financing: How to calculate my monthly mortgage payment
- 03/28/11 01:28 AM
How to calculate a monthly mortgage payment? This is a calculation I run through many times per day for buyers, however, a number of first time homebuyers are confused about what goes into a mortgage payment. So below I have it broken down -- we’ll keep it in 2 main categories FHA mortgages and Conventional mortgages.
The basic calculations are the same no matter which type of mortgage program you are using. The most important thing to remember is that your mortgage payment is comprised of 5 main components: Principal and Interest, Taxes, Homeowner’s Insurance, Monthly mortgage insurance premiums (if … (0 comments)
financing: How to get a jumbo mortgage with a 10% low down payment in Maryland, DC, or Virginia
- 01/31/11 12:57 AM
How to get a jumbo mortgage with a 10% low down payment in Maryland, DC, or Virginia Likely if you're reading this you are frustrated that there seems to be no way to obtain a mortgage above the Fannie loan limits, normally requiring a jumbo loan. Alternative (non-conventional) loan products are loans required for loans above $729,750 for the DC metro area (including Northern Virginia, Arlington, Fairfax, Loudoun, Alexandria, Falls Church, Manassas, Montgomery County, Frederick County, Prince Georges County, and the District of Columbia). Similarly, in the Baltimore metro area the limit is $560,000 (including Howard County, Anne Arundel County, Baltimore County, Baltimore … (1 comments)
financing: 2010 Mortgage Rate Recap – What a fun ride! Summary of what happened to mortgage rates in 2010
- 12/29/10 09:10 AM
With the new year approaching (wow it's almost 2011 already?) and "best of" 2010 information coming from other sources, I thought it would be fitting to post a recap of what happened to mortgage rates in 2010. 2010 presented an unexpected rollercoaster ride when it came to mortgage rates. We were able to witness some of the lowest mortgage rates ever recorded. The year started out with benchmark 30 year conforming (below $417,000) fixed rates very steady around 5% from about January until April. There was a small uptick in rates to about 5.25% in early April followed by an unprecedented 21 week period … (1 comments)
financing: Closing cost survey by state, Maryland, DC, and Virginia closing costs about average
- 11/29/10 10:37 AM
I stumbled across a very interesting closing cost survey by state over on bankrate.com and figured it was worth sharing. In 2009 and 2010, Bankrate surveyed one area in 49 states, two areas in California (Los Angeles and San Francisco) and the District of Columbia. It is not clear how many different parties they surveyed in each state, so the numbers may or may not be statistically signifcant. Note: closing costs shown don't included: taxes, other government fees, and escrow fees. Average closing costs come in at $3,741. New York reported the highest closing costs at $5,623. The least expensive state is … (0 comments)
financing: Now is truly a good time to buy a home even if you may be underwater!
- 11/03/10 01:22 AM
Now is truly a good time to buy a home even if you may be underwater! I have been running across a lot of potential sellers who don't want to sell their current home because it is not at the value they want it to be and some even have to pay some money to get out. Well, I am questioning whether it make sense to "wait until property values come back up" and below I present some numbers as to why it may actually make sense to take the loss on your current property to take advantage of the lower … (3 comments)
Some scenarios: $300,000 borrowed Interest paid over 30 years with current market rates (4.125%) = $223,422 Compared to 5.5% = $313,213 Interest Cost of waiting = $89,791
$500,000 borrowed Interest paid over 30 years with current market rates (4.25%) = $385,492 Compared to 5.75% = $550,429 Interest Cost of waiting = $164,937
$700,000 borrowed (in high-balance areas) Interest paid over … (0 comments)
financing: Can I Get a Mortgage with 10% Down?
- 08/29/10 01:28 PM
Can I get a mortgage with 10% down? The answer is YES, you can get a mortgage with 10% down. The best option for this situation is what is called an 80/10/10. This is comprised of two separate mortgages allowing the borrower to go up to 90% financing without mortgage insurance! The first mortgage is structured to be 80% of the sales price and is a standard conventional Fannie Mae / Freddie Mac mortgage product at current market rates. The second mortgage that my bank offers can accommodate up to 90% financing on the purchase of a home. The second mortgage … (2 comments)
financing: When should I pay points on a mortgage in todays historical mortgage market?
- 07/22/10 10:23 AM
When should you pay points on a mortgage? Deciding when or if you should pay points on a mortgage is not always as simple as just calculating the breakeven point. There are a number of factors that ultimately play into the decision. The biggest factor that stands out in today's historical mortgage market is where interest rates are headed. Even if rates stay at current historical lows forever (extremely unlikely) they can't go much lower. If you pay points now, you can be sure that a no-cost refinance wouldn't benefit you in the future due to rates not going much lower than the current … (3 comments)
financing: What do higher interest rates really mean?
- 03/21/10 12:39 PM
With the Fed officially ending is Mortgage-backed Securities (MBS) purchase program at the end of this month there is a potential for rates to rise. The Fed has been purchasing MBS since January 2009. When completed, the Fed will have purchased $1.25 trillion to help provide support to the mortgage and housing markets. The goal was to keep interest rates low and stable, and also keep banks lending. The good news is that the purchases have been slowing down consistently since September of last year to ease the transition. Below is a chart of where interest rates have been since 1971. … (1 comments)
Loan Officer with First Place Bank in Rockville Maryland. FHA, 80-10-10, VA, Conforming, Jumbo, Refinances, a group of local approved appraisers (no 3rd party appraisal system), In-House Processing and Underwriting. Servicing Maryland, DC, and Virginia.
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