All posts by : localmortgage

Using a Mortgage Calculator to Get an Accurate Picture of Long-Term Costs

When you’re considering purchasing a home, getting an accurate picture of long-term costs can help you make smart financial decisions. Mortgage calculators can show you how much your payments will be, depending on the factors that you input.

Your monthly mortgage payment depends on a number of different factors, including the home price you choose and your down payment. Your loan term, property taxes, homeowners insurance and interest rate also can affect your monthly payments.

How to Use a Mortgage Calculator
The best way to get an accurate idea of your mortgage payment is to enter some basic information about the home you’re interested in. Once you’ve entered your home price, down payment and mortgage interest rate, you can see how your monthly payments will work out by clicking the “Calculate Your Payment” button.

Our mortgage affordability calculator is a tool that can help you figure out how much house you can afford based on your income, debts and credit score. It will also let you estimate your PITI, which is the total amount you’re required to pay on your mortgage each month.

A PITI should never be more than 43% of your gross income. It should include your principal and interest, property tax, insurance and condo or homeowner association (HOA) fees if you have them.

Using a mortgage calculator is the fastest and easiest way to get an accurate estimate of your monthly mortgage payments, but it’s important to be aware of some common mistakes that could cause you to end up paying more than you should.

1. Don’t assume you will get a mortgage at the advertised rate, which may be higher than what you’re actually able to get.

2. Don’t assume you’ll be able to avoid private mortgage insurance, which can cost you a lot of money in the long run.

3. Choosing the right mortgage lender can make all the difference in your financial future.

4. Getting your finances in order before you start looking for a new home is the best way to save on mortgage costs and get the home you want.

5. Using a mortgage calculator can help you decide what type of home you can afford and determine whether you can afford to make a larger down payment.

6. Buying a home can be stressful, but a mortgage calculator can help you understand what your financial situation is and how to make the best decision for your family’s long-term needs.

7. Find out when to get rid of private mortgage insurance

The magic number that allows you to request that your lender waive your private mortgage insurance is 20 percent equity in your home. Unless you have this much equity, you’ll need to pay a fee each month on top of your mortgage payment.

A mortgage calculator can also help you figure out when to take advantage of lower interest rates, which are often available to first-time home buyers. Depending on the type of mortgage you’re looking at, these rates can range from 0.5% to 2% lower than the standard interest rate for the same loan term.

What Questions Should I Ask My Mortgage Broker Before Closing?

Buying a home is one of the largest financial transactions in most people’s lives, so it’s important to have the right mortgage for your needs. Not every lender will offer the same types of loans and terms, so it’s essential to do your homework when looking for a lender.

You’ll also want to make sure that you have an experienced and trustworthy mortgage broker by your side, so that they can guide you through the process. They’ll help you answer some of the most common questions, and give you an idea of how to find the best lender for your needs.

What Are My Closing Costs?
It’s important to ask your mortgage broker what the total amount of money you’ll need to pay for your loan. This includes any pre-paid items (like property taxes or homeowners insurance) as well as the closing costs shown on your Loan Estimate, which they’ll provide to you in advance.

The Closing Disclosure is another piece of paperwork that your mortgage broker will prepare for you, which will detail all of the closing costs and other fees that you’ll be responsible for. It’s important to understand this information so that you can ensure that you have enough cash on hand to complete your transaction, or so that you know what you might need to do to make the deal more affordable.

Will I Have to Pay Private Mortgage Insurance?
PMI is an additional expense that many lenders will charge borrowers who don’t put down at least twenty percent of the home’s purchase price. This extra insurance is a great way to protect your lender in the event that you default on your mortgage.

A mortgage broker will be able to explain the process of getting this insurance, so that you can see what your monthly costs will be before committing to any type of financing. This is a good opportunity to ask your mortgage broker if they can handle the underwriting for you, or if you’ll need to do it yourself.

Will I Be Able to Get a Mortgage Rate Lock?
Getting an interest rate lock is a great way to ensure that the interest rate you’re approved for will remain the same until you close on your mortgage. Be sure to ask your lender about current market rates, how long the rate lock will last and if they’ll charge you any sort of fee for it.

Are You a Good Fit?
If you’re a first-time homebuyer, it can be overwhelming to try to figure out which loan will work best for you. Your lender should be able to walk you through the different options available, including government-backed and conventional loans. They’ll also be able to tell you how much down payment you’ll need and which loan types are better for your situation.

