So, you bought your dream home, and with it comes the responsibility of a mortgage–one of the most significant financial decisions in your life. Every month, you pay down your loan, and depending on the market, you could eventually refinance to get a lower interest rate. But what does it mean to refinance your loan? And when is a good time?
As we start spring cleaning, many of us will be reflecting on what we want to achieve for this year. Last year many of our dreams were stifled due to the pandemic, hopefully that won’t be the case as we move forward. If becoming a homeowner is one of your priorities this year, here are some tips to help you achieve your goal.
On December 2, 2020, the U.S. Department for Housing and Urban Development (HUD) announced its new 2021 limits for single-family homes. This is a significant announcement if you are considering applying for a Federal Housing Administration (FHA) loan in 2021. An FHA loan is a home mortgage that is federally insured if the borrower defaults on payments to the loan. FHA loans are a desirable option for first-time homebuyers since the down payment minimum is extremely low at 3.5% when compared to a conventional loan that commonly requires a down payment of at least 20% to avoid private mortgage insurance (PMI).
There are many different home loan programs available that individuals can obtain depending on their circumstances. Whether you are a student or in retirement, getting your first or sixth home mortgage – this will always be an interesting topic of conversation. With so many options to wade through, we wanted to focus on two different government loan programs: FHA and VA. Though they are backed or insured by the federal government, that doesn’t mean they are the same.
Having an offer accepted on a home is a wonderful moment! But many out there believe the process of getting approved for a mortgage loan is like pulling teeth. There are ways to make it easier, just like flossing regularly before going to the dentist. The loan process is not that hard, as it largely boils down to submitting the collection of items that are required for your loan to be approved by the lender so your file can go through underwriting. For every mortgage application, there is the basic list of items you will need to provide your lender:
A “no-cost” refinance simply means that you’re not using any cash reserves to pay the closing costs upfront but in other ways. Mortgage interest rates are the lowest in 50 years, according to the Wall Street Journal and we can now offer you refinancing with almost nothing out of pocket. Although interest rates are at historic lows, refinancing only makes sense if you are aware of all that is involved in your refinancing process.
Mortgage interest rates are at tempting levels that could make you wonder if it’s the right time to reap the rewards of your investment as a homeowner. Cash-out refinancing could be an option if you want to take advantage of the historically low interest rates and augment your finances especially during this difficult time as the nation deals with a health crisis.
Refinancing is a hot topic right now as it offers a lot of different financial options for you as a homeowner. Before you begin, here are four things you should consider to get the best rate possible.
It’s important that you check your monthly mortgage statement for any changes to avoid unwanted surprises.
Loan forbearance is a viable option you may consider if you experience financial hardship and start missing your monthly mortgage payments. It allows you to reduce or suspend your payments for a period of time and determine a plan on how to repay them after.