By HomeHelp on September 3, 2009
If you’re thinking about buying a home but are confused by all of the details regarding financing options, following is some information to help you understand the choices you have for the different types of loans that are available.
Fixed Rate Mortgage
This is probably the most traditional type of loan and one that you may already be familiar with as its quite common and frequently talked about in advertising. With this option, you have the choice of a 10, 15 or 30 year pay-off. Your monthly payment will remain the same over the entire span of the loan because the interest rate is ‘fixed’. The only change that you might see in your payment would be due to a rise in tax or insurance rates if you have those incorporated into your monthly mortgage payment. Keep in mind that if you choose a fixed rate mortgage, you are locked into whatever interest rate is set for your loan at that time. If you decide later that it’s too high, the only way to get a lower rate would be to refinance.
Adjustable Rate Mortgages
This type of loan, also well-known and sometimes referred to as a variable loan, is based on the rise and fall of interest rates. Your monthly payment is set up with a specific rate and index, or range, at the time that you receive your loan, but could be adjusted, or increased, due to fluctuations in interest rates.
FHA Loans
You may have heard of a division of the U.S. Department of Housing and Urban Development (HUD) called the Federal Housing Administration (FHA). The FHA offers various mortgage loan programs which are especially great for first time home buyers. FHA loans have lower down payment requirements and are also easier to qualify for than conventional loans, like the two mentioned above. Additionally, they cannot exceed the legislative limit for interest rates.
VA loans
The U.S. Department of Veterans Affairs can guarantee veterans and service people the ability to obtain home loans with really good terms. There is usually no down payment required and they are easier to qualify for than a conventional loan. The USDVA will determine your eligibility and if you qualify, you’ll be issued you a Certificate of Eligibility so that you can apply for a VA loan. The Department of Veterans Affairs does not dispense the actual loan – it guarantees loans obtained through your lender. Keep in mind that most lenders limit the maximum VA loan to $240,000.
State and Local Housing Programs
Many states, counties and cities offer loans that have typically more lenient qualification guidelines and are often designed with lower upfront fees. These government-funded programs provide low to moderate housing finance options, down payment assistance and programs that are designed specifically for first time home buyers. Also, through one of these local or state level programs, you may be able to obtain a Mortgage Credit Certificate (MCC). This certificate provides you with a tax credit for part of your interest payment. Most of these programs are fixed rate mortgages and have interest rates that are lower than the existing housing market’s.
Once you’ve done your research on the different types of loans that are available to you, continue preparing by exploring different lenders. It’s important to find a lender with a good reputation and one that you feel comfortable dealing with. This way, you will be assured of dependable, professional guidance in choosing a loan that best suits your lifestyle.
Posted in Getting Financed | Tagged adjustable rate mortgage, fha loans, fixed rate mortgage, Mortgage, mortgage types, va loans
By HomeHelp on September 2, 2009
As you probably are aware, the mortgage game, including refinancing after you’ve obtained your loan, can get very confusing at times. Still, there are several reasons to consider refinancing your home. Maybe your existing interest rate is too high or you are interested in debt consolidation. If you have an adjustable mortgage, you might want to switch to a fixed rate with lower interest. Or, if you want to do some remodeling or pay toward college tuitions for your kids, you might want to look into a home equity loan. With all of this in mind, here are some tips to assist you in making an informed decision about your refinancing options.
Think about how long you plan on staying in your current residence. If you’re planning a move within the next few years, it might not be to your advantage to refinance at all. If you are planning to sell your house and choose to refinance anyway, make your lender aware of this decision. Knowing this can help them assist you in choosing a loan that could possibly benefit you while you still own the home.
Something to consider if you know that you will be moving in the next three to five years is an adjustable rate mortgage. These types of loans usually have a lower rate than a traditional fixed rate loan and they still have a fixed rate for the first three to five years. You’ll be able to benefit from the lower rate, but you won’t have to worry about the possibility of an adjustment because you’ll be selling the home before the fixed-rate period ends.
