Your Credit Scores is one of the main ways that mortgage
companies use to determine whether to approve your loan. The higher the credit
score the better. There are 4 main factors for determining your credit score.
They are past delinquency, length of credit, credit use, and mix of credit. The
reason that they use past delinquency is because failing to make payments in
the past makes it more likely that they will fail to make the payment again. If
these failed payments are more recent they affect the score more. With the
length of credit, the longer you have had credit the better that it is for your
score. Mixture of credit is very important as well. The best combination would
be that with revolving installment debt instead of just a credit card. Be sure
that before you go in for a loan that you check that your credit score is
correct because an estimated 4 out of 5 reports contain some sort of
misinformation. If you still have late payments on your report be able to
explain them to a lender.
Monday, June 24, 2013
Tuesday, June 18, 2013
Fixed Rate Mortgages: 15 year versus 30 year loans.
Depending on your situation, the best option for you might
be a 15 or a 30 year fixed rate mortgage. Each has its advantages. With a 30
year fixed mortgage you get a long term loan that the changes in the market
will not affect. Because it is a longer loan, the monthly payments are lower
and more manageable. This type of loan also can reduce some of your federal
income tax because you may be able to write the interest off. But because this
is a longer term loan, the interest rate is higher than a 15 year loan. A
15 year loan you are able to build
equity twice as fast and have a lower overall interest charge.
Tuesday, June 11, 2013
Right now could be the right time for you to refinance your loan
Why?
The
Federal Reserve Board is in charge of setting interest rates, because of the
economy we are in right now, they have set very low rates. This makes it a very
good time for refinancing.
Why should you refinance?
If
you refinance, you can take advantage of these low rates and you can shorten
your loans. Lower interest rates mean smaller payments. So lowering your
interest by any amount can lower your payments as well! Now, if you have a long
term loan like a 30 year loan, you can refinance to make your loan term
shorter. If you made your loan a 10, 15, or a 20 year loan you can pay off your
loan faster and cheaper!
ARM refinancing
If
you have an Adjustable Rate Mortgage, then refinancing might be a good step for
you. Even though you have these great rates right now, this might not always be
the case. Refinancing to a fixed rate would allow you to not have a major jump
in your payments due to interest rates.
If you or anyone you know is looking for a low
rate with a local company give us a call (757)552-7000. Right now Consumer
Mortgage has a 10 year rate at 2.625% and A.P.R. of 2.626%
Tuesday, June 4, 2013
The VA Streamline Refinance (IRRRL) Loan
The Interest Rate Reduction Loan allows you to refinance
your current mortgage interest rate to a lower rate than you are currently
paying. The Streamline Loan is very popular because of its ease of use. It is very
simple to lower your interest rate and experience savings. In most cases, an
experienced loan officer will have your loan closed in two weeks. VA refinance
closing cost can be rolled into the cost of the loan allowing the veterans to
refinance with no out of pocket cost. There is no appraisal or income proof in
the VA Streamline Loan. To qualify for the VA Streamline, you must be current
on your mortgage with no 30 day late in the past 12 months. You cannot receive
any cash out on the IRRRL. The only other conditions are that your loan must be
a VA loan and have a credit score of at least 640. It’s that simple! So check
out our website www.consumermtg.com or
give us a call at 757-552-7000 or 1-800-882-0066.
Subscribe to:
Posts (Atom)