mortgage: Should You Get a 15-Year Mortgage? - 05/22/25 07:38 AM
There are a lot of financing options available to help you purchase real estate, especially if you meet credit guidelines.
Most lenders prefer to offer 30-year mortgage loans. With a longer loan term, they collect more money in interest over the life of the loan, but if you have strong credit, a 15-year mortgage may be a better option, and one worth considering. Here's a breakdown of the two:
What About a 30-Year Mortgage?
Thirty-year mortgages are the most common option for homebuyers. Monthly payments are typically more affordable, which is why lenders frequently recommend them. You may even qualify for a larger loan … (2 comments)

mortgage: Should You Lower Your Amortization to Pay Off Your Mortgage Faster? - 01/20/25 06:19 AM
Paying off your mortgage faster is a tempting goal. After all, who doesn’t want to own their home outright sooner and save on interest along the way? One way to do this is by lowering your amortization period, which is the time it takes to repay your mortgage in full. But is it the right move for you?
What Happens When You Lower Your Amortization?
Lowering your amortization means shortening the repayment period for your mortgage. For example, instead of a 30-year term, you might choose 15 or 20 years. While this strategy can lead to significant savings in interest and help you … (1 comments)

mortgage: Managing Your Debt During the Buying Process: A Guide for Homebuyers - 08/23/24 08:27 AM
Embarking on the journey to homeownership is an exciting milestone, but it also requires careful financial planning. One crucial aspect is managing your debt effectively. I want to ensure you have the tools and knowledge to navigate this process smoothly. Let's discuss some essential strategies for managing your debt while purchasing a home.
Understand Your Debt-to-Income Ratio
Firstly, it's essential to understand your debt-to-income (DTI) ratio. This ratio compares your monthly debt payments to your gross monthly income and is a critical factor lenders consider when approving a mortgage. A lower DTI ratio indicates you have a healthy balance between debt and income, … (1 comments)

mortgage: What Is a Mortgage Origination Fee? - 06/18/24 06:58 AM
What Does the Origination Fee Cover?
The mortgage origination fee covers various services provided by the lender, including:
Loan Application Processing: Reviewing your application and documentation. Credit Checks: Obtaining and analyzing your credit report and score. Underwriting: Assessing your creditworthiness and the risk of lending to you. Preparation of Loan Documents: Creating and managing all necessary paperwork for your loan. Coordination with Other Parties: Communicating with real estate agents, appraisers, and other involved parties to ensure a smooth transaction. Is the Origination Fee Negotiable?
Yes, you can negotiate the origination fee with your lender. It’s always a good idea to shop around and … (6 comments)

mortgage: Key Elements and Tips for Maximizing Your Borrowing Power - 06/14/24 08:21 AM
When it comes to buying a home, securing the right home loan is essential. But what determines how much you can borrow? Understanding the key factors that influence your borrowing power can help you make informed decisions and potentially increase the amount you can secure. Let’s explore these determinants and some actionable tips to maximize your borrowing power.
Key Determinants of Borrowing Power
Income and Employment Stability Income Level: Your income is a primary factor that lenders consider when determining your borrowing power. Higher income levels generally mean you can afford to borrow more. Employment History: A stable job history indicates financial … (3 comments)

mortgage: Understanding the Basics: A First-Time Homebuyer's Guide to Mortgages - 06/07/24 06:27 AM
Buying your first home is an exciting milestone, but it can also be an overwhelming process, especially when it comes to understanding mortgages. For many first-time homebuyers, the world of mortgages can seem complex and filled with unfamiliar terminology. However, with a little knowledge and guidance, navigating the mortgage process can become much more manageable. In this guide, we'll break down the basics of mortgages, explain key terms, explore different types of mortgages, and outline the application process for beginners.
Key Terms to Know:
Before diving into the specifics of mortgages, it's essential to understand some key terms:
Principal: The amount of money borrowed … (2 comments)

mortgage: What Every Homeowner Should Know About Mortgage Forbearance - 06/04/24 07:57 AM
With all of the economic uncertainties, many homeowners find themselves facing financial hardships that impact their ability to meet mortgage payments. Whether it's due to job loss, medical emergencies, or other unexpected circumstances, the fear of losing one's home can be overwhelming. Fortunately, there's a lifeline available in the form of mortgage forbearance.
Understanding Mortgage Forbearance
Mortgage forbearance is essentially a temporary pause or reduction in your mortgage payments. It's a form of relief offered by lenders to borrowers who are experiencing financial difficulties. During the forbearance period, homeowners are allowed to either make reduced payments or no payments at all, depending on … (1 comments)

