top of page
  • Writer's pictureYuri Kapilovich, CPA

The Basics of Residential Mortgages

As you may or may not know, I released a new YouTube series called The Capital Contribution Live. The aim of this show is to teach you the basics of things you should have learned in high school and college.

On Monday, 10/17 I released the first episode of the series called "The Mortgage" and we got to sit down with Matt Schofield who is a Mortgage Loan Officer with NJ Lenders Corp. We chatted about the basics and here is a summary of what we discussed:

What documents are needed for a mortgage?

  • It all depends on your financial situation and the sources of income that you have. Typically, for a household with 2 employed members, those documents would require prior year tax returns, W-2s, bank statements.

  • If you are self-employed, you would need to be self employed with at least 2 years of self-employed tax returns to be able to utilize that income towards your home.

What is the difference between a fixed term mortgage and an Adjustable Rate Mortgage (ARM)

  • A Fixed term mortgage is fixed for a certain period of time (10, 15, 25, 30 years) and the mortgage payment (principle and interest) will not change for the duration of that entire time unless you refinance.

  • An ARM (Adjustable Rate Mortgage) has both a fixed and a variable (changing) component to the mortgage schedule. Typically you find a 3/1, 5/1, 7/1 and 10/1 ARMs and what that means is that for the first 3, 5, 7 or 10 years the payments of interest and principle will be the same and on the following year after that it may change.

Here is a link to the episode:

If you have questions about anything in this episode reach out to Matt Schofield at

10 views0 comments

Recent Posts

See All

Having basis for your tax losses

Are you ready to learn? Today we are going to learn about cost segregation and, specifically, when it does not work. If you scroll through social media you are going to find a ton of people describing

W-2 VS 1099 classification

So lets talk about it: 1099 vs W-2, what is the difference and why does it even matter? It is no secret folks, when you hire someone to help you out in your business (whether it is bookkeeping, social


bottom of page