Archives for August 2014

Should I Buy Now? How do Interest Rates Affect Monthly Payment?

One of the biggest questions is "When should I buy a home?"  Some people want to wait to have a 20 percent down payment to eliminate mortgage insurance or are trying to eliminate debt. But one of the biggest things to consider is how much the payment will change if you wait. Interest rates are still low, but are higher than a few years ago. As interest rates rise, home buyers will qualify for less or will have to pay more for the same house. This chart is really helpful because it discusses … [Read more...]

What is Mortgage Insurance?

Mortgage insurance is insurance that protects the lender in the event of the borrower's default. Mortgage Insurance is typically required when homebuyers have less than a twenty percent downpayment when purchasing the home. Homebuyers often have a lot of questions about mortgage insurance (MI)...and understandably so. With different rules for different loan programs, the details can be confusing. Here are a few things to keep in mind. There are two main types of MI. 1) An Up Front Mortgage … [Read more...]

What Makes A Mortgage Payment?

Everyone cares about the bottom line - how much will my mortgage payment be each month? That helps you know if you can afford it. However, there are a lot of little and big things that make up your mortgage payment. This graphic from Veritas Funding is helpful in breaking a mortgage payment down to the basics. I love to answer questions about homes and mortgages! Call me! Email me! … [Read more...]

4 Ways to Kill your Mortgage Application

Filing out a mortgage application? Being pre-approved for a mortgage and actually getting one can be two very different things.  A preapproval is a quick overall look at your credit and debt to make sure everything is good to go. Actual loan approval means you need to go through underwriting - where someone thoroughly looks at your finances, bank account statements and more to really check if you can make the mortgage payment. Because the rules are so strict and because your finances are so … [Read more...]