Next, determine what your motivation is for refinancing. Once you’ve made that decision, it will be easier to choose a mortgage option that will help you to meet that goal. Also, talk to your lender about whether or not it’s beneficial for you to refinance at this time. You might end up deciding to wait until either the interest rates are at a more acceptable percentage or you’ve built up more equity in your home.
Consider changing the terms of your current mortgage. For example, if you require more cash in your household each month, you can switch from a 15 to a 30 year, thus lowering your monthly payment and providing you with more money for other needs. On the other hand,, if you have a 30-year mortgage and change it to a 15-year loan, you will pay more on a monthly basis, but if you can afford to do that, your home will paid off much quicker. Additionally, you will save a huge amount of money in terms of interest because you would be taking 10 to 15 years off the life of your loan.
See if you qualify for a Government-subsidized loan. Millions of people that qualify for FHA or VA loans are offered much lower interest rates which can result in a savings of hundreds of dollars off your monthly payment.
Most lenders don’t charge as many fees to refinance a mortgage. Depending on how much equity you have in your home, you may be able to roll the closing costs into your new loan and still end up with a lower balance than your original mortgage. Hopefully, you will also get a lower interest rate, making your monthly payment less. If you are able to refinance with a lower interest rate than what you are currently paying, you could save tens of thousands of dollars over the life of your loan.
Posted in Getting Financed | Tagged fees, fha, government subsidized loans, loan, Mortgage, mortgage lender, points, refinance, refinancing your mortgage, va
By HomeHelp on September 2, 2009
Finding a mortgage that best fits your lifestyle doesn’t just begin at the loan application stage. That’s why you need a quote, or several, before making any final decisions. Discovering too late that you can’t afford your mortgage could not only cause you to lose your home, but also make it incredibly difficult to purchase another one.
Because there are so many available resources to obtain mortgage quotes, educate yourself before you start requesting quotes from various lenders. Start by examining your finances. It’s up to you to assess your income and expenses, both current and future, to determine what you can comfortably manage every month in terms of a loan payment. Remember to include both principle and interest, insurance costs, taxes, homeowner association dues and any other applicable costs along with your mortgage payment. This way, you’ll have a good source of reference to help in answering any questions the lender might have for you, online or otherwise. It will also make possible for you to get a more accurate estimate of what you can expect your monthly payment to be.
Another good idea before contacting a lender for a quote is to get an idea of what you can afford by utilizing a mortgage calculator. Just do an online search for ‘mortgage calculators’ as almost every broker’s website has these available for free. With a mortgage calculator, you can determine how much you will pay each month based on what loan amount you want and what kind of interest rate you might receive. Getting an idea of these numbers ahead of time can offer some peace of mind by knowing what you can afford to pay each month and what you can’t.
There are dozens of types of loans, hundreds of loan programs and thousands of mortgage brokers, bankers, lenders, finance companies, credit unions and even stock brokerage firms who originate loans. Getting the information is easy because mortgage resources are as numerous as the assortment of mortgages that are available. Web sites, newspaper articles, mortgage books, consumer seminars and workshops can be a big help. Professionals, including financial planners, real estate agents, mortgage brokers and lenders, can also assist you. Be aware that lenders are sometimes known to qualify you for as much as they are willing to lend you, which could be more than you can really afford.
You can request a mortgage quote in a couple of different ways. By going to any online lender site, you can simply enter the state where the property is and the type of mortgage you are interested in obtaining. Once you submit the information, you’ll be provided with a list of lenders and most likely, recently updated rates for several quotes as they change constantly. In a situation where you might not have time to fill out the lender’s electronic form, or if you’re just not sure of what your specific mortgage needs are, you can also have a lender contact you. You can discuss, one-on-one, what you’re looking for and get some immediate information regarding what your options are and receive a few quotes that way also.
Requesting a quote on interest rates, down payments, monthly payments and closing costs will provide you with an initial indication of how much you can expect to pay each month for your new property. This way, you’ll know just what you can afford and what you can’t.
