Renee Prunier


Posted by Renee Prunier on 9/3/2018

An adjustable-rate mortgage (ARM) offers a home loan with an interest rate that may move up or down. Therefore, with an ARM, your mortgage payments may rise or fall depending on a variety of market factors.

For many homebuyers, an ARM remains a viable home financing option for a number of reasons, including:

1. Lower Interest Rate at the Beginning of Your Mortgage

An ARM enables you to purchase a home that may exceed your price range. As such, it frequently represents an ideal option for a young professional who expects his or her income to rise over the next few years.

With an ARM, you are able to lock in an interest rate for the first few years of your mortgage. For instance, with a 5/1 ARM, your interest rate will remain in place for the initial five years of your home loan. This means that your mortgage payments will remain the same for five years, then rise or fall based on market conditions.

Ultimately, an ARM may help you secure your dream home. In fact, an ARM often allows homebuyers to pay a lower interest rate at the beginning of a mortgage than the interest rate associated with many traditional fixed-rate mortgage (FRM) options.

2. Extra Savings for Home Improvements

If you choose an ARM with a below-average interest rate, you may be able to save extra money that you can use to improve your home.

For example, if you want to overhaul your residence's attic or basement or add an outdoor swimming pool, an ARM may help you do just that. Because you'll know exactly what you're paying for the first few years of your home loan, you can budget accordingly and invest in home improvements that may help you boost the value of your home.

3. Affordable Short-Term Financing

If you intend to live in a home for only a few years, an ARM may be preferable compared to an FRM.

In many instances, an ARM will feature a lower interest rate than an FRM. As a result, if you take advantage of an ARM, you may be able to secure a great house at an affordable price. Plus, if you sell your home before your initial interest rate expires, you can avoid the risk that your interest rate Ė and monthly mortgage costs Ė may rise.

Homebuyers should evaluate both ARM and FRM options. By doing so, a homebuyer can assess his or her home loan options and make an informed decision.

If you ever have ARM or FRM questions, banks and credit unions are happy to respond to your queries. These lenders will enable you to evaluate your financing needs so you can acquire your dream house.

Furthermore, consulting with your real estate agent may deliver immediate and long-lasting benefits. Your real estate agent can offer home loan recommendations and put you in touch with local lenders.

Dedicate the necessary time and resources to assess your home financing options, and you can move one step closer to securing your ideal house.




Tags: Mortgage   mortgage rates  
Categories: Uncategorized  


Posted by Renee Prunier on 8/13/2018

If youíre in the market to buy a home, youíre probably learning many new vocabulary words. Pre-approved and pre-qualified are some buzz words that youíll need to know. Thereís a big difference in the two and how each can help you in the home buying process, so youíll want to educate yourself. With the proper preparation and knowledge, the home buying process will be much easier for you.  


Pre-Qualification


This is actually the initial step that you should take in the home buying process. Being pre-qualified allows your lender to get some key information from you. Make no mistake that getting pre-qualified is not the same thing as getting pre-approved.


The qualification process allows you to understand how much house youíll be able to afford. Your lender will look at your income, assets, and general financial picture. Thereís not a whole lot of information that your lender actually needs to get you pre-qualified. Many buyers make the mistake of interchanging the words qualified and approval. They think that once they have been pre-qualified, they have been approved for a certain amount as well. Since the pre-qualification process isnít as in-depth, you could be ďqualifiedĒ to buy a home that you actually canít afford once you dig a bit deeper into your financial situation. 


Being Pre-Approved


Getting pre-approved requires a bit more work on your part. Youíll need to provide your lender with a host of information including income statements, bank account statements, assets, and more. Your lender will take a look at your credit history and credit score. All of these numbers will go into a formula and help your lender determine a safe amount of money that youíll be able to borrow for a house. Things like your credit score and credit history will have an impact on the type of interest rate that youíll get for the home. The better your credit score, the better the interest rate will be that youíre offered. Being pre-approved will also be a big help to you when you decide to put an offer in on a home since youíll be seen as a buyer who is serious and dependable.  


Things To Think About


Although getting pre-qualified is fairly simple, itís a good step to take to understand your finances and the home buying process. Donít take the pre-qualification numbers as set in stone, just simply use them as a guide. 


Do some investigating on your own before you reach the pre-approval stage. Look at your income, debts, and expenses. See if there is anything that can be paid down before you take the leap to the next step. Check your credit report and be sure that there arenít any errors on the report that need to be remedied. Finally, look at your credit score and see if thereís anything that you can do better such as make more consistent on-time payments or pay down debt for a more desirable debt-to-income ratio.





