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More Refinancing Mistakes to avoid for your home
In these tough economic times and with the housing market making a slow recovery in many places, more homeowners are considering refinancing their homes to get better rates and a better deal. However, refinancing can be very confusing and costly if you are not sure how to go about it. Here are some more refinancing mistakes to avoid for your home and better peace of mind in the future.
Number of Views :49Tips for affording a down payment on your new home
These days with the economy still struggling and people having to save all the money they have, you may think that being able to afford a down payment on a home is impossible. However, it just requires some creative thinking and maybe a helping hand or two to make things work. Here are some tips for being able to afford a down payment on your new home. This way you can stress less and enjoy your home and future even more.
Ask your real estate agent for advice
Real estate agents help people buy and sell homes every day. This means that they see many people putting together money for a down payment. They may be able to offer helpful tips and give you information to other resources that can. They are a great starting place for information and ideas.
Ask friends and relatives
If friends and relatives cannot just give you the money, offer to do them some favors in return such as help babysit or walk their dog, or do some yard work. If this does not work, try raising the money by throwing a new house party or baking something to sell.
Borrow it from your retirement fund
If you have one, borrowing some money from your 401k or another retirement plan may be a good idea to consider. You usually do not have to pay taxes on the money you borrow from these funds and that can help in long run.
Ask for it as a wedding gift
If you are getting married and then buying a home why not ask for the money as your wedding gift. This way everyone can help out and you and your family get one great big gift that can last for years and years.
Start saving a little from every paycheck
This may sound like a slow process or hard to do, but if you are able to stick to it, it really does work. Even if you just save twenty to twenty-five dollars out of each check, you will be surprised at how much you have saved over one year. Plus, this will help you to develop saving habits for the future.
Saving money for a down payment on a new home can seem overwhelming or even impossible for many people, especially with rough economic times. However, if you follow these simple tips and take things one step at a day, then the task will not seem as challenging and you will be rewarded with a new home for you and your family to enjoy long into the future.
Number of Views :102Tips for Managing Finances for the Future
Many of us especially with the economy struggling and many people being out of work are putting large purchases on credit cards, taking out loans, and saving very little. This works fine until we cannot afford to make our payments. Then many of us may lose our cars, houses, and have terrible credit for a long time into the future. This is why it is important now more than ever, to know what you can to improve your credit and to start doing it. This way you can afford that new home and all those new things with fewer worries.
Ask your real estate agent for advice
Many people may think that a real estate agent only knows about houses, but paying for those houses is important too, so many agents also know a bit about finances and options as well. They are an excellent resource to help you get started.
Credit Cards
When it comes to paying off credit cards or keeping your credit score good, it is important to pay more than the monthly payment and to pay as much more as you can possibly afford. If you do not, you will end up taking several years to pay off a credit card.
Emergency Fund
In this economy, it is important to have money set aside for health problems, job loss, or any other huge unexpected expense. It is recommended to have at least enough money set aside for eight months of bills. You can do this by taking at least twenty dollars out of each paycheck.
Increase Income
There are many ways to make extra cash when you may have large debts or huge bills to pay. One of these ways is to sell unwanted or unnecessary items. Other ways include pet sitting for family members and friends, writing articles online, offering to clean houses and much more.
Think about the Future
Many people are just living paycheck to paycheck and just getting by. However, it is also important to plan for the future. Trade in that meal at a fancy restaurant for a nice meal at home at least twice a week to save some money. In the future, you will be glad you did.
These tips can not only help you now when times are rough for many people, but they are also useful throughout your live. They can help you to learn better spending habits and keep track of the ones you have and they can help you provide for your loved ones not only for right now but in the future as well.
Number of Views :93Tips for fighting higher interest rates for buyers
With the economy and housing market still struggling and many people struggling to make their payments and stay away from foreclosure, many people cannot afford the slightest increase in their rates. However, this unfortunately still keeps happening to many homeowners because they did not know how to fight for lower interest rates in the first place. Here are some tips and advice to get you started, and help make sure you truly are paying the lowest rate possible.
Ask your real estate agent for advice
If you are buying a new home, especially these days, it is important to make sure you get the best deals possible. A real estate agent can help answer your questions or put you in touch with someone who can. They are a great first resource for information.
Ask for the maximum rate you can afford
By doing this, if rates rise while you are looking for a home, then you are covered because you can still afford that rate. This will also allow you to qualify for a smaller loan at a higher rate, saving you money and frustration later on.
Gives you a more competitive edge
If you are competing with other buyers for the same house, but the seller knows that you are willing to accept a rate higher than the average or going rate, and then they also know you are less likely to cancel if the interest rate does increase. This means that you are more likely to get the home over other buyers that will be forced to cancel.
Paying Points may make sense
If you are buying a home and planning to stay in it for a long time, long enough to break even on the loan, then paying points to lower the interest rate may be a good idea. Points paid on some mortgages can also be considered a tax deduction in some areas.
