Mortgage Tips

29

Nov

Mortgage Tips

Three Reasons Why You Might Consider a Reverse Mortgage When Nearing Retirement

As retirement approaches, many individuals find themselves faced with financial challenges and uncertainties. One option that is often overlooked but can be incredibly beneficial is the reverse mortgage. A reverse mortgage is a financial tool that allows homeowners aged 62 and older to convert a portion of their home equity into tax-free funds. Here are three compelling reasons why you might consider a reverse mortgage when nearing retirement: Supplement Your Retirement Income: One of the most common concerns for retirees is whether they will have enough income to maintain their desired lifestyle throughout their golden years. Social Security and retirement…

28

Nov

By Lori Blank

Homeowner Tips, Mortgage Tips

Comparing Temporary and Permanent Mortgage Buydowns

When it comes to mortgages, a "buydown" generally refers to paying an extra fee upfront to reduce the interest rate over a specific period. There are typically two types: temporary buydowns and permanent buydowns. Permanent Buydown: With a permanent buydown, the borrower pays extra fees at the beginning of the loan to permanently reduce the interest rate over the entire life of the loan. This differs from a temporary buydown because the reduced rate remains constant for the entire loan term, potentially resulting in lower overall interest payments. Temporary Buydowns A temporary buydown is a type of mortgage financing in…

06

Oct

By Lori Blank

Mortgage Tips

Understanding How Home Equity Works and Why Buying a Home Can Be Your Best Investment

When delving into the world of real estate and investment property, there are many terms that will come up that require further explanation. Whether you've never heard the phrase 'home equity' before or you have a little familiarity, here are the ins and out of what it means and how this asset can help your financial outlook. All About Home Equity Essentially, home equity refers to your portion of the value of your home, and the amount of this figure is important because it is included among your assets when determining your net worth. If this sounds confusing, think of…

14

Sep

By Lori Blank

Mortgage Tips

Thinking About a New Home? 3 Reasons Why a Mortgage Will Be the Best Money You Ever Borrow

In these days of low interest rates, it can be a great idea to get into the real estate market and invest in a home. However, if you don't have the funds saved up to buy a home outright, it may seem like more of a burden than it's worth. The good news is that you might qualify for a mortgage loan, which tends to come with more favorable terms than a traditional bank loan. Here are three reasons why a mortgage might just be the best money you ever borrow. Taking Advantage Of Low Interest Interest rates have been…

02

Oct

By Lori Blank

0 Comments

Mortgage Tips

How Does An Interest-Only Mortgage Work?

When you have been researching your different options for a mortgage on your home, you might have heard of an "Interest-Only Mortgage". What exactly does this type of mortgage mean and how does it work? Usually when you take out a loan, you must pay back the capital debt (the amount you borrowed) and the interest on that debt. An interest-only mortgage offers a cheaper option for purchasing a property, because you will only be making payments on the interest and not the capital. Compared to a repayment style mortgage where you are paying down the principle of the loan,…

11

Sep

By Lori Blank

0 Comments

Mortgage Tips

What You Need To Know About Mortgage Insurance

If you are on the verge of buying real estate, you've probably heard the term Private Mortgage Insurance. Mortgage professionals talk about it a great deal, but you may be asking, "What is it exactly? And why should I care?" Private Mortgage Insurance Defined PMI is required by lenders if the down payment of a purchase is less than 20 percent of the home's value. It protects the lender if the borrower defaults on the loan. It also makes the lender more apt to loan, even if the down payment is as low as 3%, because in the long run,…

21

Aug

By Lori Blank

0 Comments

Mortgage Tips

It’s Important To Follow These Specific Steps When Using Gift Funds For Your Down Payment

As lenders tighten mortgage guidelines for Scottsdale home buyers, minimum downpayment requirements are increasing. Several years ago, you could finance a home with nothing down. Today, most conventional mortgages require at least 5 - 10 percent. Incidentally, these guideline changes have led to an increase in the number of home buyers accepting cash gifts from family. Gifts are allowed in most cases but the problem is, if you don't accept the gift in a "lender-friendly" way, the mortgage underwriter could reject it, and negate it. Three Steps To Success With Your Down Payment Gift Funds You can't just deposit a cash…

14

Aug

By Lori Blank

0 Comments

Mortgage Tips

Whatever You Do, Don’t Make These Common Mortgage Mistakes

Are you applying for a mortgage on your home? Keep in mind that a mortgage is a major financial decision and choosing one will have a significant impact on the rest of your life. Many people go into this decision without understanding all of the essential mortgage information they need to know. This means that they may not make the best choices which could result in paying much more than they need to. If you want to save yourself from throwing away your hard earned money, here are a few common mistakes to avoid: Trying To Time The Mortgage Interest…

06

Aug

By Lori Blank

4 Comments

Mortgage Tips

Here’s What To Do If You Fall Behind On Your Mortgage Payments

What happens if you go through a tough financial period and you find yourself behind on your mortgage payments for your home? If you are missing mortgage payments and are having difficulty paying, this can become a serious problem. Even just one missed payment can be difficult to catch up on, and if you are in this situation it is important to get help right away. Contact Your Lender The first step in this circumstance should be to get in touch with your mortgage lender to explain the situation. Simply leaving things alone and not explaining why you have missed…