Is It Easy to Refinance?
Refinancing can be a great way to save on interest and pay off your mortgage more quickly. But it’s not something to rush into, so be sure that your lender is willing and able to talk you through the process, as well as the fees and requirements associated with refinancing.

5 Steps to Finding the Right Mortgage Broker for Your Needs

Getting the right mortgage broker can help you navigate the financial aspects of buying a home. They can help you find the best lender for your situation, provide advice on the loan process and offer other mortgage-related services. But finding the right mortgage broker can be difficult, so its important to make sure you choose one that will suit your needs and ensure a smooth mortgage experience.

1. Ask For Recommendations And Review Site Reviews
Its a good idea to get referrals from friends, family and real estate agents when searching for a mortgage broker. You can also check online reviews to see what other homeowners have said about their experiences. Its also a good idea to read the Better Business Bureau (BBB) website for any disciplinary actions that have been filed against the broker.

2. Check Their Licensing And Insurance
A mortgage broker should be licensed and insured. This will protect you in the event they are negligent or if something goes wrong during the application process or during the closing.

3. Look for Experience And a Long-Term Relationship
Its best to find a mortgage broker who has been in the business for a while and can understand your personal situation. A mortgage broker with years of experience will be able to help you find the best mortgage option for your home and your budget.

4. Compare Rates And Fees
A good mortgage broker will have access to a wide range of lenders and loan products. This can help you save time by shopping around and getting multiple quotes for mortgage rates and fees.

5. Check Their License And Insurance
The broker should be licensed in your state. They should also have errors and omissions insurance for liability protection, as well as malpractice coverage.

6. Meet In-Person
Its always a good idea to meet in person before you begin working with a broker. This will give you a chance to ask questions and get a feel for their personality and professionalism.

7. Check Their Fees And Terms Of Service
It’s important to know how a broker charges their fees. They may charge a flat fee or a percentage of the loan amount. Be aware of these fees and make sure you know whether they will be rolled into the loan or waived at closing.

8. Be Ready To Negotiate
Even a quarter or half a percentage point in interest over the life of your loan can mean thousands of dollars in additional costs. Therefore, its essential to be prepared and be willing to negotiate to get the best mortgage terms possible.

9. Talk To The Lender About Your Income
A lender will need to take a look at your income, including any commissions or other streams of income. They will also need to see your W-2s, pay stubs, bank statements and other documents that show you have enough income to purchase a home.

Having all the information you need about your loan options and how to find the best mortgage is crucial in helping you choose the right lender for your unique financial situation. Its also critical to be ready to go over all the details of your loan, including your monthly payments and how much interest you will be paying.

Exploring Different Types of Mortgages and Rates With Your Mortgage Broker

There are many different types of mortgages to consider when buying a home. Your mortgage broker will be able to help you find the one that best fits your needs and budget.

Mortgages are regulated by the government, so youll want to make sure the loan you choose meets the Qualified Mortgage standard before you agree to it. Getting prequalified or preapproved can speed up the home-buying process.

Depending on your situation, you may have to choose between a fixed-rate or an adjustable-rate mortgage (ARM). In general, ARMs are more risky than fixed-rate mortgages because they can change your interest rate and monthly payments over time. However, they do provide borrowers with an introductory rate that can help them save money when they purchase a home.

The ARM is a common type of mortgage because it offers lower rates than traditional fixed-rate loans. They are often tied to an introductory interest rate for the first two years, which can help you save money in the long run.

They can be difficult to qualify for, but they can help you buy a home sooner than you think. They are also available to borrowers with less-than-perfect credit or for those looking to finance a high-risk property.

You should always shop around for the best mortgage rate. Check your banks website, compare the offers of online lenders that dont have physical branches and talk to multiple brokers in person and on the phone to see which offer is most attractive for you.

Once you have a few quotes, its important to examine each lenders interest rates and annual percentage rates (APR). This will give you a better understanding of what youll be paying over the life of the mortgage.

Its also important to consider other costs besides your mortgage rate, such as fees, closing costs and private mortgage insurance premiums. These expenses can add up to hundreds of dollars over the life of your mortgage.

