes are in your price range
  • Assures real estate brokers and sellers that you are a qualified buyer
  • Can be used to your advantage in future negotiations
  • Your pre-qualification letter is good for a limited time. One of our experienced loan experts can complete your pre-qualification for you over the phone.

What are the benefits of owning a house? What are the advantages over renting?

There are many advantages to homeownership:

  • A sound investment – When you carefully choose a home you can afford, the payoff can be great. As a homeowner, instead of paying rent to a landlord, each month when you make your mortgage payment, you are building equity in a place of your own. The more mortgage payments you make, the more equity you’ll have. And unlike most things you buy, a home can actually appreciate in value as time passes, building more equity.
  • Tax advantages – The mortgage interest and real estate taxes you pay are tax deductible which can reduce your tax bill.
  • Real estate is marketable.
  • You can make your own decisions about design and décor.
  • You can invest in upgrades that will not only bring you pleasure but can also add to the value of the property over time.
  • You have control over the piece of property. You are not answering to a landlord.

What is private mortgage insurance (PMI) and how does it benefit me?

PMI or Private Mortgage Insurance is provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. It can make a big difference in how quickly your mortgage loan is approved and how much money you spend on a down payment. It is required if the loan amount is more than 80% of the home’s value.

This insurance benefits lenders and investor, but it also helps homebuyers too. Because Mortgage Center is protected by mortgage insurance, we can offer loans with low down payments. Without mortgage insurance, we would need to require a down payment of at least 20% of the loan amount. We understand that even if you have enough money for a large down payment, you may prefer to use it for other purposes. And if you don’t have a 20% down payment, it can take a long time to save it. While you’re saving, the price of your dream home is likely to rise – perhaps faster than you can save! Private Mortgage Insurance can be a big help if you’re like most borrowers in this type of situation.

Contact Us

Christian N. Martinez - Intercap Lending
365 S Garden Grove Ln
Pleasant Grove, UT 84062

English: (385) 789-4656
Español: (801) 702-3093

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Licensing

NMLS# 277428

Equal Housing Lender

We may share customer information with our trusted business partners to assist you with your loan or other mortgage needs. Customers with questions regarding our loan officers and their licensing may visit the Nationwide Mortgage Licensing System & Directory (NMLS) for more information.

Agency Approvals: FNMA – #171430002 / FHLMC – #124731 / FHA – #3213309992 / GNMA #2454 / VA 955023-00-00