https://activerain.com/blogs/changemyrate en-us https://activerain.com/blogsview/5799559/can-you-buy-a-house-with-low-income If you don’t have substantial earnings, it could still be possible to buy a house.Buying a home can be challenging if you have low income, but it's an important step toward building assets and growing your net worth. Loans for low-income borrowers can make homeownership more achievable.What Is a Low-Income Home Loan?A low-income home loan is a mortgage that homebuyers can qualify for even if they don't have substantial earnings.Some types of home loans set income limits. Others are open to people with higher incomes but don't exclude low-income borrowers.Private lenders issue low-income home loans that are insured by government agencies or by Fannie Mae or Freddie Mac, the government-sponsored enterprises that back most conventional mortgages in the U.S. Certain government agencies also issue specific types of mortgages directly to borrowers.The loan types listed below may make homeownership more accessible if you are a low-income borrower.FHA LoansFHA loans are offered by private lenders and guaranteed by the Federal Housing Administration. An advantage of FHA loans is that the eligibility requirements are flexible.For more information on buying a house with low income visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sat, 22 Jul 2023 13:10:37 -0700 https://activerain.com/blogsview/5799559/can-you-buy-a-house-with-low-income https://activerain.com/blogsview/5799109/complete-checklist-of-documents-needed-for-a-mortgage Ready to apply for a mortgage? This document checklist will help you find what you need.When you're buying a home, gathering the paperwork for your mortgage before you apply can be a big task. Tracking down documents can take time but doing it before you need them could help you get to the closing table faster.You will owe your lender a stack of documents once you apply – and during underwriting – that show you can repay the loan. A mortgage application typically requires a paper trail to verify: Income and employment. Assets and debts. Credit history. Identity. Rental history. Other information, such as divorce, bankruptcy or gift funds. Mortgage Application InformationThe first step in applying for a mortgage is completing a standardized form called the Uniform Residential Loan Application. Each borrower has to complete this form, which asks for personal and financial details. Lenders use this application to determine your eligibility for a mortgage.The application "is step one, where a borrower is just saying, 'Here's what I'm telling you about me,'" says Jeff Checko, a real estate broker with The Ashton Real Estate Group in Nashville, Tennessee. "That quickly graduates to where the bank says, 'OK, now we need you to show us with documents that support that application.'"For more information on the documents needed for a mortgage visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Wed, 19 Jul 2023 17:11:48 -0700 https://activerain.com/blogsview/5799109/complete-checklist-of-documents-needed-for-a-mortgage https://activerain.com/blogsview/5798759/mortgage-points-may-help-homebuyers-lower-monthly-costs-amid-high-interest-rates--how-to-know-if-this-strategy-is-right-for-you As interest rates have climbed, homebuyers have been confronted with higher borrowing costs.That has led more home purchasers to opt for one strategy, purchasing mortgage points, as a way to defray higher monthly payments.Mortgage points let buyers pay an upfront fee to lower the interest rate on their loans. In some cases, sellers will help to buy down rates to help ease transaction costs.Almost 45% of conventional primary home borrowers bought mortgage points in 2022 to reduce their monthly mortgage payments, a trend that has continued into this year, according to recent research from Zillow.That is up from 29.6% in 2021, when interest rates were lower.The 30-year fixed-rate mortgage currently averages 6.7% according to Freddie Mac, up from 5.8% a year ago. The 15-year fixed-rate mortgage now averages about 6%, up from 4.8% a year ago.This week, the Federal Reserve decided to pause the interest rate hikes it has put in place to combat high inflation.As rates stay higher, those who are in the market for a home lose purchasing power. Some experts have urged buyers to consider purchasing mortgage points to lower their monthly payments.Stephanie Grubbs, a licensed real estate agent at the Zweben team at Douglas Elliman Real Estate in New York, recently did exactly that when one of her clients lowered their asking price.For more information on mortgage points buy down visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Mon, 17 Jul 2023 14:48:36 -0700 https://activerain.com/blogsview/5798759/mortgage-points-may-help-homebuyers-lower-monthly-costs-amid-high-interest-rates--how-to-know-if-this-strategy-is-right-for-you https://activerain.com/blogsview/5798144/how-to-decide-what-types-of-mortgage-loans-are-right-for-you Your financial history and housing plans can determine your ideal mortgage type.Your life and finances are different from every other home buyer, and your mortgage should be tailored to fit. There