I Speak Mortgage

07/11/2019

Most of the borrowers assume that as long as they "can find money" they can use it towards down payment and closing costs.. and we often times have to go extra steps to document the gift and the gift sources properly. Well, it costs you time, and a possible rejection of your loan if you don't do it right.

Below is a good article on "Rules for Down payments gifts" by SmartAsset.

If you're lucky enough to have a family member agree to chip in and pay for part of your down payment, there are some guidelines you'll have to follow...

07/10/2019

Refinance market is back and here is what you should know. Nice article from CNBC.

As mortgage interest rates drop, homeowners could save hundreds per month by refinancing. However, it's not a smart financial decision for everyone.

02/11/2019

Can you save money by making bi-weekly mortgage payments?

If yes, then why not.

Good pointers to keep in mind!

“Instead of making 12 payments of $1,520 (or paying $18,240 annually), you're instead making 26 payments of $760, $19,760 annually. Each year, you're chipping an additional $1,520 off the principal of the loan, saving you an additional $43,000 in savings over the term of the loan. What's more, you'll build equity faster, and you'll have your home paid off a full five years sooner—the equivalent of giving yourself a roughly $18,000-a-year raise 25 years from now.”

Here is full article:

Paying your mortgage with your paycheck makes your income more stable and saves you money in the long run, but it’s not ideal (or possible) for everyone.

02/06/2019

For millions of Americans, home equity lines of credit (HELOCs) have been a convenient, low-cost ways to finance home improvements and consolidate debt and big-ticket purchases such as cars and college educations.

But there’s a problem – a problem of “collective amnesia.”

HELOC recipients tend to forget that the moment their loan’s 10th anniversary arrives, the revolving line of credit will evaporate and (worse) the modest monthly payments are likely to skyrocket, sometimes doubling or even tripling in size.

That’s because HELOCs come in two stages.

Stage #1 is the “draw period,” usually 10 years but sometimes as long as 20 years, during which monthly repayments tend to be interest-only.

Stage #2, also 10 years in most cases, is the “repayment period” (or “amortization period”). Once this arrives, monthly payments often rise precipitously because they now include both the loan’s interest and principle.

With a HELOC of $30,000 (assuming a three percent interest rate and 20-year repayment period), this could cause the monthly payment to jump from just $75 to $166.

More than 3 million households owing a total of $158 billion on HELOCs are now entering the repayment period or will enter it in 2018. Some of these homeowners are “under water.”

Complete info:

HELOC recipients tend to forget that the moment their loan's 10th anniversary arrives, the modest monthly payments are likely to skyrocket

01/22/2019

This is another mortgage topic that we all heard about but no idea as to what it actually is :)

This article breaks it down very well. Just like any other mortgage program, rent-to-own program only works if it suits your financial situation.

Learn whether a lease-to-own or lease-option agreement is a good choice for tenants who want to buy the home they rent.

01/19/2019

Perfectly explained: Importance of verification of employment for Mortgage.

Verification Of Employment For Mortgage is required by lenders where the lender will need verification by employer of employment status

01/18/2019

10 yr treasury bonds are slowly climbing up. If you want to know how 10 year treasury bonds affect mortgage rates, read the article below. As a home buyer (or refinancing) if you are still floating your interest rate.. you might as well “lock” it now! Here is how the 10 year treasury bonds are performing for the past 1 month

https://www.thebalance.com/treasury-note-and-mortgage-rate-relationship-3305734

01/17/2019

This is the biggest concern I hear from my borrowers: " I don't want to run my credit.. " or "I don't want my credit to be checked by multiple lenders.." - This is what I always tell them. - You should get pre-qualified to see if you qualify for mortgage and up to what amount. Also you should shop around for the best service, best rate, best of whatever you have in mind.. It only counts as one creidt inquiry within 45 days of your first mortgage credit inquiry.
Please read what the law says below from Consumer Financial Protection Bureau, and be informed.
I truly believe that a well-informed home buyer is always a confident home buyer!

The credit check is reported to the credit reporting agencies as an “inquiry.”

01/16/2019

Interesting read:)

Yeah, because some people have more student debt than the mortgage amount they apply for..

01/15/2019

The partial shutdown of the federal government is causing some financial problems for furloughed workers who can't refinance their mortgages or buy homes because lenders can't verify their income. But unpaid federal employees aren't the only ones running into problems.

The partial shutdown of the federal government is causing some financial problems for furloughed workers who can't refinance their mortgages or buy

01/14/2019

Thinking of buying your first home? You'll need to save at least as much for the down payment and closing costs. But there is also a host of things—federal and state grants, tax credits and other options—you can explore that are designed to make it easier for first-time buyers to afford their first home. In fact, even if you've owned a home in the past, you may qualify for these programs if you meet certain guidelines.

To encourage Americans to buy their first homes, the government offers credits and tax breaks. Here's the lowdown on who can qualify for each benefit.