Posts Tagged ‘Loan’

1233054_10151641582021961_1311111847_oHere’s an easy-to-understand description of “mortgage rates and points”.
The interest rate determines the monthly interest payments over the lifetime of the loan. A “point” or “discount point” is equivalent to 1% of the loan amount and usually reduces or “discounts” the loan rate by an eighth of a percentage point.
For Example:
You want to get a loan for $100,000 to buy a home. Each “point” would cost you 1% of $100,000 or $1,000 but would reduce your loan’s interest rate by .125%. The lender might offer you an 8.0% loan with zero points, a 7.875% loan with one point, or a 7.75% loan with 2 points.
Points, like the down payment, are paid at closing. In some cases, lenders will allow borrowers to finance the points over the term of the loan. Lenders sometimes use points to make their interest rates appear lower. Be aware that lower interest rate offered by a lender may translate into higher points requirements.
For consistently low rates and points, contact eastmortgage!

Home-Affordability-Calculator

What happens if you go through a tough financial period and you find yourself behind on your mortgage payments for your home?

If you are missing mortgage payments and are having difficulty paying, this can become a serious problem. Even just one missed payment can be difficult to catch up on, and if you are in this situation it is important to get help right away.

Contact Your Lender

The first step in this circumstance should be to get in touch with your mortgage lender to explain the situation. Simply leaving things alone and not explaining why you have missed a payment will just make things worse.

When people are struggling financially, they avoid calling their creditors for as long as they can. This is usually the wrong strategy to have if you want to make sure that you keep your home.

When you speak to the lender, you can explain why your payment is overdue. For example, perhaps you were laid off from your job or you have been sick and unable to work. If you have a good payment history and you are the one to initiate contact, the lender may be more likely to consider options for you to repay the mortgage.

Consider All Of Your Options

Is there a relative or a friend who could lend you enough money to pay off your missed mortgage payment? Could borrow from your insurance policy? Is there a way you can sell something that you are not using or cut back on other expenses?

Perhaps you could work a part time job on the side to earn more money. There are a number of ways that you could come up with the extra cash and make the mortgage payment.

However, be careful with payday loan companies or other short term lenders, as they may charge extremely high interest that can make it even more difficult to get out of debt later.

Loan Modification

In some circumstances, you might be able to arrange with your loan servicer to permanently change one or more of the terms of your mortgage contract so that your mortgage payments will be more manageable for you.

This could include reducing your interest rate, adding the missed payments to the loan balance or extending the term of the loan. A loan modification can be a good idea if you are facing a reduction in your income that will last for an extended period.

If you are struggling financially and you have missed a mortgage payment, don’t panic. Instead, follow these steps to make sure that you deal with the situation well and get back on track.

To find out more about getting a mortgage on your home, contact your trusted mortgage professional today.

home-for-sale-sign-two

Owning your own home can be one of the most satisfying experiences in life. There’s nothing like knowing that it’s yours and that you can customize it to make it the perfect place for you to live. Buying a home is both a joy and one of the biggest financial decisions you will ever make. Before you start dreaming about backyard barbecues or your first dinner party, it’s time to do some thinking about home ownership. Some questions you will want to ask yourself or discuss with your partner and family are:

Can you afford the costs associated with buying a home? Although you can buy a home with a low down payment, the more you put down, the lower your mortgage will be. Also there are other costs including home inspections and taxes. Plan to budget around 2-4% of the total value of your home to be able to handle these expenses with ease.  Also you will need to make sure you have enough in your savings to pay for any repairs and necessary upkeep.

Do you have enough of an emergency fund?

Some people make the mistake of using all their savings to fund their home purchase but this can leave homeowners unprepared in case of a sudden illness, unemployment, or other emergency. It is best to have enough money readily available that you could survive for at least six months without your regular paycheck.

Will your circumstances be changing soon?

Are you planning a family, getting married, or going back to school? All of these changes will impact both your lifestyle and your financial future. It’s important that the home you choose be the right size for you not just now but over the next few years?.

Is your job stable and is this a good place to find another job?

