Answers to All of Your Home Mortgage Questions

Future Prospects: 3 Mortgage Options To Pay Less Now & More Later

Planning ahead and saving money for a mortgage is one of the best ways to save for a home. While this seems ideal, plans don’t always work out this way and the house of your dreams may come out on the market before you are fully ready for it. Just because you cannot afford the payments right away doesn’t mean you should give on the home. By working with a mortgage company, you have the ability to get a mortgage set up where you pay more later so that you can still afford the house now. If you’re expecting a big raise, job change, or some other type of money windfall, then you should consider one of the following three mortgage options. Interest Only Payments One of the best ways to get the lowest monthly payments for the start of your mortgage is with interest only payments. Through this type of mortgage, your monthly payments will only be the interest costs for a set period. For example, you may make interest only payments for the first two years of the mortgage. After this period, the mortgage payments will typically adjust to a 30 year fixed rate mortgage. This allows you to save money for the first couple of years and make your dream home affordable. Balloon Payment Mortgage If you want to have your whole home paid off at a specific point, then you should consider a balloon payment mortgage. These mortgages start off like a traditional mortgage. You will make payments for five years or longer until it comes time to make one final balloon payment. This last... read more

4 Tips For Qualifying For A Home Equity Loan

Being able to borrow money on your home is ideal. Doing so will typically allow you to have a lower interest rate and can be convenient in the process. You may need additional money for adding a room or remodeling your home to increase the value of it. However, there are certain things you should know beforehand to increase the chances of being capable of securing the loan without any problems arising. Tip #1: Increase your equity The first thing you will want to do is build up more equity in your home before trying to get a loan of this type. Equity is the difference between the amount owed on your property and the appraised value of it. It’s ideal to wait to apply for a home equity loan until you’ve paid off a substantial amount of your mortgage. Tip #2: Improve the value of your home By taking time to make minor repairs to your property can help you increase the value of your home. The higher the value of your home, the better chance you may have of being able to secure a loan. Consider painting the interior or exterior or your home and making other changes that will make it more attractive to others and more valuable in the process. Tip #3: Maintain good credit It’s ideal to work to keep your credit high if you want to avoid many financial problems during life. This can be done by paying your bills on time and avoid overextending your credit. Studies show that a good credit rating is 700 and anything above this number. This will... read more

How To Refinance Your Home Loan If There Is A Lien On Your Property

If you have a high interest rate on your home and would like to refinance the loan to get a lower rate, you may run into a problem if there is a lien on the house. Having a lien on your house will not necessarily stop you from refinancing it, but you will almost always have to pay the lien off before you can complete the home refinancing. Here are three things to know about liens. What Is A Lien? When you owe a creditor money and do not pay it, the creditor may be able to file a document with the court that places a lien on your house. When there is a lien on a house, it means that the owner of the house cannot sell the house. The lien actually provides leverage or ownership to the creditor that is owed the money. The only way to remove a lien from your house is typically to repay the amount owed. If you do not believe the lien is valid and should be there, you may want to call the creditor to discuss the issue. If you have proof that you already paid it, you can apply for a lien removal for the property by visiting your local courthouse. If you cannot prove you paid it or that it is not valid, you will have to pay it to get it removed. What Are Your Options For Paying The Lien? There are a number of ways to pay a lien off so that you can refinance your home loan, and one option is to use a credit card.... read more

Three Things To Know When Applying For Preapproval For A Home Loan

If you are interested in purchasing your first home, it is a good idea to get preapproval for the loan before you start looking for the perfect home for you. Getting preapproval for the loan will allow you to know exactly how much money a lender will allow you to borrow for the loan. The guide below walks you through a few key things you need to know about applying for preapproval for a home loan. You Must Provide Proof of Your Income When you apply for the home loan, you need to be able to prove how much money you make after taxes are taken out each year. A great way to prove your income is to provide the lender with a copy of your tax filings for the past few years. This allows you to establish how much you make each year and that you have money coming in on a consistent basis. Your Credit Score Can Affect Your Approval for the Loan Your credit history directly affects your ability to be approved for a home loan because it lets the lender know how reliable you are. If you have numerous debts listed on your credit report, the likelihood of being approved for the loan will be very minimal because you will be considered a major risk to the lenders. To improve your credit score, contact any company you owe money to and see if they will take a lesser amount than you owe as a settlement for the debt. Many companies will forgive portions of a debt to ensure that they get at least some of... read more