The type of mortgage you choose is an important decision that will affect your finances for the next 20 or so years. Choosing the right mortgage can save you money in the long run, so take your time and work with a lender who will clearly explain your options.

Whether you are a first-time buyer or an experienced real estate investor, a mortgage is one of the biggest purchases you will ever make. Its crucial to get the best mortgage rate possible, so that you can afford to make your monthly payment and keep your debt-to-income ratio under control.

If you have a good credit score, saving up enough for a down payment and putting at least 5% down is a good way to ensure that your mortgage rate stays as low as possible. In addition, having a large down payment and equity in your home will help you avoid having to pay PMI.

When youre ready to apply for a mortgage, contact your local lender or mortgage broker to discuss your financial situation and your goals. Getting preapproved is an important step in the home-buying process, as it shows sellers that youre a serious candidate for the home.

The Definitive Guide to Getting a Mortgage and How to Make the Process Easier

The Definitive Guide to Getting a Mortgage
most of us are familiar with the concept but navigating the minefield of a remortgage, a refinance or a complete rebrand isn’t as straightforward as it sounds. The challenge is to find a suitable lender and to get a handle on your finances as soon as possible and not leave it up to chance. This isn’t to say it’s an easy task, but with a bit of planning and forethought your dreams of home ownership may be closer than you think. The best way to do this is to enlist the aid of an experienced broker – your man in the mortgage department will be more than happy to help.

The Benefits of Shopping Around for the Best Rates With a Mortgage Calculator

Shopping Around for the Best Rates with a Mortgage Calculator
With mortgage interest rates still relatively low compared to historical highs, it’s more important than ever to shop around for the best rate. That’s because not all lenders offer the same terms and benefits, and higher rates can mean higher monthly payments for homebuyers.

A Mortgage Calculator is a calculator that takes into account a variety of different factors to determine your monthly mortgage costs and estimate what you can afford. This includes things like your down payment, loan term and interest rate as well as additional expenses like property taxes, homeowners insurance and HOA fees.

The Benefits of Shopping Around for the Best Rates with Using a Mortgage Calculator
The first and most obvious benefit is that it can help you budget your mortgage costs. Unlike an amortization table, which estimates the total amount of principal and interest you’ll pay over time for a particular loan, a mortgage calculator will show you how much you can actually afford to spend on a home with a specific loan type.

It can also help you figure out if you can make a bigger down payment, which will reduce your total cost of owning the home over time. A mortgage calculator can also provide you with a more accurate picture of how much you’ll need to spend on closing costs, which are typically about 3% to 6% of the purchase price of your new home.

A mortgage calculator can also help you decide if it’s worth paying discount points to lower your interest rate. The calculator will tell you how many months it would take for discount points to pay for themselves, as well as the monthly mortgage payments and net interest savings from the lower rate.

In addition, a mortgage calculator can help you decide how to split your down payment between the down payment and monthly mortgage payments. The calculator will allow you to add a down payment to the loan balance, which could decrease your monthly mortgage payments by lowering your interest rate or by increasing the length of your loan term.

The calculator can also include a section for other homeowner expenses, such as property taxes and private mortgage insurance (PMI). These numbers are optional but can be helpful in giving you an idea of what your overall monthly payments may look like once all of these additional costs have been included in your calculation.

Another benefit of a mortgage calculator is that it can help you compare the cost of a loan with a number of other loan options. If you want to save money on your new mortgage, it’s essential to compare loans based on their total cost, including lender charges, credit, and closing fees.

A recent Freddie Mac study found that borrowers who shopped around for their mortgage loan and got quotes from three or more lenders saved about three times as much as those who shopped with one lender. The Freddie Mac study also found that getting multiple quotes from different lenders increased the likelihood that a borrower could secure a lower interest rate.

What Is a Mortgage Calculator and Why Should You Use One?

What Is a Mortgage Calculator and Why Should You Use One?
A mortgage calculator is a tool that allows you to estimate the cost of your mortgage based on specific inputs, such as home price, interest rate, loan amount and term. These calculations can be useful to determine whether you can afford to buy a home or if refinancing would make sense for you.

The calculator’s main function is to provide you with an accurate and realistic picture of how much your monthly mortgage payments will be based on your income, expenses and other factors. It does this by creating a variety of scenarios, including the effect of different home prices on your payment and how your monthly debts impact the total costs.