Posted in Featured, Getting Financed | Tagged finding a mortgage, getting financed for a home, loan application, loan officer, mortgage lender
By HomeHelp on September 2, 2009
If you live in San Diego, California and are ready to buy your own home, there’s a variety of knowledgeable lenders available to help you. Maybe you already own your home and want to refinance, or need a little extra cash so you’re thinking about a home equity loan. Whichever the case may be, following are a couple of mortgage companies in the San Diego area who are ready to assist you.
Signature Funding in San Diego is one mortgage company that offers ‘do whatever it takes’ service. They pride themselves on providing you with an abundance of information so that you understand every aspect of the home buying process. In addition to professional loan officers you can contact, their website is overflowing with answers to just about every mortgage topic you might have a question about.
For example, they provide you a link to a page of alphabetized explanations for every possible mortgage term out there. That can be very helpful, especially for first time buyers. Also, they actually have another page of information just for first time home buyers. There are links for information on all of their loan options of which there are many, including zero down home loans, and a page where you can request free reports on things like fixing your credit report. Additionally, they offer assistance to owners who are selling their homes themselves. To check a great resource for mortgage programs and lots more, go to www.signaturefunding.com.
Also in close proximity to San Diego is Applied Wholesale in Irvine.
They are a company that offers the guaranteed lowest interest rates and points on fixed rate mortgage loans. If you find a lower rate, they’ll pay you $200. That’s how confident they are about their wholesale point and interest rates. They’ll even pay you if you find a lower rate after you close on your loan with them! Additionally, they let you tell them what you are looking for and come back to you with a real offer, not an estimate, based on the information you provided them with. On Applied Wholesale’s website you will find convenient, free electronic payment calculators, a rent vs. buy calculator in addition to a couple of others. If you’re not familiar with mortgage calculators, they are a very useful tool that can assist you in determining what you can afford. There’s also links to all of their home loan options including zero down loans and a ‘Learn’ page that is overflowing with information on all aspects of finding a home and applying for a mortgage. Visit their website at www.awnow.com.
When applying for a mortgage, keep in mind that interest rates fluctuate constantly. If you get a really good loan rate offer and are comfortable with your lender, ask them to lock in the rate for you.
There is usually a fee for this service, but it’s well worth it, especially since it’s a seller’s market right now in the San Diego area. With that said, you might not have an opportunity to negotiate much on the price of the home you want, so a good interest rate can really help with the expense of the purchase enabling you to save money later on your monthly mortgage payments.
Posted in Regional Homes | Tagged buying a home in san diego, getting financed san diego california, mortgage san diego, san diego homes
By HomeHelp on September 2, 2009
Did you know that homeowners in the Sacramento area are estimated to have a 55% or higher chance that their property values will slip in the next two years? This is good news for buyers but also something to think about after you become a home owner, especially if you’re planning to sell the house in the near future. Even though the real estate market has slowed down just a year ago, higher interest rates and appreciating home values are continuing to put houses out of reach for many people in the Sacramento area. Still, lots of mortgage companies are optimistic that the market will remain in a positive standing.
40 and even 50-year mortgages are becoming more and more common because borrowers are trying to balance the risks by keeping their payments as manageable as possible. Even though a home owner in Sacramento is accumulating equity in their house at a slower rate with one of these loans than with a more traditional 15 or 30-year mortgage, these home owners aren’t susceptible to rate changes like they would be with an adjustable rate mortgage.
Lending companies are always trying to come up with new ideas for developing products to deal with the affordability problem throughout the state of California. One way you can get some assistance in finding out what the rate fluctuations are in the Sacramento area is with the Mortgage Rate Tracking service on the California Real Estate Center’s website. It’s a free program designed to notify you when current mortgage rates hit the number you are looking for. This service enables you to take advantage of that mortgage rate once it becomes available so you can lock it in if you choose to before the market changes again. You can complete the simple form on the website and they will notify you via email when your target rate becomes available. And you can stop the service any time you want. To check out the Mortgage Rate Tracking service, go to www.californiarealestatecenter.com and click on Mortgage Rate Tracking in the Mortgage Tools section on the home page.
