Mortgage for Home Buyers

 

Qualifying for a mortgage is one of the many different issues home buyers in Port St Lucie face.  Being educated about the loan options including the rates and terms of the mortgage is always detrimental in obtaining the best loan. The knowledge to understand and check the financing details such as the down payment options or PMI (Private Mortgage Insurance) with different mortgage lenders are some of the most important steps in buying homes.

Buyers should familiarize themselves with terms like amortization, Fixed and Adjustable Rate Mortage (ARM) and compare the rates and monthly payments for 30 years, 20 years and 15 years mortgages and chose the plan that will suit their long term goals. In long run, this could save them hundreds of thousands of dollars during the life of the loan and remember; there’s no substitute for knowledge and preparation.

Do-You-Qualify.jpg Do You Qualify?
Understanding how much of a mortgage you can qualify for…
Compare-Interest-Only-vs-Principal.jpg Compare Interest Only vs. Principal
Calculate the difference between interest only mortgage & principal mortgages
Calculate-Amortized-Payments.jpg Calculate Amortized Payments
Determine the monthly payment amount based on the amount borrowed & more …
Meet-a-Payoff-Goal.jpg Meet a Payoff Goal
How much additional monthly-payment is necessary to pay off your mortgage?
TaxSavings.jpg Tax–Savings
Estimate the savings in taxes that can be realized due to interest & property taxes!
Compare-Consolidation-and-Re-Financing.jpg Compare Consolidation & Re–Financing  
Compare refinancing a single mortgage vs. consolidating a first & second mortgage …
Refinancing-a-Mortgage.jpg Refinancing a Mortgage
See the cost and savings of refinancing at a lower interest, net of closing costs…
Compare-Monthly-vs-Bi-weekly.jpg Compare Monthly vs. Bi–weekly
Save more by making one-half of your mortgage payment every two weeks …
Compare-Mortgage-Rates.jpg Compare Mortgage Rates
See the differences in mortgage payments and interest costs at different rates …
Compare-Term-of-Your-Mortgage.jpg Compare Term of Your Mortgage  
This calculator will compare monthly payments of different mortgage terms …

Welcome

Get More Information

Address : 1555 St Lucie W BlvdPort St Lucie, FL 34986, United StatesPhone: +1 772-323-6730 Email: info@portstlucie.city

Getting the Best Financing

Obtaining The Best Home Mortgage

Home Mortgage

Obtaining Best Mortgage

Although choosing the best property that suits your needs is the main goal, taking advantage of having a lower interest rate and getting the best financing is definitely an essential objective as well.  During a decade of dealing with numerous Port St Lucie  Financing lenders and financial institutions within the State of Florida, we have narrowed the list to the few top notch lenders.  This will allow us to assist you to get in touch with the loan companies that are the most useful match for both you and your financial picture.

The standard mortgage loan for working individuals – Just because your earnings history is not the indicator of a great wealth, or just because you are an hourly employee that should not imply that there are not a variety of home loans and loan companies to meet your needs.  Each and every large financial company and loan servicers will provide particular loans within their unique prerequisites and procedures, which might not function as the most friendly terms and conditions for any salaried or per hour salary earner. I am aware which lenders are likely to deal with you properly and provide you with the most beneficial terms, and I will provide a list of them so you are getting the best financing.

The self–employed Homebuyers – Since 2007 the property finance and real estate turmoil has made it more difficult to obtain a loan for an entrepreneur or self–employed individual.  Income and expenses ratio is a lot more specific, and we have tried to stay up–to–date on the new requirements. We could lead you to a number of solutions for excellent home loans programs that are tailored for the self–employed individuals and families.

Less than an Excellent Credit Rating – In the new financial era many mortgage companies are becoming more difficult when it comes to the credit-worthiness of homebuyers.  The possibility of having a reduction or two in your credit history has unfortunately become more common than in previous years.  Lower credit scores are not even going to require an error or overdue payment, for lowering of credit ratings by a mere ratio of debt to income. Many individuals pay their expenses by the due date but still do not possess stellar credit ratings.  We will try to assist you to find the loan companies within the Port Saint Lucie, St Lucie West, St Lucie, Stuart, Hutchinson Is, Hutchinson Island, Jensen Beach, and Fort Pierce real estate marketplaces who are willing to supply excellent home mortgages intended for lower FICO scores.

