I am at the train park in Scottsdale, located at Indian Bend and Scottsdale Road. This is a popular location where families bring their young children to play and ride on the train. A common question amongst young families is how to buy a home, and how much down payment is needed. The best loans in terms of repayment require a small down payment. If you have excellent credit, a conventional loan requires as little as 3% down. If you have less than perfect credit, a FHA loan requires 3.5% down. There are some lenders offering 1% down, but there...
Video Blogs
BUYDOWNS – FIRST-TIME HOMEBUYER VIDEO SERIES
With mortgage interest rates rising, buyers are looking for ways to reduce their payment. One way to do this is with a buydown. There are temporary and permanent buydowns. Temporary buydowns are trending. Temporary buydowns reduce the rate one year at a time, gradually increasing to the negotiated rate. Temporary buydowns can be 3/2/1, 2/1, or 1/0. A 3/2/1 buydown means the rate is reduced by 3% for the first year of the loan, 2% for the second year of the loan, and 1% for the third year of the loan. For example, if today’s rate is 7%, then the...
August 24, 2023August 24, 2023john
MULTI-FAMILY FINANCING – INVESTOR VIDEO SERIES
The type of loan available depends on the number of units you are purchasing. If you are purchasing up to a 4-unit property, you can get a 30-year fixed mortgage. However, if you are looking for an apartment building or multi-family 5+ units, lenders consider this commercial financing. These loans are typically fixed for 5 or 10 years, and then will adjust. The closing costs for commercial loans are typically higher. If you are looking to buy multi-family properties, but are unsure as to what lending options are available, give us a call, we can help. We are mortgage brokers...
August 7, 2023August 7, 2023john
APPRAISALS – FIRST-TIME HOMEBUYER VIDEO SERIES
You entered into a contract and agreed to a purchase price with the seller. You are applying for a mortgage, and the lender asks if you are ready to order the appraisal. What is the appraisal and why is it necessary? An appraisal is an independent opinion of value provided by a licensed appraiser. The lender requires an independent appraisal of the property to assure that the agreed-upon contract price is representative of the value of homes in the area. The lender will rely on the appraiser’s opinion when approving the loan. So, if the appraised value is less than...
August 5, 2023August 5, 2023john
INVESTOR VIDEO SERIES – CAN I QUALIFY TO PURCHASE AN INVESTMENT PROPERTY?
If you can qualify for a primary residence, you can probably qualify to purchase an investment property. When purchasing an investment property, the appraiser prepares a schedule of market rents. The lender takes 75% of the rents on this schedule and subtracts the proposed mortgage payment. This amount is then added to your income or debts. Thus, if your debt-to-income ratio is sufficient to purchase a primary residence, you can likely pick up an investment property. If you want to invest in real estate and need help determining whether you can qualify, give us a call. We have helped many...
July 25, 2023July 26, 2023john
INVESTOR VIDEO SERIES – ROI AND CASH FLOW
Return on investment (ROI) and cash flow are factors to know when purchasing an investment property. For example, let’s assume you put $100,000 down on a property, rent it for $3,000 per month, and your expenses, including mortgage, are $2,400 per month. The cash flow is $600 per month income, which totals $7,200 per year. In order to determine the annual ROI, the annual income is divided by your initial investment, in this case $7,200/$100,000 = 7.2% ROI. Note this calculation does not consider the payment of principal on the loan (which would result in a higher ROI) nor potential...
July 23, 2023July 23, 2023john
ANOTHER LENDER TO WHOM WE CAN BROKER – UNITED WHOLESALE MORTGAGE
Our account rep, Mike Stein from United Wholesale Mortgage (UWM), recently flew in from Michigan to visit us to see how they can help our business. UWM is the #1 wholesale lender in the Nation, and their owner recently bought the Phoenix Suns. The only way to get a loan from UWM is to work through a broker, like us. They provide great speed, service, and technology. They offer a variety of programs including low down payment, government, jumbo and construction loans. As Mike says during the video, by working with a broker, you can save an average of $9,400...
June 6, 2023June 17, 2023john
ATTENTION FIRST TIME HOMEBUYERS!
Are you looking for a home loan, but don’t know where to start because you don’t know anything about home loans? You’ve researched on-line and found many different programs, but do not know which program is right for you. Should you put a little money down, no money down, or a lot of money down? What is mortgage insurance and will you have to pay it? Should you apply for a FHA loan, VA loan, USDA loan, or conventional loan? Will your payment be the same as your rent, more than your rent, or less? If it will be more...
June 4, 2023June 17, 2023john
ARE YOU LOOKING FOR A COMMERCIAL LOAN?
Are you looking to purchase a plaza, office building, apartment complex, gas station, or some other type of commercial real estate? We can help you with these loans. We are a mortgage broker and have relationships with many lenders to find the best terms for your investment. As you know, the rate and terms of the loan are integral to your return on investment. We just recently were able to offer a client 5 different proposals from different lenders to consider for their commercial real estate purchase. We can help you, too. Give us a call. We work for...
May 25, 2023June 17, 2023john
ANOTHER LENDER TO WHOM WE CAN BROKER – PENNYMAC TPO
As a mortgage broker, we can broker to many different lenders. Here we feature Pennymac TPO. We have brokered conventional and government loans to them. They have a great process and support. These are important considerations when choosing a lender. We are in the people business, and it is important to have a support team who can respond and resolve any issues that may arise. They also have competitive rates and programs. Just another advantage of working with us, as we can shop lenders to find the best loan for you. John Rapasky Counsel Mortgage Group, LLC www.counselmortgage.com Licensed in...
April 6, 2023June 17, 2023john