Many studies have said that having a short commute is a key to happiness. When choosing between more space and a longer commute or a smaller home and a shorter commute,


Will you want to move in a few years?
many people choose to endure the long commute. While this may be bearable in the short term it can add stress to your life and diminish the amount of time you actually get to enjoy your home. Another consideration is employment prospects in the area. Even if your job is very secure, it’s always a good idea to be aware of what other opportunities in your industry are available nearby.

In order get the most out of your investment you will likely want to make sure that you are going to stay put for a few years. If you have plans to move within a year or so you may want to wait until then. You don’t want to be in the position of needing to move and having to sell your home quickly.

Are you interested in home improvement?

Before you start shopping it’s also important to know how much effort you want to put into home repair, maintenance, and improvement. Are you interested in puttering around in the garden or making your own repairs? Even condos and lofts require some maintenance. If you’re used to calling the landlord for anything that goes wrong, getting accustomed to making and paying for repairs might be a bit of a wake-up call.

Filling out your home checklist

Once you have answered these questions, it’s time to start narrowing down your specifics. Realtor.com has created ahandy worksheet to help you narrow down price, square footage, number of bedrooms and more. If you are making this purchase with another person it may make sense to each fill out your lists separately and then come together to compare notes. That way you each get to see each others true feelings. Make sure that your wishes are aligned with reality. Also remember that the house that you are imagining while filling out this worksheet may not match with what is available in the area. Location is still the most important factor when choosing the home that is both right for you and has good resale potential so be ready to factor in the proximity to major roads, school districting, crime levels, and other considerations once you are out shopping.

Your credit report represents how well you manage your financial responsibilities. The good news is that your negative information drops off over time but the positive information remains. Building a strong and consistent history of responsibly using credit is the foundation to building a great credit profile. Although it’s relatively easy to gain access to new credit such as credit cards, there are many best practices to use and common traps to avoid. Here are a few easy tips for effectively building your credit history.

Applying for new credit

  • Don’t apply every time you see an offer. Getting too much credit too quickly can hurt your credit profile.
  • Don’t build your credit profile through trial and error. Consult an expert such as a credit coach to develop a plan based on your short- and long-term needs.
  • Print clearly when applying for credit. If your application information is entered inaccurately it can create variations of reported information on your credit report.
  • Consistently use your complete name without any variations. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer’s file.
Once you have credit
  • Pay your bills on time. Most lenders look at the most recent information on a report. So if you’ve paid your accounts on time for the last two to three years, the lender may weigh that more heavily than a series of late payments from five years ago.
  • Set up a budget, and follow it. This is so much easier said than done! A credit coach can help provide you guidance on creating and managing a budget based on current income and debt as well as your short- and long-term credit needs. In the age of self-help and empowerment, managing your finances should top your list. The key is not to over-extend yourself.
  • Develop and follow a plan for the type of credit you have, how you use it, and the type of credit you may need in the near future.
  • Review your credit report periodically throughout each year.
    • At least 60 to 90 days before making a major purchase (such as a home, car or large household goods) you should prepare by reviewing your credit profile to help ensure it is optimized.
    • Continual evaluation of your credit profile is necessary to ensure you are not paying unnecessary interest expenses (i.e., you could qualify for lower rates and better terms). The average homeowners spend an estimated $300,000 in their lifetimes on unnecessary interest expenses.
    • Ensure no fraudulent or erroneous activity has occurred related to credit profile. An estimated one in eleven families was a victim of identity theft last year.
Getting help

A personal credit coach can be incredibly valuable whether you understand credit or not. Having a credit coach is similar to an asset manager except it’s for your liabilities. A coach will work closely with you to explain your credit profile, provide you guidance with ways you can more effectively manage it, and can help you evaluate it on an ongoing basis. Changes continually occur for all of us. Jobs change, unforeseen expenses happen and so on. If you begin to fall behind on your payments.

