The post Mortgages: Understanding Closing Costs appeared first on The Atlantic Bridge.
]]>Since they’re practically unavoidable when you buy a home for sale in Annapolis, Denver, or Chicago, knowing how they work can help you save money. For starters, here are key factors about closing costs:
Any cost other than the balance is a closing cost. Generally, they’re one-time charges, but some are recurring, including interest payments, taxes, and insurance premiums.
While there’s no escaping them, sound decision-making can help keep them to a minimum. For instance, you can pay a 20% down payment to avoid paying private mortgage insurance and ask for a lower interest rate.
Non-recurring closing costs are usually paid out of pocket, but this isn’t always the case. You can ask the lender to offset them in exchange for higher interest. This is why “no closing cost” mortgages don’t mean that they come with no closing costs. They’re only applied in a different manner, so they don’t need to be paid up front.
As a buyer, you can ask the seller to split or cover the closing costs for you. It depends on how desperate the other party is to make a sale. If you have plenty of leverage at the negotiating table, especially when paying cash, you can work out a deal with the property seller.
The closing costs are only some of the things you need to think about when buying a house. If you plan, you can reduce or get rid of them completely to save you a lot of money.
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]]>The post How to Get The Mortgage Refinance Deal That’s Perfect for You appeared first on The Atlantic Bridge.
]]>While a refinance could be a great way to reduce your rate, not every refinance deal you come across is a great deal. With that in mind, here are some tips to avoid getting ripped off when refinancing.
Unless you are really loyal to your current mortgage lender, you have the right to look around for a lender that would give you the most practical refinance deal. On that note, be wary of advertisements and lenders promising that you’ll save thousands when you refinance with them.
Take note however that advertised rates are typically based on the ideal scenario, such that if a borrower’s financial circumstance is in tip-top condition and your credit score is stellar, warns a mortgage to refinance specialist in Utah.
He adds that to avoid getting blindsided, do your due diligence to find out what a potential rate would be for someone in your financial condition.
Ensure that you have a crystal clear view of all costs related to refinancing so that you could figure out your breakeven point, which is the amount of time it would take for your refinance actually to pay for itself.
To do this, calculate your closing costs’ overall sum and then divide it by the savings you could get every month.
These junk fees are called non-recurring closing costs and typically includes title fees, credit reports, origination fees, as well as lender’s underwriting and processing fees among others.
Ask about these fees and compare them against the loan estimates from different lenders since these could end up being a key factor in whether refinancing would make sense for you financially.
Before signing on the dotted line, consider whether a potential lender has responded to all your queries promptly and thoroughly and provided you with all the options that could be ideal for your specific case.
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]]>The post Here’s When You Should Remortgage Your Home appeared first on The Atlantic Bridge.
]]>If the mortgage rate in Utah is at its best, you can have the property remortgaged and, therefore, benefit from the said rate.
If your credit score is now so much better than your credit score at the time of application, you might as well remortgage your home and perhaps get better rates.
Check to see how much you’ll be paying each month with the new rates compared with your old one. For better results, remortgage with your current lender first to see how they’ll handle your account.
Equity is defined as the portion of the home that you already own because you’ve already paid for it. If the value of your home has gone up and you have 70 percent equity, this means that you’re already starting with a high deposit. The effect of this is better rates, which should help you save money over time.
If your status hasn’t changed, but you’re not happy with the terms and conditions of the mortgage, you can choose to have it remortgaged. This works as a novation, allowing you to request some clauses added in or removed in your favor.
If you’ve proven to be a good debtor by this point, getting concessions from the lender should not be a problem. If you’ve applied for a fixed term mortgage, make arrangements for a remortgage even before the term ends.
It stands to reason that if your mortgage debt remaining is small, there’s no need to remortgage. It’s best to stick it out unless you have really compelling reasons for it.
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]]>The post Be an Attractive Homebuyer: Get Pre-approved appeared first on The Atlantic Bridge.
]]>You will have better chance of buying a house with a pre-approval, as the seller does not have to worry that you’ll be rejected for the loan. Altius Mortgage Group and other mortgage companies in Salt Lake City note that it is still important, however, to find a property that fits your budget. It is good to know that a home loan pre-approval can save you time, especially in the underwriting and closing process.
Applying for a pre-approval is much like a mortgage application. You will need to submit income information and other documents to assess if can take a home loan payment. It’s good to know your credit score, as it can influence the amount the lender will let you borrow. A high credit score can make it easier for you to qualify for a loan and get better rates.
Some of the documents you might need in application/pre-approval include:
It pays to have an idea of what type of loan you want. A 30-year fixed-rate loan is common, which has interest and monthly payments that will stay the same for 30 years. There is also the 15-year option, ideal if you want to pay the loan faster. You may also choose an adjustable-rate mortgage (ARM) with interests that change after a specified time. Be sure you understand how your chosen loan works.
If you want to be an attractive buyer, take time to learn about your loan option and get an approval. This can also make you feel confident when you want to make a bid.
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]]>The post Mortgage Application: Will Yours be Approved? appeared first on The Atlantic Bridge.
]]>The Mortgage Investors Group and other lenders share some of the basic criteria for approving a loan:
This involves the evaluation of your income, making sure you have enough to cover a new loan payment and other expenses. Lenders figure this out through your debt-to-income (DTI) ratio, which shows a good balance between your income and debt. Lenders usually prefer borrowers with a DTI smaller than 36%.
The lender will look at your credit score, payment history, and other necessary indicators that you can make and keep up with the mortgage payments in the future. A good credit rating is a common requirement to increase your chances of getting approved.
A down payment of 20% or more is usually preferred. You can still get a loan with 20% down, but you are likely to pay private mortgage insurance (PMI). This can increase your monthly loan payment. You may also be required to have two or more loan payment reserves to be able to pay your mortgage in case of unexpected events.
The home’s value will help your lender determine if the loan-to-value ratio (LTV) suits within the guidelines of the mortgage. If you’re applying for a conventional loan, most lenders will require you to have an LTV of less than 80% to 95%. If you have a high LTV ratio, you may still be approved for a mortgage, but this is likely to cost you more.
Lenders use these basic criteria, so it is best to do everything you can to become an attractive borrower. It is also advisable to have an idea of how much loan or monthly payment you can afford comfortably.
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]]>The post Salt Lake City: The Next Best Mortgage Opportunity appeared first on The Atlantic Bridge.
]]>You can always rely on a personal financial advisor especially when it comes to real estate financing. A personal loan officer provides an array of loan services ranging from purchase mortgage, refinance a mortgage, debt consolidation and investment property. Your advisor will find tailor-fit loan privileges to your financial requirements and your current financial situation. This way, you can look for better financing options to keep you afloat in the next couple of years.
Most of the time, you are better off looking for the options yourself especially when you are looking to save up your money for a monthly mortgage payment. There are available tools online to get you started on your own. You will find the mortgage calculator useful in picking the best options available by simply providing some data. All you have to do is enter your information, loan information, payment breakdown, and monthly payment information.
When you think you are ready to go, you need to make some calls before paying a visit to your chosen mortgage loan provider. You might want to check on the stability of the bank or the lending institution where you wish to secure a loan. Although you have to refinance, you should consider a stable financial establishment to make sure your property is safe for a good while.
These are only a few of the handy tips when you decide for better financial options in Salt Lake City. Go on and learn more about mortgage financing and loan services available online.
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]]>The post What’s Your Homebuyer Mortgage Nightmare? appeared first on The Atlantic Bridge.
]]>Such advancement, although natural, can become a trend in the coming months, resulting in higher interest rates all over the United States, even for mortgages here in Fort Myers. That possibility may be the worst nightmare of some home buyers. What’s your worst mortgage nightmare? Perhaps you’re experiencing any of the following:
Other than high interest rates, homebuyers can be afraid of lacking the funds for a down payment. This fear stems from the conception that mortgage applications need a 20 percent down payment for approval. In reality, you can get a down payment as low as 10 percent, but you will have to pay private mortgage insurance (PMI) that cost between 0.3 and 1.15 percent of your loan.
Now, you can also apply for a loan that requires no PMI and down payment. When you can only apply for a conventional loan, you can try down payment assistance. The service can help you reach the 20 percent down payment if you don’t want to pay the PMI.
Another nightmare homebuyers have is mortgage denial due to poor credit. In reality, credit score only determines your interest rate, not your loan approval. You can qualify for a conventional loan with at least 650 credit score. VA loans and FHA loans have even lower credit score standards.
Lastly, homebuyers dread failing to make their monthly payments. Failure means foreclosure. These failures come usually because of unemployment. But there’s a way to prevent such a nightmare. Before you apply for a loan and buy a house, you can create an emergency fund that covers at least six months of living expenses, including potential monthly mortgage payments. You can still make payments in this way despite sudden unemployment.
Owning a home can be easier than you imagine. With the following solutions to common homebuyer nightmares, you can ensure a successful and stress-free home buying experience.
The post What’s Your Homebuyer Mortgage Nightmare? appeared first on The Atlantic Bridge.
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