Tag Archives: mortgage

Here’s Why You Should Pay More Than 20% Down Payment on Your Ogden Home

A couple looking at their new homeNext to Salt Lake City, Ogden, Utah is one of the best places to set up a business or start a career. The historic city is also a transport hub, and with many universities around, it is teeming with new and young talent. Most of all, the cost of living is affordable, according to Sperling’s Best Places.

When it comes to housing, property prices are competitive with a median price of $180,000. Note, though, that appreciation has been strong over the past few years and that it may increase up to 4% by 2018. There’s no better time to buy a property there than today, but then how much should be your down payment?

Utah is no different from other states. It can vary from zero to 20%, and it depends on the lender. Some may allow you to pay as low as 3.5%. But if you want to save money, you should aim for something higher than 20%.

Avoid Private Mortgage Insurance

One of the reasons to increase your down payment is to avoid paying private mortgage insurance. Also known as PMI, it is a type of insurance policy that allows the lender to make a claim in case you default on your home loan. In other words, it protects the lenders, not you.

While PMI allows you to buy a house with a very small down payment, it also means additional costs. Although you can cancel it, you can do so only when your loan-to-value ratio is at least 78%. So you may end up paying this for months or a few years.

How to Avoid PMI

If you want to stop paying PMI, then you need to reduce your credit risks. There are two ways to do that. One, you can add improvements into your home to increase its value or equity. The second, and the easiest as what Wasatch Peaks Credit Union mentioned, is to ask for down payment assistance in Ogden. A credit union can provide you with the money you need not only to pay off the down payment but cover over 20% of the home loan.

Your life in Ogden doesn’t have to begin with a huge mortgage. You can make it more affordable by avoiding PMI and getting the assistance you need.

The Reverse Mortgage Program: Is a Home Equity Conversion Mortgage (HECM) the Right One for You?

A Reverse Mortgage Form

A Reverse Mortgage FormThe HECM or the Home Equity Conversion Mortgage-backed by the U.S. Department of Housing and Urban Development is among the most popular mortgage options under FHA/HUD’s reverse mortgage program. It’s targeted to homeowners 62 years old and older who are looking to convert the excess equity in their home.

How the Home Equity Conversion Mortgage Works

Your mortgage lender who makes the reverse mortgage program would have the first lien on your home, but won’t get payments like in a standard home loan, nor are you responsible for value deficiencies once your lender gets your home upon your death or when you move out. Primary Residential Mortgage, Inc. added that the greatest benefit of the HECM is that your lender gives you cash, with the exact amount being based on your home equity’s amount and other factors, including your age and the loan’s interest rate. As your property becomes your collateral for the HECM, your lender gets your home when you pass away or move. With this in mind, you or your heirs could repay the mortgage at any time should you wish to keep your home.

Here’s a basic example to illustrate how an HECM works. Let’s say your lender makes a $150,000 mortgage lien on your property that’s currently valued at $300,000. Let’s also say that you have a $100,000 from a previous mortgage. Using the $150,000 of your new mortgage, you could pay off your outstanding loan balance of $100,000. This leaves you with $50,000 extra cash. If you didn’t have an outstanding mortgage balance of $100,000, the cash you’ll receive would be $150,000. You could choose how you receive the extra proceeds: in lump sum payments, line of credit, monthly payments, or a blend or line of credit and payments.

Should You Consider a Home Equity Conversion Mortgage?

As you’re not required to pay off any interest or principal payments on an HECM, this characteristic, along with cash payments (which are non-taxable and won’t impact your Medicare or Social Security benefits), could benefit older adults who need money. If your parents or you are 62 years or older, an HECM could a helpful tool you could use for achieving financial security.

HECM isn’t ideal for everyone, so make sure to examine all the rights and responsibilities attached to it before signing anything.

Best Practices to Help You Get that Personal Loan

personal loan in Utah
When you need money fast, loans are the best way to acquire what you need. You can choose from a variety of loans here in Utah: title loan, signature loan, car loan, personal loan, and many others. Now, you may have an experience in loans already due to past experience, or this may be your first time applying for one. Nonetheless, you can follow a few practices that can help you with your loan, specifically a personal loan.

