There are two basic types of loans, those that are considered conforming and those that are non-conforming. These descriptions apply to loans that “conform” to standards issued by Fannie Mae and Freddie Mac. When lenders issue a loan using conforming guidelines the loan is then eligible for sale in the secondary market. Selling loans allows […]
General Mortgage
First Time Home Buyers and IRA Accounts
There are several first-time buyer programs. Many are state or locally sponsored in the form of grants or no-interest loans. A grant is essentially free money. For someone who qualifies for a grant, the funds are issued and as long as the borrowers keep the property for a specific period of time, say for at […]
Divorce, Separation and Real Estate
No one gets married with thoughts of ending the marriage at some stage later on. It’s a lifelong commitment to live happily ever after, for better or worse. But sometimes things get so bad it’s beyond “worse” and the couple decides to make some changes. When a married couple buys real estate together but later […]
Installment Debt, Revolving Debt and Qualifying for a Mortgage
One of the primary tasks a lender must perform is to determine affordability. A mortgage company must make a reasonable determination that the applicants will be able to afford the new mortgage payment along with associated property taxes and insurance. The mortgage includes both an amount to principal and interest. These four payments are referred […]
Mortgage Protection Insurance: Is It Worth It?
Have you heard this term? Maybe you got a letter in the mail from a company offering insurance to cover your mortgage? But why would you need mortgage insurance to cover your mortgage? There are a couple of reasons, one is to temporarily make your mortgage payments should you be unable to work and the […]
Why Are Discount Points Eligible for an Income Tax Deduction?
There are still several income tax deductions available to the everyday taxpayer. Several years ago, all sorts of interest, including credit card interest, was available as an income tax deduction. During the overhaul of the income tax code way back in 1986, several popular deductions were eliminated. We’ll talk about some of them but it’s […]
Private Mortgage Insurance Isn’t Forever: When You Can Remove PMI
Private mortgage insurance, or PMI, sometimes gets a bad rap. And that’s unfortunate because PMI plays a very important part in the mortgage industry. Years ago, banks would require down payments of as much as 30 or 40 percent of the sales price. Back then, banks assumed all the risk on the loan and if […]
Sorting Through All Your Loan Options
If you’ve never had a mortgage before, you’ll likely be surprised at how many choices you have. Sometimes it can be a bit overwhelming when your loan officer begins presenting your different choices. Lenders can boast about how many different loan programs they have but sometimes it clouds the decision-making process with too much information. […]
What To Expect At Your Home Closing
All the prep work has been done and your lender has told you your closing papers are being prepared and delivered to your escrow officer or settlement agent. A lot was said and done since the time you first spoke with a loan officer and began asking a series of questions on qualifying, applying for […]
How Much Can Home Sellers Contribute Toward Your Closing Costs
Saving up enough money for a down payment is typically the single biggest obstacle first time home buyers face. For those who already own a home and are contemplating selling and buying another, the accrued equity in the home is usually enough to take care of a down payment for the subsequent home. First-time buyers […]
Conforming Limit Changes 2020
Consumers may have heard the term “secondary market” as it relates to housing but it’s not very likely. Lenders, however, are very familiar with the term as the secondary market is the lifeblood of the industry. Without it, home loan lending would slow to a crawl resulting in fewer people being able to afford a […]
6 Home Upgrades to Avoid
Whether you just bought a fixer-upper that needs more than just a little “TLC” or you’ve lived in your home for a few years and ready for a remodel, there are some things you should do and especially things you shouldn’t do. Of course, if you did buy a home that needs a little help, […]
5 Hidden Costs of Homeownership
When consumers carefully consider buying a home, most of their attention is directed at how much money is needed for a down payment, how much are my closing costs and how much money do I need overall to close the transaction. Those are important considerations and your loan officer can provide you with a pretty […]
Rising Interest Rates, What Can Buyers Expect?
We’ve enjoyed some very competitive interest rates over the past few years. This has helped the housing market not only recover but thrive in multiple markets across the country. Today, it’s common to find a 30 year fixed rate for a conforming loan amount in the 4.00% to 4.25% with some variance. These rates hit […]
Should First Time Buyers Use Adjustable Rate Mortgage?
Should first time buyers use an adjustable rate loan or a hybrid as their very first mortgage? “First timers” when starting out on their home buying journey can be somewhat surprised at all the decisions they must make. The biggest choice is whether or not they want to buy in the first place. Making the […]
First Time Buyers? What To Expect
If you’re on the brink of buying your very first home, most any homeowner today will tell you it’s the fastest 30 days you’ve ever experienced. Why? one of the main reasons is there are a lot of “firsts” going on and third parties you’ve never heard of all working on your loan file. But […]
Should First Time Buyers Choose Fixed Rate Or ARM?
This is one of the questions most first time buyers ask but perhaps they’re really not sure why one might be better than the other. Mortgage lenders offer a variety of loan programs from government-backed loans such as USDA, VA and FHA loans to conventional mortgages underwritten to guidelines set forth by Freddie Mac and […]