are several different types of mortgage loans. Finding the type of mortgage that meets your unique needs can save you money and help make you a homeowner sooner.These types of mortgage loans may fit you, if……Your credit is great, and you have good savingsConventional mortgage: This is a traditional type of mortgage loan. The mortgage lender assumes more risk than they do with a government-backed loan. Conventional loans can be fixed-rate or adjustable-rate. (See below to know which one is right for you.)Why could it be right for me?A conventional loan can be more economical if you have the right financial history. First, you need to have a FICO credit score of at least 620 (and the higher the score, the lower your interest rate).You don’t need a 20 percent down payment to qualify—it can be as low as 3 percent (though, that’s pretty rare)—but just like with your credit, your loan will end up costing more with a lower down payment. And if you pay less than 20 percent up front, you’ll also pay private mortgage insurance (PMI). (If your down payment is less than 20 percent, you can cancel the PMI when the mortgage balance is paid down to 80 percent.) Use Trulia’s affordability calculator to see how much home you could afford.For more information on types of mortgage loans visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Thu, 13 Jul 2023 10:29:48 -0700 https://activerain.com/blogsview/5798144/how-to-decide-what-types-of-mortgage-loans-are-right-for-you https://activerain.com/blogsview/5797504/what-a--250-000-home-looks-like-in-25-major-cities Find out what $250K buys you across the nation.Whether you’re simply browsing or looking to relocate, we’ve scoped out a home for sale for $250,000 in 25 major cities across the country. Revealing just how much house you can get for your money, these homes range from a 500-square-feet coop in New York City’s East Harlem neighborhood to a 3,052-square-feet single-family home in El Paso’s Northwest neighborhood. For more information on what a $250,000 home looks visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Mon, 10 Jul 2023 09:18:53 -0700 https://activerain.com/blogsview/5797504/what-a--250-000-home-looks-like-in-25-major-cities https://activerain.com/blogsview/5797092/what-to-know-before-buying-a-house The United States' mortgage debt totaled more than 15.5 trillion in the first quarter of 2019(Opens Overlay), making it the most substantial debt for American households. Conventional wisdom tells us mortgages are good debt because homes typically appreciate in value, but that doesn't mean you should get a mortgage without careful research. Here are things to know before buying a house.1. Mortgage prequalification and mortgage preapproval aren't the same thingMortgage prequalification and mortgage preapproval are steps most people take before making an offer on a house. However, they aren't the same thing.Being prequalified or conditionally approved for a mortgage is the best way to know how much you can borrow. A prequalification gives you an estimate of how much you can borrow based on your income, employment, credit and bank account information.Preapproval comes from a lender who has analyzed your finances carefully. They'll tell you how much you may be able to borrow and what your interest might be. Mortgage preapproval is usually done after prequalification, but before you find a home. Preapproval doesn’t guarantee you'll get a mortgage, but if all key factors stay the same it's very likely.2. You'll pay more without a minimum 20% down paymentExperts continue to encourage buyers to save a down payment of at least 20% before applying for a mortgage. It makes sense, as the larger your down payment, the smaller your mortgage and the less interest you'll pay over the life of your loan. For more information on buying a house visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Fri, 07 Jul 2023 10:14:07 -0700 https://activerain.com/blogsview/5797092/what-to-know-before-buying-a-house https://activerain.com/blogsview/5796745/how-to-pay-off-your-mortgage-early Some homeowners are eager to get out of their mortgage early, with reasons ranging from eliminating the psychological pressure of debt to slashing interest payments. For retirees, especially, paying off a home loan early can help increase cash flow.Whatever your motivation, paying down your mortgage ahead of time reduces the amount of interest you’ll pay on the loan. Here are some early payoff strategies to help you achieve that goal.Can you pay off your mortgage early?In most cases, you can pay your mortgage off early without penalty — but there are a few things to keep in mind before you do:Check for a prepayment penalty: Reach out to your loan servicer to find out if your mortgage has a prepayment penalty. Most mortgages don’t impose this fee, but if yours does, you’ll have to pay it. This can affect whether an early loan payoff is financially viable for you.Look for payment restrictions, if any: While you’re in touch with your servicer, make sure there aren’t any limitations on how and when you make additional mortgage payments. Some loans have terms that encourage you to follow the payment schedule. It’s important to ensure that whatever extra payment you make goes to the loan principal, not interest. 