If you're thinking about buying a home, chances are you're not planning to do it by yourself. Most home purchases are two-person affairs - historically, by married couples but with unmarried partners making up an increasing share these days. In some case, two or more people who are not romantically involved will purchase a home together for financial reasons.
It's a bit more complicated than it used to be, when a couple would buy a home, but the husband was the sole breadwinner whose income and credit rating determined the terms of the mortgage. But having two incomes paying on a single mortgage definitely opens up more possibilities in terms of what you can buy.
So how do you go about getting a mortgage or buying a home by two or more people? There are two main ways to do it - either through a joint mortgage or by joint ownership. In the former, both parties (we'll assume it's a couple and not a larger partnership for now) are signatories to the mortgage and are equally responsible for making payments. In the latter, the mortgage may be in only one person's name, but both parties have their name on the deed and contribute toward making payments.
Center State Mortgage is your #1 source for joint mortgages in the staten island and new jersey areas! They have all the right people and tools to get the job done quickly and effectively! Choose Center State Mortgage for all your joint mortgage needs!
Showing posts with label straten island mortgage services. Show all posts
Showing posts with label straten island mortgage services. Show all posts
Saturday, December 5, 2009
Paying Discount Points on Your Mortgage
Mortgage interest rates are unusually low right now, close to all-time lows for a 30-year fixed rate loan. So with rates already so low, is it worth paying points to try to get the rate even lower?
If you're thinking about buying a home or refinancing your current mortgage, you're probably at least somewhat familiar with points. Basically, paying points allows you to get a lower interest rate. In essence, you're paying some of the interest up front, so you don't have to pay as much over the life of the loan.
It's a fairly straightforward concept, but one that can be confusing for a lot of borrowers. Part of this is because mortgages can be fairly complex transactions, with a lot of other fees and terminology involved, and points are just another thing to keep track of. But the bigger challenge tends to knowing whether or not it's worthwhile to pay for points in the first place.
A point one percentage point - that's where the name comes from. When you take out a mortgage, either to purchase or refinance, each point you buy costs you 1 percent of the loan total - or $10 per $1,000 of the mortgage value. In return, each point you pay reduces your interest rate by a certain amount - usually 1/8th of a percent, but that can vary from lender to lender.
Center State Mortgage is your #1 mortgage broker with the lowest interest rates in Straten Island and New Jersey! Rely on them to make sure getting a new home is fast and easy! Choose Center State Mortgage for all your home loan needs!
If you're thinking about buying a home or refinancing your current mortgage, you're probably at least somewhat familiar with points. Basically, paying points allows you to get a lower interest rate. In essence, you're paying some of the interest up front, so you don't have to pay as much over the life of the loan.
It's a fairly straightforward concept, but one that can be confusing for a lot of borrowers. Part of this is because mortgages can be fairly complex transactions, with a lot of other fees and terminology involved, and points are just another thing to keep track of. But the bigger challenge tends to knowing whether or not it's worthwhile to pay for points in the first place.
A point one percentage point - that's where the name comes from. When you take out a mortgage, either to purchase or refinance, each point you buy costs you 1 percent of the loan total - or $10 per $1,000 of the mortgage value. In return, each point you pay reduces your interest rate by a certain amount - usually 1/8th of a percent, but that can vary from lender to lender.
Center State Mortgage is your #1 mortgage broker with the lowest interest rates in Straten Island and New Jersey! Rely on them to make sure getting a new home is fast and easy! Choose Center State Mortgage for all your home loan needs!
How to Get a Loan When Self-Employed
Getting or refinancing a mortgage when you’re self-employed can be a real challenge these days. With the virtual disappearance of stated income loans, it’s become much more difficult for anyone who doesn’t get a regular paycheck to qualify for a home loan. But it still can be done.
Stated income/stated asset loans, also known as Alt-A mortgages, used to be one of the most common ways for the self-employed to obtain a mortgage. You simply told the bank what your income was and the bank took your word for it. When housing values were rising, it really wasn’t that big of a risk for the lender.
But Alt-A mortgages got a bad reputation as “liar loans” during the housing bubble, when they were abused to exaggerate incomes for borrowers who otherwise would never qualify for a loan. When the housing market and economy went sour, stated income/asset loans accounted for some of the highest rates of defaults and foreclosures, and most banks simply stopped offering them.
