Hello!
Rates are currently higher than they were, but they are still low.
We are still seeing rates as low as the mid to high 2's on a 30 yr fixed.
So, if you have been considering refinancing, or you found a property you want to purchase - please contact our office. We will be delighted to help you.
That's it for today!
Thanks for reading!
Brett
Hello!
I touch on this from time to time, but it’s important so I want to revisit it…
One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.
This is called sourcing in the mortgage industry.
Let's say your down payment is 5% of the sales price.
You can have this money in your checking account or savings account now. You can borrow it from your retirement account.
…You can even get the down payment as a gift.
…but, it’s crucial that we are able to show where it’s coming from.
I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.
If you aren’t sure where your down payment is coming from – find out now.
..before you apply for a loan.
That’s it for today.
Thanks for reading!
Brett
Hello!
Here are three things you need to be aware of for us to use your bonus income to get a mortgage…
1) We can’t use bonus income or overtime income unless you can prove you have been receiving this income for 2 years.
2) The employer has to indicate that the bonus or overtime income will likely continue.
3) We will use a two year average of bonus and/or overtime income. So, if you got alot this year, but not last year then we will have to use an average of both years.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Hello!
When it comes to your mortgage payment your credit score can affect your interest rate, and your homeowners insurance rate.There is another part of your payment that is also affected by your credit score… Your mortgage insurance payment on Conventional loans.
Let me give you some examples of how your mortgage insurance rates can vary due to credit score.
These numbers are based on a $100,000 loan at 95% loan to value ratio.
MI Payment Chart…
Credit Score Range MI Payment Amount
> 760 = $45
720 to 759 =$51.6
680 to 719 =$74.17
620 to 679 =$95.83
The lesson here is to protect and monitor your credit as much as you can. Keeping your scores up can save you alot of money!
That’s it for today!
If you or someone you know needs help with a mortgage - please contact our offices.
I hope you have a great day! Thanks for reading!
Brett
Hello!
Here are two quick credit tips for you…
1) 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards).
You don’t want to charge these accounts over 50% of the available balance, and it's even better if you can keep it under 30% of the available balance.
2) 15% of your credit score comes from the length of time each account has been open, and the length of time since the account’s most recent action.
So, it’s impossible for someone who is new to credit to have a perfect credit score.
A longer credit history provides more information and offers a better picture of long-term financial behavior.
So, to improve your credit score, individuals without a history should begin using credit, and those with credit should maintain long standing accounts.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Hello!
While rates are still relatively low I wanted to show you how smart it can be to reduce the term on your loan.
For instance, going from a 30 year loan to a 10 year loan will save you a BUNCH of money.
…money you could have accumulated in a retirement account, or sending your children to a good school, etc.
Take a look at the chart below. You can see the interest savings is significant.
The payment on a 10 year loan is roughly twice as high as a 30 year payment. …but if you can at all afford the payment it’s a very smart thing to do.
| Loan Amount | $100,000 | $200,000 | $300,000 | $400,000 |
| Interest Rate | 3% | 3% | 3% | 3% |
| Term | 10 Years | 10 Years | 10 Years | 10 Years |
| Principle & Interest Payment | $965 | $1,931 | $2,896 | $3,862 |
| Interest Paid Over Life Of Loan | $15,872 | $31,745 | $47,618 | $63,491 |
| Interest Savings On 10 Year Over A 30 Year Loan At 4.5%. | $55,996 | $111,994 | $167,989 | $223,987 |
| (Assume 80% loan to value ratio) |
If you would like to see what your payment would be on a 10 year loan – give us a call or shoot us an email. We’ll be happy to help you out with it.
That’s it for today!
Have a good day today! …and thanks for reading.
Hello!
FHA gift questions come up often.
I wanted to give you the rules on FHA gift giving. Here ya go…
Acceptable gift donors for FHA loans…
1) Borrower’s relative.
2) Borrower’s employer or labor union.
3) A close friend with a clearly defined and documented interest in the borrower.
4) A charitable organization.
5) A governmental agency or public entity that has a program providing home ownership assistance.
Unacceptable gift donors for FHA loans…
1) The seller.
2) The real estate agent or broker.
3) The builder or an associated entity.
Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Hello!
If you get 1099's instead of W-2's at the end of the year from your employer - that means you are self-employed. At least that's how we perceive it in the mortgage world.
The traditional means of income documentation for self employed people is two years of tax returns.
Some people that are self employed tend to "maximize their deductions" so to speak on their tax returns. Even though their gross income is good, their adjusted gross income on their tax returns is low. That's good for paying taxes, but bad when you want to get a mortgage.
One possible way around this is to take advantage of one of our Non QM 1099 loans.
We just need your last two years of 1099's and no tax returns. We use the income figures on the 1099's for income.
If you or someone you know are in this situation - give our offices a call or shoot us an email. We would love to help you!
That's it for today!
Thanks for reading!
Brett
