Tag: Mortgages

The Fed Raises Rates – So Now What?

As expected, the Federal Reserve raised short-term rates today. This is the first such increase they’ve made in a year, and the second in a decade. So what’s it mean for real estate mortgages? The Federal Reserve is the bank of the United States – they regulate monetary policy, and they provide stability within the central banking system. And while an increase in short-term rates might seem to be a bad thing, it’s actually an indication that the Fed sees the US economy in positive terms, and is bringing interest rates up to better mirror inflation. While it’s true that mortgage …

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Mortgage Terms Should Be Easy to Understand

This post was originally written April 13, 2011 … I’m a very visual person, so infographics really work work for me. If they work for you, too, here’s an interesting one that breaks down the terms of a mortgage. It’s certainly better than something like this.

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The Paperwork You Need To Apply For a Mortgage

You’re getting a mortgage … what kind of paperwork do you need? The answer?  A lot.  But not as much as you might think, and it’s somewhat dependent upon (1) the lender you’re using, (2) the type of loan you’re getting, and (3) some unknown force of the universe. Getting a mortgage isn’t terribly hard, it’s just tedious.  So when you’re preparing to make a loan application with a lender, it’d be a good idea to have all documentation related to your income, your expenses, and your assets, at hand – ’cause they’ll want to see everything.  Have: at least …

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Want an FHA Mortgage? Get That Case Number Assigned by March 1st

HUD just announced that mortgage insurance on FHA loans will go up April 1 2012.  And there’s a good recap on Dan Green’s Mortgage Reports blog. Want an FHA mortgage?  Start by talking to Dan or Brandon. A Federal Housing Administration (FHA) loan is a loan that’s insured against default, meaning the FHA guarantees the loan will not be a loss for the lender should the borrower not pay … which is why there’s a fee for mortgage insurance.  The FHA charges this upfront fee – currently set at 1% of the loan amount – in addition to a monthly …

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How To Save $100000 On Your Next Mortgage Loan

When you’re shopping for a mortgage, the two most common fixed-rate mortgage terms you’ll come across are thirty years, and fifteen years.  There are other options, sure, but those are the most common. Fifteen years is a long time. So is thirty years. Looking at today’s interest rates on both 30-year and 15-year loans, the 30-year rate right now (remember they change a lot) is 3.94%, while the 15-year rate is 3.24%.  While the rate on the 30-year term is higher than the 15-year, the monthly payment is actually lower, because the term of the loan is longer.  Confused yet? …

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USDA Loans Are Changing Oct 1 2011

The loans, they are a’ changing. When I wrote that 100% USDA loans were available in parts of the New River Valley, I failed to mention that everything was changing.  Well, not everything, but several items related to USDA 100% mortgages are changing, beginning October 1st, in two important ways. First, the good news – each USDA mortgage has an upfront fee that’s used as a mortgage guarantee fee.  That premium, which has been set at 3.5%, is going down to 2%. Now, the bad news – prior to October 1st, USDA mortgages don’t have monthly mortgage insurance, but after October 1st that’s …

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The New Rural Housing (USDA) Guidelines – the Fall 2011 edition

Dan Green at The Mortgage Reports wrote a post this morning that talks about the new USDA guidelines for 100% mortgage loans, and I want to repost it here, because (a) I have two USDA loans going with Dan right now and his team is fantastic, and also because (b) he references Blacksburg VA and that’s kind of cool.  Oh, and (c) because 100% loans are still available in some areas of the New River Valley. USDA loans, or Section 502 loans, are designed to provide borrowers 100% financing when they purchase real estate in USDA-eligible areas, and you can …

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When Buying A Home, Start With the Monthly Budget First

Budgets.  Aren’t they great? But without them, the bills don’t get paid.  And that includes the mortgage. Read a good piece by Dan Green last week – it reminded me that when shopping for a home, it’s important to determine what your budget can afford first. When you buy a home, you should search by cost, not price. After all, cost is what you pay monthly. It’s your mortgage, your taxes, your insurance, and assessments. It’s your costs of homeownership and maintenance. Start with the budget, and arrive at the price … not the other way around. Also don’t forget …

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How Often Do Mortgage Rates Change?

From Dan Green and TheMortgageReports.com: Mortgage Rates Are “Good” For Less Than 4 Hours In February, lenders issued 2.45 rate sheets per day. This means that mortgage rates changed every 3 hours, 16 minutes on average last month. It also means that the rate quote you picked up by email yesterday isn’t worth the pixels it’s printed on today. More than 3 hours have passed and your quote has since expired; it’s a relic of some other day’s mortgage market conditions. In a market that moves this fast, you not only lose the ability to “sleep on it” with respect to …

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