It also enables you to compare multiple scenarios and make decisions that are right for you. It can help you save a lot of time and effort, as you don’t have to sit down with a lender to determine your eligibility.

You can use a mortgage calculator before house hunting, to find out whether your budget is sufficient for the purchase of a home. This is an especially helpful tool for first-time homebuyers, who may not be familiar with the mortgage process.

This will help you understand the total financial costs of owning a home, which include your mortgage payment, property taxes and homeowners insurance. In addition, you should consider recurring costs such as homeowner’s association fees and maintenance expenses, which typically increase with time.

Using this calculator will also give you an idea of how long it will take you to pay off the mortgage and how much money you’ll be saving in interest over the life of your mortgage.

It will also let you know how much you can afford to spend on a mortgage each month and how much of a down payment you’ll need. You can also use it to determine how much interest you’ll save by paying off the mortgage early or reducing the length of the term of your mortgage.

The best mortgage calculators are designed to give you an understanding of the entire mortgage process. They can help you learn about the criteria lenders use to determine your credit worthiness and eligibility, and they can also give you an idea of what kind of payment you can expect based on your income and expenses.

A good mortgage calculator is essential for anyone interested in buying a new home or refinancing their existing mortgage. It will help you save time and effort, and it can provide a solid foundation on which to build your house hunting or refinancing experience.

When you’re ready to make a mortgage, it’s important to get the right home loan for your situation. The right loan will allow you to repay your mortgage faster and save on interest.

This will make your home ownership more affordable and help you avoid being forced into foreclosure. It will also prevent you from overspending your income and making unnecessary purchases.

How to Choose the Best Mortgage Refinance Lender For Your Needs

When you need to refinance your mortgage, it’s important to find the right lender. Not only can this help you save money on your monthly payments, but it also can allow you to access your home’s equity for any needs you have.

The best mortgage refinance lenders offer a variety of loan options and are able to provide competitive rates. But not all lenders are created equal, and choosing the right one for your specific situation can be challenging. Here are some tips to help you narrow down your search and choose the right lender for you:

Credit score & debt-to-income ratio (DTI)
Lenders will give you the best rates when you have good credit and a low DTI. This means you’re able to pay your bills on time and keep your other debts manageable. Having high debts can lead to higher interest costs, and lenders are more likely to reject your application.

Get preapproved for a mortgage
Before you can apply for a refinance, you need to have a clear idea of how much your current mortgage is, and what type of loan you’re looking for. This will ensure you don’t apply for a loan that is too large or too small for your needs. If you’re unsure of how much your home is worth, start by using the mortgage calculator on Zillow or other websites to estimate the value of your property.

Shop for the best mortgage rate and fees
When shopping around for a new mortgage, it’s always wise to get quotes from at least three lenders. That way, you can compare the different offers side by side and see which loan amount and interest rate is best for your goals.

Ask for a breakdown of all fees associated with each lender’s offer and how those will affect your payment. These can include things like loan origination, processing and appraisal fees. These fees can add up to a significant sum, so it’s important to understand them and how they will affect your overall cost of borrowing.

Avoid a “no-closing-cost” refinance
Many lenders will offer a no-closing-cost mortgage that eliminates the need for you to have cash ready at closing, but it’s important to understand that these loans usually come with higher interest rates and lower loan amounts than traditional ones.

Consider a cash-out refinance if you want to use the funds to pay off your existing loan, make home improvements or finance other expenses. These loans typically have slightly higher interest rates than traditional loans, but the extra cash you’ll have at closing can help you achieve your financial goals more quickly.

Don’t just focus on the lender you choose; it’s also important to make sure you work with a reputable loan officer who will help guide you through the process and explain all of your options. You can check reviews of individual mortgage professionals online to make sure they’re knowledgeable about your specific needs.

You may also want to consider a mortgage company that has a reputation for fast, convenient and easy-to-use mortgage services. Companies such as Better offer all-online mortgage processes and handy user dashboards that make the entire process streamlined. In fact, the company claims to close mortgages about 10 days faster than industry averages.

Whether youre buying your first home or refinancing to take out more money, finding the best mortgage rates & terms is an essential part of securing a loan. Even a few percentage points can make the difference between being able to afford your monthly payments or paying tens of thousands of dollars more over time.

