Daily Interest Rates:
-
Type Rates APR
Type Rates APR -30-Year Fixed
30-Year Fixed-15-Year Fixed
15-Year Fixed-1-Year Fixed
1-Year Fixed-Jumbo 30-Yr Fixed
Jumbo 30-Yr Fixed-5/1 Arm
5/1 Arm-5/1 Jumbo Arm
5/1 Jumbo ArmRent vs. Buy What are the Benefits?:
-Property ownership
Property ownership -Appreciable asset
Appreciable asset -Equity
Equity-Ability to remodel and renovate
Ability to remodel and renovate -You can make all the noise you want!
You can make all the noise you want!3.73%
4.76%
3.46%
5.56%
4.67%
4.51%
4.60%
3.98%
4.96%
5.14%
5.66%
4.81%
5.15%
5.15%
Loan Calculators at the tip of your fingers
How Much Home Can I Afford
How Mush Home Can I Afford
The amount of loan for which you qualify is based on two different calculations. Using what are known as qualification ratios. Lenders evaluate your income and long-term debt to determine a "safe" amount for your mortgage payments. A fairly standard ratio is 28/33. Certain mortgage plans sometimes use more liberal ratios. For example the FHA currently use 29/41
Here's how it works: With a 28/33 ratio, you'd be allowed to spend up to 28% of your gross monthly income for mortgage payments. The lender will then run a different calculation. This one is you loan payment and debt payment combined, which may not exceed 33% of your gross monthly income. To calculate exactly how much you may borrow, you also need an estimate of current interest rates.
For Example: Suppose you had $1,000 a month for mortgage payment at 7% that would let you borrow about $160,000 on a 30-year loan. At 6% the loan amount would be nearly $175,000. If your rate were 8%, the loan amount would be a bit less than $150,000.
As part of this calculation, you also need to estimate and include the property taxes, homeowner's insurance, and Homeowners Association Dues (if applicable) you might need to pay, which are considered part of your monthly expenses.
Begin the home buying process by using my Mortgage Calculator on the left keys to determine how much you can afford, or visit a REALTOR or mortgage lender and they can analyze it for you. Don't know a lender? Call or email me today I have a team waiting to help you when you are ready.
Know Your Budget
Know Your Budget
There's no point wasting time and energy house-hunting before you know what you can afford! So your next step is t assess you finances:
***Compare Buying with Renting
***Find out about Interest Rates
***Understand YOUR Closing Costs
***Figure out your income, debt and down payment
***Calculate how much home you can AFFORD
Interest Rates and How the Change
Interest Rates and How They Change
As you start shopping for a home loan, first question of each lender will probably be "What's your interest rate? How much are you charging?"
Interest rates are usually depressed as an annual percentage of the amount borrowed. If you borrowed $120,000 at 10% interest, you'd owe interest of $12,000 for the first year. With most mortgage plans you'd pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe - and the next month you'd owe a bit less interest.
When your grandparents bought their home (putting at least half the purchase price down, by the way), their interest rate was probably around 4%-5%. Rates stayed the same for years at a time. Then in the years following World War II, things became more turbulent. As economic changes speeded up, rates began to change several times a year. By the 1980's, lenders were setting new rates on mortgage loans as often as once a week - and they still do today. When inflation his a high in the '80's, some mortgage loans carried interest rates as high as 17-18% and those who absolutely needed to buy, paid that much.
Rates dropped gradually through the '90s and by 1998 had reached their lowest rates in decades. Heading toward the millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents' days - and without 50% down payments either.
Closing Costs
On the day you actually buy your new home, in addition to your down payment and the prepaid property tax and homeowners insurance premiums. you'll need cash for various fees associated with the purchase. These expenses are known as Closing Costs and are paid by both buyers and sellers.
Some closing costs you pay up-front when you apply for a mortgage loan. That includes money for a credit check on all applicants and an appraisal on the property. Keep in mind that even if you don't eventually receive the loan, that money is not refundable.
Other closing costs are possible and should be considered when evaluating your financial situation. These may include but are not limited to:
* Title Insurance Fee;
* Survey Charge;
* Loan Origination Fee;
* Attorney Fees or Escrow Fees;
* Document Preparation Fee;
* Garbage or Trash collection Fees; and the big one
* Points - up - Front interest paid in return for a lower interest rate. Each point is one percent of the loan amount, Sometimes you can contractor the seller to pay your points.
