Tag Archives: mortgage

How to Afford Mortgage Payments

man handing over a miniature homeIt has been recorded that foreclosures are peaking now. A lot of homeowners are going broke at the sight of looming financial difficulties. Do not be part of the statistics. Plan your mortgage carefully and make sure you are going to afford it no matter what.

Careful mortgage planning should come first

Mortgage planning is the best first step to afford a home you can call your own. Before you scout for a house to buy, develop a relationship with a mortgage lender that will guide you all the way, from completing the necessary documentation to obtaining the loan and of course, repaying it. An expert is key to find the best mortgage rate in Utah and put together a mortgage plan in fighting form.

You must trust the industry experts with their experience and expertise. They have the ability to hand down the most affordable mortgage with terms that are most suitable to your financial capacity. Walk with one hand-in-hand to carefully plan and execute a mortgage without trouble.

Keeping up with the repayment schedule

At first sight, it is easy to declare that you will be responsible for your repayment at all costs. But when things in your budget go haywire, it will be a lot more challenging, and with a weak heart, you will be susceptible to the common debt risks that might lure you to a quicksand of financial troubles.

That is why it is very important that you work out a realistic mortgage plan first. Taking not just your income but also your existing savings into account, you will be able to tell how much you can afford, even when the going gets tough. Afterward, you must also scout for the best mortgage deals available. Getting as much value for your money that you deserve could help boost your chances of paying off your home debt without trouble.

When’s the Right Time to Switch to Buying from Renting?

Concept of home ownership

Concept of home ownershipIf you’re still renting and considering buying your own place, you probably think if it is the right time to enter the housing market. This is common for many first-time buyers, as a home purchase is a major financial commitment. When determining if you’re ready, you need to look at your current situation, as well as your rental expenses and possible costs associated with buying a home.

Altius Mortgage Group and other mortgage companies note that the main benefit of buying is having a place you can call your own (without having any restrictions from the landlord). It can also help you build equity and get tax deductions. Renting, on the other hand, is a good option if you can’t afford a new house or don’t feel like settling into the same place for years. 

Know the costs

Buying a home comes with a larger payment than renting and you need to come up with a down payment. To find out whether renting or owning is better, look at your current rental expenses and potential mortgage payments. 

Amount you can borrow

The amount of mortgage you can loan will depend on your debt-to-income (DTI) ratio. In most cases, lenders don’t want your total debt to go beyond 36% of your monthly income. They can then give you an estimate, but you shouldn’t forget to assess how much loan you are comfortable paying. The way you manage your debt and finances will play a role.

Receiving tax deductions

When you buy a home, a good portion of your salary is likely to go through mortgage payments. But the good news is you may be able to get a tax break, which is not available when renting. It is best to get an idea of how much tax you will save, as the difference may offset higher mortgage payments.

If you believe that now is the right time to buy a home, contact a reliable lender to know more about your options and start preparing for the loan application and buying process. 

When is the Right Time to Refinance Your Mortgage?

Home refinance conceptRefinancing your home is a major way of taking control of your debt. For it to be a properly timed plan there are several things that must be carefully considered. It is important that the new contract fit the client’s accurate needs as well as any future prospects. Choosing the correct time to go for a refinance option makes a difference.

Emergency Refinancing

There are times when you reach out to your financier for a home refinance in Ogden or anywhere in Utah. If your family cannot support the expenses of servicing your current loan, then Wasatch Peaks Credit Union and other experts say that you may have to go for a refinancing option.

It's a reasonable move to request your loan to be restructured at this point in order to have it extended. From this move, it is possible that you will have enough time to make the necessary arrangements that could get you from the situation as you get your finances in order.

Home Upgrades

Chances are that your home will be in need of major renovations and refurbishments by the time you are done with your mortgage payments. As such, a refinance option can be a good way to ensure that you get the necessary cash you need to cover the costs of any refurbishment. In addition to that, you also get to spread the burden of the monthly payment you have to make. However, you need to be careful as going with the refinancing option increases the amount of money you have to pay.

When Moving to Another City or Town

There are many reasons for refinancing your mortgage and moving places makes a good one. You need to talk to your financier to see if they can switch your old mortgage to the new one, depending on where you're planning to move. If you make the right move, you could end up with a house larger than the one you had before at no extra cost.

In the end, refinancing is an option that can only work when you are ready for it. Assessing the move is what every homeowner needs to do before taking this step.

3 Considerations for a Successful Mortgage Process

Going through the mortgage processesMany people often bungle their mortgage application by failing to carry out their due diligence when making a purchase, only to ruin the process. Committing mistakes when buying a house jeopardizes your chance of success and ruins the entire process. Many people often rush through the course without research and it proves to be a grave mistake.

Do not make new purchases

Although a new car would look nice on your driveway, do not buy it until you have sealed the deal. In fact, do not apply for new credit at all until you’ve concluded the sale. Each new application dings your credit score and increases the amount of debt you carry. This could make mortgage lenders back out. Don’t put your hard-earned deposit at risk in addition to ruining the chances of owning your dream house.

Do your homework

Altius Mortgage Group and other lending institutions noted that your ability to qualify for a mortgage in Utah hinges on making things right. Otherwise, the situation could prove to be highly challenging and costly. Lenders look thoroughly at your finances to determine your credit worthiness before approving your application. Make sure there are no red flags that could ruin your chances. Ensure that your credit score is high, preferably over 760 to keep interest rates low and affordable. Paying your bills on time and in full is a sure way of keeping your score high. Similarly, ask for mortgage preapproval to determine your budget range before searching for a house.

