Monthly Archives: August 2015

//August
29 08, 2015

4 Easy Ways to Save for a New Home

August 29th, 2015|Blog, Home Finances, Tips & Advice|

save for new home, mortgage lender

Nothing is more frustrating than when you have to dip into your savings for an emergency or some other reason, causing your savings account decrease…or empty completely! It feels defeating. You think to yourself, “How will I ever manage to save up that amount of money again?” or “Why did I just use the money that was supposed to go towards my down payment?”. Sometimes life throws us curve balls causing us to use resources or money that we had set aside for something else. The good news is, you can save that money again! With a little dedication and maybe a different approach to saving, we are going to show you some clever ways to save money that you may have not considered before now.

Make it a Challenge!

Most people have a competitive nature inside, some obviously are more serious about it than others, therefore turning the mundane act of saving into a challenge changes your outlook. One savings challenge that is the most simple in terms of strategy is the 52-week savings challenge. We recommend starting the first week of the new year as it can get a little confusing if you start mid-year. For this challenge all you do is save $1 for week one, $2 for week two, $3 for week three and so on all the way to $52 for the last week of the year. By week 52 you will have saved $1,378. This challenge is great for someone who needs to start out small and work their way up to a larger amounts as time goes on. Another challenge you can do is one with your spouse. Each of you will have to eliminate small mindless spending each week for a designated period […]

22 08, 2015

How a Late Mortgage Payment Can Affect Your Credit Score

August 22nd, 2015|Blog, Home Finances, Tips & Advice|

 

mortgage_hWe have all been there before; you are in a tough financial situation deciding between paying your mortgage late or paying other bills. It is not an easy situation to be in and we know because we have seen the impact the downturn in the economy had on the mortgage industry, especially when it came to home owners making timely payments. Thankfully the times have changed and the economy is improving for the better. This does not mean that there are not still home owners who are struggling to make their payments on time. We know that at times you may find yourself deciding which bill you should pay first and that is why we want to discuss the importance of paying your mortgage on-time and how it can positively or negatively affect your credit score.

It is a given that everyone knows that their mortgage payment is important but just how important is this one payment? What happens when you miss a payment? And how does it affect your credit score? If you know these answers it is likely that you will make an informed financial decision when it comes to  your mortgage payment.

Late Mortgage Payments Can Have a Major Impact on Your Credit Score

Whenever you miss a mortgage payment this is a big deal. This is the moment when your credit score takes a hit. To understand the reason for this you have to understand how your credit score is calculated. Your credit score is calculated by the history of your payments (if you make late or timely payments) and the total amount of money you owe your lenders. Payment history makes up 35% of your score and the amount you owe makes up 30%. With most home owners, their mortgage […]

15 08, 2015

When to Aggressively Begin to Pay Down Your Mortgage

August 15th, 2015|Blog, Tips & Advice|

Mortgage concept.

Most Americans can agree that even though they have a 30-year mortgage they intend on trying to pay it off earlier. Why? With the cost of living rising, many Americans are looking for ways to cut costs and save a few extra bucks each paycheck. This usually starts with paying off debt. However, with mortgage interest rates well below 4% many homeowners are working on paying off higher interest debts first and working on building up their retirement and savings accounts. Here are 5 areas you should focus on paying off/saving up for before paying down your mortgage.

Eliminate Your Credit Card Debt– This is the first area you want to focus on before paying down your mortgage. Why? Unlike your mortgage loan, credit cards usually carry a significantly higher interest rate therefore a large majority of your monthly payment is going to interest. Once these are paid off you can take the money you were paying each month and apply that to the next area of debt such as a car loan or student loan.

Build Up Your Savings/Emergency Fund– Before taking that extra hundred dollars and applying it to your mortgage loan, you want to make sure that you have an emergency savings fund built up. It is ideal to have at least eight to 12 months of living expenses saved up. If you are spending $800/month in living expenses, you should have at least $9,600 (12 months) saved for emergencies or a loss of a job.

Build Up Your Retirement Account– As grim as it may seem, social security may be a thing of the past for the Millennial generation. With the uncertainty that comes with retirement, many people are choosing to save more aggressively. This is a very smart thing to do, […]

8 08, 2015

What is a Conventional Mortgage?

August 8th, 2015|Blog, Mortgage 101|

Conventional-Home-Loan-Real-Estate-Dallas-Mark-Pfeiffer


If you are currently in the market for a new home you have probably already begun to do some research into different types of mortgages and what options are out there for your situation. Maybe you have a large amount of money to put down up front, or maybe you are a recent college graduate with only a few thousand saved up. Whatever your situation may be, there is almost always a loan option that is right for you.

First, lets begin by telling you  the different loans are that are currently available to potential home owners. There are three different types of loans that people can use to finance their home. These are FHA and VA loans, which are backed by the government. FHA loans are insured by the government as a way to make buying homes more affordable for so many people. VA loans are guaranteed by the U.S Department of Veterans Affairs and are only available to current service members and veterans.

The third type of loan is a conventional loan. These loans are offered by private entities such as banks, credit unions, private lenders and savings institutions. These loans are NOT guaranteed by the government and therefore are a higher risk for lenders. A conventional mortgage does require you to put more down upfront for a down payment but most buyers tend to approach this type of loan with a more secure financial standing and therefore are less likely to default.

What is a Conventional Loan? 

The terms of a conventional loan are usually 15, 20 or 30 years. These loans are available to everyone but a borrower must have good credit to qualify. The typical credit score needed to obtain a loan is 620 and 740 is the minimum score […]

1 08, 2015

What is a Jumbo Mortgage?

August 1st, 2015|Blog, Mortgage 101|

 

打印When it comes to mortgages, most home owners want flexibility. What many homeowners might not realize is that jumbo loans are more flexible than one might think. A jumbo mortgage typically has lower rates than some other mortgages that are offered today. We are going to explain to you what a jumbo mortgage is, how it works and what criteria one must meet in order to obtain this type of loan.

Where Did They Come From?

Also know as non-conforming mortgages, jumbo mortgages are loans that lenders make when a borrower doesn’t “conform” to the the guidelines of Fannie Mae or Freddie Mac. Created by congress in 1938 and 1970, respectively, Fannie and Freddie provide stability and affordability to the mortgage market by buying what is called “conforming” mortgages from mortgage lenders therefore giving them liquidity to make more mortgages. One stipulation with Fannie and Freddie is that they will only buy mortgages that meet their guidelines. These guidelines are for down payment, credit score and loan size just to name a few. When a loan is greater than their loan size limit ($417,000 nationwide and exceptions as high as $625,500 in high-priced markets) it is known as a jumbo mortgage.

Are the Rates Higher or Lower Than Conforming Loans?

It used to be that the non-conforming, or jumbo, loans had 0.25 percent higher rates than conforming loans because they were perceived as a higher risk  because they couldn’t be sold to the government (Fannie and Freddie). There has, however, been a bit of contradiction over the last couple years when it comes to conforming/non-conforming loans making jumbo loan rates lower than the conforming loans! The reason for this is because investors for Fannie and Freddie have been betting that the U.S. economy will improve at […]

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