Frequently Asked Questions

Upstate Mortgage is here to help!

How do I choose the mortgage company that will assist me with my financing?

These days it is more important than ever to choose a company with a proven track record of excellent service and rates that can provide a wide variety of options for all borrowers. With Upstate Mortgage you get such a company. While serving South Carolina since 1993 we have preserved a stellar reputation for all of the above. And our commitment to maintain this reputation means we will go above and beyond to make the process as seamless as possible. Feel free to check us out with the local Better Business Bureau – as you should with any company you are thinking about doing business with – and you will find that we are a company you can have confidence in when making the biggest purchase of your life!

How do I know how much house I can afford?

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

What is the difference between a fixed-rate loan and an adjustable-rate loan?

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest rate starts out fixed for a pre-determined amount of time (normally 3, 5, or 7 years) and then can change periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

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

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 and how long you intend to keep your house. Upstate Mortgage can help you evaluate your choices and help you make the most appropriate decision. Our mortgage professionals have years of experience so call us and let’s discuss your options!

What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include four separate parts:

  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
  • Mortgage Insurance or PMI: This may or may not be a part of your loan. Normally when the down payment is less than 20%, this could be a part of your payment. Call us today to discuss your options regarding mortgage insurance.
How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

  • 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 that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house