5 ways to pay off your mortgage early1. Make extra paymentsThere are two ways you can make extra mortgage payments to accelerate the payoff process:Biweekly mortgage paymentsYou can split your monthly mortgage payment in half and make biweekly payments instead. By doing this, you’ll end up making the equivalent of 13 months of mortgage payments in one year, instead of 12. For more information on paying off your mortgage early visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Wed, 05 Jul 2023 13:58:14 -0700 https://activerain.com/blogsview/5796745/how-to-pay-off-your-mortgage-early https://activerain.com/blogsview/5796156/how-to-get-free-money-or-make-easy-money-for-your-down-payment Want to buy a house but short on cash to get the deal done? It's a common problem that is keeping countless potential buyers on the sidelines. "Money issues often stand in the way of homeownership," said Bankrate. "A survey by rental service Apartment List found that 80 percent of millennial renters want to buy a home, but most say they can't afford to."A recent story in Apartment Therapy titled "How I Saved $40K in 5 Years for a Down Payment" piqued our interest. Their tip: Get a side hustle and sock all that money away. Those are some impressive saving skills, but if you're saying to yourself, "I don't even want to wait five months, let alone five years", we have some tips that can help. None of them are quite as hardcore as working a second job late into the night (but if you're just that committed, more power to ya!). Instead, we're focusing on ways to get free money or make easy money.Get down payment assistanceMany people don't think about looking for down payment help (beyond asking their parents, anyway). And many of those who do think about it don't realize they might be eligible. Yes, many grants and other programs are specifically for low-income borrowers, but others have surprising income caps that could spell the difference between buying now and having to wait a while."Grants and loans help you cover the upfront costs of purchasing a home," said NerdWallet. In Nevada, for example, prospective homeowners can qualify for a grant of up to 5% of their mortgage to put toward a down payment and closing costs. For more information on how to get money for a down payment visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sun, 02 Jul 2023 15:15:28 -0700 https://activerain.com/blogsview/5796156/how-to-get-free-money-or-make-easy-money-for-your-down-payment https://activerain.com/blogsview/5796003/how-long-does-a-pre-approval-for-a-mortgage-last--understanding-the-timeline When it comes to buying a home, obtaining a mortgage pre-approval is an essential step in the process. A mortgage pre-approval provides you with a clear idea of your budget, helps you narrow down your home search, and makes you a serious contender in the eyes of sellers. However, it’s important to understand how long a pre-approval for a mortgage lasts and the factors that can affect its validity. In this Redfin article, we will delve into the details of mortgage pre-approvals, their typical duration, and some key considerations.What is a mortgage pre-approval?A mortgage pre-approval is a lender’s valuation of your financial situation to determine the amount they are willing to lend you for a home purchase. Unlike a prequalification, which is a preliminary assessment, a pre-approval involves a comprehensive review of your income, credit history, assets, and debts. By obtaining a pre-approval, you show sellers that you are a serious buyer, and it carries more weight in the home buying process.Pro tip: “Determining your affordability is a crucial step before starting your home search. A loan officer can offer comprehensive guidance in advance, ensuring you make informed decisions at every stage of the home buying process.” – Vision Home MortgageHow long does a mortgage pre-approval last?On average, a mortgage pre-approval typically lasts for about 60 to 90 days. This timeframe can vary depending on several factors, including the policies of the lender and your specific financial circumstances.For more information on how long a pre-approval last visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sat, 01 Jul 2023 12:34:44 -0700 https://activerain.com/blogsview/5796003/how-long-does-a-pre-approval-for-a-mortgage-last--understanding-the-timeline https://activerain.com/blogsview/5795259/5-things-to-know-before-filling-out-a-loan-application Getting your hands on and filling out a home loan application is the first thing you’ll likely do when deciding it’s time to buy and finance a home. You can complete an application in the presence of your loan officer (preferred) or you can DIY at a lender’s website. But whenever and however you apply for a mortgage, there are a few things you need to know beforehand. Here are five of them.First, there’s a difference between filling out a loan application for a loan approval compared to completing some basic information to receive a prequalification letter. In order to get a full preapproval, be prepared to complete all fields on the app. If you’re