Wednesday, April 25, 2012 at 03:38PM I met Keith Ashe today from Spendology. He runs a website which helps people setup a budget online in ten minutes. It looks like a great tool; take a moment and sign up: http://www.spendology.net
Monday, March 26, 2012 at 02:20PM Thanks to Trent Watts at Watts Media Productions, I now have fifteen different videos uploaded answering frequently asked questions about mortgages. I'm excited to share this new form of information with you all.
Tuesday, March 6, 2012 at 01:25PM Per President Obama's press conference today 3/6/12, it looks like he'll be cutting in half the mortgage insurance on FHA streamline refinances. We await additional information but this is great news thus far!
Friday, February 24, 2012 at 11:31AM Annual Percentage Rate, or APR, is the most commonly misunderstood term in borrowing.
The use of APR was required as of the Truth In Lending Act, the purpose being to help prospective borrowers understand the cost difference between rate offers.
APR, unlike the interest rate, offers a look at the true cost of financing by combining both the interest rate you'll pay over the life of the loan, plus the upfront closing costs paid to borrow the money. These two costs are calculated together into one rate.
In acquiring a mortgage, there are various closing costs. Only closing costs charged in connection with borrowing money are included in the APR calculation.
APR is not a perfect calculation of the true cost of financing. This is because you will have the opportunity to prepay your loan. The APR is only exactly accurate if you borrow for the full term of the loan. So when considering rate offers, make sure you consider how long you will hold your mortgage. The shorter you hold your mortgage, the less you want to pay upfront. I'm happy to go through specific examples with you.
Thursday, February 23, 2012 at 03:08PM 1. What the market is doing. The market for interest rates moves on a minutely basis and most interest rates rise and fall with the sale of mortgage-backed securities. More on this at a later time.
2. Your credit score. Mortgage rate pricing adjusts on 20-point intervals, the higher your credit score, the better the rate you'll get. This has the greatest effect on conventional loans.
3. Your down payment. Simply, the greater the percentage your down payment, the better a rate you will receive, all the way down to a 40% down payment.
4. Your loan amount. Different loan programs have differerent pricing, and are often determined by the amount borrowed.
5. Your lock term. The longer you "lock" your rate prior to closing, the higher the rate will be. Most home buyers lock for a 30 day term.
6. The type of property. Whether it's a single family, condo, or cooperative unit. Single family properties have slightly better pricing.
