Lisette Amalfi

The minimum down payment required depends on the purchase price of the home:

• For homes priced at $500,000 or less: A minimum down payment of 5% of the purchase price is required.
• For homes priced between $500,000 and $1.5 million: 5% is required for the first $500,000 and 10% for the portion above $500,000
• For homes priced at $1.5 million or more: A minimum down payment of 20% of the purchase price is required.

Keep in mind that additional criteria may apply, such as your financial situation and mortgage insurance requirements. If you have questions about your down payment, I’d be happy to help you understand your options!

A home inspection is a professional evaluation of a property’s condition, including its structure, systems, and overall safety. During the inspection, a certified home inspector assesses key areas such as the roof, foundation, plumbing, electrical systems, and more, providing a detailed report on any potential issues or repairs needed.

Getting a home inspection is highly recommended. It helps you make an informed decision by identifying hidden problems that could lead to costly repairs in the future. A home inspection gives you peace of mind and ensures you’re making a sound investment in your new home.

When purchasing a home, it’s important to budget for more than just the purchase price. Here are some common costs to consider:

1. Down Payment: The initial amount you pay toward the home, ranging from 5% to 20% or more.
2. Closing Costs: Typically 1.5% to 4% of the purchase price, covering legal fees, land transfer taxes, and other administrative expenses.
3. Home Inspection: The cost for a professional to evaluate the property, usually $300–$500.
4. Appraisal Fee: If required by your lender, an appraisal may cost $300–$500.
5. Mortgage Default Insurance: If your down payment is less than 20%, this insurance is added to your mortgage.
6. Moving Costs: Includes hiring movers, transportation, and other relocation expenses.
7. Property Taxes and Utilities: These may be prorated and included in your closing statement.
8. Home Insurance: Required before closing, protecting your property from potential risks.

Planning ahead for these costs will help ensure a smooth and stress-free home-buying experience. If you have questions or need guidance, I’m here to help!

When choosing a mortgage, it’s important to understand the difference between fixed and variable rates:

1. Fixed Rate Mortgage:
   • Interest Rate: Remains the same for the entire term of the mortgage.
   • Advantages: Predictable payments, stability, and protection from interest rate increases.
   • Best For: Buyers who value consistency and want to avoid the risk of rising rates.
2. Variable Rate Mortgage:
   • Interest Rate: Fluctuates with changes in the prime rate, meaning your payments can go up or down.
   • Advantages: Typically starts with a lower interest rate and offers potential savings if rates decrease.
   • Best For: Buyers comfortable with some level of risk and flexibility in their budget.

Choosing between a fixed and variable mortgage depends on your financial goals, risk tolerance, and market conditions. If you’re unsure which option is best for you, I’d be happy to provide personalized guidance!

• Mortgage Renewal:
  • A mortgage renewal occurs at the end of your current mortgage term (typically every 1-5 years). During this time, you can renegotiate the terms of your mortgage, such as the interest rate, term length, and lender. However, the balance of your mortgage remains the same.
  • If you’re happy with your current lender and their terms, you simply sign a new agreement. If you want better terms, you can shop around for a new lender.
  • Mortgage renewal is a simple process, but it’s always a good idea to review your options to ensure you’re getting the best deal.
• Mortgage Refinancing:
  • Refinancing involves renegotiating the terms of your mortgage and taking out a new loan, usually to access home equity.
  • It’s typically done to take advantage of better rates, change the length of the mortgage, or consolidate debt.
  • Refinancing may also involve a change in your mortgage amount if you’re looking to borrow additional funds from your home equity.
  • Refinancing requires a more thorough approval process, including an appraisal and possible prepayment penalties.

The key difference is that renewal is about adjusting the terms of an existing mortgage, while refinancing is about obtaining a new mortgage to either change terms or access extra funds. I can help you decide which option is best for your situation!