Home Loans Don’t Have to Be Confusing

There’s nothing like walking into a house and realizing it’s the one — your dream home!

But before you go house hunting, you should get preapproved for a loan that’s just as perfect for you. Making sense of the financial language might initially seem intimidating, but it’s the first step to living that dream.

Get in touch if you’d like help answering the following questions:

15 or 30 years?
If paying off your loan sooner is important to you, a 15-year mortgage might be a good fit. These typically have a lower interest rate, but you’ll have a higher monthly payment due to the shorter loan term.

If you need (or want) a lower monthly payment, a 30-year mortgage might be better suited to your lifestyle.

Fixed or adjustable?
Fixed-rate mortgages are generally uncomplicated and have specified monthly payments that make budgeting easier. You neither save when market rates go down nor suffer when they spike.

Adjustable-rate mortgages (ARMs) typically start with lower interest rates that stay fixed for a set amount of time. Once that period ends, your rates vary at predetermined intervals.

Conventional or government?
The typical 20% down payment you’ve probably heard about is associated with conventional loans, but it isn’t a must. Your credit score, debt-to-income ratio and down payment all factor into your interest rate.

Don’t have a big down payment or excellent credit? Consider a government-backed loan. With an FHA loan, you only need a small down payment, dependent on your credit score. The VA offers mortgages with no down payment to active military, reservists, veterans and spouses. And if you’re in a rural area, you may qualify for a zero-down USDA loan.

Curious about which type of home loan will be the best fit for you? Reach out today.

Homeownership Is Within Your Reach

You love your neighborhood and you have a steady job, but there’s one thing bothering you: You’re still renting. What you really want is to find a place where you can put down some roots.

But you don’t have enough for a 20% down payment and your credit isn’t perfect, so how can you buy a home?

Good news: The home you’ve had your eye on could be yours sooner than you think. Let’s dispel some common homebuying myths:

Myth: I need a near-perfect credit score.
Fact: Having a score in the very good or exceptional range is probably going to get you better loan terms, but it’s not required.

If your credit score is considered fair or good, you will still be able to borrow. You’ll likely have a slightly higher interest rate, but you could improve your score and refinance in the future.

Myth: A 20% down payment is mandatory.
Fact: Most buyers have a lower down payment. We can discuss which loan options are fit for you.

With a Federal Housing Administration (FHA) loan, you may need as little as a 3.5% down payment, depending on your credit standing. Veterans and military personnel can sometimes buy a home with no down payment using a VA loan.

Myth: I’m prequalified or preapproved — I can buy a home now.
Fact: Prequalification or preapproval gives you an estimate of how much you can borrow before you start house hunting.

You’ll get a Loan Estimate after applying for a mortgage that gives you a more accurate picture of the costs and terms.

Myth: Fixed-rate loans are always better than adjustable-rate loans.
Fact: It might seem that a fixed-rate mortgage can help you plan for the future by knowing your monthly costs.

But don’t automatically discount adjustable-rate mortgages (ARMs). Rates could fall, and ARMs are especially useful if you think you’ll be in the home for five years or less. Reach out to learn more.

What else do you want to know about home financing? Get in touch today if you have questions.

5 Advantages of Owning Your Home

You’ve spent years handing over your hard-earned cash to a landlord. But what do you really have to show for it?

Life as a renter can be frustrating, as well as expensive. But is the huge financial commitment of homeownership actually a viable alternative to renting? You may be surprised to know that the answer is usually “yes.”

Purchasing a home can be more beneficial than continuing to rent. These five reasons will prove it:

  1. Cheaper Payments: With rental rates on the rise, low fixed-rate mortgage payments can be a more affordable option. And while purchasing a home could require a large deposit upfront, the chances of recovering those initial costs increase the longer you stay in the home.

  2. Tangible Value: Unlike renting, homeownership is a long-term investment that stands to provide a substantial return. Quality properties in sought-after locations tend to appreciate in value. And, as you pay down your mortgage, your home equity will increase.

  3. Community Ties: As a homeowner, you’ll be more invested in your community and have an incentive to get to know your neighbors. In fact, 30% of homeowners make friends with their neighbors — something renters are far less likely to do.

  4. Freedom: Rental properties come with rules and regulations. That often means no painting, no remodeling and — perhaps worst of all — no pets. And even if pets are allowed, you’re likely to be paying exorbitant pet deposits and monthly fees. As a homeowner, you can customize your home at will and keep your pets!

  5. Tax Benefits: While it’s true that homeownership comes with additional expenses, some of those costs might actually be tax-deductible. They may include mortgage interest, property taxes, energy-efficient updates and private mortgage insurance premiums.

And these five advantages are just the beginning — you’ll also enjoy more privacy, less noise and no more pesky landlords. So yes, homeownership can be better than renting.

Ready to become a homeowner? Get in touch for a mortgage consultation today.

5 Advantages of Owning Your Home

You’ve spent years handing over your hard-earned cash to a landlord. But what do you really have to show for it?

Life as a renter can be frustrating, as well as expensive. But is the huge financial commitment of homeownership actually a viable alternative to renting? You may be surprised to know that the answer is usually “yes.”

Purchasing a home can be more beneficial than continuing to rent. These five reasons will prove it:

  1. Cheaper Payments: With rental rates on the rise, low fixed-rate mortgage payments can be a more affordable option. And while purchasing a home could require a large deposit upfront, the chances of recovering those initial costs increase the longer you stay in the home.

  2. Tangible Value: Unlike renting, homeownership is a long-term investment that stands to provide a substantial return. Quality properties in sought-after locations tend to appreciate in value. And, as you pay down your mortgage, your home equity will increase.

  3. Community Ties: As a homeowner, you’ll be more invested in your community and have an incentive to get to know your neighbors. In fact, 30% of homeowners make friends with their neighbors — something renters are far less likely to do.

  4. Freedom: Rental properties come with rules and regulations. That often means no painting, no remodeling and — perhaps worst of all — no pets. And even if pets are allowed, you’re likely to be paying exorbitant pet deposits and monthly fees. As a homeowner, you can customize your home at will and keep your pets!

  5. Tax Benefits: While it’s true that homeownership comes with additional expenses, some of those costs might actually be tax-deductible. They may include mortgage interest, property taxes, energy-efficient updates and private mortgage insurance premiums.

And these five advantages are just the beginning — you’ll also enjoy more privacy, less noise and no more pesky landlords. So yes, homeownership can be better than renting.

Ready to become a homeowner? Get in touch for a mortgage consultation today.