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Choosing A Mortgage Term

January 13th, 2008 6:04 PM

The mortgage term is an important factor to take into consideration when selecting your mortgage program. The longer the term, the lower your monthly payments - but having the lowest possible payments is not on every person's mind. Many people prefer to make larger payments on their mortgage because it is paid faster and because they are investing in an appreciating asset. In addition, if you have plans to rent your property or a unit within your property, you will earn more money if you pay your mortgage faster. If you can afford them, larger payments are better for a home loan. If you cannot afford higher payments all the time, you can get the same results with a 30 year fixed mortgage by making an additional payment once or twice throughout the year.

Posted by Nevene Tadros on January 13th, 2008 6:04 PMPost a Comment (0)

My Mortgage Insight

January 24th, 2008 5:25 PM

Wow, what can happen in a day, or few hours for that matter. Yesterday, shortly after my post the stock market rallied and we lost about .75 basis points on the mortgage backed securities, and so far today another .31 basispoints. This means that while we were looking at a 5% rate on a 30 year fixed rate loan yesterday, today that same loan will is at 5.5%. Those who locked in yesterday, good job!!

On another note, part of the new economic stimulus bill being worked on in Washington DC includes a temporary provision to allow the conforming loan amount to be lifted. The amount will vary based on the average home price in an area. Of course, California will see the largest increase. For those of you with loans above $417,000 and below $500,000, this could present a great opportunity to refinance, or purchase at a very attractive rate. As an example, a Jumbo 30 year fixed loan with one of my lenders comes in at 6.75% today. So, that could result in more then a 1% rate reduction. On a $450,000 loan, this is a monthly savings of around $300!!

Call if you, your friends or clients have any questions.

Posted by on January 24th, 2008 5:25 PMPost a Comment (0)

Advantges to Using Mortgage Brokers

January 14th, 2008 9:10 PM

Finding the right home may seem like the hard part of a real estate transaction, but in reality, getting the best financing can be much harder. This is partially because we have so many options nowadays for mortgage loans and so many places to find them. A mortgage broker or your local bank can often lay out your options clearly. They will be armed with what you want in terms of loan term, ideal rate, targeted monthly payments and the like. If you're smart, you talk to them before you decide on your home so you really know your price range. Once you have your options from your local folks, go online and shop around. Some mortgage websites have so many lender partnerships that they are bound to find you a cheaper rate, shorter term or more competitive option - they just have greater resources! Don't feel bad either - this is your financial future and if your local folks can't offer the best mortgage options - that's life.

Posted by on January 14th, 2008 9:10 PMPost a Comment (0)