homeownership: Should You Refinance Your Mortgage if You Have a Low Rate? - 06/16/21 08:28 PM
With mortgage rates at historic lows, now is a great time to save money by refinancing. And it may make sense even if you already have a low rate on your mortgage. 
Mortgage rates have been at historic lows ever since the beginning of the coronavirus pandemic. At the beginning of 2020, 30-year mortgage rates were 3.72%, and 15-year mortgage rates were 3.16%. 
In comparison, 30-year mortgage rates are currently 2.96%, and 15-year mortgage rates are 2.3%. These rates continue to fluctuate, and its unlikely refinance rates will stay this low as the economy continues to recover. 
So, if you want to take advantage of the … (2 comments)

homeownership: Buying a House in 2021: What to Expect - 06/15/21 01:54 PM
Mortgage rates are expected to remain low, and home prices are forecast to rise more slowly than in 2020.
Buying a house is like playing a complicated sport. You need to know the rules and get in shape before hitting the field, and then nimbly maneuver through challenges to win the game.
In 2021, “winning” requires understanding how you stack up against lender qualifications, preparing to compete with other buyers and navigating a socially distanced homebuying process until vaccines end the pandemic.
Here's what buying a house in 2021 looks like and how to prepare.
To learn more read our helpful guide the SCOOP! Blog
… (0 comments)

homeownership: Home Appraisals: What You Need to Know - 06/14/21 09:03 AM
A home appraisal helps sellers extract maximum value and protects buyers and lenders from overpaying.
The goal of an appraisal is to provide an estimation of a property’s market value.
A home appraisal may not be top of mind when you're looking to buy, sell or refinance a home. But maybe it should be: An appraisal determines for the seller, the buyer and the lender how much a home is worth.
The purpose is to protect the buyer and the lender from paying too much.
A home appraisal isn't the most glamorous part of buying or selling a home, but it's a key step. Learn … (2 comments)

homeownership: What Is Escrow? - 06/13/21 10:14 AM
Escrow accounts are a key feature of real estate transactions and homeownership.
With an escrow account, the buyer's initial deposit is held until the sale moves forward.
Most people never encounter the concept of escrow until they buy a home. Escrow accounts are set up by third parties as a safe place to hold money. They are used for two main purposes when it comes to real estate: during a home purchase and afterward as an easy way for homeowners to save for property tax and insurance costs.
Here's what you need to know about escrow accounts, how they help facilitate a home purchase … (1 comments)

homeownership: Freddie Mac Mortgage Programs: Which One is Right for You? - 06/11/21 12:59 PM
There is no one-size-fits-all solution when it comes to financing your home. Freddie Mac offers different loan programs that make it possible for borrowers in various situations to achieve their dream of homeownership.
Freddie Mac doesn't make loans. Instead, we purchase qualified loans from lenders. This provides crucial funding for the banks, so they can make more loans and keep interest rates low for borrowers like you.
Freddie Mac has a set of guidelines for the mortgages we back. Mortgages that meet these criteria are called conforming conventional loans. Conventional loans can either be fixed- or adjustable-rate and can be used to finance just … (0 comments)

homeownership: VA Cash-Out Refinance: How it Works and What to Consider - 06/10/21 08:32 PM
A VA cash-out refinance replaces your current mortgage with a new VA loan, ideally with better terms, while allowing you to take out cash against your home for a variety of reasons, such as upgrading the property or paying down debt. If your existing home loan isn’t backed by the VA but you’re eligible for a VA loan, you can do this cash-out refinance to take advantage of VA refinance rates.
Let’s say you took out a $200,000 home loan and you’ve paid back $80,000 of that balance. With a VA cash-out refinance, you can get a loan for $200,000 and use that $80,000 (less closing costs and … (0 comments)

homeownership: A Hand Up with a Down Payment - 06/06/21 09:33 AM
James Truslow Adams, who coined the term “American dream” in 1931, defined the concept as a “better, richer, and happier life for all our citizens of every rank.” Today, the notion is now intricately tied to homeownership as a means of building wealth. Yet, as we celebrate American Housing Month this June, we must recognize that for many Americans, attaining homeownership—and by extension, the American dream—seems all but impossible. 
Purchasing a home usually requires a down payment. Prospective buyers must usually provide an initial upfront payment of 20 percent of their home’s purchase price if they want to avoid paying for private mortgage insurance. … (1 comments)