mortgage: Essential Mortgage Considerations When Looking into a Second Home - 05/24/24 06:33 AM
So, you're considering buying a second home? Whether it's a cozy cabin in the woods, or a beachfront retreat, the idea of owning a second property is undoubtedly exciting. However, before you get swept away by visions of lazy weekends and family gatherings, it's crucial to understand the financial implications, especially when it comes to mortgages. Here are some suggestions to help you work through the mortgage considerations when buying a second home.
Assess Your Financial Situation: Before diving into the world of second-home mortgages, take a good look at your finances. Evaluate your income, debts, credit score, and existing mortgage obligations. … (0 comments)

mortgage: Mortgages and Divorce: Keeping Your Home During Life's Changes - 04/26/24 07:02 AM
Divorce or separation is a challenging time, and amidst the emotional and logistical complexities, handling mortgage issues can add another layer of stress. For many couples, their home represents not just a financial investment but a symbol of stability and security. However, when relationships break down, decisions about homeownership become crucial. Here is some guidance on how to navigate mortgages during a divorce or separation.
Communication is Key: Open and honest communication between partners is crucial when it comes to mortgage matters. Discuss your options openly and try to reach a consensus on what to do with the family home. Whether it's … (3 comments)

mortgage: Creative Financing Options for Homebuyers - 04/24/24 07:21 AM
When it comes to purchasing Real Estate, the traditional financing options may not always be the perfect fit for every aspiring homeowner. Fortunately, a range of alternative financing options exists, offering innovative solutions that cater to diverse financial circumstances. Here are some creative financing avenues that empower homebuyers to achieve their dream of homeownership: rent-to-own, lease-purchase agreements, and shared equity arrangements.
Rent-to-Own: Bridging the Gap
Rent-to-own agreements provide a unique pathway for individuals who may not currently have the financial means to secure a mortgage but aspire to own a home in the future. In a rent-to-own arrangement, a prospective buyer agrees to … (2 comments)

mortgage: Maximizing Your Profits: A Guide to Utilizing Construction Loans - 04/12/24 06:16 AM
Fix-and-flip projects can be lucrative endeavors for real estate investors, but they often require a significant upfront investment. One key financial tool that savvy investors use to fund these projects is a construction loan. We will examine how you can leverage construction loans to maximize your profits in the fix-and-flip game.
Understanding Construction Loans:
A construction loan is a short-term financing option designed specifically for real estate development projects. Unlike traditional mortgages, which are disbursed in a lump sum, construction loans are released in stages as the project progresses. These loans typically have higher interest rates and shorter terms, making them ideal for … (1 comments)

mortgage: First-Time Homebuyer's: Understanding Mortgage Terminology - 03/28/24 07:57 AM
Obtaining a mortgage can seem to be filled with perplexing terms and concepts. Don't worry, though – we're here to decode the complexities and make it easy for you to navigate the mortgage landscape with confidence. Let's break down some of the most common and confusing terms in simple, easy-to-understand language.
Down Payment:Complex Term: The initial payment you make when purchasing a home.
Simple Explanation: It's like a security deposit when you rent an apartment but for your house. The more you can put down upfront, the less you'll need to borrow.
Principal:Complex Term: The amount of money you borrow to buy … (3 comments)

mortgage: A Comprehensive Guide to Explaining Escrow Accounts - 03/25/24 06:14 AM
Whether you're a first-time homebuyer or a seasoned homeowner considering a refinance, the term "escrow account" often looms as a source of confusion. Yet, understanding the ins and outs of escrow accounts is crucial for managing your homeownership responsibilities effectively. In this article, we'll address some common questions and concerns regarding escrow accounts to shed light on their importance and functionality.
What is an Escrow Account?
Escrow accounts, sometimes referred to as "impound" accounts, serve as a financial mechanism to facilitate the payment of property taxes and homeowner's insurance. Typically, lenders require homeowners to contribute a portion of these expenses upfront, which is … (1 comments)

