28 Sep 2017
By support

Pay Your Mortgage Off Faster With These Money-Smart Strategies

Home Mortgage Tips

Pay Your Mortgage Off Faster With These Money-Smart StrategiesAs with any loan or line of credit, there are benefits to getting your mortgage paid down. You’ll pay less in interest, potentially saving thousands over the repayment period. Moreover, you’ll own your home outright that much quicker.

Let’s explore four money-smart strategies that will help you to pay your mortgage off faster.

Start With The Obvious And Increase Your Payments

It won’t come as a surprise that one of the easiest ways to get your mortgage paid off is to increase the amount you put towards your monthly payments. Most lenders will allow you to place any extra funds directly against the outstanding loan amount or “principal.” This is very efficient as it avoids having to commit any additional funds to interest.

One trick that many families use is to round the payment amount up to the nearest hundred-dollar figure. For example, if your mortgage payment is $652.32, you would pay $700 instead. This might be an easy burden on your wallet but still amounts to an extra seven percent of your payment.

Accelerate Your Payment Schedule

Another way to get your mortgage paid off as quickly as possible is to accelerate how frequently you make payments. For example, if you are currently making payments on a monthly basis, you can switch to bi-weekly payments instead. This means that instead of 12 large payments per year, you’re making 26 smaller payments. However, your interest will still compound on a monthly basis which means that over time you’ll end up paying less in interest. Not all mortgage products support this, so it is best to check with your mortgage professional to ensure it is an option open to you.

Dedicate Your Tax Refund To Your Mortgage

If you receive a tax refund or other large sum of money, consider using it to pay your mortgage down further. This is an excellent use for a spare block of cash as it gets you one step closer to owning your home, free and clear.

Refinance Your Mortgage To A Shorter Term

Finally, one last strategy is to look at a shorter term for your mortgage. For example, if you started with a 30-year amortization, you can refinance down to a 15-year loan instead. This will require having access to significantly more money to place against your payment, so be sure to carefully budget for this additional cost.

These are just four of the many ways that you can get your mortgage loan paid off faster. For more information or to inquire about a mortgage for your next home, contact us today. Our professional team is happy to share additional strategies that can have you owning your dream home in no time.

26 Sep 2017
By support

Did You Know: Your Choice of Community Will Impact Your Mortgage – Here’s How

Home Mortgage Tips

Did You Know: Your Choice of Community Will Impact Your Mortgage – Here's HowIf you are in the market for a new home, you’ve probably begun the process of choosing the neighborhood or community in which you want to live. The perfect spot to call home will depend on your age, the size and composition of your family, your working life and other factors. However, one thing you may not know is that the community you choose to live in can also impact your mortgage. In today’s post, we’ll explore how the local area in which you live can affect your mortgage financing and interest rate.

Lender Pricing Varies By State

As you might imagine, the mortgage market is subject to a variety of legal rules and regulations. These laws vary from state-to-state, which means that they affect mortgages differently depending on where you live. All lenders have slight differences in their pricing depending on where you’re going to live.

Also, if you are looking to buy in a rural area which isn’t close to a major city, that can affect your mortgage as well. Some lenders might not service rural areas in your state, so you won’t be able to access their mortgage products. Price is another factor that can change your mortgage. If you are buying a home in a popular or luxurious community, that will drive the price up.

Is The Local Market Hot Or Cold?

Don’t forget that the pace of the local housing market may impact your mortgage as well. For example, if fewer new homes are being built or added to the local inventory, you may find that scarcity is causing prices to increase. Conversely, if no new homes are being built because there is no demand, prices are likely to be trending downward. 

In closing, it is important to remember that the community you choose to live in is one where you could find yourself situated for decades. Your mortgage interest rate should be less of a concern than ensuring you have access to great amenities, quality schools, and a safe environment. To learn more about mortgage costs in your community of choice, contact our professional team and we’d be happy to help.

21 Sep 2017
By support

It’s Pre-approval Time: How to Get Your Finances in Order for Your Mortgage Approval

Home Mortgage Tips

It's Pre-approval Time: How to Get Your Finances in Order for Your Mortgage ApprovalBuying a new home is one of the most exciting experiences a person or family can have. Of course, before you can step foot into your new dream home you will need to get prepared financially, especially if you are taking out a mortgage to cover some of the purchase price. Let’s take a look at a few key steps that will help you to prepare for the financial background checks that are part of the mortgage process.

Square Up With The Government

The first place you’ll want to start is making sure that you are fully caught up on any income or other taxes. Rest assured that your lender will be checking your financial history and being behind on government payments is a significant red flag. Make a quick call to the IRS or visit them online to check on your status and verify that you’re fully paid up.