homeownership: The Pros and Cons of Paying Off Your Mortgage Early - 06/05/21 11:39 AM
Paying off your mortgage early helps you save money in the long run, but it isn't for everyone
Paying off your mortgage early is a good way to free up monthly cashflow and pay less in interest. But you'll lose your mortgage interest tax deduction, and you'd probably earn more by investing instead. Before making your decision, consider how you would use the extra money each month. Paying off your mortgage early can be a wise financial move. You'll have more cash to play with each month once you're no longer making payments, and you'll save money in interest.
Making extra mortgage … (2 comments)

homeownership: How Much House You Can Afford - 06/04/21 03:19 PM
Income and savings matter—but so does your lifestyle
Good news: Answering the question, “How much house can I afford?” does not require calculus-level math skills. You just have to start with Trulia’s housing affordability calculator, and then factor in a set of facts about your life.
The life stuff is just as important as the calculator. Things like student loans, local cost of living, childcare, and your hobbies will affect how much house you can afford. And a mortgage lender can lend you as much as you can “reasonably afford,” which could be more than you want to pay. Here’s how to set the right budget … (0 comments)

homeownership: New Refi Program Aims to Help Lower-income Owners Save - 06/01/21 09:27 PM
Fannie Mae will launch RefiNow this week, which could help lower-income homeowners save hundreds of dollars a month on their mortgage payments.
The program, which begins June 5, aims to help about 2 million homeowners lower the interest rates on their mortgages. Eligible homeowners could save an estimated $100 to $250 a month, according to the Federal Housing Finance Agency, Fannie Mae’s regulator.
Among the eligibility requirements, homeowners must earn 80% or less of their area’s median income to apply. Borrowers also must have a Fannie Mae–backed mortgage (use the loan lookup tool to find out). Borrowers must be current on their mortgage and … (0 comments)

homeownership: How to Get a Mortgage with Bad Credit - 05/31/21 10:43 AM
The higher your credit score, the more likely you are to get approved for a home loan. But that doesn't mean qualifying with a lower score is impossible. Here, we'll show you how to get a mortgage with low credit.
Is it possible to get a mortgage with bad or poor credit?
Before we talk about how to get a mortgage with poor credit, let's review what that actually means. Credit scores range from a low of 300 to a perfect score of 850. Within that range, here's how FICO (the most popular scoring model) classifies different scores:
Data source: myFICO.
Can I get approved for … (1 comments)

homeownership: Looking for a New Mortgage Rate? 4 Things to Keep in Mind - 05/30/21 07:57 PM
Whether you’re buying a home or looking to refinance, getting the best mortgage rate should be one of your top goals. Not only does a low rate equate to a lower monthly payment, but it also reduces the long-term costs of taking out your loan.
Unfortunately, securing low mortgage and refinance rates is easier said than done — and if you want the best one possible, you’ll need to prepare long before you dive into the mortgage process.
Are you considering a home purchase or refinance this year? Follow these guidelines and compare rates across mortgage lenders without impacting your credit score on ChangeMyRate.com.
For more information read … (0 comments)

homeownership: Why Are Payments Higher When You Shorten the Term? - 05/29/21 06:39 PM
Many financial advisors recommend taking out a shorter-term loan. Why? Because over the life of the loan, less interest is paid to the mortgage company. That makes sense. Less interest is always good, right? But with a shorter-term loan, there’s a tradeoff. The shorter the term, the higher the monthly payments. Why is that, exactly?
Monthly mortgage payments have three basic components. The first is the actual loan amount. The second is the interest rate on the loan. The third is how long the loan is actually amortized over. Amortization simply means how the loan is paid down and when. Most mortgage … (2 comments)

