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For many homeowners who opt for a conventional mortgage with less than a 20 percent down payment, Private Mortgage Insurance (PMI) becomes a necessary part of their monthly expenses. PMI is an additional charge on your mortgage payment, primarily designed to protect the lender in case of default. However, there are several ways to eliminate this extra cost, which can save you a significant amount over the life of your mortgage. When Does PMI Go Away? The Homeowners Protection Act of 1998 set forth guidelines for the automatic termination of PMI. According to the Act, PMI must be removed by the lender once the borrower attains a 78 percent loan-to-value (LTV) ratio. This means that when you have paid down your mortgage to 78 percent of the original purchase price…

Homeowners often overlook the financial potential of their home equity, a valuable asset that can be used to purchase a second home. This equity, calculated as your home's value minus any outstanding mortgage, can be accessed through two primary methods: a home equity loan or a Home Equity Line of Credit (HELOC). A home equity loan offers a lump sum with a fixed interest rate, ideal for significant one-time expenses. In contrast, a HELOC provides a flexible, revolving line of credit with variable interest rates, akin to a credit card. Using home equity to buy another home offers several advantages. It enables you to access substantial funds without depleting personal savings and allows you to retain ownership of your current home. Additionally, it can position you as a more competitive…

Owning a home is a significant milestone and a long-term financial commitment. As you navigate the journey of homeownership, it’s crucial to periodically assess and optimize your mortgage to ensure you’re making the most of your investment. An annual mortgage review is a proactive approach to financial well-being, allowing you to identify potential savings, explore refinancing options, and stay on track towards achieving your financial goals. Why Conduct an Annual Mortgage Review? 1. Interest Rates Fluctuate: Interest rates in the housing market can vary over time due to economic conditions. By conducting an annual mortgage review, you can stay informed about current market trends and evaluate whether refinancing at a lower interest rate is a viable option. Even a modest reduction in your interest rate can lead to substantial long-term…

The journey to homeownership is a significant milestone, and for veterans, the VA home loan program provides a unique pathway. However, like any financial instrument, VA home loans have been shrouded in myths and misconceptions. In this blog, we embark on a mission to debunk the biggest myths surrounding VA home loans, unveiling the truth behind these common misconceptions. Myth 1: VA Loans are Complicated and Difficult to Obtain: Truth: VA loans are designed to be accessible and straightforward. The application process is streamlined, and while there are specific eligibility criteria, they are not as daunting as some might think. In fact, the simplicity of VA loans is intended to make homeownership more achievable for veterans and active-duty service members. Myth 2: VA Loans Take Longer to Close: Truth: The…

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, plays a significant role in the U.S. housing market by providing liquidity and stability to the mortgage market. Fannie Mae has recently made a groundbreaking change that is set to benefit prospective homeowners and real estate investors alike. Beginning on November 18, 2023, they will be reducing down payment requirements to a mere 5% for 2-4 unit properties. Let’s explore what this change means, its potential impact on the real estate market, and what this means for both homebuyers and investors. Understanding FNMA’s Down Payment Reduction Traditionally, lenders often require larger down payments for multi-unit properties as compared to single-family homes. This has been a significant barrier for many potential homebuyers and real estate investors, particularly first-time buyers or…

Congratulations on your beautiful new home! A house becomes a home when it’s filled with love, laughter, and cherished moments. And what better way to begin creating those memories than by hosting a fantastic fall housewarming celebration? Let us be your guide in planning and hosting an unforgettable autumn gathering. Explore our suggestions below. 1. Invites Start by sending out creative invitations that reflect the warmth and charm of the season. Consider using rustic colors, fall foliage motifs, or even sending digital invitations with animated leaves falling – Canva’s got you covered – a versatile online tool for all your digital design projects. 2. Decking Out Your Space Transform your home into a cozy haven by decorating with autumn-themed items. Think pumpkins, gourds, dried leaves, and warm-colored candles. You can…

If you are thinking about selling your home and want to maximize your value without taking on major renovations here are some quick and (relatively) easy things you can do. 1. Update the hardware – if you have dated or weathered knobs, mirrors, handles, faucets switching them out with more modern ones can make things look a lot fresher. 2. Paint – this is one of the most obvious ones but a fresh coat of paint (or two) can work wonders. 3. Go Green – adding plants can make things look a lot livelier. 4. Deep clean the bathrooms – if you have grout or stains they can be a big eye sore. 5. Deep clean the outdoors – a power washer can make a huge difference on a dirty…

Are we entering the optimal time to buy a home? Obviously the market has risen a lot this year, so that may sound irrational. However if you are looking at the time of year, spring and summer are seen as most competitive but traditionally according to Realtor. com between now and October 17 is when buyers will see less competition and can get better prices. Of course every listing and market is unique and these past two years have been unusual to say the least but typically homes sell at discount and as the days get shorter houses actually linger on the market longer.

You can lock in a mortgage rate after you’ve made an offer on a house and have a signed purchase agreement. The mortgage rate lock, means that you have a specific mortgage rate “locked in” for a period of time (typically 30 or 60 days). This rate lock means you’ll get that rate even if rates move higher or lower during the time your loan is being processed. Rate locks do expire and can cost a fee (basis points) depending on the rate and period. With today’s rates near historic lows, a rate lock can be a good idea but a keen eye on closing dates is important as well. Give us a call or schedule a meeting on our site and we can review your situation and see what…