not sure how to answer a particular question, leave it blank and your loan officer will follow up with any needed additional information. A prequal is very basic and you’ll be answering primarily just a few basic questions. A loan application for an approval is far more detailed.You’ll be asked to complete information regarding your income and assets, so be ready to fill the application in with approximate account balances along with account numbers and institution’s name. A prequal just takes your word for how much you make, a loan application needs more detail. You don’t need to enter the current balance to the penny, but an approximation will do.If you’ve been known by any other name or if you’ve applied for credit using a different name, be ready to explain the discrepancy and provide some proof. For more information on filling out a loan application visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Tue, 27 Jun 2023 11:51:56 -0700 https://activerain.com/blogsview/5795259/5-things-to-know-before-filling-out-a-loan-application https://activerain.com/blogsview/5794557/why-lenders-want-to-see-your-bank-statements This might be a bit too obvious but there are other reasons why lenders want to see copies of your bank statements besides seeing how much money you have. One of course is in fact to see how much money you have but not enough just for your down payment. There are a few loans out there that don’t ask for a down payment, but those are typically government-backed programs such as VA and USDA programs. Lenders also need to know if there are enough funds available for closing costs. That might also be a bit obvious but there are two basic types of funds, recurring and non-recurring. Recurring closing costs are those that will happen again in the future. What type of closing costs will happen again in the future? Think property taxes and homeowner’s insurance. There needs to be enough verifiable funds to cover those as well. And for those who need or choose to have escrow or impound accounts, there may also be a requirement to have a couple of months of both taxes and insurance available, too. These smaller amounts will be used to initially fund your escrow or impound accounts. Finally, there are interest charges. When you close on your new home, the lender will ask for a per diem amount of interest to be collected up to the first of the following month. If you close on the 20th, lenders need 10 days of interest to be collected. This in essence is your first month’s payment.For more information on why lenders want to see your bank statements visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Fri, 23 Jun 2023 09:02:57 -0700 https://activerain.com/blogsview/5794557/why-lenders-want-to-see-your-bank-statements https://activerain.com/blogsview/5794084/understanding-common-types-of-mortgage-loans There are many different types of mortgage loans. It’s important that you understand your options and the different factors you’ll want to consider before deciding which mortgage is right for you.Fixed-Rate and Adjustable-Rate MortgagesThere are two main types of mortgages: fixed-rate and adjustable-rate mortgages. Each mortgage comes with its own set of features and benefits for you to consider.Fixed-Rate Mortgage: This mortgage type has an interest rate that stays the same for the life of the loan. If you select a fixed-rate mortgage, you’ll pay the same monthly principal and interest payments for the term of your loan. However, your monthly mortgage payment could increase if taxes and homeowners' insurance costs go up throughout the term of the loan.Unlike renting, this type of payment will remain the same month after month, even when inflation leads to higher prices. These loans are best for those who plan to stay in their home for the long term, often 10 years or more.Adjustable-Rate Mortgage (ARM): With this mortgage type, the interest rate is only fixed for a set period and fluctuates up or down for the life of the loan. These loans usually start with a lower interest rate, so your monthly payments start lower. Many ARMs start with an initial fixed period of a few years before they start to adjust each year. Some adjust only once every few years.For more information about the common types of mortgage loans visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Wed, 21 Jun 2023 09:07:57 -0700 https://activerain.com/blogsview/5794084/understanding-common-types-of-mortgage-loans https://activerain.com/blogsview/5793061/mortgage-loan-modification--what-it-is-and-how-to-get-one Loan modifications are a long-term financial relief option for homeowners who can’t make their mortgage payments. If approved by your lender, this option can help you avoid foreclosure by lowering your interest rate or changing the structure of your overall loan.What is a loan modification?A loan modification involves changing your existing mortgage so it’s easier for you to keep up with your payments. These changes can include a new interest rate or a different repayment schedule. It likely won’t reduce the amount you owe on the balance of your mortgage.Lenders allow borrowers to modify loans because default and foreclosure are more costly to their business. In other words, they don’t want the house, but they do want the loan repaid. A modification helps accomplish both goals.