Lock in a rate when you can
Homeowners can wait around for better interest rates, but buyers can not because they are under purchase contract deadlines, and most sellers especially in this economy are not willing to grant an extension. It is best to lock in a rate while you can. This way you know what you can afford.
The economy and the real estate market are both struggling. This is causing many people to save every penny they can. This is why it is more important than ever before to get the best interest rate possible if you are going to buy a new home. This way you will feel more secure and have fewer payment worries in the future.
Number of Views :82Energy Efficient Mortgages
The FHA is offering a new mortgage geared for the eco-centered home buyer. These energy efficient mortgages may allow you to finance “green” improvements to your new home without paying anything out of pocket.
Although taking out this type of mortgage may cost you more on a monthly basis, you will be able to save on your monthly utilities, making up most of the difference. The changes made to your new home can lower your heating and cooling costs, and reduce energy usage. These improvements will also lead to a higher sales price when you move.
Energy efficient mortgages can be used to replace windows, improve insulation, install or repair duct systems, purchase energy efficient appliances, perform weatherization and buy a new water heater, amongst other possibilities. Any updates that will significantly improve the energy efficiency of home. The loans are available through the FHA, Fannie Mae or Freddie Mac, and through VA loans.
There are some things to be aware of when looking at energy efficient mortgages. Depending on whom your lender is, you may have a time limit for when the work has to be done. Some lenders will give you up to 90 days, others give you 14. You also might have to have the home inspected to see how much improvements will actually help the home. There is also a cap on how much you can take out, based on the work that needs to be done and the cost of the home.
If you’re considering an energy efficient mortgage, the best time to apply for one might be after the new Cash for Caulkers program passes the Senate and is signed by the President. This program will give homeowners a 50% rebate on any “green” home improvements. The money you get back can go towards other home improvement projects, new furniture, or even paid back to your lender, reducing your overall mortgage. The Cash for Caulkers bill is expected to pass later this year.
Number of Views :198Mortgage Rates Hit New Low Due to Debt Crisis in Europe
When it comes to the real estate market these days, we have all been hearing ups and downs and it may feel like we are on a rollercoaster. One minute we are hearing some good news, the next minute some not so good news. The fact is that until the economy gets better, the real estate market will continue to struggle and we may all just have to hang on for the ride.
This week mortgage rates have hit some historic lows. This is all due to Europe’s debt crisis. Nervous investors are leaving for the more secure U.S. Treasuries which has caused consumer interest rates to become more influenced and this includes mortgage rates. The current rate for a thirty year fixed loan is 4.87 percent, the lowest it’s been in thirty years.
Other rates such as those for jumbo loans have also fallen. The thirty year fixed jumbo loan is at 4.5 percent which is six percent lower than last year at this same time.
It is a great time for homebuyers to buy and for homeowners to consider refinancing. If you are a homeowner looking to refinance and are also eligible for the Home Affordability Refinance Program which allows homeowners to refinance into low mortgage interest rates even if your property value has gone down, then now may be the best time to consider this option. This program is available from now until June 2011.
This may be a great time for homeowners to refinance or home buyers to get a good deal but only if you are quick about it. These rates will probably only last for a month or two. Europe’s investors will soon be looking for other security besides the U.S. Treasury and this will push these rates back on. So, if you are thinking about buying or refinancing, you better act now while you can still get a low rate. The offer may be gone as quickly as tomorrow.
Number of Views :143Providing Proof of Funds
When you’re preparing to enter into a contract to buy a home, you will probably have to give the seller proof of funds. In other words, before you can buy a house, you have to prove that you have the means, financially, to make that kind of purchase.
What constitutes proof of funds? An official document, or documents, with specific financial information included. As a buyer, you will probably need proof of an adequate down payment and closing costs. A preapproval letter from a lender is often not enough.
Some buyers may see this as an intrusion into their privacy. Why should the seller, and the seller’s agent, have the right to this kind of information? From the seller’s point of view, however, it makes a lot of sense. Before taking a home off of the market, it’s good to know that the sale won’t fall through because the buyer has a loan, but can’t afford the closing costs or down payment.
To prove that you have the funds to buy a home, you will probably need one of the following:
- certified financial statement
- open equity line of credit
- recent (original) bank statement
- online bank statement
- copy of money market account balance
- signed letter from your bank stating that you have adequate funds for the purchase
Providing a copy of one (or all) of these records proves that you do have the money ready to buy a home, and can expedite the buying process. These documents will be submitted when you sign the contract, or when all of the contingencies on the purchase have been signed off.
If you are a cash buyer, meaning that you will not need a loan to buy the home, providing proof of funds is even more essential. You don’t have the benefit of a preapproval letter stating that the money is available from a lender. You need to be able to prove that the entire cost of the home is readily available for the sale. You will need one of the documents listed above.
If you have more questions about providing proof of funds when buying a home, your Syracuse real estate agent, or your lender, should have the information you need.
