Mortgage Archives – Page 212 of 231 – Fred Gruber

22

Dec

Home Mortgage Tips

Understanding the HARP Program and How to Qualify for a HARP Mortgage

Understanding the HARP Program and How to Qualify for a HARP Mortgage Interest rates may be relatively low, but if you’re a homeowner who is struggling with your monthly mortgage payment, it may be time to consider what re-financing options are available on the market. If you are looking for a lower interest rate to improve your financial health, here’s what you need to know about the HARP program so you can take advantage of a better rate.

What Is HARP?

The Home Affordable Refinance Program, which is commonly known as HARP, was created in the wake of the 2008 recession, which was brought on by the high amount of housing debt in the United States. As the program was created to simplify re-financing for those who needed a different mortgage option, it is a means of providing lower interest rates to those who possess a solid payment history but may be struggling with the financial burden of their monthly payments.

What’s Required For HARP Refinancing?

There are a variety of requirements the homeowner must meet so they can take advantage of the HARP program. In order to apply, the homeowner must have a mortgage that is owned by Freddie Mac or Fannie Mae and was purchased prior to May 21st, 2009. If this condition is met, the homeowner must prove their financial reliability by being up-to-date on their mortgage payments with no payment more than 30 days late in the previous six months. While you’ll want to check with HARP’s website or your mortgage adviser for details, eligible property types include a primary residence, a one-unit second home and a one-to-four-unit rental property.

What’s The Fine Print?

Utilizing the HARP program and acquiring a lower interest rate may seem like an instant benefit for your finances, but it’s important to find a lender who does not have high closing costs. If you have a lender at a high cost, it’s possible that even at the lowered interest rates offered by using HARP, the savings gain will not balance out with what you will be paying by sealing the deal.

If you’re a homeowner who is looking to refinance in 2017, HARP may be the ideal mortgage option for you to re-finance your mortgage and save money on a monthly basis. While it’s important to be aware of all of the details involved before choosing this option, if you’re considering HARP, reach out to one of our mortgage professionals for more information.

21

Dec

By support

Home Mortgage Tips

Mythbusting: Understanding Mortgage Myths and Why They Shouldn’t Hold You Back

Mythbusting: Understanding Mortgage Myths and Why They Shouldn't Hold You Back With the fluctuations in real estate and the increasing cost of home ownership, many people are entering the market with more trepidation these days. Fortunately, there are a number of myths associated with buying a home that may not adversely affect potential homebuyers. If you’re interested in purchasing a home but are unsure about whether it will get approved, here are a few things you may want to dispel.

No Approval With Less Than 20 Percent

While putting 20 percent down can help you avoid having to pay private mortgage insurance, this down payment percentage is still just a suggestion when it comes to mortgages. It’s necessary to put a certain percentage down and be able to drum up the money on your own, but if getting into the market is your priority, buying now may be worth the investment over time. It’s just important to remember that the cost of your monthly payment should be affordable for the long term.

Home Ownership Is Too Expensive

It’s certainly the case that the real estate market is always fluctuating and prices can go up or down, but generally speaking, a home will increase in value over time and that means your monthly payment will be something you can consider an investment. While monthly rent disappears as soon as the calendar month is over, the money you invest into a home month after month builds up your equity and ensures greater stability for your financial future.

You Must Have A Good Credit Report

While it will definitely help your mortgage application if you possess good credit, it’s not necessarily a deal breaker if you don’t. Each mortgage is assessed based on a combination of factors that can include your down payment amount and your debt-to-income ratio, so this means that if you have a higher down payment and a less impressive credit report, you can still be approved. It’s a good idea to pay your bills on time and get your debt down if you’re applying for a mortgage, but there are opportunities for potential buyers who have experienced credit issues.

Home ownership is an important dream for many people, and as a result, there are many myths associated with the mortgage process. However, even if you don’t have 20 percent down or perfect credit, there are still opportunities for improving your financial well-being and investing in a home. If you’re currently looking for a new home, contact one of our mortgage professionals for more information.

20

Dec

By support

Home Mortgage

Graduating Soon? Tips to Prepare You for Your First Mortgage

If you’ve recently graduated from college, or will be graduating soon, and plan to become a homeowner, you’re in a somewhat unique position. You’re about to embark on a great journey, but at the same time, you may also be taking on an awful lot of debt. That said, it is possible to successfully manage a high debt load if you’re careful.

So how can you make sure you can pay your mortgage, your student loans, and your mortgage expenses all without losing your mind? Here’s what you need to know.

Make Sure You Have An Emergency Fund

Managing a high debt load isn’t necessarily a challenge if you have a consistent income stream. But if interest rates rise on your adjustable rate mortgage, if your portfolio doesn’t do as well as expected, or if you lose your job, you may find yourself unable to pay your expenses without dipping into your savings. That’s why you’ll want to establish an emergency fund a spare supply of cash you can live on for 6 months or longer, if necessary.

Extra Cash At The End Of The Month? Attack High-Interest Debt

Mortgage rates are at a historical low right now, which makes now a great time to become a homeowner but if you’re going to carry a mortgage and student loans, you’ll need to be smart about how you repay your debts. High-interest rates can quickly add up and eventually crush you, which is why your debt with the highest interest rate should be your primary priority. This is most likely your student loan so if you have some extra money left over at the end of every month, put it toward your student loan first.

Never Roll Student Loans Into A Mortgage

Some young people seem to think that getting a mortgage is the answer to student debt. By rolling your student loans into a mortgage, you can worry about just one monthly payment instead of two. The problem with this thinking, though, is that your student loan is probably the size of the principal on a mortgage and you’ll have to stretch your loan term out farther in order to afford the monthly payments.

This means that you’ll pay more money in interest over the long term. Your mortgage loan is also a loan with more severe consequences for missing a payment. If you miss a number of mortgage payment, you could run the risk of losing your home but if you miss a student loan payment, there are lesser consequences. Paying off a student loan and a mortgage at the same time may seem like a daunting task, but it is possible.