homeownership: Time to Refinance: Mortgage Rates Dip Back Below 3% - 05/28/21 07:18 PM
Ultra-low mortgage rates returned this week, with lenders offering home buyers and refinancers a chance once again to lock in a rate below 3%. But the National Association of REALTORS® warns that these low rates in the 2% range won’t last much longer, and mortgage rates likely will edge up soon. The 30-year fixed-rate mortgage averaged 2.95% this week, Freddie Mac reports.
“Mortgage rates are continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” says Sam Khater, Freddie Mac’s chief economist. Homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 annually, Khater … (0 comments)

homeownership: What Are the Pros and Cons of an Online Mortgage? - 05/26/21 09:45 PM
There are online mortgage lenders that are becoming an increasingly popular way to get funding to buy a home. You can go through these online lenders and do your entire mortgage application from your computer or tablet. This is different from the traditional way of doing things, where you have to go to a bank and complete your paperwork in person.
There was a recent survey from the financial website NerdWallet that found 64% of millennials would prefer to do the entire mortgage application process digitally.
Online mortgages are incredibly convenient, but as with anything, there are potential downsides to think about too.
Pro: … (0 comments)

homeownership: Making the Best Choice - Buy vs. Rent - 05/25/21 08:39 PM
“May your choices reflect your hopes, and not your fears.” Nelson Mandela
Our cities are waking up after being cooped up for a year. Mortgage rates are still low, and the real estate market is still hot.  It is decision time.  Do you buy a home, or do you continue renting?  What are some profitable exit strategies you can use later if you decide to move to another geographic area? 
Rent hikes are predicted to rise as the demand for housing continues.  How much has your rent gone up over the last three to five years?   If you bought a home that … (1 comments)

homeownership: Is the Mortgage Refinance Boom Ending? What to Consider Now - 05/24/21 10:41 AM
The COVID-19 pandemic unleashed a financial tidal wave that left many Americans struggling in the wake of job losses and reduced earnings. For some homeowners, however, the pandemic did have one positive side effect: record low interest rates for mortgage refinancing. 
As refinancing rates reached historic lows, mortgage refinancing activity reached its highest annual peak since 2003, according to Freddie Mac. In January 2020, the average 30-year mortgage rate was 3.62%, reaching a low of 2.65% by January 2021. As of May 2021, 30-year mortgage rates had leveled out at 3.00%.
Freddie Mac's latest quarterly forecast suggests that refinance originations will hold steady for the remainder of … (1 comments)

homeownership: Mortgage Rates Move Up, Now Average 3% - 05/23/21 11:21 AM
As the economy continues to strengthen, mortgage rates are heading upwards. The 30-year fixed-rate mortgage increased from its 2.94% average last week to 3% this week, Freddie Mac reports.
“Mortgage rates are more likely to continue to rise than fall throughout the rest of 2021,” Nadia Evangelou, National Association of REALTORS® senior economist and director of forecasting, writes on the association’s Economists’ Outlook blog. “The economy is growing faster than expected as Americans get vaccinated against COVID-19 and resume traveling, going to restaurants, bars, events, and shows.”
Despite the uptick, mortgage rates remain historically low, averaging 3%, down from 3.24% a year earlier. … (0 comments)

homeownership: Reverse Mortgages - 05/22/21 11:06 AM
If you’re 62 or older – and want money to pay off your mortgage, supplement your income, or pay for healthcare expenses – you may consider a reverse mortgage. It allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills. But take your time: a reverse mortgage can be complicated and might not be right for you. A reverse mortgage can use up the equity in your home, which means fewer assets for you and your heirs. If you do decide to look for one, review the … (1 comments)

homeownership: Shopping for a Mortgage - 05/21/21 10:30 AM
Shopping around for a home loan or mortgage will help you get the best financing deal. A mortgage — whether it’s a home purchase, a refinancing, or a home equity loan — is a product, just like a car, so the price and terms may be negotiable. You will want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.
Obtain Information from Several Lenders Obtain All Important Cost Information Obtain The Best Deal That You Can Remember: Shop, Compare, Negotiate Fair Lending is Required By Law Credit Problems? Still Shop, … (0 comments)