Number of Views :191Wealthy Home Buyers Struggling to Get Mortgages
With the economy not doing so well and the real estate market struggling, many people may think that the only people who can afford to buy homes are the wealthy, however, recent evidence shows that even if you have many assets or are wealthy, you may not even be able to get a mortgage. Even the wealthy seem to be falling behind on their payments with 12 percent of U.S. mortgages of $1million being late.
Lenders are making it even harder to get a loan, especially Jumbo loans because they are larger loans and are harder to get backed by the government through Fannie Mae or Freddie Mac. Some lenders want more than twenty percent to be put down on loans and some are even asking for fifty or sixty percent to be put down on some loans. If you have a one million dollar home this means you would have to have $500, 000 ready to give to a lender. All other parts of the loan need to be in order too, which is hard for some wealthy customers because their assets may be a little more complicated.
Mortgages for second homes or vacation homes are even harder to get, because it seems that if you cannot tell the lender you will be in the home seventy-five percent of the time then they are not interested in giving you a loan. They also require at least a fifty percent down payment.
For many wealthy people, this means that they have the some financial concerns that we all have been experiencing. We all seem to be limited by the rules and guidelines that help protect lenders during this shaky economy. This means then that even the wealthy will have to wait things out.
Number of Views :112Needing Loan Help Could Mean a Lower Credit Score
We all know that the housing market has been struggling with all the economy problems and many people are in need of help to help pay their bills, their mortgages, and to avoid foreclosure. Many homeowners though are getting a not so good surprise when they ask for another loan. Many are finding out that their credit ratings are going down.
The Obama administration’s loan modification program can help borrowers who have made their payments on time but are close to defaulting, but this can also lower their credit score by as much as one hundred points. A lower credit score can mean big problems when trying to get a new job or another loan in these hard economic times.
Many people are angry that a program specifically designed to help home owners also comes with this nasty surprise. Many home loan counselors and borrowers both see this surprise as being very unfair. Still, there are many people that see it better than facing a foreclosure which means that a credit score can be severely low for many years impacting a good portion of many advantages.
In order to enroll in Obama’s plan, “Making Home Affordable”, people have to enter a trial period in which they make at least three payments. After this trial people though many people are seeing their credit score go even lower than it was before they applied.
People really need the program though and can face even more serious financial problems if they have to face foreclosure instead. So even though this program has its surprising downside, it is still helping so many people that have no where else to turn. Before considering this program though, it is important to know that your credit scores will drop and it is important to ask questions and get all the information that you can. “Look before You Leap” takes on a whole new meaning for many home borrowers with this program.
Number of Views :121The Three Biggest Credit Crushers
If you plan on buying a home, you should know that an iffy credit score won’t cut it anymore. After the housing crisis, banks, and even the FHA, are demanding better credit histories from anyone wanting a mortgage.
If you want a mortgage, you need to be able to prove to lenders that you’re a good credit risk. To do that, you need to watch out for these three credit crushers.
1. Late Payments
If you miss a payment, your credit score might take a hit. Miss enough payments, and you’re looking at some serious damage. If your payment is more than three months late, or if you have a history of missed payments, it will be much harder for you to get a loan. Lenders want to be sure that they’ll get their money back.
2. Past Judgments
People make mistakes. If you have a foreclosure, bankruptcy or loan default in your recent past, you’re going to have a more difficult time getting a decent loan to buy a house. Unlike smaller nicks in your credit history, a judgment sticks around for seven years. Even if your credit habits are great five years down the road, you’re still going to be haunted by the one big financial flop in your history, and if you’ve messed up a significant financial commitment before, regardless of the reason, lenders are less likely to give you a second chance. And if you do get a loan? Expect a very high interest rate to come with it.
3. Significant Consumer Debt
You have three credit cards, with a combined limit of $25,000. Although you never miss a payment, your total debt on the cards is around $20,000. Your excellent payment history should make you a perfect candidate for a mortgage, right?
Probably not. You might be making your payments on time, but you have a lot of debt already on your plate. Lenders are going to look at your questionable credit habits, and you stand a good chance of being turned down. A good credit score is based, in part, by the amount of credit you have available. Even if you’ve been approved for a high credit limit, it looks bad if you’re actually using most of the limit. Lenders see the amount of consumer debt you have as a gauge of your spending habits. If you spend money that you don’t have without a second thought, it might come back to haunt you. Lenders don’t want their mortgage payments on the line when that happens.
If you want a loan, you need to be able to prove that you have a strong credit history. If you have a habit of missing payments, sign up for autopay through your bank account. The amount due comes out automatically every month. No more late payments, and you could save quite a bit on late payment fees as well.
Pay down your consumer debt. Paying the minimum amount every month won’t make any significant dents in your debt, especially if you owe a lot. Pay as much as you can every month, and set a goal to pay your consumer debt off entirely within a year or two.
If your credit history contains a foreclosure, bankruptcy or other judgment, you can’t erase it until the seven years are up. What you can do, however, is do everything in your ability to make sure the rest of your credit report is in great shape.
Number of Views :56