The Cincinnati Enquirer from Cincinnati, Ohio on October 13, 1991 · Page 85
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October 13, 1991

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The Cincinnati Enquirer from Cincinnati, Ohio · Page 85

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Cincinnati, Ohio
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Sunday, October 13, 1991
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Page 85
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Sunday, October 13, 1991 THE CINCINNATI ENQUIRER HomeH-5 L w Definition In D enne ivin pace The N Exdfcement Continues to Build with. " Hie Bennington", Another New Design with Drees Quality! ft ii 5i . y M- .it 73" Si I s9 au v ' A w " , . ii si .fi I ' " ..'1 II He 1 I -If " I " - 3 "" " '' ' ''"'Mllli'iJ.-.1,tii ' ' 7t;'-'-1 t - 'Prices vary by location and lot cost. Compare rates on mortgages Shopping around can get best deal BY STEPHEN ADVOKAT Knight News Service If you usually pay whatever people ask and now are closing in on a new home, let your mortgage be the reason to discover the power of comparison shopping. It might not seem like much to drop one-quarter percent, but over the life of a 30-year mortgage, that move can save you a bundle. How important is it? "Extremely," says Al King, senior vice president and manager in the mortgage department of First Federal of Michigan. For example, suppose you have a choice between a 30-year, $100,000 mortgage at either 9 or 9'4. By dropping one-quarter percent, you'd save $18.06 a month. However, your total savings would be about $6,500 in interest, adding all those $18.06 months for the life of the loan. Rates only one part But interest rates on the mortgage are only one facet of comparison shopping on the loan. ; Different lenders charge different fees on their loans. Some offer lower interest rates, but tack on "points," each equaling 1 of the loan. Others charge few if any points, but hike their interest rates. ; In the 1970s, the federal government ruled that lenders had to provide consumers with an annual percentage rate that reflected both the loan and fees of obtaining the loan. That's the rate you should ask for when trying to determine whose is the best. "People call up and say, 'What is your rate?' " says King. "But the true rate search ought to be for an annual percentage rate which involves the interest rate on the loan plus the cost to acquire the loan as interest." Important as rates are, they're not the only thing to consider when it's time for the mortgage. "The thing you should be looking at in addition to the dollars is who are you dealing with," says Ron Melnik, vice president in the mortgage department of Standard Federal in Michigan. "What kind of servicing are they going to get, how convenient will it be to deal with these people?'' Melnik notes that acquiring the mortgage may only be the beginning, not the end, of your relationship with the lending institution. If, during the life of the loan, you can't make a payment, you may appreciate the proximity of a local lender. Evaluate other features Also consider other features the institution may offer. Can you make additional, penalty-free payments against the principal of the loan, should you decide to build equity in the mortgage? What fees are involved in the mortgage? And can you make a 13th payment one year if you choose to increase your income tax interest deduction? The guidelines for qualifying for a mortgage are generally uniform. Your housing expense principal, interest, taxes and insurance should not be more than 28 of your stable monthly gross income. "Stable" also means you've been on the job at least two years. The second measure to qualify for a loan involves reviewing your total debt. Prospective home owners with a sizable income but tremendous debt large credit card balances, car loans, student loans would likely have a more difficult time qualifying than someone with a 'modest income and who is debt-free. Your