What Do You Need?

Personal loans can be used for different purposes. Before you apply for a personal loan, you first have to think of your financial needs. Is a personal loan right for you, or is there another type of loan more suited to your needs? You can look for other loans that may be more favorable to you.

Who Do You Want?

You can next look at your lender. You can look around and shop for the best terms, best conditions, and best rates there are in Utah. Lenders come in three categories: banks, credit unions, and online or private lenders. You can research more in each category to help you choose which lender is the best for you.

What Does It Say?

It may be tedious, but reading the fine print of a contract can save you a lot of potential trouble. You can ask for a full disclosure of the loan terms used in the offered contract. You can also watch out for additional fees that may be included besides the monthly payment and the repayment.

What is Your Score?

When you apply for a personal loan, you may already know, your credit history or score plays a huge role. Depending on your credit score, you may get either a higher or lower than the average interest rate. You can improve your credit score if you have a low score by completing your repayments on time.

These are only some of the practices you can follow to help you find the best loan deal out there. You can research for more information and advice regarding loans online or from experts.

Best Practices to Help You Get that Personal Loan

The Savvy Borrower: 4 Things that Help You Get the Best Mortgage

an american home
Are you part of the 62.9% in America who own their homes? If not, and you’re in the market for your first home, consider the mortgage deals well before choosing one. When you evaluate each deal the way you appraise your chosen property, you can manage loan payments better. You may even save money with the right choice.

Here are four things that can help you find a good mortgage deal.

1. Get the GFE.

The Good Faith Estimate gives you details about your mortgage loan terms. You’ll see the estimated cost of the loan along with the itemized fees involved. It’s an essential document that allows you to compare different mortgages.

When you ask for one, it doesn’t mean you’ve agreed to go with the lender who furnished it. The law requires lenders to provide GFEs within three business days upon receiving your application.

2. Consider future plans.

Ideally, your mortgage will work no matter what happens in your life. But your situation may change, which means your plans need to be nimble. Try to consider potential changes in your situation when choosing terms.

Most mortgages come with a 15-year or 30-year term. It makes sense to go with a shorter duration of your loan, but what if a change in income requires you to refinance the mortgage? What if you suddenly need to relocate and resell the house?

3. Estimated additional costs.

On top of the down payment you need to make, you also have to budget for other costs. You need to plan for property transfer taxes, homeowner insurance, escrow, and closing costs.

Planning for additional costs also allows you to determine the down payment you can make. If you can pay a larger amount and can handle higher monthly payments, you could also opt for a shorter loan term, such as 10 years or 15 years.

4. Get a mortgage broker.

When it comes to loans, it pays to get professional help. A mortgage broker can simplify the process of choosing a deal by giving you access to terms and rates that meet your needs. The broker can also explain the finer points of any mortgage term, allowing you to make an informed decision.

Finally, be aware of your credit score. A good credit score can qualify you for better terms and rates. And allow for an easier loan application.

Home ownership is an important step toward financial security. A big part of this decision is choosing the ideal mortgage. Weigh your options carefully. And choose the best deal that ensures manageable payments.

What Does It Mean to be Pre-Approved For a Mortgage?

MortgageWhile shopping for a home may be an exciting experience, if you’re serious about it, you need to visit a reliable mortgage lender. Looking for the right mortgage program is like walking into a clothing store without a wallet. You’ll be surprised that most homebuyers don’t get a loan pre – approval for a house hunt.

What is a preapproval?

Industry experts at Altiusmortgage.com explain that a pre – approval is where the lender verifies your information and documents to determine how much they would be willing to lend to you. The documents used in the pre – approval process are the same ones used when you need a mortgage. While a pre – approval doesn’t necessarily guarantee that you’ll get a loan, it helps speed up the loan approval and underwriting process.

Many people confuse pre – approval with pre – qualification. In a pre – qualification, the lender will rely on the information the buyer provides to estimate how much you as the borrower could qualify for.

What happens in the pre-approval process?