Four Things You Should Know Before You Sell Your Gold And Silver

If you have broken or unwanted gold or sterling silver jewelry lying around the house, you can turn that clutter into cash by taking your items to a gold dealer or pawn shop. However, not all buyers and not all gold and silver items are created alike. It’s important to do your homework before you pack up your gold and silver items. What you need to know about selling unwanted gold 1. The price of gold and silver fluctuates daily. Silver and gold are commodities, and thus, the price per ounce of these items varies daily depending on the supply and the worldwide demand for them. This means that you likely won’t get the same price for your gold as your neighbor or brother-in-law got a week or a month ago. 2. Not all gold and silver is alike. The offer you’ll get for your gold depends on the carat of the gold. 24k will get a higher offer than 14k or 12k. The higher the carat number, the higher the content of gold in the item. (There is no such thing as 100 percent solid gold; gold is too soft to shape without adding another alloy.) Usually, dealers are not interested in silver items unless they are sterling silver (as opposed to silver-plated items.) This designation will be stamped somewhere on the item. 3. Gems add no value. If you have unwanted rings or other jewelry that includes gem stones, it’s important to remove those gems before you take in your items. Since gold dealers are only interested in weight, you’ll only get the value that the stone... read more

3 Questions To Ask Before Paying Points On Your New Mortgage Loan

Paying points is something you can do on many mortgages to get a lower interest rate for the duration of your loan. There are times when this is a good idea, but there are also times when it does not make sense to do this. If you are getting your first mortgage loan and do not understand how this works well enough to make a decision, you might be able to find out if paying points is right for you by asking the following three questions. Do you have enough cash on hand to pay them? When you purchase points on a loan, you are typically required to pay 1% of the loan amount per point. In return, you will generally receive a 1/4% reduction on your interest for each point you pay. The big question you need to ask yourself is whether you have enough cash on hand to pay for points. If you are planning on getting a $250,000 loan, you will need to pay around $2,500 per point. If you want to drop your interest rate by 0.5%, you will need to purchase 2 points, which would cost $5,000. If you do not have enough cash to do this, you probably will have to rule this out as an option. If you do have enough cash, you should determine if buying points is really worthwhile. How long are you planning on keeping this home? The question you need to ask yourself when determining if points will be worthwhile is how long you plan on keeping your home. If you plan on living there for a few... read more

Creating Safe Banking Passwords

Online banking is convenient and usually safe. Of course, if you watch the news, you know that data breaches seem to be happening more than ever and identity theft is on the rise. One way to drastically minimize your online risk at all websites is to use a safe password. Instead of choosing the most convenient password, you need to take the time to create a strong one. Complexity You may choose a simple password even when you know better, simply because you fear forgetting it. Also, you may not want to take the time to create a password manager account. However, simplicity for you translates into simplicity for data thieves. Some people still use passwords like “password” or “123456,” clear invitations for people to break into your accounts. As much as it may pain you, create passwords that contain upper case letters, lower case letters, numbers, and symbols. Hackers will be more likely to give up on you and move on to people with obvious passwords.  Random Combinations In addition to using all of the options on the keyboard, you need to choose a truly random combination. Using actual words or simple substitutions makes your password too easy to hack. You can choose to use a password generator, or you can come up something on your own. The key to security is passwords that do not make sense and do not reflect actual sentences. For instance, a password based on the phrase, “Merry Christmas and Happy New Year” or MCAHNY is too easy while Cucumber Horses Strainer Ride Seashells Potato or CHSRSP is impossible to guess.  Multiple Passwords... read more

3 Alternatives To Taking Out A Payday Loan

If you’re in need of a quick bit of cash, payday loans can be a quick and easy way to supplement your income. Whether you’re running low on rent or need groceries for the week, a payday loan is a surefire way to get the money you need immediately. However, there are reasons why you may wish to avoid a payday loan, or bad credit might be preventing you to take one out. There are several alternatives that you can employ in order to get the cash that you need. Credit Unions Although most lenders that offer payday loans are quite generous with those who have bad credit, they do have some restrictions. Credit unions are a bit less stringent with these rules, and will often offer small loans to those who are in need of the cash. Credit unions tend to offer interest rates that are comparable to those offered by payday loans and are considered to be a great alternative to those that cannot take out a payday loan. Loans From Family Members A family member can often times help you out with a financial issue. If you’re considering a payday loan, chances are, a family member can help you with this issue immediately. However, it is recommended that you agree to the conditions of the loan and get them in writing. It is best to have a document to have the conditions of the loan – including interest and total amount loaned and owed – even if the person is a trusted family member. It is also a way to prove to your relative that you intend... read more

3 Tips For Choosing A New Home That You Can Afford

If you are in the market to purchase a new home, you’re probably pretty excited about owning your own property. To ensure that you continue to enjoy your new home after you buy it, however, you have to ensure that your purchase a home that you can actually afford. Luckily, following these three tips can help you purchase a home that you will love but that won’t leave you struggling when it’s time to make the monthly payments. 1. Look at the Numbers First of all, you should look at your income and your budget and determine how much house you can afford. There are a lot of standards in place for the mortgage industry — one common number that is thrown out there is 25 percent, which means that your monthly mortgage payment should not be higher than 25 percent of your monthly income, including taxes and insurance. Your lender can talk to you about the calculators and figures that it uses. Also, make sure that you leave yourself a little bit of leeway, particularly if you have a lot of other bills, like vehicle payments. 2. Determine Your Budget Before You Start Shopping Don’t make the mistake of shopping for a new home before you have sat down, created a budget and come up with a maximum amount that you can afford. It can be easy to fall in love with a home and to try to finagle the numbers or justify the purchase of a home that you really cannot afford. If you never look at homes outside of your price range, however, this won’t be... read more

Are You Ready? How to Become More Confidant About Applying for a VA Loan

The home loan program was established by the U.S. Government as one of many ways for the country to regain its economic strength following the sacrifices military families made after WWII. By making interest rates affordable, removing the expense of certain fees and eliminating the requirement for a down payment, many were able to afford homes that may not have been able to otherwise. Today, the same programs are still available, but not all veterans take advantage of them. Some may feel they will not qualify, or have other concerns about their readiness. Here are some tips to help those who are debating whether or not this option is the right for them. Choosing the Location People often worry that despite being happy with where they are living now, they may want to move in the future. That is a common concern for everyone, not just military members. The average American moves approximately once every five years. Since veterans are eligible to apply for a VA loan whenever they are purchasing a primary home, it is possible to purchase and sell a home and then buy again when resettling somewhere else. Not Financially Prepared Families who are able to afford rent along with their other living expenses are usually able to afford paying for a home. If the worry is about paying for a mortgage while also having to fix up a property, it is important to realize that VA loans allow borrowers to receive enough funding to perform necessary repairs to fix up the property being purchased. The lender can help their clients find homes that are still within their... read more

About Me

Are you currently renting your home because you think you cannot afford to buy one? Are you unsure of how a home mortgage will work? Understanding how home mortgage loans work can go a long way in helping you decide if you can afford to buy a home of your very own. My website contains information about how home loans work, how to go about qualifying for one, how to get the best possible rates and much more. By the time you finish reading through the content on my site, you will be fully educated and be able to make a solid decision about how to proceed.