total monthly payments, including the new mortgage but excluding food, utilities and other insurances, should not exceed 36 of your income. These are only guidelines. They sometimes are broken if you make a compelling argument for why an exception should be made. Credit check done Once you've applied for the loan, the lending institution checks whether the property is worth what you're prepared to spend and whether you are a good risk. "We do an appraisal of the property," Melnik says. "We'll also order a credit report. During the process we would have ordered title insurance on the property to make sure it is clear, and a property survey to determine that there are no encroachments on someone else's property line." This all takes about three weeks. Fees run about $250, and thev're usuallv non-refundable, so a Level " Second Level econd fills 11):1: CtHitii Intke past eigkt weeks, Drees Las mtroduced a kalf dozen new Lome designs and two all new communities. More are on tke way! Add tkese to our present list, and you'll find Drees offers the most Lome designs W locations of any area builder. VTtejl.- 0HI wjrttnBo. yJM Mi V'1"""1 f f fsoe.-F yurt1'1 wtth'" x J" Lwe,nd 7 "i 1 - Andmon M V K jm wmiwm ' buhSip- , 'flJrTv fw. mm ColdSpJn I" y1 Alexandria North Cincinnati Locations 40. Westchester Station ($129's-$190's) 779-0633 43. Signal Hill ($120s-$170'S) 831-6777 59. Woodford ($180'S-260'S) 677-9462 60. CamageGate ($120s-$180's) 398-8181 62. Woodlield at Beckett ($105's-$155'S) 870-0905 70. Montclaire ($120's-$170's) 398-5155 72. Huntwicke ($204's-$260's) 677-9462' 74. Claiborne ($120's-$150's) 677-3929 79 Belle Meade ($130,s-$250's) 677-5960 Eastern Cincinnati Locations 28. Shayler Crossing ($80's-$130'S) 752-6042 57. Wolfangel Farms ($150's-$280s) 528-2139 58. Brandonmore ($106s-$170s) 528-2139 Western Cincinnati Locations 69. Windmere ($126'S-$170s) 574-1788 71. LaSalle Place ($126s-$165s) 481-0909 77. Wyecliff ($130's-$189s) 574-1788 80. Kiplingwood ($100'S-$148s) 481-0909 Northern Kentucky Locations 24. Mill Valley ($89s-$140'S) 431-4565 45. Woodstone ($90'S-$160's) 441-0205 46. OakBrook ($100'S-$180's) 525-7385 55. Sturbridge ($110'S-$160'S) 441-0205 67. Deerfield ($80's-$128's) 525-7385' 68. Crescent Pointe ($140'S-$270'S) 331-0519 75. The Links ($185s-$375s) 282-0751 ) AA Highway Floranc -xCA" Ih S Taylor Mill KENTUCKY vith komes from tke $80's to tke $375's and Towne Homes from tie $70's to tne $170's, Drees offers you price ranges to suit your budget. Witktke assistance of First Equity Mortgage, we can make your dream a reality. Are your kometuying needs more urgent? Drees always maintains East 25. Vineyard Green ($80'S-$160s) 528-4466 Northern Kentucky Towne Home Locations 12. The Cliffs-OakBrook ($78'S-$120's) 525-8614 22. Ft. Mitchell Place ($80's-$139's) 344-0230 23. Springside ($76's-$129'S) 441-0045 Design & Information Center 791-5211 78. Hempsteade ($120's-$170s) 384-1191 81. Brightleal ($110's-$170's) 342-8129 82. Dartmouth Woods ($100's-$160's) 586-9325 Cincinnati Towne Home Locations North 17. CarriageGate ($70'S-$90's) 398-4466 18. Tennyson (SSS'S-Sm's) .'. 489-7399 21 . Tennyson Patio Homes ($145's up) 247-0552 West 19. Kiplington ($80'S-$130's) 542-1800 Shown by appointment only a wide selection of immediate occupancy Homes and Towne Homes tkrougkout tke Greater Cincinnati area. Again, in a wide variety of styles and price ranges. As your needs grow and ckange, Drees continues to plan for tke future as well. We invite you to tour our new "Bennington" or any of our model locations to learn more about kow we are growing to serve you. youriaspechon a Sutioo.aWy 1 Dree, commuxuj. Rt. 42. north, tolertonDimnucb.Uo 1 l2nl tolertonWocJwina,to M9-0633 A 11 fed I IUk ji .X. J Am .11. i., I EQUAL HOUSING OPPORTUNITIES you don't want to formally apply unless you have a reasonable expectation of being approved. 1991 Tne Dreei Company All Rignti Reiervei J j 'WU'-f'Wi' WQjnvtJ iJllW& "TO- '9' I j

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