US homeowners now have over 5 trillion dollars in home equity which is a very large amount of money! So this year may be the year for a lot of cash out refinances and other home equity mortgage products. Most often, when you are purchasing a home, you are buying at or below the appraised value and you are making a down payment. The good news is this means you have "instant equity" in your home. And over time you build more equity as you make your monthly mortgage payments as well as any … [Read more...]
What Changes Occurred In FHA And FNMA Rules During 2018?
The FNMA HomeReady Program Those who are involved in the mortgage industry must keep updated on changes to FHA, and Fannie Mae (FNMA) loans. Since loan limits and other changes are often made annually, keeping up with these changes helps make sure consumers get the right information at the time of their application. Many of the changes for 2018 are modest, but still impact existing, and new homeowners. Changes To Loan Limit Amounts FHA loan limits change on an annual basis as per the Housing and … [Read more...]
The Four Best Questions To Ask Before Refinancing Your Mortgage
1) Do I have enough equity to get a mortgage? To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan. If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment. 2) How's my credit? Most lenders will look at your credit score as a part of determining whether or not to make you a loan. With … [Read more...]
What Are The Benefits And Drawbacks Of Putting 20 Percent Down On A Home Purchase?
Several generations ago, lenders required home buyers to have a 20 percent down payment in order to get a mortgage. While there were a few options out there for people who couldn't save this substantial amount, the reality was that for the majority of people, the 20 percent down was a requirement. It was the way to show that you were financially responsible enough for homeownership. And it was a strong way that the banks felt secure in making a home loan. Today, however, homebuyers have many … [Read more...]