When going through a pre-approval process, you and your mortgage expert will get to discuss your financial needs, mortgage amount, purchase price, and down payment. Your expert will also be able to explain the available mortgage options such as amortization, fixed vs versus, interest terms and payment options.

In addition, your mortgage expert will advise you on the documentation you’ll need to provide for the pre – approval process. You’ll also be required to provide details on your current income, employment status, and liabilities if applicable. The lender will also ask for a credit bureau report.

Why should you consider getting pre-approved?

Getting pre-approved has numerous benefits. One, the seller will be more serious since you have a verified financial backing. You’ll get to save time now that you know which type of home you can afford. Your pre-approved status enables you to have negotiating power when you contact the seller. Lastly, you’re better positioned to know how much down payment you’ll be required to make as well as your monthly payments.

If you’d like to learn more about the process, visit a mortgage company today where you’ll be advised on the loan process and getting the best rates.

What Should You Avoid Doing Before Applying for Your Mortgage?

Mortgage Application

Mortgage Application Are you about to apply for a mortgage? Buying a home is a complicated process, and one of the most challenging parts is qualifying for a good loan. What many home buyers don’t realize is that their actions can have a huge impact during the application process.

These are some of the most common mistakes that people usually make before applying for a mortgage.

1. Changing jobs – Lenders want to see a stable job history, and it is one of the biggest factors in the application. This is because a job hopping borrower is more likely to fall behind in payments because of financial instability. If you leave your job or get a new one, it can delay approval.

2. Using credit cards – Charging too much on your credit cards is also a major red flag. Racking up too much debt signals financial irresponsibility, even if you pay it off on time and never have a large balance. Building a credit history is important, but don’t go overboard.

3. Overdrawing accounts – Since a certain amount of cash is required to close the loan, banks will look at your savings and checking accounts to see if you have the necessary funds. Don’t spend too much cash, and avoid overdrawing your checking account no matter what.

4. Missing payments – Do you have student loans, a car payment, or other debt? Don’t miss a single monthly payment from now until your mortgage is approved. If you can’t demonstrate an ability to manage debt, lenders will be very hesitant to give you a mortgage.

5. Hiding information – Lastly, the worst thing you can do is try to hide information from your lender, Provincial Bank reminds. Don’t try to hide where your down payment funds came from, a bankruptcy that happened eight years ago, and so on. A few iffy spots on your application are acceptable, but trying to mislead the lender is not.

Being prepared can make the difference between qualifying for a great mortgage and a rejected application. Make sure that you don’t sabotage your chances.

Loaning Made Easy by FHA

FHA loans

FHA loansAs of January 30, 2013, the Federal Housing Administration (FHA) mortgage’s offer of a mere 5% or below down payment is the easiest requirement to meet. You can apply for another loan after the first one, as long as you pass the standard prerequisites.

The agents from City Creek Mortgage say you need “invaluable assistance to facilitate the loan shopping and application process, help you make informed decisions, and ultimately allow you to save money.” Study the essentials of FHA loans in Salt Lake City, Utah for your benefit.

The Basics

You qualify for this loan type when you have been working for at least two years, which means you have a stable profit during this period. At the same time, you must score at least 620 or higher in your credit rating.

You shouldn’t have either declared any insolvency in the previous two years or foreclosed properties three years prior to an application. This allows you to pay a minimum of 3.5% as initial payment. In pre-approval, it is wise to deal with an FHA-certified credit company to  be sure of your underwriting contract’s validity.

Furthermore, you will gain the loan when you target a house to live in permanently. The price should not go over the maximum financing amount of your chosen place and must pass certain assessment norms. The usual loan sum in Utah’s capital, for example, is $729,750, which is above the general standard.

Quality Alternative

Compared to its regular counterpart, the FHA Streamline Refinance option in Salt Lake City is better. Your interest and principal fees per month go down as you refinance an FHA credit with a fixed rate. On the other hand, you will pay a premium worth 1.75% of the loan total, which gives you a 1.25% bill each month connected to your outstanding balance annually.

For sure, you will get your FHA loan in no time — with all the benefits included.