October 15, 2019 rummy

There are plenty of factors influencing your mortgage pricing, one of them is property tax. Let’s find out exactly how property tax makes your monthly payment go up or down. When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment. P&I stands for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance, and they’re all important factors to calculate when…

July 2, 2019 rummy

By now you should have already heard of private mortgage insurance. If you’re planning to buy a house, it is important that you know all the facts about mortgage programs available in your area. Here’s what you need to know about PMI and why is it significant to buying a home. What is PMI? Freddie Mac defines PMI as: “An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%. Once you’ve…

May 28, 2019 rummy

As we have shared countless times before, down payments need not be 20% all the time. Depending on your situation and geographical location, the percentage required could drop significantly. But a lot of buyers still believe that they need to save 20% as a down payment and here’s why. 1. Your interest rate will be lower. Putting down a 20% down payment vs. a 3-5% down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower…

May 15, 2019 rummy

Believe it or not, the longtime rivalry between owning a house and renting are showing signs of handicap of one against the other. If this trend continues, it could tip the scale to hugely favor homeownership. In a recent Insights Blog, CoreLogic reported that rent prices have skyrocketed since 2005. Meanwhile, the typical mortgage payment has actually decreased. “CoreLogic’s national rent index was up 36% in December 2018 compared with December 2005, while the typical mortgage payment was down 4% over that period.” Why the difference between the costs of renting versus owning? It makes sense that rents have risen….

March 28, 2019 rummy

Many millennials have been taking their time focusing on things that matter to them. But just because they’re not as quick to act on traditional goals, doesn’t mean they are not ready for them. Let’s take their qualifications for mortgage approval, for instance, many are not even aware they are mortgage ready. History shows that people tend to buy their first home around age 30. Nearly 5 million millennials will turn 30 in the next two years. This will continue to fuel demand for housing. This is also one of the many reasons why the millennial homeownership rate has continued…

March 21, 2019 rummy

There’s undoubtedly an effervescent urge in everyone to decorate and make tiny changes here and there after buying a house. We all have it, and to some, giving in to these urges may cause future problems with mortgages. So here’s a list of things to avoid after getting your mortgage application approved. 1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well….

March 20, 2019 rummy

A lot of Americans are holding back on buying homes because of their credit score. The sad truth is the majority of this group are misinformed and should have already started earlier than they plan to. Only 25% of the Americans have a FICO Score between 740 and 800. Here is the breakdown according to Experian: 16% Very Poor (300-579) 18% Fair (580-669) 21% Good (670-739) 25% Very Good (740-799) 20% Exceptional (800-850) Randy Hopper, Senior Vice President of Mortgage Lending for Navy Federal Credit Union said, “Just because you have a low credit score doesn’t mean you can’t purchase…