  • Contact your lenders. Ignoring the situation will only add to your problems. Many lenders will work with you to set up a different payment schedule or interest rate. It never hurts to ask.
  • Pay your bills when they’re due. If you have an overdue bill, unpaid debt, tax lien or judgment, pay it off. You may find it easier to pay one affordable consolidation loan rather than several separate accounts. Your credit coach can help identify what options may be available to you.
  • Stop using credit, if possible, until your finances are under control. Consider going to cash purchases only based on your budget. This will STOP the financial bleeding while you pull your credit management plan back into place.
  • Look to professionals like the ApprovalGUARD Service. Your credit coach is experienced in explaining your credit and indentifying ways to optimize and manage debt.
  • AVOID credit repair agencies. “If it’s too good to be true then it often is!” Most credit repair agencies typically charge you high prices to artificially “fix” your credit. This unfortunately often amounts to “band aid” work that manipulates loopholes in the system and often results in the credit issue returning to your credit report within months after it was supposedly fixed. If you have inaccurate information on your report, your ApprovalGUARD credit coach can help you identify it and specifically provide you with the proper methods for getting it addressed.

It’s important to note that The Credit Repair Organization Act is a federal law that prohibits credit repair clinics from taking a consumer’s money until they have fully completed the services they promised. It also requires such firms to provide consumers with a written contract stating all the services to be provided and the terms and conditions of payment. Consumers also have three days to withdraw from the contract.

The ApprovalGUARD Service – Is the first and only service of its kind. Each ApprovalGUARD customer is assigned a personal credit coach to help them understand, evaluate and optimize their credit and debt profiles. The ApprovalGUARD Service additionally provides each Full Service customer with credit reports, credit scores, continual informative credit tips and education, and tools to more effectively manage and analyze their credit and debt profiles. Go to www.ApprovalGUARD.com and use the promotion code: REMAX1 for your free 30 day, no obligation trial.

Buying your first home with your partner/spouse.

Consider these tips when buying your first home together:

1. Browse together and often.
When buying your first home, it’s almost impossible to spend too much time browsing together. Visit as many open houses and home tours as possible. Pore over listings on the internet. Figure out what each of you can and can’t live without in your next home.

It’s vital to discuss your preferences often. Try this exercise: Pick a room in your future home and separately make a list of your “must-haves” for that room. Compare your lists and talk about the similarities and differences. Figure out what compromises can be made so that you’ll both be satisfied homebuyers.

Most importantly: Be honest. Don’t hide your true feelings and preferences. If you’ve changed your mind about wanting a huge backyard, say so. Most homebuyers these days stay in their homes for nine years. You want those nine years to be comfortable and enjoyable, right?

2. Consider credit issues for BOTH of you.
Your bills are always paid on time. Your credit score soars in the upper echelon. How did you fall in love with someone with bad credit?

All VA loan borrowers and co-borrowers will be under close credit scrutiny by a lender. Credit scores for both borrowers have to measure up to the 620 minimum. Income, employment and debts for all borrowers will be analyzed.

If your spouse lags far behind you in creditworthiness, you might consider obtaining a loan in your name alone. This action involves some legal consequences that vary from state to state, so make sure to get a real estate attorney’s advice before proceeding.

3. Don’t overspend.
Buying your first home with your partner/spouse can be the most thrilling time of your life. You picture dogs rambling in your first backyard and kids pedaling bikes down the driveway.

Somewhere along the line, budgeting tumbles to the bottom of the priority list.

Don’t let a home bankrupt your family. Determine the mortgage payment that you can comfortably make each month and stick to that figure. Keep in mind that as a homeowner, you’re responsible for repairs and maintenance, which can also be costly. Maintain a reserve fund for repairs and keep a few months of mortgage payments stashed away in case of emergency.

4. Have fun!
If you and your spouse are not shopaholics by nature, you may need a little motivation to get your house hunt started. Pack a picnic basket full of goodies to enjoy during a day of house tours. Splurge on a dark chocolate mocha for your next meeting with your agent. Post pictures of your home tours online and ask your friends and family for feedback. Enjoying your time together is key to both a successful relationship and a successful house hunt!

Visit our website to start your home search today:

www.rochesterhomesplus.com