Cody

The following was sent to all members of The Ebby Halliday Companies by President & CEO Mary Frances Burleson:

Today’s economic environment has created an exceptional opportunity to finance the purchase of a home.

In October 2011, the average Freddie Mac interest rate for 30-year fixed rate mortgages was an incredibly low 4.07%.

Mortgage rates are now at the lowest point since WWII. In fact, in 1945, the average mortgage rate was 4.70 percent as cited in “A History of Interest Rates” published by Rutgers University Press.

If you’re considering a home purchase, now is the time to act!

Call an Ebby Associate and a Home Team Mortgage loan officer today!

Tom

Owning a home is not only a dream come true – but a big financial investment.  With rates at historic lows, savvy homeowners can save thousands – sometimes hundreds of thousands – by refinancing their current loan.  Here are some advantages:

• Lower current monthly payments
• Pay off your mortgage faster
• Save money over the life of your loan
• Reduce fluctuating interest rate risk by converting from an adjustable rate to a fixed rate
• Possibly eliminate Private Mortgage Insurance
• Increase monthly cash flow to use for other major expenses or consolidate debts

Below is an illustration of the monthly savings that can be generated by refinancing into a lower rate – $188 a month or $2,256 a year!
 

Tom

Closing on a new home is exciting, yet costs associated with buying a home are often misunderstood.    Don’t let unexpected surprises hamper the experience, understanding the closing costs involved will give you peace of mind and make the entire process run more smoothly.  There are a few different categories of costs, let’s take a closer look.

Closing costs

Expenses for fees such as appraisals, attorneys, credit reports, processing, underwriting, deed recording, tax services, document prep and other miscellaneous lender and title company expenses are called closing costs.  These fees are for services performed by the lender, title company, or third party and charged to the borrower.  Closing costs are necessary and legitimate; however borrowers should inquire about any fee they don’t understand. 

Prepaid Expenses

Prepaid expenses include homeowner’s insurance, mortgage insurance, prepaid interest and if applicable, the costs required to establish an escrow account.  If a borrower has an escrow account, a portion of each monthly payment to the lender is deposited into the escrow account.  This account is managed by the lender and is used to pay for annual insurance premiums and taxes.  The amount that is collected at closing is based on the current tax bill and the first year’s hazard insurance premium along with an additional amount to cushion the account for future payments.  

Mortgage Points

Mortgage points, often called loan origination or discount, equal 1 percent of the mortgage loan amount.  These points help reduce the loan’s interest rate.  Generally speaking, it takes 5 years to realize the benefit of paying 1%.  Your mortgage professional can discuss further the advantages of paying points and whether it’s right for you. 

All these costs combined make up your settlement costs.  These costs can vary from lender to lender and Home Team Mortgage is eager to answer any questions and walk you through the process.  Find us at hometeammortgage.com and contact a qualified loan officer today!

Tom Parker is president of Home Team Mortgage, Ebby Halliday’s in-house mortgage source, and a regular contributor to the Ebby Blog.  Contact Tom at tom@tlpoffice.com or 972-665-1900.

Tom

You’re in the midst of buying your new home and find yourself with a lot on your to-do list.  The basic requirements including utilities, phone, and internet are often joined with new furniture, new décor, and a general “out with the old and in with the new” mentality.  It’s an exciting time and it’s easy to get carried away, but before you do, read the following list of do’s and don’ts to ensure your credit is protected—and so is your loan approval!

DON’T:

• Apply for any new credit
• Pay off collections or charge-offs
• Close credit card accounts
• Max out existing credit cards
• Consolidate  debt
• Pay late on any accounts
• Change employers, move or change your address
• Dispute anything on your credit report

Avoiding these items will help preserve your immediate credit and minimize the risk of your credit score dropping.

DO:

• Keep in touch with your loan consultant
• Watch your credit closely
• Stay current on all existing accounts
• Shop for hazard insurance early

These steps will give you peace of mind and contribute to a much smoother buying experience and an on-time closing.

Following these simple suggestions could make the difference between a loan approval and denial.  Contact your Home Team Mortgage loan officer for more guidance and gain peace of mind!

hometeammortgage.com

Tom Parker is president of Home Team Mortgage, Ebby Halliday’s in-house mortgage source, and a regular contributor to the Ebby Blog.  Contact Tom at tom@tlpoffice.com or 972-665-1900.

Tom

We all know that buying a home can be overwhelming, especially when you add in the loan lingo and acronyms used by lenders and real estate agents.  To help alleviate some of the confusion, below are some common terms (with explanation) frequently used in the mortgage process: 

FHA Mortgage

FHA is a type of mortgage that offers lower down payments, lower credit and less income to qualify.  These mortgages are government backed by the Federal Housing Administration. 

VA Mortgage

VA mortgages are loans catered to qualified veterans, active- duty military personnel and reservists.  These loans require no down payment and are guaranteed by the Department of Veteran Affairs.

Conventional Mortgage

Conventional mortgages are loans offering a wide range of options for borrowers.  Some features may include monthly or single premium mortgage insurance, second liens, and higher loan amounts. 

Fixed Rate Mortgage

This is a mortgage loan for which the interest rate is fixed for the life of the loan.  The principal and interest payment does not vary.  As with every loan, the escrowed portion of the payment may fluctuate up or down depending on the tax or homeowner’s insurance changes. 

Adjustable Rate Mortgage (ARM)

This is a mortgage loan for which the interest rate may change annually, often after a set number of years.  ARMs are tied to indexes which are used to determine changing rates to align with the current market.  The principal and interest payment may vary up or down, along with the escrowed portion of the payment.

Annual Percentage Rate (APR)

The APR illustrates the annual cost of financing, including interest rate, fees and charges and is expressed as an annual interest rate.  Because you may be paying loan discount points and other prepaid finance charges at closing, the APR disclosed is often higher than the interest rate on your loan.  This APR can be compared to the APR on other loan programs to give you a consistent means of comparing rates and programs.

Appraisal

The appraisal is a professional opinion of the value of a property.  The opinions are provided by certified and licensed appraisers who rely on market conditions and comparables to determine the value of the subject property. 

Mortgage Insurance

A type of insurance provided to lenders for protection against borrower defaults on the loan.  Loans with less than a 20% down payment require mortgage insurance.  The mortgage insurance premium can sometimes be paid upfront but is most commonly paid monthly in the mortgage loan.  Mortgage insurance is eliminated when the loan reaches a 78% loan to value. 

Pre Qualification

A process by which a lender assesses whether a borrower qualifies for a mortgage based on information provided by the customer.  Typically, a prequalification is an informal review as a preemptive to preapproval and full loan approval. 

Pre Approval

A process by which a lender verifies information including credit, income and asset information to assure the borrowers qualify for the mortgage.  A preapproval is much more powerful in negotiating as it provides peace of mind for buyers, sellers and agents. 

These are some of the most common terms of the many you’ll hear when buying a home – hopefully this breakdown will make your mortgage process easier to understand .  Home Team Mortgage is committed to explaining all of your options so you may have the utmost confidence in your most important financial decisions.  

Contact one of our qualified loan officers for any questions or to assist you in your home buying experience. 

hometeammortgage.com

Tom Parker is president of Home Team Mortgage, Ebby Halliday’s in-house mortgage source, and a regular contributor to the Ebby Blog.  Contact Tom at tom@tlpoffice.com or 972-665-1900.