When is the best time to lock an interest rate? I get asked this question often as everyone wants the lowest rate. Interest rates, like stocks, change daily; it is hard to predict whether the rate will go up or down. It is best to see what your payment is at the current rate, and...
Tag: 18 Degrees
Post
WHAT ARE THE ADVANTAGES OF WORKING WITH A MORTGAGE BROKER?
One advantage of working with a mortgage broker instead of a banker is the lender credit. The lender credit is a credit towards closing costs. This credit represents the excess premium from the lender after paying the broker’s commission. Brokers get paid a fixed percentage of the loan amount from the lender for each transaction....
Post
SMALL BUSINESS ACT
The SBA is the Small Business Administration and offers business loans. The most common types refer to Sections 504 and 7(a) of the Small Business Act. If you’re looking for a small business loan to purchase commercial real estate or heavy machinery/equipment, then the 504 loan is the best choice. If you are purchasing a...
Post
FIRST THINGS FIRST
You’ve decided you want to buy a house but don’t know where to begin. You’re not sure what to do. First things first; Here’s where to start: • The first thing to do is check your credit, you will need a good credit score to get a good loan. Student loans, car loans, and credit...
Post
DO YOU HAVE A COLLECTION, CHARGE-OFF, OR JUDGMENT?
Can you get a mortgage if you have a derogatory item on your credit report, such as a collection, charge-off, or judgment? Maybe. Believe it or not, your credit score may be high enough to qualify even with the derogatory item on your credit report. Depending on the dollar amount of the derogatory item, it may...
Post
FINANCIAL PLANNING TOOLS
We are hearing that reverse mortgages are becoming more of a financial planning tool. Click on this article by one of the lenders to whom we can broker reverse mortgages, American Advisors Group, on 7 Ways to Use a Reverse Mortgage Loan as a Financial Planning Tool: http://bit.ly/2Cdjf5f If you are considering a reverse mortgage,...
Post
DODD-FRANK ACT
The Dodd-Frank Act includes a provision that a borrower must show an ability-to-repay a mortgage to qualify. It seems silly that a law had to be passed with this provision in it as you would think someone would not make a loan unless they knew it was going to be paid back. Nevertheless, this law...
Post
MORTGAGE PLANNING: 30-YEAR FIXED V. 15-YEAR FIXED
The shorter the term of the loan, the less interest you pay, and the sooner you pay it off. So, why not apply for and obtain the shortest-term loan possible? This makes good sense if you are comfortable with the payment. Let’s take a look at the following 3 scenarios, a 30-year fixed, 15-year fixed,...
Post
NEW CONFORMING LOAN LIMIT: WHAT DOES IT MEAN FOR YOU?
The Federal Housing Finance Agency increased the 2018 conforming loan limit to $453,100 and is projected to rise to $484,350 during 2019. What does this mean for you? Conventional loans in the amount of $484,350 and less are typically underwritten in accordance with Fannie Mae or Freddie Mac guidelines. Loans in excess of this amount...
Post
MORTGAGE APPROVAL: PROPERTY CONDITION
In order to get a mortgage, the property condition must be move-in ready; it must be habitable and safe. I often get asked if there is a list of items the house must have in order to meet the habitability standard, but there is not, as it is on a case-by-case basis. Here is a...