LOAN & MORTGAGES GUIDE

Mortgage Education & Smart Borrowing | State Global

Loans & Mortgages Made Clear

Whether purchasing a home, refinancing, or consolidating debt, understanding how loans work helps you make confident financial decisions.

At State Global, we simplify lending so you can borrow responsibly and strategically.

Mortgage Basics Explained

A mortgage is a loan used to purchase or refinance property. The lender provides funds, and the borrower agrees to repay over time with interest.

Key Mortgage Components:

Principal

The original amount borrowed.

Interest

The cost of borrowing money.

Term

The length of the loan (commonly 15 or 30 years).

Down Payment

The upfront amount paid toward the purchase price.

Escrow

Funds set aside for property taxes and insurance.

What Determines Your Mortgage Rate?

• Credit score

• Debt-to-income ratio (DTI)

• Loan amount

• Loan term

• Market interest rates

Fixed vs. Adjustable Rate Loans

Choosing the right loan type is critical.

Fixed-Rate Mortgage

✔ Interest rate remains the same

✔ Predictable monthly payments

✔ Ideal for long-term homeowners

Best For: Borrowers who want stability and consistent budgeting.

Adjustable-Rate Mortgage (ARM)

✔ Lower initial interest rate

✔ Rate adjusts after introductory period

✔ Payments may increase or decrease

Best For: Short-term homeowners or those expecting income growth.

Loan Pre-Qualification Guide

Pre-qualification gives you an estimate of how much you may be eligible to borrow.

Review Your Credit Profile

Higher credit scores generally qualify for better rates.

Calculate Debt-to-Income Ratio (DTI)

DTI = Total Monthly Debt ÷ Gross Monthly Income
Ideal: Below 43%

Gather Documentation

• Proof of income

• Employment verification

• Bank statements

• Tax returns

Receive Pre-Qualification Letter

This strengthens your offer when buying a home.

Debt Consolidation Strategies

Debt consolidation combines multiple debts into one manageable payment.

Benefits of Consolidation

✔ Lower overall interest rate
✔ Simplified monthly payments
✔ Potential credit score improvement
✔ Faster debt payoff

Common Consolidation Options

• Personal consolidation loan

• Home equity loan

• Balance transfer credit card

• Mortgage refinance

When Consolidation Makes Sense

• High-interest credit card balances

• Multiple payment due dates

• Difficulty tracking debt

Example Scenario

Original Debt:

• $15,000 at 22% interest

Consolidation Loan:

• $15,000 at 10% interest

Potential Outcome:
Lower monthly payment and reduced total interest cost over time.