The Difference Between a 15-Year and a 30-Year Mortgage!

To be perfectly honestly – one of the most confusing things for homeowners and home buyers are the differences between 30-year and 15-year fixed mortgages.  Personally, I did not know the difference besides the years until I started writing for this particular blog.

Basically, on any given day, for either one of these mortgages, pricing can go up and down and that is one of the major reasons why having a fixed rate is so great … you know what you are paying every single month.

Shopping for a mortgage is something that is not easy and it is most of the time really confusing.  While you might be considering getting a 15-year fixed mortgage, have you looked into a 30-year?  The difference could really be the premium that you pay every single month, so keep that in mind when you are shopping around.

Getting A Home Loan: The Things You Should Know…

Choosing a home loan is something that is one of the most important things in your life.  There are many different things that you need to consider and to be honest, this will be one of the biggest decisions of your life.  That is one of the main reasons why people are so leery about simply taking a home loan on from someone they do not know – this is why recommendations from friends is a fantastic idea.  If you are in the market for a home loan, talk to some of your friends and family and see who they used – that way you can get some referrals.

Another thing that you should watch out for is speaking with some lenders that you can not speak to face-to-face.  Face-to-face talking is an absolute must when you are talking about hundreds of thousands of dollars.  You need to trust your lender and your lender needs to be able to trust you and the only way that will work is by meeting.

Go with your gut – that is honestly the best policy whenever you are looking for a home loan, simply go with an affordable mortgage and make sure that you have a good feeling about the entire transaction.

Getting a Mortgage: 2

It can be hard to make sure that your credit, or FICO, score is in good shape, but it is possible.  One thing you can do is try your best to pay off all your debts, or at least make arrangements with creditors.  You need to pay all of your bills on time.  You also need to make sure no loans you have are in default.  That will do horrible things to your credit score — but even defaulted loans are possible to quit.

Once you think you are ready to meet the current lending standards, you are ready to move onto the next step. You need to begin by shopping around. Remember, we have just gone through an enormous credit crisis. Banks have definitely been affected, but they have all been affected in different ways. Therefore, the rate you get from one bank will not necessarily be the same as the rate another bank will offer you. A lot of lenders are in a position where they are willing to provide loans at much lower markups — and you can benefit from that.

Getting a Mortgage: 1

Getting a mortgage is a scary product, especially right now.  Restrictions and qualifications are getting ever tighter.  The first step to getting a mortgage is actually taking it upon yourself to either make sure you will be able to qualify for one or taking the steps you need to take to get your credit rating in a good place.

Lending standards are getting really high. You have to pay attention to that, especially when you are interesting in getting a mortgage. There are a number of things you can look into and consider before going into this endeavor.

First of all, you need solid credit. Typically, lenders look for a FICO score of at least 720, the higher the better.

You will likely have to make a down payment as well. You will need this just to qualify for your loan. It is generally three and a half percent of the loan itself, at the very least.

You will also have to document your income. The amount of money you make and your assets must all be verified.

Buying A Home: The Steps You Need To Follow!

I swear, buying your first home is honestly going to be the scariest thing in the world.  There are tons of different things that you really need to think about and to be honest, you really need to decide whether buying is going to be the best option for you in the first place!  In this blog and a few others after it, we are going to explore the buying experience of your first home so you can really get a feel for it!

One of the very, very, very first things that you want to do is get your budget nailed down.  You do not want to fall in love with a home that is way out of your price range and you certainly do not want to get stuck with a mortgage that you can not pay because you can not afford it, so shop wisely and buy smart!

After your budget is sketched out …. The next step is in the next blog!  Stay tuned everyone!

Do you qualify for Pres. Obama’s Mortgage help?

President Obama has already laid out the much-awaited foreclosure prevention program called Homeowner Affordability and Stability Plan and it is looking for 9 million borrowers for help. The question is, are you one of them?

The $75 billion fund is collectively formed to give two basic solutions to the various mortgage issues in the current financial crisis. First solution is to aid more homeowners to reestablish financially by taking advantage of new low interest rates. If you are updated with your current mortgage, then you fit for qualification. Actually, even homeowners with debt that is above home value of 5% could be entitled to receive the fund. There will also be no penalties.

The second solution is to offer incentives to borrowers and lenders to rearrange their mortgage to more affordable levels. Those in default or at risk of default may be entitled to receive the program for modifications of loans, which will restructure the loan terms. Anyone with combined mortgage dept in contrast with the income or those who are poorly in debt may apply for the program.

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