Posted by Renee Prunier on 3/12/2018

We all know that buying a home is expensive. For first-time buyers who donít have the luxury of equity for a down payment, it can be difficult to find a way to finance your home without taking on a huge interest rate and mortgage insurance.

Fortunately, loan programs like those offered by the U.S. Veterans Affairs can be a godsend. However, there is a great deal of confusion around who is eligible for VA loans and how to acquire them.

So, in todayís post, weíre going to cover some of the frequently asked questions of VA loans. That way, you can feel confident in knowing whether or not itís a good financing option for you and your family.

VA Loans FAQ

Who is eligible for a VA Loan?

VA loans arenít just for veterans. Most members of the military, including Reserve and National Guard members can apply. Additionally, spouses of service members who died from a service-related disability and those who died on active duty can apply as well.

How long do you have to service to be eligible?

The VA defines eligibility as having served no less than 90 days of service during wartime and 181 days of continuous service during peacetime.

Who are VA Loans offered by?

Like any other loan, VA loans are offered by private lenders. The difference is that VA loans are guaranteed by the government. That means that the federal government takes on some of the risk of lending to you, therefore making it possible to secure a loan with little or no down payment.

Should I make a down payment on a VA loan?

If you have the means, making a down payment will almost certainly save you money in the long run. If you can put down 10% of your total mortgage amount, you can also significantly reduce the VA Funding Fee.

Will I have to pay private mortgage insurance?

Private mortgage insurance (PMI) is something that borrowers pay on top of their mortgage payments and interest. This additional insurance helps borrowers buy a home with a small down payment. VA loans allow you to secure a mortgage without PMI.

Are VA loans different for active duty, National Guard, and Army Reserve members?

Each type of service member is eligible for a VA loan. However, there are some minor differences regarding the VA Funding Fee. With no down payment, an active duty member would pay 2.15% of the loan amount in fees. National Guard and Army Reserve members pay around 2.40% with no down payment.

What does my credit score need to be to get a VA loan?

The VA doesnít have a set minimum credit score. However, the private lenders that offer the loan do. On average, the lowest credit score that you can secure a VA loan with is around 620. That being said, a higher score will secure you a lower interest rate, saving you money over the lifetime of your loan.




Categories: Uncategorized  


Posted by Renee Prunier on 3/5/2018

If you are thinking of buying a home in the near future, thereís one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage. 


What Is A Credit Score?


Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, thereís a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:


Payment history

Debt-to-credit ratio

Length of credit history

New credit accounts opened


The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also donít want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up. 


Whatís A Good Score?


If youíre aiming for the perfect credit score, itís 850. Most consumers wonít reach that state of perfection. Thatís, OK because you donít have to be perfect to buy a house. If your score is 740 and above, know that youíre in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, youíll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.    



What If You Lack Credit History?


Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that youíre a responsible person to lend to. 


What If Your Score Needs Help?


It doesnít mean youíre a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if youíre buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, youíll be well on your way to securing a mortgage for the home of your dreams.        






Tags: Mortgage   credit score  
Categories: Uncategorized  


Posted by Renee Prunier on 7/27/2015

With mortgage rates at all time lows, you might be wondering if you should be considering refinancing your home. While it may seem like a great thing to do, there are a few things to consider before you decide. An obvious reason for refinancing to a lower interest rate is the monthly, and even more importantly the long term, savings you will get. Depending on the decrease in interest rate and the amount of the loan, you could see a savings of at least $50/month or $600/year or $6000/10 years. Refinancing to a shorter term loan can also help save on the interest you pay over the life of the loan so if you can afford a 15 year mortgage the benefits outweigh that of a 30 year. Some things to consider - If you have owned your home for a long time, your monthly payments are going more towards the principal of the loan, not the interest. Refinancing would cause you revert back to monthly payments of more interest than principal, losing the equity that you have built in your home. You may be charged for an appraisal on your home which can be around $500. The bank will want to make sure that you are refinancing for an amount your home is worth so some out of pocket expense is required. If you plan on moving in the next few years, refinancing may not be worth the amount you will pay in closing costs. There are several refinancing calculators available on the web including at http://www.zillow.com/mortgage-calculator/refinance-calculator/ and http://www.smartmoney.com/calculator/real-estate/should-i-refinance-my-mortgage-1302835660427/. No matter what you choose, being fully informed of all the options, costs and advantages/disadvantages is key to a successful refinance. Make sure you talk with you current lender, as well as other lenders to get the best refinance possible.




Tags: Mortgage   loans   refinancing  
Categories: Financing