27 08, 2019

Why Missing a Mortgage Payment Affects Your Credit Score

2021-09-28T16:50:38+00:00August 27th, 2019|Mortgage 101|

Tough financial times happen. Whether it’s from an unexpected family emergency or losing a job, paying bills on time during this financial hardship is stressful. You may find yourself deciding which bill you should pay first. Let’s take a look at why it’s important to pay your mortgage on time and how it can positively or negatively affect your credit score.

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

Missing a mortgage payment 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 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 homeowners, their mortgage is the largest debt they owe and most likely the loan that they will have for an extended period of time. Since these loans are usually set to 15 or 30-year terms, missing those payments can hurt your credit score.

What Exactly Does Late Mean?

Different lenders have different terms for what a late payment means. If you were to send your payment a few days late your lender might not count it as late as most lenders do give a 10-15 day grace period. However you will likely be charged a late fee. In order to be reported to the credit bureaus, your payment has to be 30 days past due. Since lenders report to credit bureaus on a monthly basis, it is important to remember never to go over the 30-day period if possible. As the time past due increases, you will see your score continue to […]

21 08, 2019

15 vs. 30 Year Fixed Mortgage Pros and Cons

2021-09-28T16:50:41+00:00August 21st, 2019|Mortgage 101|

If you’ve been pre-approved for a mortgage and met with a loan officer at First Ohio Home Finance, you’ve probably been faced with the decision to get a 15 or 30 year mortgage. Let’s take a deeper dive into the pros and cons for each loan to help you make the best decision in the long run.

15 Year Fixed Mortgage

There is less interest on a 15 year mortgage, but your monthly payments will be larger than a 30 year. A 15 year mortgage can benefit you if you are close to retirement and do not want the responsibility of a mortgage in retirement. Since you will be paying more per month and in less time with a 15 year mortgage, you will have the advantage of building up your home’s equity faster than a 30 year mortgage. Then, you can use that home equity as you need, be it a home improvement or paying for college. Your debt-to-income ratio will be higher with a 15 year mortgage because the monthly mortgage payment will be higher. So you won’t qualify for as large of a loan. The major drawback of the 15 year mortgage loan is that you’re locked into a higher payment. If for any reason money becomes tight, the higher mortgage payment can be a real burden.

30 Year Fixed Mortgage

Choosing the 30 year fixed mortgage route is the more popular decision for most homeowners. If you opt for a 30 year mortgage, you will have lower monthly payments, but obviously a longer pay-off period. This option is a good choice if you plan on being in your home long term, for example, if you are a young family just starting out. Because your monthly mortgage payments are lower, a […]

14 08, 2019

Federal Interest Rate Drop: What Should I Do With My Mortgage?

2021-09-28T16:50:45+00:00August 14th, 2019|Tips & Advice|

The Federal Reserve lowered interest rates for the first time in years last month. What does that mean for homeowners and prospective buyers? Let’s take a look at home these new lower interest rates are affecting the market. 

Adjustable-Rate Mortgages Will Cost Less

Mortgage borrowers with adjustable-rate loans will reap the most out of this lower rate. This is because those interest rates are tied to short-term rates. On average, borrowers will see a change in their lender statements the month after the Fed lowers rates. 

Refinancing

If you closed on a loan at 5%, you might consider refinancing. If you can get a rate at least 1% cheaper than your current one, it may make sense, depending on fees. With this option you can access home equity via cash-out for any reason such as home improvements, bill consolidation or education. Our loan officers at First Ohio Home Finance help you find the best rate to refinance and offer advice based on the market. 

Potential Homebuyers

First time homebuyers should take advantage of these low interest rates. Fixed-rate mortgages aren’t expected to decline because of the Fed rate cut since they are already largely priced into the current level of market rates. The best approach for homebuyers is to determine whether they can afford the home they want based on their down payment and current mortgage rates. Today’s rates are some two percentage points below the historical average.

Our loan officers are up to date on the current market conditions and can help answer any questions you have about mortgages, refinancing or about interest rates. Contact us today to get started! 

5 08, 2019

Loan Officer Spotlight: Brandon Cooper

2021-09-28T16:50:48+00:00August 5th, 2019|Blog|

At First Ohio Home Finance, we know that choosing a lender is an important, personal decision. Our team of loan officers are skilled in providing personalized mortgage solutions while providing 5-star service to our customers. We want to give you the opportunity to get to know our amazing team! Brandon Cooper is featured in this loan Officer Spotlight. Brandon has been a loan officer for the last 10 years. Here’s a little snapshot from our interview with Brandon for this week’s Loan Officer Spotlight.

Q: What inspired you to become a mortgage loan officer?
A: I honestly didn’t know what I wanted to do after I graduated from Ohio State, but I had a group of friends who got into the mortgage business. They were very successful right away and talked me into joining them. I never looked back!

Q: What is your favorite part about being a loan officer?

A: I obviously love to see how happy people are when they close on their biggest investment ever, but I like how it motivates you to reach higher goals each year. It’s a commission based job so it’s up to you really on how well you want to do. You can always do better than the previous year. The sky’s the limit in this industry.

Q: What interests you about the mortgage business/industry?

A: I have always been a numbers guy – Math was my best subject. Business finance was my degree. I love dealing with numbers and doing it daily with my job. Guidelines are changing all the time so it keeps you on your toes and I’m always learning new things.

 

Q: How do you ensure excellent customer service for your clients?

A: I try to stand out […]