Adjustable Rate Mortgages, ARMs, and When They’re Acceptable – Although most residential real estate buyers are purchasing a house that they plan to occupy for several years, the national average is no less than eight years.  Investors may, for instance, be looking for a shorter ownership period. ARMs, Adjustable Rate Mortgages, are generally suitable when the strategy is to possess a property for seven years or less, particularly five years or less. Considering that the financial institution is tying up their funds for a reduced timeframe, they loan at reduced rates of interest.  In some instances ARMS could lead to a considerably less monthly mortgage. This could also allow a purchaser to be eligible for a larger mortgage which increases their buying power. Nevertheless, ARM is not commonly a good practice.  The main reason remains in the fact that as soon as the ARMs reaches the predetermined interest rate period, the loan costs can increase more than the estimated amount by the homeowner.

Financial Disclosure and Deal-To-Closing Factors – Notably following the mortgage and real estate crisis starting in 2007, the examining of personal earnings and expenditure details by financial institutions and their underwriters are considerably tighter than in the past.  Be ready to search for all necessary records, and proof of payments.  We shall also emphasize on the transparency when it comes to being honest with any financial facts that might have an effect your ability to cover the loan payment.  Even when it is not requested by the lenders during the early stages, be ready for inquiries and demands for paperwork later on.  Also, it is really a smart idea to not increase any charge card limits, obtain a new card or add to any other debt between the time of your purchase agreement and the closing.  Also, be advised that many lenders will perform an additional credit assessment along with a search for any liens or clouds on the title prior to the closing.

Look at the Charges and Inquire Further – There is a variety of charges related to obtaining a home loan including the origination fees, title fees along with other charges contributing to closing expense in the Port St Lucie financing closing package.  Don’t be reluctant to check out all charges, why they are incurred and why they are a specific amount and exactly how they are calculated. It is your hard earned money, and you happen to be the client with the right to ask questions.

Welcome

Get More Information

Address : 1555 St Lucie W BlvdPort St Lucie, FL 34986, United StatesPhone: +1 772-323-6730 Email: info@portstlucie.city

New FHA Loans for Condos

FHA Finance Reform

New FHA Guidelines

New FHA Loan Guidelines For Condos

National Association of Realtors @, NAR, is celebrating another victory after the new FHA loan guidelines for condos passes the house legislation. The H.R. 3700, Housing Opportunities Through Modernization Act, is intended to ease up on stringent rules on FHA approved loans for condos as well as the new guide lines for FHA re-certification process for condominiums. The reform was necessary to streamline the condominium financing by reducing the restrictions that were in place on mortgages for the purchase of condominiums. The changes to recertification of condominium complex, which required a costly process every 2 years, was one of the most significant hurdles in purchase and finance of condominiums.

FHA Condo Finance

FHA for Condos

The reform is designed to allow more first time and lower priced home buyers to enter the market, which in return will promote the access to more affordable housing offered by many condominiums to home buyers. The H.R. 3700 passed the house and expected to be approved by the senate and eventually by President Obama. Realtors@ and NAR initiatives in promoting homeownership was a major force in introducing such legislation to the congress. In October of 2015, the NAR president, Chris Polychron testified and offerd his support for H.R. 3700, Housing Opportunities Through Modernization Act, before the US House Financial Services Subcommittee on Housing and Insurance. The support and efforts of NAR for changes in FHA guidelines proved to be a success when the US Congress put their stamp of approval on the new reform legislation.

The new guidelines will also lower the 50% requirement previously set for owner-occupancy to 35%, which while replacing their transfer fees policy with less restrictive model offered by Federal Housing Finance Agency. The H.R. 370 will give the potential purchasers of condos access to more affordable and flexible financing tools as well as wider selection of condominium units to purchase through approval of more condo development by FHA.

