Should You Buy Now or Wait? What Higher 2023 Mortgage Rates Mean for Homebuyers

Should You Buy Now or Wait? What Higher 2023 Mortgage Rates Mean for Homebuyers

So you’re finally in the market to buy a house—congratulations! You’ve saved your down payment, improved your credit, and now you’re ready to dive in. But wait, have you seen the news about mortgage rates rising in 2023? View full post…

Read More... Please comment

Mortgage Insurance 101: What You Need to Know

Mortgage Insurance 101: What You Need to Know

What Does Mortgage Insurance Cover?

Are you in the process of buying a new home? If so, you’ve likely heard about mortgage insurance. It’s an important aspect of the home-buying process that can help protect both lenders and borrowers. But what is mortgage insurance exactly? In this blog, we will cover everything you need to know about it – from View full post…

Read More... Please comment

Zombie Mortgages

Zombie Mortgages

Zombie Mortgages Can Come Back to Haunt You

Your daily mail has arrived and you see a certified letter from an out of state law firm. Wow, you say, maybe I’ve inherited some money from a long lost relative. You open the letter, and it’s not good news. The lawyer advises you that you have an unpaid mortgage and if not paid, you could lose your home. Just like a ghost in a haunted house, law firms are contacting property owners View full post…

Read More... Please comment

Foreclosure & the Cares Act

Foreclosure & the Cares Act

What You Need to Know About the CARES Act and Foreclosure

When the CARES Act was signed into law this past March, 2020, it gave homeowners who had government backed mortgages, protection from foreclosure up through August 31, 2020.  The primary purpose of the new law was to keep homeowners and renters in their homes.

The government backed loans included the FHA, VA, USDA, Ginny Mae, and Freddie Mac. It did not protect those homeowners who had direct mortgages with mortgage lenders, or private party loans. Prior to the August 31 expiration date, the government agencies mentioned above have now extended View full post…

Read More... Please comment

Are Reverse Mortgages Too Risky

Are Reverse Mortgages Too Risky

The Risks and Rewards of Reverse Mortgages

Retirees need sufficient income to get them through their golden years. If your home is your largest asset, though, what do you do?

The FHA started the reverse mortgage program for seniors just like you. Unlike a traditional mortgage with required monthly payments, the reverse mortgage pays homeowners age 62 and older some of their home’s equity. You may choose from a lump sum payment, monthly payments, a line of credit, or a combination.

In the last few years, the media ran wild with horror stories of scam artists taking advantage of seniors with reverse mortgages, but they’ve come a long way. Today, the reverse mortgage program offers seniors access to their funds without selling their home.

Like any other mortgage or loan, the reverse mortgage has its risks and rewards. Check them out below. View full post…

Read More... Please comment

Tempting Interest Only Mortgage

Tempting Interest Only Mortgage

The Good, Bad, and Ugly of an Interest Only Mortgage

An interest only mortgage can appear to be a very attractive offer at the onset. However, it can also be a disaster waiting to happen for many borrowers who don’t completely understand what awaits them five or ten years down the road.

About ten or twelve years ago, a period known as the Great Recession caused havoc for many homeowners. One of the causes of this economic ruin was interest only mortgages held by borrowers who bought expensive homes they couldn’t afford. When the interest-only period ended and they had to begin repayment of principal also, and a higher rate of interest, they defaulted. have brought this option back for certain home buyers. The question we have is, should a home buyer View full post…

Read More... Please comment

Get A VA Mortgage Easy

Get A VA Mortgage Easy

What You Need to Know to Get a VA Mortgage

If you’re a military veteran, you’ll be glad to know that the Department of Veterans Affairs has a program to help you buy a home. This program, known as VA loans, makes it much easier for a veteran to get a VA mortgage through a private lender. The VA does not make loans directly and instead, guarantees home loans for veterans.

One advantage of a VA loan is that a down payment isn’t always necessary. Other advantages are that mortgage insurance is not required, plus there is no VA requirement of a minimum credit score.

VA loans are available to active duty military personnel and also military veterans, who generally find that they can qualify for a VA loan easier than a conventional mortgage, especially View full post…

Read More... 3 Comments

Why a Mortgage Preapproval

Why a Mortgage Preapproval

Why Should I Get a Mortgage Preapproval Letter?

What is a mortgage preapproval and why would I want to get one? Short of a formal loan commitment, there are two types of letters that a lender will issue to help a house hunter in the purchase of a home.

A prequalification letter is one that is issued by a lender after reviewing certain financial information submitted by the buyer. This letter is rather broad and gives an estimate of the amount of a mortgage that the buyer may qualify for.

A preapproval letter is one that is issued by a lender after reviewing and verifying all of the financial documents that are required View full post…

Read More... 18 Comments

Is a Mortgage Refinance the Best Option

Is a Mortgage Refinance the Best Option

How To Know If a Mortgage Refinance Is Your Best Option?

When interest rates are low, applications for a mortgage refinance are a major portion of the total of all mortgage applications. This is due because when mortgage interest rates fall, many borrowers see an opportunity to restructure their debt hoping to get a more favorable rate or term.

Simply having a drop in mortgage interest rates doesn’t mean that its the right thing to do for everyone. We all have different situations and lifestyles and everyone doesn’t fit into the “average” cookie cutter mold. Because of this, the following 9 points may help you if you are considering refinancing your mortgage.

  • The equity in your home

    Equity is one of the first items that a refinance lender will look at. If it’s not there within the banks’ guidelines, most conventional lenders will decline your request. During the last recession, many homeowners were underwater, some very deep.

    The value of homes has been rising as of late and the number of underwater loans has dropped. This varies from state to state and is determined by a number of factors. If your home has little equity, a conventional lender probably View full post…

Read More... 12 Comments

How Does Reverse Mortgages Program Work

How Does Reverse Mortgages Program Work

How Does Reverse Mortgages Program Work? – The Ultimate Guide

If you’re getting near retirement age you may have come across this financial product. Just about everyone asks the same question, just how do reverse mortgages program work? They continue to grow in popularity and the basics are relatively simple.

A reverse mortgage is designed for senior adults getting near retirement or already retired. Its similar to a conventional mortgage in one respect – it allows you to borrow against the equity that you have in your personal residence.

However, unlike a traditional mortgage where you are required to make monthly payments of principal and interest to repay the loan, with a reverse mortgage, you don’t. As long as you live in the home, none of the mortgages has to be repaid. Not until you sell the home, or it is no longer your personal residence, or the last borrower dies, is the loan repaid.

This program is administered by the FHA and does have certain conditions that must be met.

From a financial perspective, how does reverse mortgages program work?

A reverse mortgage does differ from a conventional mortgage or a home equity loan. The latter two View full post…

Read More... 31 Comments