Category Archives: Mortgage

How do you go about getting lowest mortgage rate?

Everyone is looking to have the lowest mortgage rate. If you ask a San Francisco mortgage professional, he or she will answer the following:

lowest-mortgage-rates

lowest-mortgage-rates

  • You should have a good credit standing. It is no brainer that one should have no credit. The higher your credit score, the lesser you need to pay. Remember that credit score make a difference on the interest that you will get. For a 30 year mortgage, it is matter of .2%. There are a few ways to improve your credit score but take note that it will take time. A sample is paying your credit card debt. You can also fix your credit report. Order this from an agency and see if there are errors. Correct the mistake or dispute if any but be sure to have documents
  • Make a huge down payment. This is sometimes overlooked and it is something that can greatly affect your mortgage interest rate. If you are refinancing, you will need 25% equity. Take note that you will need insurance for home loan. If there is a way to come up with a high down payment then you can do so.
  • You should pay to have points. It is the best way to lower down interest rate. Buying the points can be a good idea if you will plan to stay your home for a decade. You have to own this long enough to gain savings on the interest so that you can get back the amount of money you paid in points. Use a mortgage calculator so you can figure out the savings you will make every month if there are points.
  • Shop around with me. This is considered to be the most basic rule. Various lenders will provide different rates. You will not know what the lowest rates are until you get estimates from other lenders. Beware because some lenders are crafty when it comes to covering interest rate. At first they offer low rate but add a bunch of fees in return. They can include high charges. The best way to compare offers is by looking at Annual percentage rate. They are required to provide you with such information. It goes beyond the interest rate.

As a borrower, you will need to make an effort and give time when it comes to finding the best deal. This will be reward by huge saving in return.







Buy Your Home The Right Way And Profit Before You Sell

Whether you’re buying a home to live in or you want a fixer-upper that you can flip, everyone views a home purchase as an investment. But that doesn’t always mean it’s a good investment.

mortgage

mortgage

Have you heard the expression: “You make your money when you buy a house, not when you sell it”? When you sell your home you can be pretty sure that you’ll get a fair market value for it, and while there are some steps you can take to maximize that value (i.e. home staging, professional photography, effective marketing, etc.), the amount that you’ll profit is more accurately reflected in how much you paid for it.

Buying is the time when you can negotiate the hardest. Getting $20,000 knocked off the price will not only save you that amount, but also the interest that you would have paid on that amount for the life of your mortgage.

Here are some steps you can take to get the most bang for your buck when buying your home:

A House Is A House

Many of us also assume that we deserve to live in our dream home, regardless of whether we can afford it or not. If you approach your purchase with this mindset, you’re probably going to get sucked into a bidding war and end up paying much more than you should.

See your house as an opportunity, and learn to love it with all its wrinkles. By not buying with emotion, you’ll be much more likely to walk away from bad deals and find the diamonds in the rough that represent true money-making potential.

Negotiate Like A Pro

The keys to successful negotiating are knowledge and determination. Learn everything you can about the property, through your agent, a home inspector, and anyone else. Learn about the neighborhood and everything else. Anything you learn that counts as a negative is a tool you can use to drive down the price. An old furnace, rusty fence, bad schools, crime rates – anything you find can be used to justify lowering the price.

Similarly, you want to make it as easy as possible for the seller to say ‘yes’ to you. Avoid having conditions on your offer, so do a home inspection prior to placing the offer and already be approved for the loan amount.

Negotiate With The Bank

Once you’ve found the right house, it’s time to negotiate your mortgage terms. Remember even a fraction of a point off your interest rate can greatly affect how much you pay in interest. Always search for cheap mortgage rates, and use these as leverage to negotiate with your favored lender.

Along with the lowest rate, you also want to look into pre-payment options. Every lender offers different types of flexible payback options, such as monthly payment increasing/decreasing, lump-sum payments, etc. Decide what’s best based on your goals, your strategy, and your timeline.

Sites like www.mortgagerates.ca/ offer a ton of tools and calculators to ensure you’re getting the best possible deal.

Importance of communicating with a mortgage broker

When you are applying for a mortgage loan, you will feel the requirement of a mortgage broker to assist you with all the loan formalities. He will act as the link between you and the financial institution. There should be a completely transparency between you and the mortgage broker.

mortgage-broker

mortgage-broker

Your mortgage broker will ask for the most recent bank statements while he is working on your loan application. You should give him a fair idea about all your investments and money available in the checking account. This will help him to negotiate in a better way with the bank from whom you are applying for the loan. He will verifying all your information given in the interview process. If you have any negative information on your bank statement like overdraft charges or other fees, it is important that you mention it to the mortgage specialist so that he is not cross-questioned by the bank.

Not giving accurate information can also withhold you from getting approved for the loan. Even though if you get approved, the lenders will charge you very high interests and fees. Hence, it is important to be honest with your mortgage broker and throughout the loan application process.

While you are being honest with your broker, the broker should also return you with the same honesty. He should explain you all the fees and associated costs in clear words. This may include surveys, appraisals, notary fees and closing costs. And he should also discuss about his fees.

Your mortgage broker will give you an estimate of the total costs incurred throughout the loan process. This cost may change as your loan is submitted to the lender. The bank will need some additional information before they approve your loan with complete peace of mind. If there are any extra fees involved, your mortgage broker like www.themortgagebroker.co.uk should be able to roll it into the mortgage payments.

Mortgage Fraud – Protect Yourself!

FHA Streamline Refinancing

With most low and no money down mortgage products falling by the wayside over the past few years, more and more consumers are turning to FHA home financing solutions. According to a 2009 NYTimes.com article citing Inside Mortgage Finance as its source, FHA loans represented less than 2% of the mortgage market back in 2005 and 2006 and have since exploded to capture over 17% of new residential mortgages. Today, millions of homeowners may benefit from an FHA streamline refinance. If a consumer currently has an FHA mortgage, a streamline loan may enable them to refinance with very little paperwork, possibly no appraisal and some lenders and brokers may not verify income or employment, or charge lender fees. With mortgage rates near record lows, people can refinance to save money on their monthly housing obligations or even reduce the duration of their repayment period (i.e. going from a 30 year loan to a 15 year mortgage).

The Federal Housing Administration (FHA) provides mortgage insurance on home loans offered by FHA approved lenders. This insurance helps to protect mortgage lenders against potential losses resulting from borrower default. Beyond just offering a low down payment solution, FHA loans are also known for having less strict financing guidelines in that credit standards and debt-to-income ratios may be slightly more lenient than what is available through other conforming mortgage loans products. FHA mortgages are available for single family homes, duplexes, triplexes, and 4 unit homes. There are also a handful of lenders out there that offer FHA mobile home loans. You can find a list of FHA approved lenders on HUD’s web site at http://www.hud.gov/ll/code/llslcrit.cfm.