A Couple Of Ways To Avoid Paying Mortgage Insurance...

 Good Morning!

If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender.

No one likes paying monthly mortgage insurance.  It’s extra money added to your payment every month, and it doesn't help pay down the balance of the loan.

If you want a conventional loan and your LTV is over 80%, but don’t want to pay monthly mortgage insurance there are two ways to avoid this…

1)   One would be Lender Paid Mortgage Insurance.  We pay the MI for you.  The rate generally is .25 to .375 higher, but there is no monthly mortgage insurance.

2)  Get a piggyback loan.  This is where we make two loans for you.  …A first mortgage at 80%, and a second mortgage at 15%.  This way you just put down 5%, and there is no monthly mortgage insurance payment.

Thanks for reading!

Have a good day

 

Brett

 

Get Pre Approved For A Loan Here
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How To Get Loan If You Were Recently Out Of Work...

 Good Morning!

Have you been out of work, and now you are working again?

…and, you would like to buy a house?

I wanted to go over the FHA guidelines with you on a borrower returning to work in case you or someone you know is in this situation…

There are just a few main guidelines that FHA likes to see for the borrower in this situation to be eligible for financing…

1) Current employment of at least six months.

2) Documentation of two years of employment prior to the absence. Acceptable documentation includes w-2’s, paystubs, or a written verification of employment.

3) Acceptable scenarios include an individual who took several years off to raise children, but has now retuned to work.

If you know someone in this situation and they want to purchase a home, have them give us a call and we’ll try to help!

That’s it for today!

I hope you have a great day! Thanks for reading!

 

Brett

 

Get Pre Approved For A Loan Here
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Rates Got Worse Yesterday

 Good Morning!

Long term Treasury yields have been trending higher since August.  The Fed has recently showed a preference for shorter term paper, which has accelerated the sell off of longer term yields.

Mortgage rates have been ignoring this for the most part, but yesterday mortgage rates rose sharply.

Will continue to watch this for you.

 

That's it for today.

 

Thanks.

 

Brett

 

Get Pre Approved For A Loan Here
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Something You Didn't Know About Me...

 Good Morning!

 

Most of the time I talk about mortgage information in this blog post, but every now and then I'll tell you something about me, or something else not having to do with mortgages.

 

Today is one of those days.

 

I wanted to let you know I wrote a book.

 

It's called Density, and you can find it on Amazon.

 

It has nothing to do with mortgages, in fact it's fiction.

 

If you have time check this link...

 

 

That's it for today!

 

Thanks for reading!

 

Brett

 

How To Add Repairs To Your Contract...

 Good Morning!

I want to show you one way to roll repairs into a purchase price.

If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation comes up from time to time.

The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money that is held out of the seller’s proceeds from the sale to make the repairs.

You have to write the escrow hold back right into the contract – under special provisions. To avoid having to rewrite this clause – be specific. Your realtor will need to write – “An escrow hold back in the amount of $______ will be used for (specific) repairs.”

One key with the escrow hold back is the repairs need to be minor – and they can’t take that long to finish. …an average amount of an escrow hold back is $1,500 to $5,000.

Knowing how to solve minor repair problems on an offer – can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal – just give us a call – we can help you out.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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What Paying Extra On Your Mortgage Can Do For You...

 Good Morning!

 

I get questions like this from borrowers all the time…  “If I pay an extra $100 a month on my payment how many years would it take off my mortgage?”

The answer is it can shave off a lot of years and save you a ton of money!

I created the table below to illustrate the savings.

This is based on a 30 year $100,000 mortgage at 4% interest.

Extra Payment Monthly	Years Saved Off Mortgage
0	0
50	5 Years
100	8.5 Years
150	11.08 Years
200	13.08 Years
250	14.6 Years

If you would like to see how much an extra payment would affect your mortgage just call me or email me and give me your numbers on your mortgage. …I’ll be happy to help you!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

 

Get Pre Approved For A Loan Here
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Loan Tool You Can Use To Acquire Rental Property...

 Good Morning!

If you want to acquire rental properties, but you are having issues proving your income - here's one tool you can use...

It's called a Debt Service Coverage loan.

We take the estimated amount the property would rent for.  We take a percentage of that rental number (usually between 70% and 80%), and as long as that number covers the mortgage payment - you are ok income wise.

Down payments average around 20% on these type of loans - credit score depending.

If you think this might be a useful tool for you to acquire rental property - please let us know!  We are happy to help!

Thanks for reading!

Have a great day!

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog