Posts by jaimie

Ways to Save for a Down Payment

Posted by on 1:29 pm in Updates | 0 comments

For first-time home buyers, there is usually one thing that people are most concerned about when considering home ownership; the down payment. With the real estate market being in great condition, low mortgage rates becoming the norm and the FHA announcing that it will lower its annual premiums, now might be the perfect time for you to buy. An FHA loan can give you one of the lowest down payments on the market, but you’ll still need to save a large amount of money first. Here are some tips we think will help you get there faster:1. Lower your monthly expenses. We all have our vices. We love to go out to eat, grab a daily coffee on the go, spend that bonus check on electronics or shop until we drop. Cutting down on these luxuries is the first step towards saving money. The easiest way to slash your monthly expenses is to start cooking at home more often, limit your shopping, and even lower your rent. Rent is probably your largest expense, so downsizing your home or finding a roommate might be the right thing for you. These small changes can make a BIG difference when you are trying to save for a home. 2. Make it automatic. When you don’t see the money, you don’t even know it’s gone! Setting up an automatic deposit can be a great addition to your slush fund. Have your employer or bank set up an account that takes a certain amount of money from your checking account or percentage of your paycheck and deposit it into your savings automatically each month. 3. Boost your savings by doing what you’re good at. This can be as easy as turning a hobby into a part time job. Although you may not think you should be getting money for your skills, someone out there wants to pay you. Are you crafty? Start selling your work. Are you good at golf or tennis? Start giving lessons. You can also find random short term jobs such as waiting tables or cleaning houses. 4. Put your savings to work. Once you get a good chuck of money saved, it may be a good idea to look into low risk investments. Things such as CDs, Money Markets and High-Yield Savings Accounts can be a great option. Decide when you hope to buy, and look into the different options in that time frame.  Whether you are ready now, or in the future, we want to be a resource for you. Contact us today if you have any questions about Down Payments and...

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FHA Mortgage Premium Insurance is Reduced

Posted by on 9:53 am in Updates | 0 comments

As of January 26, 2015 the FHA has reduced the annual Mortgage Premium Insurance (MIP) from 1.35% to .85%.  What does this mean for you? This .5% reduction will make home ownership affordable for more people. Monthly payments will be lowered. And this discount is available for both purchases and refinance* transactions with 30 year terms.** For example, a home buyer with a base mortgage of $150,000  would save $62.50/month on their monthly mortgage payment. HUD estimates these lower premiums will save more than two million FHA homeowners an average of $900 annually and spur 250,000 new home buyers to purchase their first home over the next three years. Contact us today for information regarding FHA’s new annual mortgage insurance premiums. *Except for streamline refinances of FHA loans with case numbers on your before May 30, 2009 and Hawaiian Homelands Loans. **Amortization of 15 years will have standard rate.  ...

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The Truth About Mortgage Underwriting

Posted by on 1:04 pm in Updates | 0 comments

The world is awash in inaccurate sound bites related to mortgage credit. We spoke with numerous industry executives and identified three truths that need to be clarified: 1. Low income buyers actually have it easy. Buyers with poor credit and low income are finding it quite easy to buy a home below the FHA limit. 2. Many affluent buyers find it very difficult. Automated underwriting prevents many highly qualified borrowers, especially affluent retirees, self-employed, or commissioned salespeople from getting a mortgage because their income situation does not fit squarely in the credit box. 3. Industry executives are unintentionally preventing a recovery. Mortgage industry executives lobbying for the good old days where FHA limits were higher, fees were lower, and documentation was easier need to stop whining because they look very unreasonable to regulators and politicians who are not sympathetic. Our purpose here is to shed some light on what is actually happening—- because if there were clarity around this, we would have… Click here to read more   Twitter...

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