“A loan modification entails changes made to the terms of the loan itself — usually reducing the interest rate or extending the length of the loan,” says Rick Sharga, president and CEO of CJ Patrick Company, a real estate consulting firm in Trabuco Canyon, California. “This allows you to lower your monthly mortgage payment and, ultimately, prevent default and foreclosure.”How does a mortgage modification work?The goal of modifying a mortgage is to reduce your monthly payments to an affordable level, helping you stay up to date on the loan and in your home. The modification options might include one or a combination of these:For more information about loan modifications visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Wed, 14 Jun 2023 14:56:06 -0700 https://activerain.com/blogsview/5793061/mortgage-loan-modification--what-it-is-and-how-to-get-one https://activerain.com/blogsview/5791884/what-is-the-home-mortgage-disclosure-act--hmda--and-why-is-it-important The Home Mortgage Disclosure Act (HMDA), which has been in place for more than four decades, requires mortgage lenders to report information about their lending practices.Yes, it’s a behind-the-scenes, business thing. But it can be a good resource for consumers and borrowers, too. Let’s dive into the HMDA, why it’s important and how you can access HMDA data online.What is the Home Mortgage Disclosure Act (HMDA)?The Home Mortgage Disclosure Act (HMDA) is a federal law passed in 1975 that requires mortgage lenders to collect and report loan-level data points about their portfolios and practices.HMDA allows regulators and the public to determine whether lenders are serving the housing needs of their communities in an equitable manner. The law also aims to identify lending patterns that could be discriminatory and provides public officials with information on mortgage lending in their communities so they can make better policy and budgetary decisions.Consider that, before HMDA was enacted, “there were areas in which residents, often in urban and minority neighborhoods, were not able to obtain mortgages,” says Jared Maxwell, vice president and direct sales division leader with Embrace Home Loans in Middletown, Rhode Island.Today, HMDA is enforced by the Consumer Finance Protection Bureau (CFPB).What is included in HMDA reporting?Among the components included in HDMA reporting are a mortgage applicant’s ethnicity, race, gender and income. “For each record, you can learn about the loan, the property characteristics, the applicant demographics and the lender,” Maxwell says.For more information on the Home Mortgage Disclosure Act (HMDA) visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Tue, 06 Jun 2023 18:13:48 -0700 https://activerain.com/blogsview/5791884/what-is-the-home-mortgage-disclosure-act--hmda--and-why-is-it-important https://activerain.com/blogsview/5791418/5-surprising-ways-homebuyers-can-outsmart-today-s-high-mortgage-rates Mortgage rates have been on a wild tear recently, reaching 20-year highs topping 7% near the end of last year and bouncing around unpredictably ever since. And since even slight fluctuations in rates end up costing homebuyers hundreds of dollars a month, it’s understandable that many are paralyzed by indecision—should we buy or wait for rates to drop?—or else scrambling for any advice on how to stay ahead of the curve and keep their costs in check.To help, we’ve compiled a few tactics we’ve heard from real estate experts and homebuyers on how to outsmart the turbulent tides of rising rates.While some methods might strike some as unconventional, you may find that they’re becoming increasingly common in today’s unpredictable real estate market. If you’re tired of taking a wait-and-see stance or of simply sitting and praying for rates to head south, read on for some clever end runs, along with the pros and cons of these unusual approaches. Mortgage rate buy-downsMortgage rate buy-downs have attracted attention ever since rates shot up in mid-2022, and for good reason: They remain one of the easiest ways to make a dent in higher financing costs.For more information on 5 surprising ways homebuyers can outsmart high rates visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sat, 03 Jun 2023 17:50:39 -0700 https://activerain.com/blogsview/5791418/5-surprising-ways-homebuyers-can-outsmart-today-s-high-mortgage-rates https://activerain.com/blogsview/5790464/4-things-about-preapprovals-that-you-should-know Getting preapproved for a mortgage is almost a requirement in today’s real estate world. In fact, many real estate agents won’t even let you into their cars to go look at houses until you’ve got your preapproval letter in your hand. And that makes perfect sense. Why would a real estate agent take some professional time showing houses if you’ve no such letter in hand. A preapproval letter lets the agent know right off the bat that you’re a serious candidate as a home buyer. Let’s look at four things you need to know about these preapproval letters.The first thing to know is a preapproval is not the same as