Thursday, July 31, 2014

Your Second Home Mortgage Options

Are you planning to buy a second home for vacation in exotic places like Bethany Beach or in a city that you frequently visit? Buying a second home is the time when you need to exhibit some sound financial skills.

Choose wisely

Mortgages on second homes also offer the same tax benefits as those offered by the first homes. If the decision to purchase the home is taken before retirement, it is advisable to opt for longer repayment periods of up to 30 years so that the mortgage repayment will not eat up much of your monthly budget. Opting for the right mortgage lender like Steve Morgan, one of the top mortgage house lenders in Bethany Beach, can ease the process of loan application and repayment.

A good mortgage lender can give you the right advice at the time of applying for a mortgage so that you can make an informed choice. Lenders like Steve Morgan also give  multiple loan application options like quick, standard, and 5-step application depending on your need as well as requirement.

Rules for applying for a second mortgage are generally tougher than for applying the first mortgage. However, banks allot second mortgages easily if you have good payment record for your first mortgage and any other loans. Choosing a right mortgage lender for your second home is more crucial due to the limited repayment period that come with these homes. A second home in an exotic location is after all an indicator of your achievement in your life and career.

Wednesday, July 23, 2014

Questions to Ask Your Mortgage Lender

Mortgage lenders help you in finding the exact mortgage loan that will suit all your needs. The lenders have every kind of information on mortgages and should be willing to share the information with you. So, it is important to get to know what questions you should ask to your Bethany Beach Lender, before signing a mortgage contract.

Answers you need to know

The first question you should ask is about the Annual Percentage Rate. Lenders could hide small fees and charges that might lead you to paying more money. The APR takes into account all of the extra charges, so it is better to know it before getting a loan. Your second question should inquire about escrowing your insurance and taxes. Some prefer to pay them all at once, others over a period of time, and hence talk with your lender about whether you have to make an escrow account or the lender will sort it out for you. Other questions you could ask is about prepayment penalties on the loans, or whether to not do something that changes you financial information or credit report before the closure of your loans.

Such questions, if asked correctly, can lead to a better experience when applying for a mortgage loan. Steve Morgan says to get your facts right before making any applications for loans on Bethany Beach, Delaware. For more information on how to get a mortgage loan, get Bethany Beach Lender to help you out. 

Thursday, July 17, 2014

Tips to Lower your Mortgage Interest Rate

Mortgage rates at Bethany Beach are at their lowest this year, being quoted at about three percent. Getting an even lower mortgage rate is easy; you just need to know how the lenders of the loans are assessing the rate given to you.

Paying less for your FHA, VA, or conventional mortgage

Federal Housing Administration insures FHA mortgages and so has guidelines on how the rates are done. A high credit score means lower rates, and vice versa. Hence, it is advisable to get a credit report before applying for a mortgage from a lender, so that any discrepancies in it can be sorted out and your credit rating can be raised.

VA mortgages leave very little room to get that lower rate, but it is possible. It can be done by reducing your loan’s length or by getting energy efficiency benefits from VA. Currently, a reduced time in years of a mortgage can get you rates almost a point lower than say double that period.

Conventional loans are assessed on their Loan Level Pricing Adjustments model, which means the rates are determined by your credit rating and purpose of the loan. So, comparison of a conventional loan to a FHA loan is advised to get the lower interest rate.

Getting lower rates on your mortgages is actually easy. The rates are the lowest they have been this year, and reducing them only takes a little bit of effort. Contact Steve Morgan at Bethany Beach Lender to know your best rates.

Friday, July 11, 2014

Cutting Down Your Mortgage Payment

Purchasing a home can be a cumbersome and difficult process to maneuver around. Fortunately for property buyers in Bethany Beach, there are now a variety of loan schemes on offer that help reduce both their down payments, as well as their monthly Private Mortgage Insurance (PMI). A PMI is an additional sum that is integrated into the overall mortgage payment. Schemes that allow individuals to place under 20 percent of a property’s value as a down payment, typically involve a PMI. 

80/10/10 scheme

PMIs can amount to significant monthly sums depending on the total value of the property. However, there are a variety of ways in which buyers can avoid or reduce their PMI premiums. The f80/10/10 scheme permits buyers to put down just 10 percent of the total property purchase value at first. The lender will then place down 80 percent of the property value. Buyers can then use the same Bethany Beach lender or another lender to place a second mortgage of the remaining 10 percent of the property’s value, thereby taking care of the monthly PMI. 

Gift of equity

For individuals who live in family-owned properties, or those looking to purchase properties from their landlords, there is the gift of equity scheme. This scheme allows the current owner of the property to place 5 percent down payment on behalf of the buyer. However, to do this, the buyer will need to provide a letter of motivation from the owner of the property, detailing the reason of sale. 

It is important to remember that most of these schemes require individuals to have a credit score greater than 700. Before availing of these methods, it is always advisable to consult an experienced mortgage professional like Steve Morgan. 

Friday, July 4, 2014

Home Loan Mortgage Interest Rates

The first thing you look for when shopping for mortgages is the APR. With so many mortgage providers, it is a well-known fact that the plethora of APRs offered are vast. They all tend to circle around the general rates levied by the big banks in the USA such as BOA, but specialized mortgages such as those provided for Veterans or by the US Dept. of Agriculture have different APRs and their applications.

Interest rates for different home loans

Steve Morgan of Bethany Beach Lender has made a few observations in respect of some of these mortgages:
  1. Mortgages provided by Federal Housing Administration are useful for people with average credit scores of about 580 and pay a 5 percent deposit for the house. Their APRs are also comparatively lower. Their monthly mortgage insurance premiums (MIP) however are higher and so it is at the time of closing so that should be accounted for when you review this mortgage option.
  1. Provided by the Department of Veteran Affairs, these mortgages having everything going for them – their APRs are the lowest, they do not require MIP no matter how low our down-payment is, you can get 100 percent financing under this mortgage (no deposit payable at all) and the deal-clincher is the mortgage portability to the new buyer, should you choose to sell the house. Your course should have some military background to consider this mortgage.
  1. Conventional Mortgage APRs – Provided mainly by Fannie Mae and Freddie Mac, this lending duo provides mortgages at reasonable APRs provided your credit score is above 680 and you make at least 20 percent of the asking price as the down payment. Lower your deposit, higher your APR goes except under special rate schemes.
  1. Department of Agriculture mortgages – Loans are made available to people of rural backgrounds at extremely low APRs even with zero deposit. Their main criteria are the credit score (more than 620) and the debt-to-income ratio must be reasonable.
With so many options available in the mortgage market, it should not be too difficult for you to choose the right one provided you are able to furnish all necessary documents and keep a track of your credit score. Depending on your background, see if there are concessional APR-backed mortgages available before you apply for one.