Mortgage FAQs

Minimum down payments depend on the type of loan you choose. While it is recommended to have 20 percent of your total loan, many borrower programs allow for a down payment as low as 3 percent.

A good rule of thumb is to keep your monthly housing costs at or below 30 percent of your gross monthly income. A mortgage pre-qualification with your local Frandsen Bank & Trust mortgage lender can help you determine your buying power.

A home equity loan lets you borrow a lump sum of money using the equity you’ve built in your home as a collateral.

A home equity loan provides a one-time lump sum with fixed payments.
A HELOC works more like a credit card. You can borrow, repay, and borrow again during the draw period.

A HELOC is a revolving line of credit that allows you to borrow against the equity in your home. You can draw funds as needed, up to your approved limit, and only pay interest on the amount you use.

The amount you can borrow depends on the equity in your home, your credit history, income, and other financial factors. Typically, lenders allow you to borrow up between 80 - 90 percent of your home’s appraised value, minus any existing mortgage balance.

Minimum down payments depend on the type of loan you choose. While it is recommended to have 20 percent of your total loan, many borrower programs allow for a down payment as low as 3 percent.

A good rule of thumb is to keep your monthly housing costs at or below 30 percent of your gross monthly income. A mortgage pre-qualification with your local Frandsen Bank & Trust mortgage lender can help you determine your buying power.

Having student loans doesn’t automatically disqualify you. Lenders look at your overall debt -to-income ratio, credit history, and ability to repay. Many first-time buyers with student loans successfully qualify for a mortgage, with the right guidance and preparation.