prequalification. Although the terms sound similar they’re not. Both terms apply to the mortgage industry but there are some key differences. A prequalification letter - the letter will state that it’s a ‘pre-qual’ - signifies that you’ve had a conversation with a licensed loan officer. With a prequalification, the loan officer will go through a series of questions and at the end of these queries the loan officer will or will not put together a letter that states ‘based upon the information provided’ the individual is in good shape to obtain financing from a mortgage company. For more information about preapprovals visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sat, 27 May 2023 18:33:48 -0700 https://activerain.com/blogsview/5790464/4-things-about-preapprovals-that-you-should-know https://activerain.com/blogsview/5785537/protecting-homeowners-from-discriminatory-home-appraisals Homeownership is one of the best paths to building intergenerational wealth, especially within communities historically shut out from fair access to the housing market. For families of all races and income levels to prosper and successfully pursue the American dream of homeownership, home appraisals must be accurate and free of bias.The CFPB administers and enforces federal consumer financial protection laws like the Equal Credit Opportunity Act (ECOA), which is a landmark civil rights law that protects individuals against discrimination in accessing and using credit. These protections apply to every aspect of a credit transaction with a mortgage lender, including the important step of mortgage lenders relying on home appraisals before approving a loan.The Department of Justice (DOJ) enforces both ECOA and the Fair Housing Act (FHA), which protects individuals from many forms of discrimination in housing, including discriminatory residential valuations conducted by appraisers and the use of those appraisals by mortgage lenders.To help ensure appraisals used to make lending decisions are objective and non-discriminatory, the CFPB and DOJ today filed a Statement of Interest in the United States District Court for the District of Maryland.For more information on home appraisal discrimination visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Thu, 27 Apr 2023 09:13:05 -0700 https://activerain.com/blogsview/5785537/protecting-homeowners-from-discriminatory-home-appraisals https://activerain.com/blogsview/5785364/how-to-build-wealth-by-investing-your-money One of the most effective ways to build wealth is to invest your money. But how should you do it, how long should it take and when should you start?Working is a reliable way to earn money and gradually increase your wealth over time. However, there are several ways in which you can invest the money you’ve earned to grow your wealth more quickly, ensuring you are well positioned to meet your financial goals—whether that’s buying a home, starting a business or retiring comfortably.Before you invest, you should build an emergency fund of at least three to six months of living expenses for those unexpected life situations. Once you’re ready to invest, it’s important for you to speak with a financial planner or investment advisor to find the strategy that best meets your goals and your risk tolerance.Here are common investments and tips you may want to follow.How Should I Invest?Investing to build wealth can take many forms. Though you may want to consider a combination of investments—including various funds, accounts and assets—the most effective wealth-building strategies involve two primary actions: Paying yourself first: A strategy where you put money into your investment and savings accounts before paying down or adding new debt. Automating your savings: A strategy where you automatically set aside a predetermined amount of money on a consistent schedule. For more information on building wealth visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Wed, 26 Apr 2023 07:38:35 -0700 https://activerain.com/blogsview/5785364/how-to-build-wealth-by-investing-your-money https://activerain.com/blogsview/5782892/how-s-the-spring-housing-market-expected-to-look- According to the calendar, we’re officially already in spring, meaning it should be the busiest time in real estate. 2023 isn’t shaping up to be a typical year, however, so what does that mean for the housing market?Below, we take a look at some of the things most impactful in the housing and real estate market right now and what agents, buyers, and sellers alike should all know as we emerge from the cold winter and move towards warmer weather.Home PricesAccording to most analysts, the real estate market is in a period of correction, but the National Association of Realtors said the sales of existing homes went up 14.5% in February. That was the first increase in 12 months. It was also the biggest increase since 2020.The median home price in February was hovering around $363,000, which was a 0.2% drop from February of last year. That was the first year-over-year decline in home prices in over a decade.As far as mortgages, interest rates are still high, especially compared to a couple of years ago. While they’ve been fluctuating, especially with the Silicon Valley Bank collapse, they’re still around 7% for the 30-year fixed-rate mortgage.For more information on the Spring Housing Market visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Tue, 11 Apr 2023 09:32:13 -0700 https://activerain.com/blogsview/5782892/how-s-the-spring-housing-market-expected-to-look- https://activerain.com/blogsview/5782820/home-equity-loan-or-heloc-vs-reverse--mortgage-which-is-right-for-you- If you’ve owned your residence for a while, you’ve probably built up a valuable amount of home equity you can tap into and use as cash. Three popular ways to draw equity from your home include a reverse mortgage, a home equity loan or a home equity line of credit (HELOC).All three of these financial instruments help homeowners access the equity in their homes, but they do so in different ways. Each allows homeowners to use the funds for any purpose, ranging from paying off their high-interest credit cards to remodeling a bathroom.However, each financing option works differently and one of these options may be more suitable than the others. Before deciding between a HELOC vs reverse mortgage vs home equity loan, it’s worth comparing how each works and the advantages each one has.Reverse mortgageAs the name implies, a reverse mortgage is the opposite of a regular mortgage: Instead of the individual borrowing money from a lender, then paying it back until they own the home, the lender pays the borrower — either in a lump sum, or monthly installments — in return for a stake in it.The borrower is not required to make any repayments on the loan while they occupy the home. The loan does accrue interest, which the borrower can choose to pay off or have added to the loan balance. The loan comes due when the borrower chooses to move out, sells the home or dies (in which case the lender either is paid back in cash or takes possession of the home).Homeowners have to be 62 or older to qualify for a reverse mortgage.Takeaway: Reverse mortgages can work well if the homeowner needs to supplement their Social Security benefits, retirement account distributions or other fixed income for daily needs, emergency expenses or a single large expenditure.For more information on the Home Equity Loan or HELOC vs Reverse Mortgage visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Tue, 11 Apr 2023 08:00:02 -0700 https://activerain.com/blogsview/5782820/home-equity-loan-or-heloc-vs-reverse--mortgage-which-is-right-for-you- https://activerain.com/blogsview/5782586/what-is-a-closing-disclosure- The closing disclosure is the last document you’ll receive before you close on your home loan. Review this detailed five-pager carefully to make sure all the numbers look correct before closing day.Key takeaways Closing disclosures are legally required and provide final details of your loan You will have a mandatory three-day period to review the closing disclosure and make any changes Errors can be corrected before closing, but the loan amount and interest rate cannot unless there is a change in circumstances What is a closing disclosure?A closing disclosure is a legally required five-page statement of your final mortgage loan terms and closing costs. It contains details about your loan terms, monthly payments, fees and closing costs.Your mortgage lender must provide you with the final details of your loan in the closing disclosure at least three business days before closing. That gives you time to compare the final terms and costs with the information you have previously been given on your loan estimate, the three-page document you received when obtaining the mortgage offer.You should compare the closing disclosure with the loan estimate to see if anything has changed. If anything is unexpected or incorrect, you have time to ask the lender to clarify before the closing.What is the three-day rule for closing disclosures?The closing disclosure three-day rule, formally referred to as the “Know Before You Owe” mortgage rule or TRID (the TILA-RESPA Integrated Disclosure rule), went into effect in 2015. Visit the Scoop Blog for more information on Closing Disclosures Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sun, 09 Apr 2023 15:35:24 -0700 https://activerain.com/blogsview/5782586/what-is-a-closing-disclosure- https://activerain.com/blogsview/5782214/is-your-credit-report-accurate- Mistakes happen occasionally. But when they appear on your credit report and hurt your credit score, a mistake could make it harder to borrow money for a house, a car, or other purchases, as well as the overall cost of your home. Credit reports are also used to decide whether you can rent an apartment; or determine the cost of auto and homeowners’ insurance. Lenders, landlords, insurance companies, and some employers rely on credit reports for background research. So, what should you know about checking your credit report?Three Major Credit Bureaus In the U.S., there are three nationwide credit reporting companies—Equifax, Experian, and TransUnion. Each organization collects information on your credit accounts and payment history and assigns a credit score, but their sources and methods vary, and errors can occur.That’s why reviewing all three credit agencies’ reports is essential. Additionally, checking for mistakes is one of the best ways to spot identity theft.  