Another service on that website which will help you understand what is happening with the real estate market in the Sacramento area is the Free Home Value Estimates program. If you’re thinking about refinancing or purchasing a home in a specific Sacramento neighborhood within the next year, you can find out what the values of the homes are in that area. By signing up for this free service, you’ll be emailed a free home value report which will give you all the selling price information on the most recently sold homes, with an additional free home value estimate. If you’re interested, go to the California Real Estate Center’s website and check out a sample report and sign up if you like. You can also receive the newest real estate listings of homes for sale in your neighborhood. If you are thinking of applying for a mortgage on a new home or even selling your current home, this is valuable service because you’ll be able to see what kind of prices homebuyers and sellers in the Sacramento area are looking at.
Both of these services, in addition to the free mortgage calculators on the website, can really assist you when apply for a mortgage. By being informed of selling prices in your area, you’ll have a good idea of how much of loan you’re going to need to purchase a home in Sacramento.
Posted in Regional Homes | Tagged buying a home in sacramento, home value estimates, mortgage rate, mortgage tools, sacramento california, sacramento homeowner
By HomeHelp on September 2, 2009
As the second largest city in the United States, Los Angeles is as diverse as it is appealing.
Located in Los Angeles County in Southern California, the city sprawls over 465 square miles which makes it larger than both New York City and Chicago. Because of Los Angeles’ vast geographical size and large population, it is divided into several different districts and neighborhoods. The housing options range from lower-end apartments to upper end estates. Some homes are located on one of the many gorgeous beaches such as Manhattan or Venice Beach, while other are situated high in the hills with spectacular views of downtown Los Angeles.
If you’re interested in obtaining a mortgage to purchase a home in Los Angeles, the following table will give you an idea of what is available in terms of housing through personal ownership and rental properties, in addition to average pricing in the Los Angeles area with a comparison to the rest of California and United States overall.
|
Real Estate
Market Data
|
Los Angeles
|
Los Angeles County
|
California
|
United States
|
| Total Housing Units |
195,164
|
1,284,767
|
5,411,903
|
115,904,743
|
| Average Home Price |
$328,239
|
$310,483
|
$304,168
|
$173,585
|
| Median Rental Price |
$513
|
$621
|
$563
|
$471
|
| Owner Occupied |
28%
|
46%
|
54%
|
60%
|
| Rental Units |
66%
|
50%
|
40%
|
31%
|
| Vacant Units |
5%
|
4%
|
6%
|
9%
|
For additional tips on obtaining a mortgage and the overall home buying process, there’s a great online resource for you called Homes of Los Angeles County Dot Com. This website is chock full of information on a variety of topics that can get you informed and assist with your decision making. There’s a ‘Your Decision’ link which goes to a page that’s all about the different kinds of real estate agents with tips on how to choose one that’s right for your needs. On the ‘Home Buyer Tips’ page, you can link to articles about Buying Considerations, Pricing and Negotiations, Inspections and Construction, Mortgages and Financing and Escrow and Closing to learn about all of those processes.
On the ‘Mortgages’ link page, you have access to all kinds of information on things like the First Steps you should take before applying for a loan, including how to compare renting with owning, researching the various types of mortgages and also how to see determine much house you can afford. The ‘Purchase’ section assists you with information on how to look for a lender and the steps involved with the mortgage application process in addition to loan closing activities and more. There are even ‘Moving Tips’ to help you prepare for the relocation to your new home with recommendations for everything you’ll need to do to ensure an easy transition.
The Homes of Los Angeles website also provides you with search options for every single neighborhood in the Los Angeles and surrounding area. The names of each area are conveniently broken down alphabetically. When you choose the location you’re interested in, you will be directed to a page all about that area including background on the neighborhood and price ranges for the homes there. It’s pretty impressive actually.
Go to www.homesoflosangelescounty.com/towns to read about everything you’ll need to know before starting your home buying and mortgage process in Los Angeles. Remember – Knowledge is Power – best of luck in your endeavor!
Posted in Regional Homes | Tagged buying a home in los angeles, california mortgage, los angeles mortgage, los angelos, purchase a home in los angeles
By HomeHelp on September 2, 2009
When starting the home buying process and applying for a mortgage loan, your main objective is to find the mortgage that best suits your needs. Mortgage rates differ throughout the country and Houston mortgage rates can differ greatly from what you might expect. A good first step for figuring out which type of loan and what rate you want is to contact multiple lenders and let them compete to offer you the lowest mortgage rate. Whether you’re purchasing a new home, refinancing, or looking for a home equity loan, this process is simple, takes only a few minutes and can be done online as there are numerous lenders on hand for you via the internet.
Following are a couple of the lenders available to you in the Houston area.
Magellan Mortgage and Processing is a mortgage lending company in Houston that prides itself in providing high quality home loan services to the public. They state that their goal is to provide the highest quality mortgage options at the most competitive rates. Magellan Mortgage and Processing offers programs for new home purchases, refinancing, debt consolidation, home equity loans, second mortgages, new construction and home improvement loans. They say that they will work with you to customize a loan that is perfect for your individual situation. On their website, you will find a link to their Rate Finder which will provide you with rates that best match your criteria. You can also utilize one of their free mortgage calculators or the ‘Home Loan Wizard’ which will help you determine how much of a loan you can afford to pay every month. They also have a link to a page that’s all about their different mortgage options which include FHA and VA loans in addition to zero down loans and several more. You can go to Magellan Mortgage and Processing’s website for more information and also fill out a quick application for pre-approval if you like. Their web address is www.houstonmortgage.net.
Another lender in the Houston area is a company called Earth Mortgage. Earth Mortgage strives to give their customer the most accurate information and access to the best rates in the United States. They are a direct-lender which means they loan their own money and utilize in-house processing to guarantee customer satisfaction. Earth Mortgage offers a complete line of mortgage products including sub-prime, conventional, FHA, VA, stated income, no income no asset and second mortgage programs. They also offer low down payment options on vacation properties. On their website, you can apply for pre-approval, lock in your rate on a new home and even a new construction with a guarantee on that rate for up to twelve months. To help you track lender rates, you can also sign up for their free ‘Rate Watch’ service which monitors interest rates for the specific type of mortgage you want. If you sign up online, all you have to do is set a target rate that you’re looking for and Earth Mortgage will notify you as soon as rates reach or fall below your desired number. There are descriptions of all of their loan programs and tools like free mortgage calculators to help you determine what type of loan to choose based on the estimates of the monthly payment results. To visit Earth Mortgage’s website, go to www.earthmortgage.com.
You want to deal with a mortgage company that you can trust, right? So no matter which lender you choose, be sure that it is someone who is professional and knowledgeable and willing to do whatever they can to get you into the best mortgage program for your lifestyle. Make sure also, to only accept a loan offer that provides you with monthly payments that you are comfortable with.
Posted in Regional Homes | Tagged buy a home in houston, home buying houston, lenders in houston, mortgage company, mortgage loan
By HomeHelp on September 2, 2009
If you’re looking to buy a home in California, you’ll be interested to know that the rates on mortgages there are averaging between 6.0 and 6.8. Depending on your credit rating and which lender you choose, you may be able to get an even lower interest rate.
Following is information on a couple of lenders in California that you might want to consider for your mortgage loan. Each of them has the option to get a quote online which is a real time saver and makes it easy for you to do some comparison ‘shopping’ before making a decision on who to use.
Western Funding is a California-based group that offers many loans which are directly originated through their company, in addition to a variety of loans from a network of lenders they are associated with. You can fill out one loan form and choose to do business with Western Funding or allow them to match you with another lender who suits your needs. One of the loans they offer is called the ‘1% Cash Maximizer’. It is a 40 year adjustable rate mortgage with lower, fixed monthly payments for the first five years of the loan. This loan offers you an interest rate of only 1% and fixed monthly payments for five years. Those payments can be up to 50% less than a typical mortgage payment and provide you with extra money for other things you need or want. Western Funding’s ‘Cash Maximizer’ loan is very flexible and you do not need perfect credit to be approved for it. Loan amounts can be obtained for up to $7,000,000 and they also state that it’s an ideal program for self-employed people. You can get pre-approved, not just pre-qualified, and won’t have to pay any upfront fees either. They also offer free mortgage calculators on the website to help you decide how much you can afford to pay and how much you might be able to borrow. Check them out at www. http://wesfund.web-loans.com.
A1 Mortgage Express is another lender who specializes in loans for residents of California, New Mexico and Colorado. They offer a variety of programs and even have a page on their website that lists the pros and cons of each type of loan to assist you in your decision making. Some of the mortgages A1 Mortgage Express offers are first time home buyer, interest only loans, state income programs and even loans for people with ‘bruised credit’. In addition to those and many others, they also have some specialized programs like no money down, piggyback loans, debt consolidation and home improvement loans. A1 Mortgage Express takes pride in their great customer service and says that they will do all they can to help you, even if you’ve gotten turned down by other lenders. Their website is very informative with free online calculators to help you determine your credit rating, payment options and the maximum loan amount that you can afford. They provide you with a run-through of how to apply for a mortgage and what to expect during the entire qualification and loan process. Visit A1 Mortgage Express at www.a1mortgage-express.com for more information.
In addition to the two mentioned above, there are many other mortgages companies in California that will also give you free rate quotes and let you know if you can pre-qualify. Go ahead and do some online research before making any decisions because finding the right lender makes a world of difference when it comes to getting the best interest rates and monthly payments that you can afford.
Posted in Getting Financed, Regional Homes | Tagged buy a home in california, California Homes, california mortgage, loan process, Mortgage, mortgage express, pre-qualify
By HomeHelp on September 1, 2009
The property values in different Phoenix neighborhoods vary widely, so though you may only be ready to afford a little home in one area of the Sun Valley, you may be able to purchase a far more expansive dwelling just by shopping in another area of the town.
This makes it a smart concept to get to understand the culture of different areas before you start looking seriously at real estate for rental or purchase. If you are new to Phoenix and are considering purchasing a home, it’s a sensible idea to make your first decision not about what your price range is ; who your agent should be ; or even what sort of property you want. Instead, begin searching for Phoenix real estate by deciding what neighborhood you want to live in.
Phoenix, Arizona is famous for being a very diverse city, and has even earned the unlicensed nickname’the melting pot of the southwest.’ This helps to make Phoenix a thrilling place to live, but it could also make the town a bit confusing for newcomers. Because every neighborhood in the area has its own particular and unique atmosphere, it can be difficult to pin down where exactly the guts of town is. Many folks moving to Phoenix want to live in the middle of it all, but the problem of where precisely the middle is can be rather complex and depends as much on your personal taste and sensibility as it does on geography or statistics.
If you consider the guts of a town to be the place where the most wealthy and powerful citizens reside, look into the North Central area. This pretty neighborhood is home to mansions and inspiring dwellings, top class shopping, and other pleasantries that often come together with upper class residents. The streets are lined with pretty and savoury citrus trees, giving the entire upscale neighborhood a distinctively southwest feeling.
On the other side of the town, South Phoenix provides a reasonable alternative for people who can not afford the sorts of exclusive, stately houses found in North Central. South Phoenix is a transitional area, where a few costly flat complexes have begun to pop up in the middle of what’s essentially a low and middle class area. Once made up the majority of industrial buildings with a sprinkling of lower cost houses, South Phoenix is rapidly turning into a hot home market as people flock to the area, revitalizing the area and driving property values up.
Posted in Regional Homes | Tagged Buying A Home, buying house in phoenix, melting pot, Neighborhood, phoenix real estate, phoneix arizona, sun valley
By HomeHelp on December 21, 2008
lela1026 asked:
I want to buy a home at the end of the year. As a single parent of three I am determined to buy a home b/c I cannot afford the growing rents in my area. I have credit blemishis, and I am currently working two jobs one at 13 dollars PT and another at 11.38 an hour FT. As a single person, will the back evaluate both incomes in hopes to buy a home or is this unrealstic. Will they evaluate court ordered child support ? I recieve about 500 a month for two of my children.
STEVE
Posted in Buying A Home | Tagged Jobs, Rents, Single Parent
