Mortgage Basics

Why should I buy a home?
Home ownership is often called the "American Dream" because of the pride that comes with owning a
place you can personalize and call your own. In addition, buying a home is one of the most stable and
solid investments providing tax benefits and allowing you to build equity.

Learn more about the Benefits of Home Ownership

Should I choose a fixed rate or adjustable rate loan?
Fixed rate loans have a stated interest rate that does not change over the life of the loan, whereas the rates
on adjustable rate loans are linked to an index and change as the index rate changes. Many mortgages,
such as a 5-Year Fixed (30 Year), start as a fixed rate loan and then convert to an adjustable rate.
Adjustable rate loans have more risk due to the possibility that the interest rate could increase. However,
because you are assuming some of the risk the lender will generally reward you with a lower interest rate.
These loans are best for borrowers who do not plan on keeping the loan for the full term.

Learn more about fixed and adjustable mortgages

When does it make sense to pay points?
Points are a one-time fee that a borrower pays to lower the interest rate. Points are defined as a
percentage of your loan amount, with one point being equal to one percent of your loan. For example, if you
borrow $200,000, one point would be equal to $2,000. Paying one point will generally reduce your interest
rate by approximately .25%.
An alternative to paying points is to receive a "credit" from the lender in exchange for a higher interest rate.
Whereas points are added to your closing costs, a credit is used to reduce your closing costs. Once again,
you can receive a credit of approximately one point by raising your interest rate .25%.
Whether you choose to pay points or receive a credit, this amount will be applied to your closing costs
when your loan funds.

Should I consider a Flex-Pay (Interest-Only) loan option?
Flex-Pay (interest-only) loans are a good means of either increasing your home purchasing power or
maximizing your flexibility to control cash flow. You can save significant amounts of cash for investment,
savings, or other expenditures during the first ten years of your loan. This is also a solid strategy to
maximize tax deductibility, with more funds available for paying down higher cost, nondeductible consumer
debt. With these loans, the minimum payment required covers interest only-you decide how much or how
little of the principal to repay each month. These loans should not be confused with negative amortization
loans-with Flex-Pay the principal balance NEVER increases

Is a Closing Cash Saver loan for me?
Kwik Mortgage Corporation offers Closing Cash Saver loan, designed to provide you with a rebate to cover
your non-recurring closing costs. While these loans are most commonly associated with refinances, they
can also apply to purchases. Closing Cash Saver loans will generally have a higher interest rate than
loans in which you pay closing costs out of pocket. Consequently they are a good option for borrowers that
plan to keep their mortgage for less than five years.

How can I be sure my mortgage choice will be the best financial option?
Kwik Mortgage Corporation believes that you should treat your mortgage as an investment. For most
people their home will be their biggest investment for the future. A mortgage payment is a type of "forced
saving" that many people will count on for retirement. In addition, the tax savings from writing off the interest
will greatly reduce the yearly cost of your mortgage payments.

What is the process for getting a loan?
The loan process is slightly different for every person, and at Kwik Mortgage Corporation we recognize that
each loan is unique. However, there is a pattern to the loan process, and you should know what to expect
before you decide to apply. At Kwik Mortgage Corporation, your mortgage is assigned a loan consultant
who will personally assist you through the entire process and help you close your loan in as little as ten
business days.
To talk to a loan consultant now call 1.732.767.9777
or
Learn more about the process of getting a loan from Kwik Mortgage Corporation

What types of loans does Kwik Mortgage Corporation offer?
Kwik Mortgage Corporation offers a wide range of products to meet all your financing needs, from 30-year
fixed rate mortgages to adjustable rate mortgages and home equity loans.

View our loan product list