Showing posts with label Fixed-rate mortgage. Show all posts
Showing posts with label Fixed-rate mortgage. Show all posts

Friday, May 29, 2015

Get Some Expert Help When Obtaining a Mortgage

Buying a house can be a very exciting time for you and your family, but trying to find ways to afford it can be stressful. It is vital to compare mortgage brokers so you will not only get the best service, but get an expert in this field. 

Great service includes putting you first; they don’t treat you as customer, but as a person. By being an expert, the mortgage broker will give you advice to help you when making critical financial decisions. 

Putting these two together, you want a mortgage broker who truly cares about you, but also has the expertise in the mortgage process. When choosing a mortgage broker, there are more things to consider such as the term, rates, and fees. 

Once you know everything, you are ready to choose a mortgage broker who will fit your lifestyle.

How to Choose a Mortgage Broker

There are many mortgage brokers out there, so the best way to choose one is through a referral. Ask any homeowner who their mortgage broker was, such as a friend, co-worker, or a family member. When asking your friend about their mortgage broker, find out about the customer service to see if they were treated fairly. 

If you want to go a little further, you can also ask your real estate agent for a referral. You don’t want to take their word for it, so ask questions about the broker’s experience, professionalism, and commitment. After talking to someone, you want to do further research by looking on their website and on any online reviews. After your research, interview a few mortgage brokers, and ask for references. 

It’s best to compare brokers, that way you can choose one that meets your needs. After this whole process is finished, you will develop a trusted relationship with your mortgage broker. 

Mortgage Broker Process

A mortgage broker is the “middle man” who works with you and a bank/mortgage lender to help you obtain a mortgage that fits your needs. A mortgage broker counsels you through the process of obtaining a mortgage and any problems that might occur, such as credit problems. 

When you meet the right broker, you will be asked to fill out an application with your financial information, which will then be put in a file that will be sent to the lender. After you finish filling out the paperwork, the mortgage broker will work with you to find the lowest rates available by looking up all the different banks/lenders. This is actually their greatest advantage. 

Once you are finished looking for a lender, the mortgage broker puts all your paperwork in a file and sends it off to the lender, who then gives you the loan. Having this type of professional makes everything much easier on you. It can be a stressful time in your life, but having this kind of help can make you treasure this milestone a bit more.


The interest rate is what the lender charges you to pay off your mortgage. There are two forms of interest rates: adjustable and fixed rates. An adjustable rate is when your interest rate will change over the course of your loan. 

When interest rates are low, adjustable rates are not the way to go because the rates are more likely to go up. The best time to have an adjustable rate is when the interest rates are high because it is more likely the interest rate will drop. A fixed rate, on the other hand, is when your interest rate stays the same each year. 

The best time to have a fixed rate is when the interest rate is low because you will have that same rate for the whole term of your loan, no matter what. Right now, a fixed rate is the best option because right now, the interest rate is low. When you meet with a mortgage broker, they will help you choose which option to have.


The term is the period of time in which you are going to repay the loan. The most common terms are fifteen and thirty years. When having a fifteen-year fixed rate mortgage, the interest rate is a little lower, but the monthly payment is higher than having a thirty-year fixed rate mortgage. 

Having a fifteen-year fixed rate mortgage, you will pay off your mortgage by the time your children enter college, which is great because you will get this done sooner rather than later. When having a thirty-year fixed rate mortgage, the monthly payments are lower than fifteen years, which allows you to have extra money and invest in other things.

There are many other options to pay off your mortgage such as 10, 40, or 50. Your mortgage broker can help you determine what’s best for you.


There are two common ways that homeowners pay their mortgage broker. The most common way is through a loan origination fee. This is when your broker charges you a certain percentage, depending on your loan. 

Therefore, if you have a high loan amount, your mortgage broker will charge you a low percentage, but if you have a low loan amount, you will be charged a high percentage. If you don’t want to pay your broker this way, another common way is upfront. 

Instead of paying your mortgage broker over time, you pay them right there all at once. Homeowners who buy expensive homes go for this type of fee. There are other options, but these are the most common among homeowners.

There are many aspects to obtaining a mortgage, and these aspects can be stressful. When this happens, it is a great idea to get a mortgage broker because they will help you with this long, stressful process. 

Be sure to weigh your options when it comes to a broker, in order to find the best service possible. To secure a mortgage, know all about the rates, terms, and fees. If you experience any questions, you always have that professional there to help you with everything.

Friday, October 4, 2013

How Much Home Can I Afford?

Obviously, everyone wants to own a home, and this can be easier as long as there is sufficient money to buy a new one. However, there are many ways and options to consider in buying and owning a home. The first thing that comes in mind when planning to buy a home is the amount of the house. If you are thinking of getting a home loan, then you should first determine how much you can afford for the home loan.

There are several factors to consider in getting a home loan since the payments can be on par. This makes sense in considering your current financial situation before deciding to buy a house. Likewise, you should also take into account your income, the credit history, debts and the cost of the house. In this way you can easily determine how much home you can afford to loan. Before making your final decision, it is important to consider some pointers.

Down Payment

One of the important pointers to consider in determining the amount of home that you can afford to buy is the down payment. Usually, home loan would require paying 20% down payment from the total house cost. However, you can also opt for non-standard loans that require lower amount of down payment. The downside of getting non-standard loan is the higher interest rates. This makes sense of asking for calculations before making your decision.

Income and Monthly Obligations

In determining how much home you can afford, you need to consider the monthly income and obligations. The mortgage company would require you to furnish the income details as well as the monthly obligations. These details will help the company in identifying the mortgage amount in which you can qualify. In calculating your loan capability, the mortgage company will check your credit card debts.

Interest Rate

Another factor to consider in determining the amount of home that you can afford to buy is the interest rate. Obviously, if the interest rate is lower, most likely you can afford buying bigger house. That is why home buyers should be aware about the prevailing interest rates in the area. It is also necessary to ask for quotes from different mortgage companies. In this way, you can compare which mortgage company can give you the best deals. In addition, you should also consider fixed rate mortgage than a variable rate mortgage. It is because the latter would impact your monthly obligations.


The cost of the property that you want to buy also depends on the location. If you want to own a home in a commercialized area, then you should expect for higher cost. You need to conduct thorough research if you want to find a property located in your chosen area yet with the price that you can afford. Usually, if the property is of close proximity to the city it would be more expensive.

Indeed, it is very challenging to find affordable property. Nevertheless, St. Louis real estate can help you in finding the home that you can afford. If you cannot afford to buy a home, there are other options to consider. All you have to do is to seek advice from mortgage companies.

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