All mortgages have an interest rate, a term, and an Annual Percentage Rate (APR). For example, a mortgage might be defined as a 30-Year Fixed Rate Loan at 7.625%, with an APR of 7.800%.

In this example, the mortgage term is 30 years. As the borrower, you will pay back the loan in installments over the course of 30 years.

The interest rate in this example is 7.625%. This means you must pay interest on the money you've borrowed at a rate of 7.625% per year. That is, in addition to paying back the loan, you will pay your lender an additional 7.625% of the current loan balance every year. This interest is basically the fee your lender charges you in return for lending you the money.

The Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. Because APR includes points and other costs such as origination fees, it's usually higher than the advertised rate. The APR allows you to compare different mortgages based on actual annual costs.

Rates vary primarily based on the type and purpose of the loan, your credit history and income, loan amount, value of the property, and the number of points you are willing to pay.

Generally speaking, points are fees added on to loans. One point is equal to 1% of your loan amount. Points are paid when the loan closes, not at the time you apply for the loan.

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Lenders use specific criteria to determine if you qualify for a loan and the amount you can qualify for. There are different programs and qualifying parameters for each loan. Please ask your loan consultant for more information.

You should consult a tax attorney or accountant for specific details, but interest on a mortgage is usually tax deductible. Interest on credit cards or automobile loans is not normally tax deductible.

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To refinance your loan in order to obtain a lower interest rate and start saving on your monthly payments, Slam Loans will find you a lender that can offer you the following loan products with the security of fixed-rate payments:

15-Year Fixed-Rate Refinance
Choose this if:

• You want a shorter loan life and lower rates
• Low monthly payments are not a priority
• You're planning to stay in your house for more than 10 years - especially if you're planning to completely pay off your loan
  

• You want low monthly payments that do not change
• You want a loan that's generally easier to qualify for
• You're planning to remain in your house more than 5 years
• You want the maximum tax advantage (please consult your tax adviser)

Since a mortgage is a loan secured by a piece of real property, a crucial factor is in the correct value of the property in question.

Property value can be determined in a number of ways:

• The market value of the property - that is, what a buyer will pay for it and what other comparable properties (comps) in the neighborhood have recently sold for.
• The appraised value of the property - that is, what a trained and licensed professional deems the property to be worth based on an inspection, comps, and a thorough analysis of the property and its neighborhood.
  

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To refinance your loan in order to obtain a lower interest rate and start saving on your monthly payments, Slam Loans will find you a lender that can offer you the following loan products with the security of fixed-rate payments:

Depending on the loan, and what your state permits, it is feasible for you to make extra payments on the loan. Extra payments will have an effect on the amortization schedule over the remaining term of your loan.

If your Equity in your property qualifies, you can refinance with a loan amount greater than your current mortgage - and keep the difference! Use it for home improvement, debt consolidation, or whatever you desire.

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An Equity Line of Credit is money in a loan account that can be used as you need it. You can use any portion of it at any time and pay it back at any time. The interest rate is usually variable and is tied to the prime rate. Other types of second mortgages, such as the Home Equity Loan, and 100% Freedom loans are closed end loan products. You borrow a lump sum and pay it back over a period of years with interest. The interest rate for these products is fixed.

Affinity Funding offers several solutions to borrow funds against your existing property value.

HOME EQUITY LINE OF CREDIT
If you want a reserve of funds you can draw on in the future, choose our Home Equity Line of Credit. You'll have the credit you need when the need arises - and you make no monthly payments until you draw on it. Be ready for expenses like medical bills, emergency home repairs, tuition, and more.

HOME EQUITY LOAN
If you want to borrow up to 100% of your home's value at a fixed rate of interest, choose our Home Equity Loan. Use those funds for a purchase opportunity, home maintenance, debt consolidation, or major expenses.

HIGH LOAN-TO-VALUE
If you want a large sum of cash, choose one of our high Loan-To-Value products - 100% Freedom loan. With low equity – Affinity Funding can still loan you the funds you need to make home improvements, consolidate debt, buy a car, or make an investment.

Equity is the value of a homeowner's interest in real estate. Equity is computed by subtracting the total of the unpaid mortgage balance and any outstanding liens against the property from the property's fair market value. A homeowner's equity increases as he or she pays off his or her mortgage or as the property appreciates in value. When a mortgage and all other debts against the property are paid in full, the homeowner has 100% equity in his or her property.

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If you want a reserve of funds you can draw on in the future, choose our Home Equity Line of Credit. You'll have the credit you need when the need arises - and you make no monthly payments until you draw on it. Be ready for future expenses like medical bills, emergency home repairs, tuition, and more.

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