The difference between APR and actual note rate is very confusing, especially for First-Time Home Buyers who haven't been through the entire closing process before. When shopping for a new mortgage loan, you may notice an Annual Percentage Rate (APR) advertised next to the note rate. The inclusion of an APR is actually mandated by federal law in order to help give borrowers a standard rule of … [Read more...]
Top Five Market Factors That Influence Mortgage Rates
Timing the market for the best possible opportunity to lock a mortgage rate on a new loan is certainly a challenge, even for the professionals. While there are several generic interest rate trend indicators online, the difference between what's advertised and actually attainable can be influenced at any given moment by at least 50 different variables in the market, and with each individual loan … [Read more...]
Is Refinancing Worth It?
As rates are low, many people are trying to figure out if refinancing makes sense in their situation and it can be a challenging task if you do not understand what to calculate. Here is at least one way to figure out if refinancing makes sense -- focus on the net benefits of refinancing from the standpoint of lowering your interest rate. Although there are several reasons to do an AZ … [Read more...]
Understanding the FHA Mortgage Insurance Premium (MIP)
* Disclaimer – all information in this article is accurate as of the date this article was written * The FHA Mortgage Insurance Premium is an important part of every FHA loan. There are two types of Mortgage Insurance Premiums associated with FHA loans: 1. Up Front Mortgage Insurance Premium (UFMIP) - financed into the total loan amount at the initial time of funding 2. Monthly Mortgage … [Read more...]
Should You Refinance? 4 Possible Reasons Why It May Make Sense
A mortgage is generally the largest debt most homeowners have to manage. It's a good idea to give your personal real estate finance portfolio a check-up at least once a year. Since there are many reasons a homeowner may choose to refinance, we'll take a look at the four most common. 1. Mortgage Rates Drop: Typically, the most common reason that homeowners refinance their mortgage is to … [Read more...]
How Much House Can I Afford?
How much mortgage money can I qualify to borrow? This is typically the number one question mortgage professionals are asked by new clients. Of critical importance when considering mortgage financing: There is sometimes a difference between what a client ***can*** borrow and what they ***should*** borrow. In other words, what makes for a comfortable long-term mortgage payment? The … [Read more...]