There are a number of ways you can save money on your mortgage rate, from lowering the interest rate youre offered to making other changes throughout the life of your loan. Weve rounded up some tips to help you get the most competitive mortgage rates possible.

1. Get a Fixed-Rate Mortgage
A fixed-rate mortgage offers stability for your monthly payment and overall interest costs over the life of your loan. However, it does come with a higher upfront cost and can be difficult to adjust for future economic changes. A better option is an adjustable-rate mortgage (ARM), which offers the same lower interest rate over the life of the loan but can have a lower initial rate and adjust to a higher one at specific times during the loans term.

2. Shop Around
Shopping around for a mortgage is the best way to ensure youre getting the lowest rate available. It can take a little time, but its worth the effort.

You can start by contacting several different lenders to see which ones offer the best mortgage rates based on your financial situation. Check with your local bank or credit union, as well as mortgage brokers and online lenders like LendingTree.

3. Improve Your Credit Score
Raising your credit score is an important step for any borrower, but it can be especially helpful when securing a low mortgage rate. You want a credit score thats 720 to 740 and above before applying for a mortgage, according to NerdWallet.

4. Select a Mortgage Type That Fits Your Needs
There are several types of loans that you can apply for when buying a home, including conventional and government-backed loans such as FHA, VA and USDA. Depending on your financial circumstances, each has its own set of requirements and features.

5. Choose a Fixed-Rate Mortgage
If youre a first-time buyer or planning to stay in your home for the long haul, opt for a fixed-rate mortgage instead of an ARM. A fixed-rate loan means that your mortgage payment wont change during the term of the loan, which can be a great advantage if you plan to move in a few years.

6. Boost Your Down Payment
A big down payment will help you qualify for a better mortgage rate, but if you cant put much money down on a home, its a good idea to boost your savings to cover the difference between what you can afford and what you can afford to pay.

7. Choose an ARM Thats Right for You
ARMs offer a lower initial interest rate, but they also have other features that can increase your monthly payment or trigger pre-payment penalties. Consult with multiple lenders and make sure you understand the risks of an ARM before signing on.

How Mortgage Brokers Can Help You Get the Best Home Loan and Save Money

How Mortgage Brokers Can Help You Get the Best Home Loan and Save Money
Getting a home loan is a big decision, but one that doesn’t need to be complicated or stressful. A mortgage broker can make the process much easier and faster by sourcing mortgage products from different lenders and assisting you through the entire process.

They Can Find Low Rates and Good Terms for You
A good mortgage broker will have a good network of lenders that they work with, and may be able to get you lower rates than you would get from applying directly to a lender yourself. A broker can also help you negotiate the terms of your loan and make sure you’re satisfied with the final deal.

They Can Help You with a Challenged Financial Situation
If you’re struggling to qualify for a mortgage due to a bad credit score or other issue, brokers can help you find lenders that will work with your situation. These lenders often have more flexible credit requirements and can work with borrowers who are self-employed or otherwise unqualified for traditional mortgages.

They Can Help You Compare Loan Programs From Multiple Lenders
When comparing loans from multiple lenders, it’s important to understand how each mortgage option works and what costs are associated with them. A broker can help you identify the key features that are most important to you and bring them to your attention.

They Can Also Explain Your Options With A Simple Loan Estimate
When you’re shopping around for a mortgage, it’s a good idea to compare the terms of several different loan programs with a mortgage broker so that you can choose the one that works best for you. This can be time-consuming, but it can also save you a lot of money over the long run.

They Can Help You with the Application Process
A broker can help you submit your mortgage application online and answer questions about your credit history and other information that’s required for your mortgage. They can also make sure the paperwork is complete and submitted to the bank on your behalf.

They Can Help You With the Closing Costs and Refinancing Details
Brokers often offer rebates for borrowers when closing costs are high. These can range from 1% to 2% of the total mortgage amount and can be paid by you at closing, rolled into your loan or added to your interest rate.

They Can Save You from a Broker Scam
If you don’t do your homework before choosing a mortgage broker, you can end up with a broker who will rip you off or work for the benefit of the lender instead of your own best interests. It’s always a good idea to check a broker’s fees, how they’re compensated and their track record before hiring them.

They Can Give You a List of Must-Haves and Nice-To-Haves
A good mortgage broker can help you decide what features are most important to you when selecting a home loan. They can also recommend lenders that offer loans with low down payments or other special features.