Q: How much house can I afford?

A: Generally speaking, you can purchase a home with a value of two to four times your gross annual household income. However, the amount you can borrow will also depend on your employment history, credit history, current savings, monthly debts and the amount available for a down payment. A variety of loan programs and products are available with little or no down payment required. Contact us. We look forward to discussing your options and helping you determine the exact amount for which you qualify.


Q: How do I know which type of mortgage is best for me?

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 as well as your short- and long-term financial goals. FirstCapital can evaluate and offer a variety of relevant mortgage loan programs to help you make this important decision. Contact us.


Q: What does my mortgage payment include?

A: For most homeowners, the monthly mortgage payment is comprised of three separate parts:

  • Principal: Repayment on the amount borrowed.
  • Interest: Payment to the lender for the amount borrowed.
  • Taxes and insurance: Monthly payments are normally made into an escrow account for items such as homeowner’s insurance and property taxes. An escrow account is optional with at least 20% down, in which case, these items will be paid by you directly to the tax assessor and property insurance company as they become due.


Q: How much cash will I need to purchase a home?

A: The amount of cash necessary depends on a number of factors. Generally speaking, you will need to have available:

  • 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.
  • Closing costs: The costs associated with processing and closing your mortgage loan to purchase or refinance a home.

Contact your FirstCapital mortgage professional for a detailed Loan Estimate and the many options available.