Welcome

Get More Information

Address : 1555 St Lucie W BlvdPort St Lucie, FL 34986, United StatesPhone: +1 772-323-6730 Email: info@portstlucie.city

Learn All About Mortgage

mortgageGetting the Best Financing on Your Home

Although finding the best property that suits your needs is our main goal, but our other objective is to assist you in taking advantage of a lower interest rate and better home-loan terms for us as well.  Over many years of dealing with numerous lenders and financial institutions within the State of Florida, we have narrowed our list of the lenders down to the few top notch financial institutions.  This will allow us to assist you to get in touch with the ones that are the most useful match for both you and your financial picture.

Interest Only VS Interest Principal Loan

Interest Only Loans

In Interest Only Loan Programs the borrower will only pay the interest portion of the loans on a monthly payment schedule.  This program is not for everyone and all borrowers should be cautious when applying for interest only and know that their monthly payment will eventually increase substantially.  The loan term for interest only programs are generally set as 5 to 7 years limits.  Although the Interest Only Loans could be a great financial vehicle in some circumstances, but it although has some pitfalls that the borrowers should familiarize themselves to calculate if this is a right program for them.  The following is an example of the Interest Only Loans being beneficial for the buyers:

  • Short Term Hold- 
    • The borrower is certain they will resell the property in less than the 5 to 7 years when the payment of the principal becomes necessary.  For this reason, the Interest Only Loans have been very popular with investors who are not planning to occupy the property and their main goal is to gain profit by flipping the home for a higher price
  • Lower Initial Payments- 
    • For Borrowers who know their financial standing will improve in near future and wish to have lower monthly payments in early stage of the loan
  • Qualifying for a Bigger and More Expensive Home-
    • Since the initial monthly payments for the Interest Only Loans are much lower, the mortgage payments have less negative effects on their Expense/Income Ratio, which means the borrower could qualify for a larger mortgage loan.
  • Use of Funds for Investments with Better Yield-
    • The borrower is certain that the money allocated to the monthly payments for the principal could be used in other investments with much higher yield than the interest rate charged by the lender.

The standard mortgage loan for working individuals

Just because a homebuyer’s earnings history is not an indicator of a great wealth, or just because he or she are an hourly employee, that should not prevent anyone from owning their dream home.  Each financial company and many loan providers often underwrite loans based on their unique prerequisite requirements.  At times, this may not function as the most friendly terms and conditions for any salaried or per hour salary earner. We are familiar with lenders who are most likely to deal with you properly based on your financial standings and provide you with the most beneficial terms, and w will direct you to the right lender based on your situation.

The self–employed Homebuyers –

Since the real estate turmoil of 2007, obtaining a loan for an entrepreneur or self–employed individuals have turned into a more stringent process.  Income and expenses ratio is a lot more specific, and the borrowers’ vetting process has become more detailed.  For that reason, we have tried to stay up–to–date on new requirements. We could lead you to a number of solutions for excellent home loans programs that are tailored to the self–employed individuals and families.

Less than an Excellent Credit Rating

In the new financial era, many mortgage companies are becoming more stringent when it comes to the credit-worthiness of homebuyers.  On the other hand, the financial crisis has also had an adverse effect on Americans income and credit and having a lower credit score, unfortunately, has become more common than before the mortgage crisis.  All and all, while many individuals pay their expenses on time, but still do not possess stellar credit ratings.  We will try to assist you to find the loan companies within the Port Saint Lucie, St Lucie West, St Lucie, Stuart, Hutchinson Is, Hutchinson Island, Jensen Beach, and Fort Pierce real estate marketplaces who are willing to supply excellent home mortgages intended for lower FICO scores.