But for the self-employed, what that really means is that you’re going to have to be more thorough documenting your income when applying for a mortgage; the same rules apply to refinancing a mortgage as well. And if you’re in business for yourself, you’re probably already accustomed to filing tax reports and documenting expenses, so documenting your income for a mortgage application won’t be that much different.
Center State Mortgage has all the tools you will need to obtain a loan if you are self-employed in the Straten Island and New Jersey area. They have professionals ready to assist you with purchasing your home! Choose Center State Mortgage for all your self-employed loan needs!
Stated income/stated asset loans, also known as Alt-A mortgages, used to be one of the most common ways for the self-employed to obtain a mortgage. You simply told the bank what your income was and the bank took your word for it. When housing values were rising, it really wasn’t that big of a risk for the lender.
But Alt-A mortgages got a bad reputation as “liar loans” during the housing bubble, when they were abused to exaggerate incomes for borrowers who otherwise would never qualify for a loan. When the housing market and economy went sour, stated income/asset loans accounted for some of the highest rates of defaults and foreclosures, and most banks simply stopped offering them.
But for the self-employed, what that really means is that you’re going to have to be more thorough documenting your income when applying for a mortgage; the same rules apply to refinancing a mortgage as well. And if you’re in business for yourself, you’re probably already accustomed to filing tax reports and documenting expenses, so documenting your income for a mortgage application won’t be that much different.
Center State Mortgage has all the tools you will need to obtain a loan if you are self-employed in the Straten Island and New Jersey area. They have professionals ready to assist you with purchasing your home! Choose Center State Mortgage for all your self-employed loan needs!
Saturday, November 21, 2009
Can I Afford a Home?
Mortgage lenders are chiefly concerned with your ability to repay the mortgage. To determine if you qualify for a loan, they will consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment.
Mortgage lenders will calculate an affordability analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
They also use a debt-to-income ratio, which are the housing expense, or front-end, ratio; and the total debt-to-income, or back-end, ratio.
Front-end ratio: The housing expense, or front-end, ratio shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income.
Back-end ratio: The total debt-to-income, or back-end, ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income.
Center State Mortgage offers the lowest interest rate on home loans and mortgages in Straten Island and New Jersey! They have professional staff that work hard to get you the home of your dreams! Choose Center State Mortgage for your next home loan or mortgage!
Mortgage lenders will calculate an affordability analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that are likely.
They also use a debt-to-income ratio, which are the housing expense, or front-end, ratio; and the total debt-to-income, or back-end, ratio.
Front-end ratio: The housing expense, or front-end, ratio shows how much of your gross (pretax) monthly income would go toward the mortgage payment. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income.
Back-end ratio: The total debt-to-income, or back-end, ratio, shows how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees. In general, your total monthly debt obligation should not exceed 36 percent of your gross income.
Center State Mortgage offers the lowest interest rate on home loans and mortgages in Straten Island and New Jersey! They have professional staff that work hard to get you the home of your dreams! Choose Center State Mortgage for your next home loan or mortgage!
Acceleration Clause
Acceleration clauses help to define the terms of the loan covenant. There are a number of terms that can be included in an acceleration clause. For example, the loan covenants may prohibit the buyer from reselling the property without the express permission of the lender. This ensures that the lender is able to secure payment of the outstanding balance in the event that the borrower wishes to end the business relationship. Another example of terms that are commonly found in an acceleration clasue is the disposition of the collateral used to secure the loan. Prohibiting the sale of collateral for the duration of the loan also helps to make sure there is some sort of assets to collect in the event that the borrower defaults in some manner.
The acceleration clause can also be used to spell out some of the common terms of compliance of the loan, while outlining the consequences that will ensue if the terms are not honored. As an example, the acceleration clause may specify the due date of the payments, and also include a list of steps the lender will take in order to penalize the borrower for late payments or failure to pay at all. This may include the application of a fixed amount if the payment is not paid within a specified time after the due date, all the way through termination of the loan and demand for full payment.
Center State Mortgage is your #1 source for the lowest interest rates on home loans and mortgages in Straten Island and New Jersey! They have professional staff who work hard to get you that perfect home! Choose Center State Mortgage for all your home loan and mortgage needs!