Scrub Your Credit History Clean

Next, you will want to check in with the major credit reporting agencies to get a copy of your credit report. Your credit or FICO score is an important indicator that suggests your risk level and creditworthiness. However, any unpaid or delinquent amounts on your report are equally as important as they can signal that you may have skipped out on debts in the past. Check for any red flags on your credit report and work with the agencies to get them challenged or removed

Get Your Down Payment Saved Up

You’ll also want to have your down payment amount saved and ready for use. Your mortgage lender will want to know how much of your savings you’re contributing to the overall purchase price. Also, if you’re committing less than 20 percent down you may be required to purchase private mortgage insurance.

Have All Your Paperwork Ready

Finally, check in with your mortgage lender to find out what paperwork you’ll need to bring in for your approval meeting. Recent W-2 or tax returns, pay stubs and financial asset information is a good place to start. Your lender may have other requirements so check in to find out what’s needed or give us a call and we can share some insight.

These are just a few of the tasks that you’ll complete on the path to securing your mortgage financing and buying your new home. For more information on the mortgage process or to start your pre-approval, contact us today.

19 Sep 2017
By support

How Much Is the Right Amount to Commit to Your Down Payment? Let’s Take a Look

Home Mortgage Tips

How Much Is the Right Amount to Commit to Your Down Payment? Let's Take a LookAre you thinking about buying a new home? If you are going to take out mortgage financing, one consideration you will have is your down payment, which is the amount you pay up front in cash to cover some of the purchase cost. Let’s consider a few points that will help you to decide how much is the right amount for your down payment.

How Much Do You Have?

The most obvious question you will need to answer is: how much do I realistically have to place as a down payment? Keep in mind that your down payment is money that you aren’t going to see again until you sell your home. While you want to invest a significant amount for reasons we will share below, you still need to maintain a cash cushion of a year’s salary or so in case you fall ill or lose your job.

More Down, Less Monthly

The main case for putting as much as you can into your down payment is that the more you invest, the less you have to borrow. This means that over time, you will pay less interest and you will also have lower monthly payments. Keep in mind that with today’s low interest rates it’s a bit less of a burden to carry a large mortgage. However, these rates may swing upwards over the years, which will increase your costs.

The Need For Private Mortgage Insurance

If you’re going to put less than 20 percent down on your home, you’re almost certainly going to be required to purchase mortgage insurance. There are numerous options available to you, including those offered by the Federal Housing Administration or FHA. Your mortgage lender will share this and other private insurance policies that will protect you.

Don’t Forget About Lost Opportunity Cost

Finally, don’t forget to factor in the lost opportunity cost that comes with investing a large down payment. Unless you have a terrible money manager, your mortgage interest rate is likely to be less than you would be able to make investing the difference in your financial portfolio. If you’re thinking about putting an extra $50,000 in your down payment, consider that you might be able to make 5 to 10 percent on that over the next decade. There are no guarantees in investing, so speak with a professional for further guidance.

It’s not easy to choose the perfect amount for your down payment. If you have further questions or would like to know more about your mortgage options, contact us today. We’re happy to share our experience to help you choose the best mortgage for your new home.

14 Sep 2017
By support

Speed up Your Mortgage Closing Process With This Handy Four-step Guide

Home Mortgage Tips

Speed up Your Mortgage Closing Process With This Handy Four-step GuideAre you in the market for a new house or apartment? If you are financing the purchase by taking out a mortgage, you’ll want to know how to make this transaction run as smooth as possible. In today’s article, we’ll share a quick four-step guide to speeding up the mortgage closing process.

Step #1: Check In On Your Credit Score

The first step before applying for your mortgage is to check in on your credit. Request a copy of your credit score and history from one of the major reporting firms. Go over this report, paying close attention to any old or outstanding items that you may have already dealt with. Many individuals have old delinquencies that must be challenged to be removed from the report, so take care of these first before applying.

Step #2: Have All Your Documents Prepared

As with any loan, taking out a mortgage requires a small mountain of paperwork. The best way to speed this process up is to have all of your financial documentation ready for inspection and use by the lender.

Note that each mortgage provider has different requirements for what you’ll need. A brief list of some items which are commonly requested includes your current employment details, recent pay stubs, recent W-2 forms or tax returns, proof of self-employment or other means of income, asset details such as bank accounts and investments and debt information such as other mortgages, student loans and more.

Step #3: Have An Offer Ready

If you have already settled on the home that you want to buy, it’s best to get your offer prepared in advance of being fully approved for mortgage financing. Your real estate agent will be able to help with crafting an offer that is subject to the home passing an inspection. It’s especially important to have an offer ready in the event that other buyers are competing for the same home that you are.

Step #4: Get The Inspection Finished Promptly

While your lender is completing the home appraisal process, you should be having the home inspected. Getting the inspection completed promptly will prevent any delays due to problem areas that might be uncovered. For example, a pest problem like termites may need to be dealt with, or minor repairs to the roof structure may need to be scheduled.

Following the steps above will help to ensure that your mortgage closing process goes as smoothly as possible. To learn more about your mortgage options or to get the pre-approval process started, contact us today. Our friendly mortgage professionals are happy to assist.