mortgage: 15-Year vs. 30-Year Loans Compared - 03/18/24 06:46 AM
Choosing the right mortgage term is a critical decision when purchasing a home. The two most common options are 15-year and 30-year mortgage terms. Let's compare the advantages and disadvantages of each to help you make an informed decision:
15-Year Mortgage Advantages:
Interest Savings: The most significant advantage of a 15-year mortgage is the amount of interest you can save over the life of the loan. With a shorter term, you pay less interest because the loan is repaid more quickly.
Faster Equity Building: Monthly payments for a 15-year mortgage are higher, but a larger portion of each payment goes toward the principal. This … (4 comments)

mortgage: Mortgage Escrow Accounts in Property Tax & Insurance Payments - 03/16/24 05:29 AM
A mortgage escrow account, also known simply as an escrow account, is a financial arrangement set up by a mortgage lender to manage and disburse certain payments related to the property on behalf of the homeowner. The purpose of an escrow account is to ensure that essential expenses, such as property taxes and homeowners’ insurance, are paid on time.
Here's how a mortgage escrow account works:
Creation of Escrow Account: When you obtain a mortgage loan, your lender may require you to establish an escrow account. This account is typically separate from your mortgage loan account.
Monthly Payments: As part of your monthly mortgage … (2 comments)

mortgage: Loan Servicing Companies - 03/06/24 07:12 AM
What happens when you suddenly get a notice to pay your mortgage to a company you may have never heard of? How do you determine if this is a legitimate request or a scam?
A borrower may get a written notice or an email that their mortgage has been sold to another entity or that a new loan servicing company will now be collecting the mortgage payments. The borrower needs to exercise extreme caution before just sending in a payment to the new company. It is prudent to double-check to see if the communication is legitimate because many people get scammed by … (0 comments)

mortgage: What's Ahead for Mortgage Rates This Week - February 26th, 2024 - 02/26/24 06:14 AM
A government holiday followed by an extremely light release schedule has led to a limited amount of data, with the FOMC Minutes being the only impactful report for the prior week. The Federal Reserve had stated they will continue to maintain their current stance in light of the most recent inflation data. With rates holding into the year, as a result, lending partners have started back tracking some of their recent rate cuts. Lastly, Unemployment Numbers are seen to be well within expectations.
FOMC Minutes
“Most” officials noted the risks of moving too quickly to cut rates and wanted to carefully assess the … (2 comments)

mortgage: What Are the Pros and Cons of Private Mortgage Insurance? - 12/20/23 10:13 AM
It's easy to get Private Mortgage Insurance (PMI) confused with homeowners' insurance, but PMI is an entirely different thing that may or may not be necessary when it comes to your home purchase. If you're going to be investing in a home in the near future and are wondering what PMI may mean for you, here are some things to consider regarding this type of insurance.
Your Down Payment Amount
If you've been perusing the housing market for a while, you've probably heard that 20% is the ideal amount to put down when investing in a home; however, you might not realize why. … (2 comments)

mortgage: The LTV Ratio: How 'Loan-to-Value' Works - 12/01/23 09:20 AM
Are you in the market for a new home? If you plan on using mortgage financing to buy your next home you've likely heard the phrase "loan-to-value" or the acronym "LTV" before. Let's take a quick look at the loan-to-value ratio including why it's important, how to calculate it, and how it can affect your mortgage.
What is the Loan-to-Value or LTV Ratio?
In short, the LTV ratio is a number that compares how much money you owe against your home with its resale value in the marketplace. A low LTV ratio indicates that you have far more equity in your home than … (3 comments)

mortgage: Speed Your Mortgage Approval up by Following This Checklist - 11/30/23 08:51 AM
Have you finally found your dream home after months of searching, and then you are told that the seller has received other offers? No buyer wants to find themselves in a bidding war against another buyer as it is a stressful situation. Being unprepared and not having your finances in order will make it even more stressful. Here are a few quick ways if you're looking to speed up your mortgage approval process, here's a checklist to help you prepare:
Review your credit report: Maintain a good credit score by paying bills on time, reducing existing debt, and avoiding new credit … (3 comments)

 
Bob Elliot, 30Yrs Experience  (RES Realty)

Bob Elliot

30Yrs Experience

Minneapolis, MN

More about me…

RES Realty

Address: 15451 Founders Lane, Apple Valley, MN, 55124

Mobile: 612 868 5500

Mobile: 612 578 6162

Real Estate Experience Matters! Local and national market news, trends, and updates.


Listings

Links

Archives

RSS 2.0 Feed for this blog