Real estate can be a very profitable source of investment. Property values generally rise over time, giving owners equity and rental income at the same time. Owning an investment property is not without risks and challenges though. There are several factors to consider in deciding whether an investment property is right for you. Pros Investment properties can provide many financial benefits. They can produce a steady, fixed stream of income for you and plenty of equity should you decide to sell down the road. In addition to increasing equity over time, rental properties can provide so...
August 14th, 2019 Should you Buy an Investment Property?
You have found the perfect property and made it all the way through the home buying process. The only thing left to do is wire the down payment and closing costs to your mortgage lender. Right before you are supposed to wire the money, you get an email from your lender giving you different instructions about where to send your funds. Since the email is clearly from your lender, you follow the instructions. You expect to be handed the keys at the end of the day, only to discover that you have been scammed and your entire down payment has vanished into the hands of an invisible criminal. Whil...
August 7th, 2019 | Mortgage Advice, How to Avoid Wire Fraud at Mortgage Closing
When buying a home, there are several factors that affect how much mortgage you can afford. Two of the most important are the property prices and current mortgage interest rates. Is it better to search for the absolute lowest rate or is it more helpful to choose a less-expensive home? Here’s how the two factors are related and how to make the right choice. Mortgage Rate/Home Price Relationship Since higher mortgage rates make homebuying more expensive for buyers, you might think that home prices would tend to fall during high rate climates in order to compensate for those costs. Un...
July 31st, 2019 | Purchasing a Home, Interest Rates, What’s More Important: Lower Home Prices or Mortgage Rates?
You recently closed on your mortgage loan and have been making your payments to your lender. Then one day, you get a letter in the mail informing you that your loan has been sold and you have a new mortgage servicer taking care of your loan. What does this mean and how does it affect your mortgage? Here’s what you need to know about mortgage servicers: It is very common for your lender to sell your loan soon after originating it. Many lenders and brokers do not have enough reserves to keep mortgage loans on their books. Instead they sell them to investors or government-backed enterpri...
July 24th, 2019 | Conventional Loans, What is a Mortgage Servicer?
The federal government has aimed to help increase homeownership for decades. One of the Federal Housing Administration’s many programs to help Americans in their homeownership dreams is the Energy Efficient Mortgage program (EEM). Many homes, especially older ones, could be much more affordable if they were updated to be more energy efficient. The EEM allows borrows to make those updates and save money as new homeowners. The Department of Housing and Urban Development (HUD) first created the Energy Efficient Mortgage program in 1992 and piloted it in five states. It was extended to al...
July 17th, 2019 | FHA Loans, Government Loans, Energy Efficient Mortgage Program
Once you get serious about buying a home or refinancing your current mortgage, you will probably hear the term “loan-to-value ratio” mentioned by your lender. What is this ratio and how does it affect your mortgage? Loan-to-Value Ratio Defined A Loan-to-value ratio, also known as an LTV ratio, is the calculation of how large your mortgage is compared to the value of your property. In order to find your LTV, divide your loan amount by the appraised value of the property in question. In general, the lower the ratio, the better your mortgage terms and interest rate wi...
July 10th, 2019 | Credit, What is a Loan-to-Value Ratio?