Your Mortgage Questions Answered

Luther Kraxberger REALTOR® - Realty One Group Mountain Desert PHONE: 928-275-1657     EMAIL: lutherkrax@gmail.com ADDRESS: 100 E. Sheldon Suite 200   Prescott, AZ  86301

Does the term "amortization" leave you perplexed? Are you unsure how preapproval differs from prequalification? If so, you're not alone. Here are some mortgage basics to help you become more familiar with the process. What's the difference between prequalification and preapproval? Getting prequalified is often the first step when searching for a home. You supply basic financial information, such as your income, assets and debts, and the lender then provides a preliminary estimate of the amount for which you may qualify. Preapproval involves an in-depth look at your finances and usually requires an application fee, but this process brings you closer to determining your potential interest rate and monthly payment. Being preapproved also puts you in a better position in a competitive market because it shows you have your finances in order. What is amortization? Amortization is the process of paying off a home loan's principal and interest over time within a consistent, planned repayment schedule. In the beginning, a large portion of each payment goes toward interest, but as the loan matures, larger amounts go toward paying down the principal. What types of loans are there? Fixed and adjustable rate mortgages operate as their respective names imply. The former has a rate that stays the same for the life of the loan. The latter's rate may start low, but it can increase after a predetermined period or depending on market conditions. Government-guaranteed mortgages include FHA and VA loans. These are usually easier to qualify for and typically require lower down payments than other types of loans.

Thank you for reading my newsletters. I look forward to connecting with you soon! Luther Kraxberger

Luther Kraxberger REALTOR® - Realty One Group Mountain Desert PHONE: 928-275-1657     EMAIL: lutherkrax@gmail.com ADDRESS: 100 E. Sheldon Suite 200   Prescott, AZ  86301

A do-it-yourself project can be an empowering way to save money, provided you know what you're doing. But making even one simple mistake could put a strain on your back or your bank account. Often, it's best to put safety first and call a professional. Here are four types of home improvement projects that are best left to the experts. 1. Plumbing or electrical projects -- There's a reason these are skilled trades. Both systems are complex, no matter how straightforward a repair may initially appear. Even small leaks can cause serious water damage, and faulty electrical wiring can lead to a house fire. Don't risk flooding or electric shock. Call a plumber or hire an electrician to make sure these jobs are done right the first time. 2. Renovations with possible code violations -- Structural changes require a licensed contractor. Not only can shoddy craftsmanship severely affect your home's value, but it can also put your family in danger. Accidentally removing a load-bearing wall, for example, could cause an entire room to collapse. Why take the risk? 3. Repairs involving heights -- More than 130,000 ladder-related injuries are treated in emergency rooms each year. Whether you're looking at a roof repair or trimming a tree, consider calling a professional before attempting to complete the job yourself. 4. Time-sensitive projects -- Weigh your work and family commitments before embarking on a home improvement project. Even if you're confident in your abilities, the added pressure of a tight deadline can lead to unnecessary and often dangerous mistakes. Remember, just because a DIY project looks simple doesn't necessarily mean it's safe. When in doubt, err on the side of caution and call a professional.

Thank you for reading my newsletters. I look forward to connecting with you soon! Luther Kraxberger