Adjustable Rate Mortgages, ARMs, and When They’re Acceptable

Although most residential real estate buyers are purchasing a house that they plan to occupy for several years, the national average is seven years.  Investors, on the other hand, are looking for a shorter ownership period.  Adjustable Rate Mortgages, ARM, are generally suitable when the strategy is to possess a property for fewer than five to seven years, particularly five years. The lower interest rate of ARM mortgages is another incentive for borrowers to use these type of loans.  ARMS could lead to a considerably less monthly mortgage payment, which makes it perfect for borrowers who will not hold on to the property for a long period of time. This could also allow a purchaser to be eligible for a larger mortgage which increases their buying power. Nevertheless, ARM is not commonly a good practice for families buying homes to live in.  The main reason remains in the fact that as soon as the ARMs reaches the time for payments of the principal, the loan costs can increase more than the estimated amount by the homeowner.  Also, any increase in the interest rate would have a significant effect on the amount of the monthly payments.

Financial Disclosure and Deal-To-Closing Factors

Following the mortgage and real estate crisis, the examining of the borrowers’ personal earnings and expenditure details by financial institutions and their underwriters are considerably tighter than before.  Be ready to start searching for records, and proof of payments.  We shall also emphasize on the transparency and honesty with lenders will become helpful when declaring financial facts that might have an affect on your ability to cover the loan payment.  Even when it is not requested by the lenders during the early stages, be ready for inquiries for additional paperwork later on.  Also, it is really a smart idea to not increase any charge card limits, obtain a new card or add to any other debt between the time of applying for a loan and the closing on the property.  Also, be advised that many lenders will perform an additional credit assessment prior to the closing to make sure no debt is added to change the Expense/Income Ratio.

Look at the Charges and Ask Questions –

There is a variety of charges related to obtaining a home loan ranging from appraisal fee to escrow of interest, tax, and insurance.  The origination fees along with other charges often amount to the largest expenses in the closing package.  Don’t be reluctant to check out all charges, why they are incurred and exactly how they are calculated.  It is your hard earned money, and as the client, it is your right to ask questions.

There is a variety of charges related to obtaining a home loan ranging from appraisal fee to escrow of interest, tax, and insurance.  The origination fees along with other charges often amount to the largest expenses in the closing package.  Don’t be reluctant to check out all charges, why they are incurred and exactly how they are calculated.  It is your hard earned money, and as the client, it is your right to ask questions.

Compare Mortgage rate

Most home buyers don’t realize how much extra an additional point, or even 1/2 or 1/4 pf point, will cost them on repayment of their mortgage during the life of the loan.  It is imperative to shop around to find the lowest mortgage rate, while avoiding extra fluff fees, by comparing quotes from a number of lending institutions.  The best place to start with is the bank or credit union that you work with.

Compare Mortgage Terms

Mortgage terms usually include the total number of mortgage payments, how many years, and interest rate.  The longer the term of the mortgage the more costly the mortgage will be.  The following example of $300,000 Mortgage with 3.79% Interest rate is a brief breakdown and comparison of these terms.

Description 10 Years 15 Years 20 Years 25 Years 30 Years
Monthly Mortgage Payments $3,008 $2,882 $1,783 $1,549 $1,396
Total Principal Paid $300,000 $300,000 $300,000 $300,000 $300,000
Total Interest Paid $60,900 $93,773 $128,380 $164,680 $202,619
Total Mortgage Payment $360,900 $393,773 $428,380 $464,680 $500,619

Refinancing A Mortgage

When it comes to refinancing of your mortgage there are many factors to consider to determin if the refinance is cost effective to save money on the repayment of your mortgage:

  • Is  the new interest rate lower at least by a point compared to your existing rate?
  • What is the overall cost of refinancing?
  • Consider the number of years you have to repay the new mortgage and compare it with the number of years you have been paying your current mortgage and how many years left if you stay with the same mortgage.
  • Please note that your monthly payments in the early years are mostly allocated for payment of interest and only a minimal amount goes toward the principal.  By the middle of the mortgage term, you reach a halfway point, paying 50% toward principal.  Consider if the refinance it worth going back to paying little toward principal again.

Welcome

Get More Information

Address : 1555 St Lucie W BlvdPort St Lucie, FL 34986, United StatesPhone: +1 772-323-6730 Email: info@portstlucie.city