NOTE: Consider closing costs when choosing one mortgage plan over another. The good news is that if your cash is limited, some mortgage plans allow the seller to pay some or all of your closing costs, such as title insurance, escrow fees, and points. Certain closing costs can sometimes be added to the amount of mortgage loan you're receiving.
Figuring Our Your Monthly Income
When you apply for a home loan (and even long before that, when you first speak to a REALTOR) the first question may likely be How much is your income? In making this determination lenders consider the income of all parties who will be owners of the property. Be prepared to provide a monthly accounting of all sources of income.
Figuring Out Your Monthly Debt
Lenders are interested mainly in your present monthly payments because they want to be sure you can handle the mortgage payment you'll be applying for. Different mortgage plans consider payments on any debt that won't be paid off within, for example, six months, nine months or a year.
Amount of Your Down Payment
Your down payment is paid in cash and is not included as part of the loan amount. The bigger your initial down payment, the smaller your loan, which reduces the amount of you payments.
How much you'll put down depends on the cash you have available and the amounts you'll need for closing costs and prepaid property taxes and homeowners insurance.
Mortgage plans have various down payment requirements and they can range from 0% down on a VA(Veterans Administration Loan) to between 3.5-5% down FHA - Federal Housing Administration Loan - to 20% down, the traditional amount for a conventional loan (there are now -depending on your good credit - downpayments as low as 3.5% on FHA and 5% on Conventional Loans!). In addition, special state programs for first-time buyers may set different sums, which are usually lower than conventional financing. Keep in mind these will have their own restrictions and guidelines you may or may not qualify for.
If you put less than 20% down on most loans, you'll be asked to protect the lender by carrying private mortgage insurance(PMI) Carrying PMI ensures that the debt is repaid if you default on the loan. This adds approximately an extra on and half a percent point onto the loan.
FHA mortgage in return for their low-down-payment requirements, also charge for mortgage insurance premiums(MIP)
I also have available for you a special Teachers Program if you qualify this loan is only $500.00 down!!
Choosing a Neighborhood - Neighborhood Programs
With so many homes on the market you'll never get anywhere unless you narrow you choices. You can begin the process by first identifying one or a few neighborhoods that are right for you by;
* Consider Local Factors; and
* Using Neighborhood Strategies
Factors to Consider When Evaluating a Neighborhood
When evaluating a neighborhood, you should investigate local conditions. Depending on your own particular needs and tastes, some of the following factors may be more important considerations that others;
* Quality of Schools
* Property Taxes
* Traffic
* Crime Rates
* Future Construction
* Proximity to; Schools, Employment, Hospitals, Shops, Public Transportation, Cultural Activities(museums, concerts, theaters, etc) Freeways, Airports, Beaches and Parks
Whether you're moving across the country or across town, you can count on the "Wildasinn" Team to help you through every step of the process.
Neighborhood Search Strategies
If you're a first time-buyer with limited financial resources, it's a wise purchasing strategy to buy a home that meets your primary needs in the best neighborhood that fits within your price range.
You can maximize your home purchase location by incorporating some of the following strategies into your neighborhood search:
* Look for communities that are likely to become "hot neighborhoods" in the coming years. They can often be discovered on the preiphert of tge most continuously desirable areas.
* Look for a home in a good neighborhood that is a bit father out of the city. If commuting is a concern, purchase a home is close to public transportation
* Look at the neighborhood demand by asking us whether multiple offers are being made, whether the involvement. You can also drive around neighborhoods and see how many "sale pending" and "sold" signs there are in a particular area (beware that many agent DO NOT post pending or sold signs in hopes you will call!)
* Look into purchasing a condominium or co-op, rather than a house, in a desirable neighborhood. This way you still may be able to purchase in a prime area that you otherwise may not be able to afford!
Closing Costs
Neighborhood Programs
Cleaning Your Credit
Comparison Shopping Can HURT Your Credit
FICO Score Estimator
What's a FICO® Score?
Your FICO® score is a number that tells lenders what kind of borrower you will likely be, based on your credit history. Your score is between 300 and 850 and lenders prefer borrowers with higher scores.
Use the Back Button to Return to the Top
DRE #01221986
