26
May
By support
Home Mortgage Tips

Understanding What a “Piggyback” Mortgage Loan Is and How It Works

Understanding What a As a potential homebuyer who is new to the market, many of the terms and mortgage products available to you can be more than a little confusing. Piggyback loans might be a little less familiar than many other options, but if you’re ready to jump into the housing market this type of mortgage can be useful for you. If you’re hoping to invest in a home sooner rather than later, here are the details on this type of loan.

What’s A Piggyback Loan?

While most mortgage loans require one loan and one lender, a piggyback loan is used for homebuyers who don’t have 20% to put down but want to avoid private mortgage insurance (PMI). Because a mortgage with less than 20% down will require the homebuyer to pay PMI, a piggyback loan can assist in avoiding this. For example, in the event that the homebuyer is putting down 10%, their primary mortgage will cover 80% of the purchase price while the piggyback loan will cover the remaining 10%.

What Are The Requirements?

Since there have been many issues with piggyback loans in the past, there are more requirements for this type of loan than there used to be. While it varies from lender to lender, most homebuyers will be expected to put down at least 10% in order to qualify for this loan. In addition, they will be required to have a good credit score to ensure they are a good risk. While the debt-to-income ratio will fluctuate from lender to lender, potential homebuyers will have to prove that they can make their monthly payments.

Is This Loan Right For You?

It’s important before deciding on a piggyback loan that it’s the right choice for you. Since a piggyback loan will require you to pay down two different loans, it means that you will not be able to tap into your home equity in the event that you want to free up funds. It can also put home ownership in harm’s way if there are any financial setbacks. As well, while PMI can be canceled after the equity in your home is at 20%, a piggyback loan does not provide this option.

A piggyback mortgage can be a good option for homeowners who want to get into the market, but it’s important to determine if it’s a financially solid choice before wading in. If you’re currently getting prepared to buy, contact your trusted mortgage professionals for more information.

25
May
By support
Home Seller Tips

3 Bedroom Staging Tips That Will Get Potential Buyers Excited About Your Home

3 Bedroom Staging Tips That Will Get Potential Buyers Excited About Your HomeArranging an open house is one of the most important parts of selling your home, but there can be a lot of tricks involved in staging it so you’ll get the right offers. While the kitchen and the living room may be a bit more straightforward, here are some tips for staging your bedroom that will be sure to get buyers interested in making an offer on your home.

Brighten The Bedding

It’s one thing to have makeshift bedding when you only have your family to impress, but when it comes to having an open house, you’ll need to be prepared to make a statement. Instead of a mish-mash of colors and styles, ensure that you have one style and one look you’re going for, and ensure that it’s not cluttered with too many pillows and colors. You’ll also want to make sure the colors you choose match the rest of the décor in your room so the viewer isn’t distracted by the sight.

Minimize The Clutter

Few things will swallow the space in your bedroom like a lot of clutter, so it’s important to clear out any extras from your room before you have any viewers. While it’s a given that you’ll want to get rid of extra papers and anything additional that’s obstructing the eye, it’s also important to clear out any oversized pieces of furniture. It’s possible that you have a chaise lounge you’re in love with, but if it swallows the room, you may want to re-consider it when staging time comes.

Don’t Forget About The Walls

There are few things that will illuminate a room like a good piece of art, so ensure that your favorite space isn’t entirely empty when it comes the time to stage your home. While you won’t want to have something that’s too dramatic or colorful, ensure that it’s something that matches the color and style of your room and will help to illuminate the elements that make it ideal. It’s also important to choose the right size of print so that it doesn’t completely overwhelm your space.

There are a lot of small details that go into staging a home properly, but you can be sure to show your bedroom effectively by keeping it clutter free and making it match.

24
May
By support
Home Mortgage Tips

Thinking About a Second Mortgage on Your House? Here’s What You Need to Know

Thinking About a Second Mortgage on Your House? Here's What You Need to KnowWhether it’s to consolidate debt or make funds available for a home renovation, many people consider a second mortgage in order to make it possible to pursue other options. However, like any important financial decision, it’s important to be informed about the financial implications before diving in. If you’re currently weighing your mortgage options and are considering a second mortgage, here are some things to do before the final decision.

Research The Lenders

Since a second mortgage means that you’ll be borrowing against the value of your home, it’s especially important to do your research the second time around and ensure you’re going with the right lender. Instead of going with your first choice or the familiar one, look at a number of different lenders and see if they have positive reviews. A second mortgage can be a big risk so you’ll want to ensure you’re working with a lender who will be working for you.

Prepare Yourself For Higher Costs

Since a second mortgage qualifies as the second loan on your home, it means that it will be the second loan to be paid off in the event that you default on the debt. As a result, the rates for a second mortgage are generally higher than those for your first loan because the lender will be taking on a more substantial risk. While higher rates may not be that alarming if you’ve garnered low rates for your first mortgage, it’s important to determine the financial benefits before deciding on this option.

Is A Second Mortgage Right For You?

Borrowing money may be a common signpost of our culture, but it’s important to consider if a second mortgage is the right financial choice for you. You can certainly improve the value of your home with renovations and perhaps pay off some of your debt, but a second mortgage will only be beneficial if it improves your financial outlook in the end. Before diving in, make sure that you create a budget and calculate the potential savings so you can determine if it’s a good move.

There are a number of financial risks associated with getting a second mortgage so it’s important to weigh your options before deciding that this mortgage product is the right choice for you. If you’re currently looking into available options on the market, contact your trusted mortgage professional for more information.