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Posts Tagged ‘Financing’
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 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 :198Needing 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 :121Short-Sale Incentives Start April 5th
Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.
That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.
Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.
Source: The Wall Street Journal, June Fletcher
Number of Views :66Reasons Homeowners Should Refinance
Many of us may know a little about refinancing our homes, or may have heard of the savings it can bring, but many homeowners still do not know how to refinance, are scared to refinance or do not know if they qualify for refinancing. Due to the housing market struggle, many homeowners may be missing out on millions in savings because of refinance issues. Here are some reasons to refinance if you qualify, to help save you money now and in the future.
Some homeowners do not qualify for refinancing because of falling home prices leaving people with little if any equity at all. However, around thirty-seven percent of all borrowers who have thirty year fixed rate mortgages have rates of six percent or higher and many of these borrowers could reduce that rate by a full percentage if they refinanced their homes at the current rates of about five percent. Also some borrowers that refinanced their homes in 2009 will save about $3.4 billion total for that year and an additional 17.2 billion over the next five years.
Due to home prices falling and home values dropping however, most people owe more on their home than it is worth and have little or no equity, making refinancing nearly if not completely impossible. Also bank fees and other charges are turning many homeowners away from even thinking about refinancing their homes and the ones that are refinancing seem to be the ones that need it the least.
There is a little light of hope though for those having trouble refinancing; the Obama administration has decided to extend its program to help those homeowners with little or no equity in order to make refinancing easier and to make a possibility for many people. Also, other programs are being talked about to help struggling homeowners be able to refinance and save money.
It is important to refinance if you can, and if you do not know how, start doing some research and asking questions, because it could save you money in the long run. With these hard times, many of us need all the money and help we can get.
Number of Views :63Refinancing under Obama’s Plan
Many people have seen or read reports about new programs being set up under the Obama administration to help with the housing market crisis. One of these programs is that help is being given to people that have little or no home equity which may make it hard or even impossible to refinance their home and save more money now and in the future. This program is a good idea, but many may not know if their mortgages will qualify for it or not. Here are some basics to help you know if you qualify or not and what to do once you know. This way the whole process is a little easier for everyone.
Contact you real estate agent and lender
It is part of their job to know about all new programs that may benefit current or future homeowners. They may be able to answer questions that you have or provide you with information of someone who can. They are a good starting point.
Qualify if you owe 80-105% of your current mortgage
If you owe this much on your current mortgage then you will qualify for refinancing under Obama’s plan. If you owe more, like many homeowners in Florida or California, you will not qualify under this plan and may need to consider alternatives.
Loan backed by Fannie Mae or Freddie Mac
More than half of single family loans are backed by either Fannie Mae or Freddie Mac, but many people do not know this. If you are unsure who backs your loan, it is a good idea to contact your lender for details and further help.
Have Conforming Loan
This means having a loan under a certain amount. In many places, it is under $417,000, but in areas such as San Francisco, Boston, or Washington, D.C., it may be up to $625,500.
Fill out a loan request
If you are still unsure if you qualify, you can fill out a loan request, gather up your paperwork, be informed, and be patient. Many people are filling out these requests, so it may take time to process your own.
Many people are struggling because of the economy and the housing market crisis, but some programs under Obama’s plans may help. Now that you have more information, it is important to follow these steps and to continue to stay informed about any updates or changes that may help you and your family in the future.
Number of Views :64Things to Know about Real Estate in the New Year
The New Year has just begun and this brings hope and possibilities for many things. Maybe this will be the year of more jobs, economic recovery, ending wars, and maybe even the recovering of the housing market. Maybe this will be the year to buy or sell a house and get that perfect dream home or make that sale you have been waiting for. Here are some things about the real estate market that may help you to know whether to buy or sell that house this year.
The first thing anyone should do in trying to find out about real estate or the housing market in this New Year to consult a real estate agent. It is a real estate agent’s job to know about new housing trends, new things to look for or beware of and more. If you need to know whether to buy or sell that house this year or whether to wait, ask your real estate agent for advice first. They are an excellent resource and get help you get started and help you have a great new year.
Prices are more stable now than they had been and will continue to show improvement this year but first they may face some more declines in some areas before becoming more stable and reasonable for everyone. Also, people being late on their mortgage payments will most likely continue for a good portion of this year because the job market still needs to improve and until it does, many people are struggling to come up with their mortgage payments. There were also mortgage programs in place last year and in other years to give homeowners a good mortgage rate. Many of these programs will expire and this will mean that mortgage rates will once again rise.
Also, due to mortgage rates increasing and the job market not greatly improving yet, foreclosures are predicted to be higher at least in the beginning part of this year and until the job market improves. It will also continue to be a buyer’s market, especially with more foreclosures happening and seller’s willing to accept lower prices just to make a needed sale.
Plans to help the housing market and mortgage rates are also expected to be revised and tax credits may be extended through the summer. Also, depending on where you live will greatly affect how the housing market is.
These tips and information about real estate in the New Year will help you make better informed decisions about whether to buy or sell a home this year. Knowing this information can help you know what places to look in when looking to buy a home. They can also help you know how much to save for a home or whether you should just remodel an existing home. They can also help you stay updating on the housing market and continue to make informed decisions in the future.
Number of Views :57Preapproval for a Mortgage
Before you buy your first home, your Syracuse real estate agent will probably recommend that you take the time to get preapproved for a mortgage. Taking the time to narrow down lenders and get a definite highest amount that you can spend on a home can save you a lot of time and frustration down the road.
Once you know what you can spend on a home, you no longer have to waste time on homes you can’t afford. Instead of looking out homes outside of your price range, you can concentrate on the ones will be able to buy. This will save you a lot of energy and probably even speed up your search for a home. It also allows you to worry about something besides the price of a home when you’re looking at it, freeing you up to pay more attention to the finer points of the homes you look at.
Once you have found the perfect home, you can make an offer, confident that you have the financing to back it. Sellers will appreciate knowing that you have already been approved for a mortgage for the home; they won’t be put into the situation of trying to close the property only to have financing fall through at the last minute. If there are multiple offers, this could give your offer the edge it needs over the others. This will work in your favor even more if the sellers are hoping to close as soon as possible. Instead of closing after a month or more, it may only take a couple of weeks. Being preapproved for a mortgage also gives you a great bargaining position. Because sellers know that your financing is a sure thing, they may be more willing to work with you during the negotiation process.
It is important to know that being preapproved is considerably different than being prequalified. When you are preapproved, you’ve essentially gone through the entire mortgage approval process. The preapproval letter you’re given states that you will be getting a mortgage for up to a certain amount. This is usually only good for a limited amount of time, depending on the lender, but you should have plenty of time in which to find a home.
A prequalification letter is based on a much simpler process. The lender looks at briefly at your current financial status, and lets you know how much of a loan you could afford. This is not the same as what you will actually be getting for a mortgage, and it is non-binding. There is no promise implied in any of the letter. The loan amount, interest rate and terms will all be determined when you apply for the actual loan.
Number of Views :68