15
Dec
By First Rate Financial Group
Mortgage

Are Firefighter Mortgages Legit?

Are Firefighter Mortgages Legit?As a firefighter, you put your life on the line every day. You are there when people need you the most, and you might be wondering how you can finance a home. Even though the housing market has gotten expensive, there are special programs that firefighters can take advantage of. That way, you might have an easier time purchasing the house of your dreams.

Special Programs Are Available For Firefighters

As a rule of thumb, people are expected to put 20 percent down for a home. This can cost tens of thousands of dollars, and it might be difficult for you to save that type of money. Fortunately, there are special programs under this category that may allow firefighters to purchase a house with a down payment of as little as 2 percent down. You also do not have to worry about any resale or borrower repayment restrictions, and your credit score only needs to be 580 or higher. You can even come by in this special program with the FHA 203(b) program, which might make it easier for you to renovate your house after you purchase it.

What Are The Other Eligibility Requirements?

There are several other eligibility requirements that you might need to meet. For example, if you are the one taking out the loan, your total income must be equal to or less than 140 percent of the median area income. The program is also only available to first-time home buyers. Keep in mind that this program is also available to other first responders as well. This includes police officers, paramedics, emergency medical personnel, and other health responders. 

Explore All Options For Financing Your Home Purchase

Being a firefighter is a demanding career, but there are options available that can make your home purchase less stressful. If you are a firefighter, you should consider exploring home loan options through this program. You should reach out to an expert who can walk you through the process, as it could make it much easier for you to save up money for a down payment on a house. 

 

14
Dec
By First Rate Financial Group
Home Mortgage Tips

How Do I Know If It’s a Good Idea to Refinance My Mortgage?

You Ask, We Answer: How Do I Know If It's a Good Idea to Refinance My Mortgage?Are you interested in paying less per month on your mortgage? Or perhaps you would prefer if your mortgage was paid off a couple of months – or years – faster? If you are a homeowner with a mortgage, one option that is open to you is refinancing. In today’s post, we will explore the topic of mortgage refinancing and how to know if it is a good idea.

How Does Refinancing Work?

In short, refinancing is a process in which pay off your existing mortgage and borrow a new mortgage under a different set of terms. In most cases, homeowners will use the funds from the new mortgage to pay off the old one. Depending on the terms of your new mortgage, there may or may not be cash left over which you can use to invest, pay down debts, make renovations or for other purposes.

Refinancing To A Lower Interest Rate

Mortgage interest rates tend to fluctuate over time and because of this, refinancing to a mortgage with a lower rate is quite popular. If you initially borrowed your mortgage when interest rates were at 5%, you may be able to lock-in a new mortgage at a lower rate. Note that it can be tough to try to “time” the mortgage market, so check in with your mortgage professional to find out if the time is right.

Refinancing For Lower Monthly Payments

Another great use of refinancing is to reduce the monthly payment required on the mortgage. If you have ten years remaining on a 20-year mortgage, refinancing to extend the payments out to 15 years will lower the monthly payment.

Refinancing To Eliminate Other Debts

Finally, many homeowners will refinance their mortgage to use some of the home’s equity to pay off other debts. For example, a family might have $25,000 in debts that are being charged a higher interest rate than their mortgage. If they have built up enough equity, they can refinance and draw out $25,000 from the home’s value. This shifts the debt from the higher interest areas into the mortgage, where it can be paid off over time.

As you can see, there are many reasons why you might want to refinance your mortgage. To learn more about the refinancing process, or to discuss your options, contact us today. Our professional team of mortgage advisors is ready to help you choose the path that best suits your financial needs.

13
Dec
By First Rate Financial Group
Mortgage

How To Finance A Home Renovation

How To Finance A Home RenovationThe housing market continues to be very competitive, so you may have to be a bit more flexible with what you are looking for. For example, you may come across a home that is not quite perfect, but it has a lot of the features that you need. In that case, you may be wondering how you can finance a home renovation. One of the best ways to do so is using the FHA Streamline 203(k) program. 

What Can The FHA Streamline Program Finance?

There are several examples of home renovations you may be able to fund using the FHA Streamline 203(k) program. For example, you might be interested in updating the kitchen or bathroom. You might also need to repair the roof or purchase new appliances. If you need to add energy-efficient upgrades to your home, you might be able to finance them using the FHA Streamline 203(k) program.

What Are The Guidelines Of The FHA Streamline Program?

If you decide to go with the FHA Streamline 203(k) program, you have multiple options available. This means that you can customize your financing to meet your needs. For example, you might be able to reduce the cost of your renovation with a lower down payment. You can also take advantage of fixed and adjustable-rate loans. You might even be able to finance your down payment using funds from a relative, making it easier for you to complete your home renovation.

What Are The Main Advantages Of The FHA Streamline Program?

Ultimately, you might have to complete a home renovation before you move into your home. Renovating a home can be expensive, and you might not have the capital to do so right after purchasing a new house. With access to the FHA Streamline 203(k) program, you can increase your financial flexibility, making it easier for you to complete your home renovation project. If you choose wisely, your home renovation might even increase the value of your home, so you should view a home renovation project as an investment. Consider talking to an expert who can help you.