How to Get CopiesTraditionally, you could only obtain a free copy of your report from each agency once every twelve months. But since the start of the COVID-19 pandemic and continuing through December 2023, all three credit bureaus have allowed free weekly access to online credit reports.For more information on the accuracy of your credit report visit the Scoop Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Thu, 06 Apr 2023 16:16:49 -0700 https://activerain.com/blogsview/5782214/is-your-credit-report-accurate- https://activerain.com/blogsview/5781860/mortgage-credit-certificate--mcc---a-way-to-help-you-afford-your-mortgage-payments Buying your first home comes with costs and possibly stress, but there’s at least one potential silver lining. If you’re within income limits, you might be able to qualify for a mortgage credit certificate, also called a mortgage interest credit certificate or MCC.What is a mortgage credit certificate? It could save you money when you file your taxes and make it easier to pay your mortgage each month. Learn more about this mortgage certificate, who is eligible, how to apply, how to claim the tax credit and what happens if you refinance.What is a mortgage credit certificate?A mortgage credit certificate allows qualifying homeowners to claim a refund for a portion of the interest paid on their mortgage each year, up to $2,000. A state or local housing finance agency administers the MCC program (not all states have them).An MCC is not a tax deduction. Instead, it offers a dollar-for-dollar tax credit to eligible homeowners, applied against their federal income tax. Each state sets a limit on the percentage of the total mortgage interest that can go toward the $2,000 credit: In Florida, for example, the credit is limited to 30 percent of the interest paid.For more information on a mortgage credit certificate visit the Scoop Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Tue, 04 Apr 2023 15:10:46 -0700 https://activerain.com/blogsview/5781860/mortgage-credit-certificate--mcc---a-way-to-help-you-afford-your-mortgage-payments https://activerain.com/blogsview/5728730/is-a-mortgage-pre-approval-letter-necessary-to-make-an-offer-on-a-house- Do you need a mortgage pre-approval letter to make an offer on a house? You know you need to get your ducks in a row before looking at homes, but does that include securing a pre-approval letter from the bank?The truth is, getting pre-approved can actually improve your chances of falling into the sellers’ good graces, so you want to get it done as soon as possible in the home-buying process.So how organized do your financials need to be before you start looking? Let’s take a look, starting with clarifying what a pre-approval letter actually is.What is a pre-approval letter?Mortgage pre-approval is assurance from a lender to provide you with financing to buy a home up to a certain loan amount.“It’s a letter from your lender, written on the lender’s letterhead, stating that you are approved for a loan of a specific dollar amount,” says Denise Shur, a Realtor® with 1:1 Realty in San Jose, CA.To get approved, your lender will collect a stack of paperwork from you that will include pay stubs, federal tax returns, W2s, investment accounts, and residential history. Once your complete financial portfolio is analyzed, the lender will decide whether or not to issue you a pre-approval letter.For more information about a mortgage pre-approval letter and how to buy a house, Read The SCOOP! Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Mon, 25 Apr 2022 13:01:57 -0700 https://activerain.com/blogsview/5728730/is-a-mortgage-pre-approval-letter-necessary-to-make-an-offer-on-a-house- https://activerain.com/blogsview/5728580/real-estate-closing-costs--what-are-they-and-how-much-do-they-cost- Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage balance so it’s important to be financially prepared for this expense.What are closing costs?Closing costs include a range of charges for services related to applying for a mortgage. Some of the costs are related to the property — appraising it to verify its value and searching property records to ensure a clear title — and others are related to the paperwork involved, including attorney fees and the expense of originating and underwriting the loan.Closing costs are separate from the down payment, and you usually need a cashier’s check (not a personal check) to pay them.How much are closing costs?The total tab for your closing costs depends on three key factors: The price of the home Its location Whether you’re buying or refinancing As of the first half of 2021, the average closing costs for buying a single-family home were $6,837, according to real estate data firm ClosingCorp. The average closing costs for a refinance came in at $2,398.For more information about real estate closing costs and how to buy a house, Read The SCOOP! Blog Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation) Sun, 24 Apr 2022 11:23:17 -0700 https://activerain.com/blogsview/5728580/real-estate-closing-costs--what-are-they-and-how-much-do-they-cost-