12
Jul
By support
Home Mortgage Tips

With Mortgage Rates This Low, Should You Dive In? 3 Reasons Why Now Might Be the Time

With Mortgage Rates This Low, Should You Lock In? 3 Reasons Why Now Might Be the TimeWhether you’ve just finished school or are about to start a family, investing in a home can be one of the biggest financial decisions of your life. But as you’ll soon discover, there are a number of considerations you’ll need to make. It can be difficult to know whether to get a short-term or long-term mortgage, or how long of an amortization period you’ll need. Read on below for three questions that will help you to make your decision, as now is the best time to dive into the market.

Do You Have A Down Payment?

There are a lot of numbers mentioned when it comes to the down payment, from 5% to cash only offers, but 20% is the ideal percentage to put down when it comes to buying a home. Because putting 20% down will enable you to avoid having to pay Private Mortgage Insurance (PMI), you’ll be able to lower your costs of home ownership over time. While 20% isn’t the be-all-end-all if you’re really ready to hit the market, it’s worth re-tooling your budget to save up.

Will You Struggle To Make Ends Meet?

Lower mortgage rates can certainly improve your overall outlook for investing in a home, but buying a home can be financially debilitating for many people. While you’ll be required to make your monthly mortgage payment, there will also be insurance costs, property taxes, home maintenance and other associated fees that add up. If you feel it’s going to be a huge financial risk to sustain home ownership, it may be worth sitting down with a mortgage professional to go over the numbers.

Are You Ready For Ownership?

Home ownership is often considered a rite of passage as one gets older, but it’s important to determine how a new home will fit into your current lifestyle. The costs of home ownership are usually higher than renting and you’ll have to take care of things like the yard and general home maintenance yourself. It might not be the best time if a home strongly imposes on your lifestyle, but if you’re looking forward to domestic duties, it can be a step in the right direction.

Mortgage rates have been hovering relatively low for a few years, but it’s important to know that home ownership is right for you before moving forward. If you’re currently contemplating a home in your area, contact your trusted mortgage professional for more information.

06
Jul
By support
Home Mortgage Tips

Budgeting 101: How to Plan Your Budget Around Your Monthly Mortgage Payments

Budgeting 101: How to Plan Your Budget Around Your Monthly Mortgage PaymentsIf you’ve decided to invest in a home, you might be wondering how to make all of the expenses work. From the groceries to your mode of transportation, all of those little things can quickly add up. Fortunately, it’s easy enough to ensure you have the money each month by carefully calculating your expenses and ensuring there’s a little wiggle room in case of leaner times. Here are the details on how to begin with your mortgage budgeting plan.

Calculate Your Monthly Payment

Whether you’ve just purchased a home or are trying to determine if your dream home is right for you, it’s very important to establish approximately what your monthly payment will be. It’s critical to have a mortgage cost that is sustainable, so add up your mortgage payment, home insurance, property taxes and any other required payments. While this should give you a ballpark figure, you’ll want to ensure you add a bit of extra room in case your taxes or interest rate should rise.

Determine Your Necessary Expenses

It’s easy to be idealistic and assume that you’ll be able to come up with the money for your dream home, but it’s very important to keep your feet on the ground and be realistic about your budget. Once you’ve determined your payment, calculate the average amount for your utilities, transportation costs and any debt you have. You’ll also want to add in groceries, toiletries, and extras like gym passes, meals or entertainment. By adding up your monthly payment and your expenses, you should be able to determine if a house is realistic for you.

Leave A Little Extra

If your expenses and your home costs add up to balance out, that’s great, but don’t forget to leave a little extra room in your budget for the other things you’ll need. While you’ll want to ensure you’re saving money for the future, if you have any short-term life goals like a travel destination or going back to school you’ll need to save for those. Also, the unexpected can occur at any time so you’ll want to have some cash stashed away for the times when the car breaks down or there’s a medical issue.

When investing in a home, you’ll need to feel confident that you can make your monthly mortgage payment and still have enough left over to pay your expenses and savings for down the road. If you’re currently preparing to buy, contact your trusted mortgage professionals for more information.

30
Jun
By support
Home Mortgage Tips

A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years

A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden YearsWith a high volume of millennials set to enter the real estate market this year, it may seem like all the available options out there were created to snag new home buyers. However, there are products available on the market that cater to those who are in their golden years too. If you’re older than 62 and are currently weighing the options with your mortgage, here are the basics on reverse mortgages and why they might positively benefit you.

The Scoop On Reverse Mortgages

It may seem like this mortgage option hasn’t been around that long, but it was actually created in 2009 following the recession. Known as the Home Equity Conversion Mortgage for Purchase (HECM), this product is specifically directed at those who are retired or close to retirement that want to tap into the equity in their home. This option is only beneficial for those who plan on staying in their home long term, the loan is paid off at the time the homeowner moves out or passes on.

What Are The Requirements?

Because a reverse mortgage enables the homeowner to tap into the equity they’ve already paid into their home, there are many requirements involved in using this type of mortgage product. In addition to being 62 or older, the homeowner will have to have a high amount of equity in their home. They will also have to prove that they have the financial ability to make their monthly payments, in addition to being able to pay the insurance and property taxes on the property. The homeowner will also have to comply with the requirements set out by the Federal Housing Administration.

Is It The Right Choice?

Like any mortgage product, it’s important to determine before choosing this mortgage product that it’s right for you. While a reverse mortgage gives the benefit of providing access to cash and allows you to put your money elsewhere, it can end up costing more down the road since interest will continue to accrue on the principal amount owing. Before diving in, ensure that you do the calculations and consult with a professional to ensure it’s going to be a financial benefit in the end.

A reverse mortgage can be a great means of accessing cash for homeowners who are 62 or older, but it’s important to weigh all the financial aspects before making a final decision. If you’re currently looking into your mortgage options, contact your trusted mortgage professionals for more information.