Do not commit to a home construction or renovation project

Contractors often offer early bird specials to raise the funds necessary to finish an ongoing project. While you can consider many of them to be a good deal, you should tread carefully to avoid any pitfall. Discrepancies between the contractor’s and the lender’s valuations could ruin the entire process.

While homeownership is a priority for many people, rushing through the process could result in great disappointment. Take your time and research all the factors that underlie a successful process.

Home Financing: A Beginner’s Guide to Mortgage Hunting

Mortgage Plan in UtahOne of the biggest mistakes of new homeowners is they get easily blindsided by what’s written on the terms they’ve signed. Having little knowledge on how mortgage plans work might get you into trouble or lead you spiraling down financially. To help fill in the gaps of better understanding, here are some important facts that are worth remembering.

APR Stands for “Annual Percentage Rate”

Mortgage loans are more complex than you think it is. The loan rate as a whole does not only cover one or two things. Other than the interest rate, it also includes closing costs, origination fees, and some other factors so you can get a full view of what will be the totality of your mortgage. The APR, in general, give you a better gauge on these things. It directly identifies the differences between the lenders. There are some who offer lower rates, but checking the APR they are practically higher. This is also the reason why you need to carefully review and check everything.

Mortgage Rates are Open to Changes

Many borrowers believe that mortgage rates are not changing. However, home loans are also considered as financial investments, such as stocks and bonds, which means they are subject to changes depending on the market forces. That’s why you need to essentially understand these factors to get the rate you desire without worries.

Different Lenders Means Different Rates

The rates of mortgage lenders in Orem may vary. In short, they don’t have a strict standard procedures when it comes to offering deals and plans to any homeowner. While it may be subjected to different abuses, one good way to avoid being gang up on this thing is to compare and review all the available options you have to get the best rate you can find. It might require a lot of work, but it’ll all be worth it.

Learning the key factors of a mortgage will give you a better overview of what you should look for. While it might be quite complicated when you’re starting, giving a little effort to study and review these things will certainly pay off once you decided to finance your own home.

What’s the Most Sensible Mortgage Option for Me?

Mortgage in UtahThere are literally hundreds of mortgage products you can choose from so it can be somewhat daunting to find one that best suits your requirements. So before you even approach potential lenders you have to figure out what you can afford and what you really need.

According to AmericanLoans.com, to start, answer the following…

  • Where do you picture yourself in the next five to 10 years?
  • How long are you planning on living in your home?
  • Do you need to have money on hand for future investments?
  • Do you want or need to make improvements on your home?
  • Do you want to remain debt-free?
  • Can you really afford financial risks?

Once you’ve answered these questions, consider the following when evaluating your mortgage options:

A Longer Term for Your Loan

This means a term of 30 years and above. Put simply, the longer term equals lower monthly payments, but higher interest.

An ARM or Adjustable Rate Mortgage

This is ideal if you need to have some on hand cash or want a lower interest rate. For the first several years, your rate will be fixed and then start to float. Know however that your payments will increase or decrease according to market conditions, once floating starts. This option is sensible for those who relocate every few years since if rates increase, they can sell and if rates drop, they can refinance, adds a mortgage officer in Utah.

Consider an 80-20 Home Loan

The average loan finances the initial 80% and a second mortgage with increased interest funds a 20% down payment. You also do away with PMI or private mortgage insurance, which is a standard requirement for properties purchased without the 20% down payment.

Consider Skipping Principal Payments

You can reduce your payments each month by as much as 20% to 25% in the initial years — usually five to 10 years — and likewise qualify for a larger loan. However, know that you get a huge jump in monthly payments when this period of interest-only payments concludes because you then start repaying the principal payments you skipped for the first several years of your loan term.

Keep in mind that taking out a mortgage is a big financial decision. So give yourself sufficient time to compare your options, mull over the pros and cons of each, do the math, shop around, and formulate a plan before you apply for a mortgage.

Improve Your Credit Score and Lower Your Mortgage Rate

Credit Score in Salt Lake CityWhen you embark on the homeownership journey, you need to impress upon the mortgage lenders that you are creditworthy, faithful, and committed to the financial relationship that spans more than a decade. Your credit score offers profound insights into your financial habits, temperament, and capabilities.

Without fail, every mortgage lender Salt Lake City residents approach will dig into the credit history as well as the credit score. Lenders view you favorably if your credit score is high, preferably over 700 points. If your current credit standing is not outstanding, follow these steps.

Check your credit report

A credit report contains your entire financial history, and it forms the basis for calculating your credit score. If it contains errors, they could count against you and lower the score. Carefully examine the contents and note any incorrect information such as late payments and debt amounts. Dispute these anomalies with the credit bureau and have them rectified.

Pay your bills on time

Altiusmortgage.com, a mortgage lender in Salt Lake City, says timely payment of your credit card bills significantly boosts your score and attests to your commitment to meeting your financial obligations with the least amount of fuss. Set up automatic payment reminders such as text or email alerts to ensure you are up to date with your payments.

Keep the debt balances low

Although the limit on your card may be high, low credit card utilization, preferably below 30 percent, improves your credit score. Using a small portion of your credit results in a low utilization ratio and keeps your balances low. The monthly balances count towards calculating your score and offers insight into your spending habits.

Your credit score determines mortgage loan eligibility and plays a significant role in deciding your interest rates. Remember, a high score corresponds to lower interest rates.