The acceleration clause can also be used to spell out some of the common terms of compliance of the loan, while outlining the consequences that will ensue if the terms are not honored. As an example, the acceleration clause may specify the due date of the payments, and also include a list of steps the lender will take in order to penalize the borrower for late payments or failure to pay at all. This may include the application of a fixed amount if the payment is not paid within a specified time after the due date, all the way through termination of the loan and demand for full payment.
Center State Mortgage is your #1 source for the lowest interest rates on home loans and mortgages in Straten Island and New Jersey! They have professional staff who work hard to get you that perfect home! Choose Center State Mortgage for all your home loan and mortgage needs!
Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Will you pay a 30-year fixed mortgage in 15-years?
Dave Ramsey mentions the statistic that more than 97% of people who planned to pay their 30-year mortgage in 15-years do not. He has seen from his personal experience running his program that people lack the will power to keep up regularly with mortgage payments.
Ramit also observes that many people believe that they are the exception to the rule. This can lead some to not prepare properly. You may plan on paying your mortgage in 15 years, but if you rely on pure will power, you can set yourself up for failure.
Center State Mortgage is your #1 source for the lowest interest rates on Thirty-year fixed rate mortgages! They have professional staff who will work hard, so you don't have to! Choose Center State Mortgage for your next home loan or mortgage in New Jersey and Straten Island!
Will you pay a 30-year fixed mortgage in 15-years?
Dave Ramsey mentions the statistic that more than 97% of people who planned to pay their 30-year mortgage in 15-years do not. He has seen from his personal experience running his program that people lack the will power to keep up regularly with mortgage payments.
Ramit also observes that many people believe that they are the exception to the rule. This can lead some to not prepare properly. You may plan on paying your mortgage in 15 years, but if you rely on pure will power, you can set yourself up for failure.
Center State Mortgage is your #1 source for the lowest interest rates on Thirty-year fixed rate mortgages! They have professional staff who will work hard, so you don't have to! Choose Center State Mortgage for your next home loan or mortgage in New Jersey and Straten Island!
Hybrid ARM
What Does Hybrid ARM Mean?
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
An adjustable-rate mortgage blends the characteristics of a fixed-rate mortgage and an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. The date at which the mortgage changes from the fixed rate to the adjustable rate is referred to as the reset date.
A borrower should carefully consider his or her time horizon when choosing a hybrid arm and recognize the risks associated with the reset date, or the expiration of the fixed interest rate period. If there has been a large change in interest rates, this reset could create substantially large payments; however, typically the amount by which the interest rate can adjust is subject to an interest rate cap.
Center State Mortgage is your #1 source for the lowest interest rates on Hybrid ARM loans in Straten Island and New Jersey! They have knowledgeable staff that will work hard to get you your loan, so you can take it easy! Choose Center State Mortgage for your next home loan or mortgage!
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
An adjustable-rate mortgage blends the characteristics of a fixed-rate mortgage and an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period. After the fixed interest rate expires, the interest rate starts to adjust based on an index plus a margin. The date at which the mortgage changes from the fixed rate to the adjustable rate is referred to as the reset date.
A borrower should carefully consider his or her time horizon when choosing a hybrid arm and recognize the risks associated with the reset date, or the expiration of the fixed interest rate period. If there has been a large change in interest rates, this reset could create substantially large payments; however, typically the amount by which the interest rate can adjust is subject to an interest rate cap.
Center State Mortgage is your #1 source for the lowest interest rates on Hybrid ARM loans in Straten Island and New Jersey! They have knowledgeable staff that will work hard to get you your loan, so you can take it easy! Choose Center State Mortgage for your next home loan or mortgage!
Thursday, November 19, 2009
2/1 Buy-Down Mortgage
Mortgage buydowns -- what is that? You've probably heard the term before, but if you're like most people, it might not make a lot of sense to you. In part, the reason it may sound confusing is because a mortgage buydown rarely results in a permanent lower monthly payment nowadays; it's only temporary.
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Center State Mortgage is your #1 source for a 2/1 Buy-Down Mortgage in New Jersey and Starten Island! They offer the lowest interest rates in the market and work hard to help you get your home loand and mortgage! Choose Center State Mortgage for your next home loan and mortgage!
The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.
Center State Mortgage is your #1 source for a 2/1 Buy-Down Mortgage in New Jersey and Starten Island! They offer the lowest interest rates in the market and work hard to help you get your home loand and mortgage! