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Mortgage Rates

15-Year Fixed

30-Year Fixed

FHA Loan

3.375%

3.75%

3.375%

(3.798% APR)

(3.982% APR)

(3.313% APR)

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How Important is Choosing the Right Mortgage Lender?

In life, there are plenty of important choices to make that effect our wellbeing. The right friends, the right spouse, the right job and so on. Each choice can and generally does impact the next. Your best friend asked you to go out to a function where you met your future spouse. Your spouse helped you decide which job you would be happiest with. Now, together you are planning to buy a home and even discussing retirement goals. See where this is going? I bet you didn’t think deciding on a mortgage lender could stack up to one of these important decisions. I’d like to share with you why I think it is.

Nowadays with all the options made available, it is indeed challenging to choose which home loan mortgage is ideal for you. If you are confused, you are definitely not alone. It is important to learn as much as you can about all the options for home loans before deciding on which option is best for you. You should also seek out the advice of experts to clear up any confusion you may be having along the way. Choosing the right lender with your very best interests in mind is one of the most important decisions that you will make. The right loan for your individual situation can prove to be life changing in savings over time. Simply put, this decision can be the difference of the type of retirement you have. One best practice recommended is that you get a referral from friends or family who have had a great experience with their current mortgage lender. If that is unavailable to you, then another smart approach will be to ask for references from the broker or banker you are talking to. Reading reviews is always a good practice, but verifying the reviews and references is always best.

When should I consider refinancing my current mortgage?

Homeowners with adjustable rate mortgage loans should pay close attention to the current market mortgage rates. When the adjustable arm increases, then it may be time to shop for a refinance loan solution. It may be a good time to switch to a fixed mortgage that saves you money every month. This can also save you tens of thousands of dollars over the life of the loan.

When shopping for the best home loan refinance program, it is a good idea to call your current lender and see if they have any refinance programs available that may benefit you. Many lenders do not want to lose their customers and may offer to refinance your mortgage at no cost and at a competitive rate. It’s always a good idea to shop your mortgage options with several other sources. This keeps you up to date and keeps the competition honest. One thing to look at is obviously the rates, but also business transparency is crucial. If you’re happy with your current lender relationship, you should continue it. Get a quote at the very least.

What about closing costs and fees??

When getting a quote from a broker or a direct lender, it’s important to understand the entire picture. Whoever is quoting your loan should be able to give you a very clear understanding of what your monthly costs will be. They should take this payment amount and break it down to exactly where this money is going on a monthly basis from the first month to the last month. How much of the payment is going towards the principle of the loan? How much is going towards interest? Is some of it is going towards insurance and so on. Understanding where every penny is going will also help you in determining the fees or points. Is one lender charging you much more in closing costs but offering a lower overall rate? Can a lower rate actually help pay any closing costs? There is much to be considered. Including how long you plan on staying in this home. A good lender will take the time to explain each option and how you will benefit in the long run.

Which mortgage options are right for me?

A good lender will take the time and do a few initial things to evaluate the direction of your loan. The main deciding factors that will determine which type of loan you should try and get will be the following:

  1. Your current income amount. Weekly, monthly or annual amount is needed. The bank needs to know that you make enough money to pay back the loan on a monthly basis. Sometimes, a joint application with a spouse is needed so that the income level monthly is sufficient to pay back the loan. A lender can help you figure out what you can afford and give you a pre-approval. Many real estate agents require this as well.
  2. How long have you been at your current job? Many lenders require a 2-year minimum. After this they look at your credit score to determine the general risk of lending you the money.
  3. Your credit rating plays a tremendous role in deciding which loan is best for your individual needs. For example, a government FHA loan can be approved with a FICA score of just 580. There are also programs that help with initial renovations of your new home such as the FHA 203K.
  4. Your deposit percentage amount. Various loans require different deposit percentage amounts. This also can affect the rates of your loan as well as the likelihood of approval. In many cases, the source or the deposits will need to be verified. Proof of bank statement from where the money is coming from will be required in most cases.

These are the general factors of what the bank will be looking for when determining if you are credit worthy or a credit risk.

There are some other things like LTV % (Loan to Value). This percentage has to do with how much money you owe currently. If your combined monthly debt is too much, then you may need to pay down this amount before you can get approved.

This should give you a basic idea of what is needed to get a mortgage. The next step is the most important.

Choosing the right Lender

In most cases, your largest monthly expenditure will be your mortgage payment each and every month for most of your life. This means that most of the money you earn every month will be paid towards a mortgage. Just as important as finding a good mortgage lender is having a good realtor. The realtor can help guide you in making the right decision for you and your family in the home you choose to buy. Choosing both of these carefully can impact your future goals equally. For example, a realtor can really care about you finding a great home for you and your family, but then doesn’t really care who you use to get a mortgage as long as the loan gets closed. If the loan gets closed, the sale went through and all the commissions get paid. In this scenario, the realtor can care about your safety and your kids educational needs for instance, but not really care whether you are able to save 100k at the end of your 30-year mortgage. That’s why it’s best to always get a quote from 2 or 3 lenders. Some lenders can recommend great realtors as well. If you find a good lender that truly cares about what’s best for your pocket, most of the time that lender has built relationships with realtors that care just as much. Here’s the biggest difference to consider. Realtors generally have 6 month contracts you’ve signed whereas mortgage lenders have none. So it is smart to shop around until you are comfortable with your lender. If it doesn’t feel right, it’s probably not right. So keep trying. Once you’ve made your choice, we recommend you stay in touch. Markets change as do financial situations. Having a good lender pays huge dividends over time. It surely will affect your overall financial goals. Choose carefully and we wish you success.

AdminONEHow Important is Choosing the Right Mortgage Lender?
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Bank Options for a Home Loan Mortgage

 

 

In the event that you’re planning to purchase a home, then it’s indispensable to fathom that the underlying stage in the home obtaining methodology is to pick and meet with a moneylender. Before getting a home propel home credit, it’s to your most prominent favorable position to fathom the unmistakable bank options available with the objective that you can settle on the best decisions and certification that the home buying strategy is a repaying learning.

 

There are a couple of special sorts of budgetary associations that offer home advance credits. These consolidate home advance banks and credit unions, among others. Government and state workplaces deal with most of these banks and oblige them to take after chose and state contract law.

 

 

A home advance master is a go between, addressing a wide arrangement of moneylenders going from online home advance associations to standard national banks. They go about as middle people who offer home credit propels for individuals or associations. As the home credit exhibit has ended up being logically engaged in our overall population, the some portion of home advance agents has outperformed standard banks and crediting foundations as the greatest merchants of home advance things. Regardless of the way that vendors will consistently offer a more noticeable arrangement of crediting choices, they may in like manner be less controlled depending upon the state.

 

A home credit bank is a moneylender that invests huge energy in beginning and offering home advance advances particularly to customers. The key complexity between a home advance speculator and a home credit middle person is that a home advance lender finances its crediting with its own particular capital, getting their benefits by offering their advances in the discretionary home advance promote. When they begin a propel, they put it on an appropriation focus credit expansion until they can offer it to a budgetary authority, for instance, Fannie Mae or Freddie Mac.

 

National banks and credit unions raise money to store contract propels through their customers’ checking and speculation records and confirmations of store. They offer credits to individual purchasers or associations with the money they have on store. Greater associations may in like manner offer home advance upheld securities in the cash related market to gain financing to offer home advance credits to customers. At whatever point banks and credit unions make a home advance propel, they will either hold it in portfolio or offer it to broad discretionary home advance promote budgetary authorities, for instance, Fannie Mae or Freddie Mac.

 

A save subsidizes and propel connection (S&L), or “thrift,” invests critical energy in enduring speculation reserves stores and making credits, particularly contract advances, and they are controlled by and worked for the upside of its people. By the day’s end, a speculation stores connection part is a stockholder in the association, which is regularly intertwined and ought to stick to government or state joining essentials.

 

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Your Home With the Right Equity Home Loan Mortgage Rate

 You have been waiting decades for this day.

It is not your 100th birthday. It is not your 50th wedding anniversary.

house-key

And, it not the day that the local TV station airs a 24-hour Star Trek marathon.

Today, you will make the last payment on your home. You will officially own the house that you “bought” many years ago! All of those overtime hours at the office, those countless weekends hunting through the newspaper for coupons, and the constant insistence that all of your kids wear the hand-me-downs from their older siblings have paid off! Your trip up Mortgage Mountain was worth it. When we first take out a mortgage for our home, it is difficult to imagine the day that we will pay it off in full. But the journey begins when we search for an equity home loan mortgage rate.

Equity is the amount by which a property’s appraised value is greater than the debt value. If a home’s market value is $200,000 while the mortgage balance is 50,000, the property’s equity value equals $150,000. So, equity is a good thing when taking out a mortgage. The greater the equity in the house,

the betterAdding equity to your home is fairly easy. Of course, making a mortgage payment is one way to build equity. And the sooner that you reach a hundred percent equity – or own your home, the sooner you can retire, have genuine wealth, and experience less financial stress. Also, the more equity you have, the better the equity home loan mortgage rate you can find.

Making your monthly mortgage payments based on your equity home loan mortgage rate is just the start. You can engage in other ways to build extra equity. The following are ways to build extra equity.

* Improve the size or quality of your home, via home improvements. Remember, though, that some improvements are more advantageous than others. Remodeling bathrooms is usually more beneficial than adding a swimming pool. And remodeling kitchens is usually more beneficial than attaching a skull door-knocker on your front door.

* Make a higher initial down payment when buying your home. This will also increase the equity. Think about it this way: the more money you invest in your home, the less you can waste

* Make extra principal payments or add to your monthly payment that will be dedicated to your principal. Less debt means less interest, so less of your payment will go to interest, and more will go to your principal. Also, each dollar you send reduces your debt by an equal amount. However, check if your lender permits extra payments of principal.

* Secure a lower equity home loan mortgage rate will allow you to refinance, if you are now in a long term mortgage – 30 years, for example. Also, you could initially secure mortgage with a shorter term. A shorter mortgage term translates into paying down your principal faster, thus earning extra equity, faster.

While building equity in your home is wise, searching for the best equity home loan mortgage rate is equally important. Many companies have search engines that can find the best rates for you. Factors considered include where you will buy your home, and the loan amount.

The first important step in buying a home is buying a home. Afterwards, adding equity to your home is important in adding value to it. That will give you the equity home loan mortgage rate that none other can equal.

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First Home Buyer’s Guide To Boosting Credit

First Home Buyer’s Guide To Boosting Credit

 

One of the most essential determining factors in getting a mortgage is your credit score. Having a good credit allows you to get a low interest rate which means, you’ll end up paying less for your home mortgage. Below are some tips to help you get a better score and rate according to your financial standing.

Following these suggestions doesn’t mean instant boost to your credit score though, but they could make a better impact within three months and may help you create good practices that will ultimately improve your credit status. It is important to understand that each individual situation is not the same and it is advisable to check on your own score with a credit reporting agency.

Daily Practice Tips

Some simple everyday practices can possibly do something to improve your credit score in the long run and keep it for good.

  • Paying your bills on time, on a consistent basis. Delinquent payment of your rent, credit cards, utility and medical bills including other services make a negative impact on your credit standing. Thus, it is important to keep in mind not to delay payment of basic bills.
  • Keeping credit card accounts active.  This maybe challenging as the use of available credit is tempting. But it makes a good impact on your credit score when you have a history of well maintained active accounts.
  • Keeping a good debt-to-credit ratio. You can achieve this by maintaining credit card balances below 25% of the total limit.

Settling Debt Issues

One of the best things you can do to improve your credit score is to settle your problematic accounts.  Your total credit score is made up of 35% of your payment history and 30% of debt amount. Unsettled issues with your accounts can consequently put your score down.

You can start working your way to repairing your credit score by paying off past- due accounts a priority focusing on those that have been long overdue for 90 days and beyond. Creditors usually make a corresponding honest adjustment on your credit history by taking the late payment report off your credit history.  This usually ushers in progress to your credit score.

Keeping Credit Line Open

Taking out loans for cars, electronics and other items when you’re about to apply for a home mortgage can be detrimental to your score. If you’re planning for a first home mortgage, it is critical not to open another line of credit with a new balance as it would add up to your overall debt conversely decreasing your credit score. Closing your existing credit lines is not advisable either.

Settling your balances while keeping your line of credit open is generally a good way to reduce total debt which will ultimately result to a good debt-to-credit ratio. In short, the lower percentage of debt over available credit will create a positive impact on your over-all score.

While the above mentioned tips can help you generally make a difference to your credit score, it is always best to sit down with a financial adviser who can help you design a personalized plan for credit improvement. Doing this will not only help improve your future mortgage costs, but also identify potential lenders that could cater to your needs.

The loan officers at Simple Fast Mortgage are trained to help you identify your credit challenges and assist you in making changes to benefit your credit score and ultimately your mortgage loan rate. This will enable you to benefit with big savings over time throughout the term of your loan.

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