Category: News

If you're seeking financing for a home over a million dollars, chances are you have heard these options: jumbo loans and conventional loans. A conventional loan, typically offered by private lenders, is what most people think of when considering a mortgage — a fixed interest rate loan covering most of a home's purchase price. While a jumbo loan technically falls under the conventional loan category, it is distinct in several key ways, particularly in the amount of money it allows you to borrow. What Defines Jumbo and Conventional Loans? A conventional loan is not backed by the federal government but instead originated, financed, and guaranteed by private lenders. These loans can be either conforming or nonconforming. Conforming loans meet the Federal Housing Finance Agency (FHFA) requirements, including loan size limits…

VA loans, backed by the U.S. Department of Veterans Affairs (VA), offer eligible active-duty military members, veterans, and surviving spouses a unique path to homeownership. These loans come with a variety of benefits, making them an attractive option for those who qualify. However, like any financial product, they also have their drawbacks. Understanding the pros and cons of VA loans can help potential borrowers make an informed decision. One of the most significant advantages of a VA loan is that it requires no down payment. Unlike conventional mortgages that often demand at least 20 percent of the purchase price upfront, VA loans enable eligible borrowers to buy a home without any initial cash investment. This feature alone makes homeownership accessible to many who might otherwise struggle to save for a…

From conventional to government loans, there are many types of mortgages to suit borrowers with varying credit scores and financial means. While there isn’t a standard baseline income to qualify for a mortgage, you’ll generally need enough income to repay the loan. Understanding how qualifying for a mortgage works and how your income can impact the decision is crucial for prospective homeowners. There is no single, universal income requirement to qualify for a mortgage. It all depends on the amount you need to borrow, current interest rates, and the type of loan you’re applying for. Rather than requiring a specific amount of income, mortgage lenders review your credit and financial information to determine how much mortgage you qualify for and whether you can afford the monthly mortgage payment. Lenders evaluate…

For many homeowners who opt for a conventional mortgage with less than a 20 percent down payment, Private Mortgage Insurance (PMI) becomes a necessary part of their monthly expenses. PMI is an additional charge on your mortgage payment, primarily designed to protect the lender in case of default. However, there are several ways to eliminate this extra cost, which can save you a significant amount over the life of your mortgage. When Does PMI Go Away? The Homeowners Protection Act of 1998 set forth guidelines for the automatic termination of PMI. According to the Act, PMI must be removed by the lender once the borrower attains a 78 percent loan-to-value (LTV) ratio. This means that when you have paid down your mortgage to 78 percent of the original purchase price…

Homeowners often overlook the financial potential of their home equity, a valuable asset that can be used to purchase a second home. This equity, calculated as your home's value minus any outstanding mortgage, can be accessed through two primary methods: a home equity loan or a Home Equity Line of Credit (HELOC). A home equity loan offers a lump sum with a fixed interest rate, ideal for significant one-time expenses. In contrast, a HELOC provides a flexible, revolving line of credit with variable interest rates, akin to a credit card. Using home equity to buy another home offers several advantages. It enables you to access substantial funds without depleting personal savings and allows you to retain ownership of your current home. Additionally, it can position you as a more competitive…

In 2024, new homeowners are seeing mortgage interest rates have more than doubled since 2021, making the dream of home ownership with the traditional down payment of 20% seem like a bridge that is very far. However, there are many options and programs that don’t require 20% down. Some loan programs now allow for a much lower down payment, requiring as little as 3 percent in cash. This development significantly eases the burden for homebuyers, especially first-timers. Understanding 3 Percent Down Mortgage Options These low down payment mortgages are often part of special programs, typically targeting first-time homebuyers or those who haven't owned a home in the recent past. Here’s a closer look at these options: 1. Conventional 97 • Backed By: Fannie Mae • Key Features: Only 3% down…

As we enter 2024, inflation is improving while home prices remain high, if you are planning on buying a home in 2024 here are 5 key steps to take to get ready. 1. Put Savings In A High-Yield Account If you are planning on buying you will need your money to be “liquid” or relatively easy to access for a down payment. 2. Check Your Credit You may have heard this before but it’s important, so we’ll say it again. Review your credit report to make sure there are not any errors or attempts at identity theft that can erroneously lower your credit score. 3. Down Payment or Closing Costs Assistance It’s a good idea to check to see if you qualify for down payment or closing cost assistance or…

As we usher in the new year, we want to extend our warmest wishes to you and your family. May this year bring new happiness, new goals, new achievements, and a lot of new inspirations to your life. Remember, a new year means new beginnings, new adventures, and thankfully, new homes! We're excited to be a part of your journey, whether you're buying your first home, refinancing, or simply exploring your options. Happy New Year from all of us! Here's to a prosperous and joyful 2024! 🎉

As 2023 comes to end its a good idea to do a year end financial checkup. 1. Review your budget and savings plan Analyze your spending and saving for the year. Your savings might not have gone to plan this year and that’s ok – focus on replenishing your emergency fund first if needed and recalibrate plan for 2023 if needed. 2. Maximize Retirement Plan Contributions If you participate in a 401k make sure you maximize contributions before the December 31 deadline, you have until April for Roth contributions 3. Review Your Insurance Coverage Check your insurance coverage in many parts of the country housing prices went up, make sure you home is covered under current market prices. Also check your liability coverage and consider getting an umbrella liability policy…

As 2023 comes to end its a good idea to do a year end financial checkup. 1. Review your budget and savings plan Analyze your spending and saving for the year. Your savings might not have gone to plan this year and that’s ok – focus on replenishing your emergency fund first if needed and recalibrate plan for 2023 if needed. 2. Maximize Retirement Plan Contributions If you participate in a 401k make sure you maximize contributions before the December 31 deadline, you have until April for Roth contributions 3. Review Your Insurance Coverage Check your insurance coverage in many parts of the country housing prices went up, make sure you home is covered under current market prices. Also check your liability coverage and consider getting an umbrella liability policy…