Mortgages - What you need to know!

There could be a stage when you begin contemplating buying a second home as a form of investment. There is no doubt that a home that can generate supplemental income for you is an attractive proposition, but before you dive into this investment, you need to consider certain factors to see whether buying a second home as an investment is a prudent decision. Is a Second Home in Your Budget? Before you actually begin looking for a suitable second home, you need to sit down and calculate whether you can afford two homes simultaneously. Remember, there will be insurance, mortgage payments, property taxes and upkeep that you would have to spend money on. Do not forget the time you will be investing on both homes. You should ask yourself whether you can keep up with the expenses that two properties will incur along with the time investment. If yes, it is time for you to begin your search for that ideal second home that will generate a supplemental income for you and line your nest egg...

Mortgage pricing is a complicated process.The first step for any borrower looking to obtain the best possible price is to learn how the pricing process works.  Each Mortgage Type Is Priced Separately A 30-year fixed-rate mortgage carries a different price than a 15-year fixed-rate, and the same is true of each type of adjustable rate mortgage (ARM). Loans carrying special options, such as prepayment penalty or interest-only, are also priced separately.  Prices Are Multi-Dimensional Unlike most other products and services, the price of a mortgage has 2 or more dimensions: the interest rate which is paid over the life of the loan, and upfront fees paid at closing. Fees are of two types: those expressed as a percent of the loan, called “points”, and those expressed as a fixed dollar amount. In addition, if the borrower’s equity or down payment is less than 20%, mortgage insurance (MI) is required. The complete price of an FRM, for example, might be 4%, 2 points, $500 ...

When buying a home, there are a lot of factors to consider, one that is important to remember is the difference between cost and price. As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home. Last month, the Mortgage Bankers Association(MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about one full percentage over the next twelve months. We also know that many experts are calling for home prices to also increase over the next year. What Does This Mean to a Buyer? Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 even if home prices don’t increase: Buying A Home: The cost of waiting

So it’s time to sell your home and you’re wondering what is the best way to sell your home fast and for top value. After all, most home Sellers indeed want the highest price for their home and to get it sold in the fastest way possible. As a homeowner, do you have that ability? What have you had to do to become a homeowner? I’m sure you have worked very hard having saved money to purchase your home, perhaps even foregoing other things in order to pursue homeownership.  With this in mind, you wouldn’t want to treat the selling of your home casually trying to undertake the job of selling a home when you are not a licensed Real Estate Professional. Believe me in that I’m certainly not saying that ALL Real Estate Agents should be treated as Professionals because, just like any Professional you’ll want to check their accomplishments in selling homes.  A Professional possesses specific qualifications; someone who is up to speed with their work. Just like you consider...

This first time home buyer flowchart helps to demystify the home buying process.  From establishing affordability, to credit scores, down payment information, and the proper documents you need.  You might notice this is from another lender, but the information is the same for all lenders and for soon to be home buyers.If you have any questions at all give me a call.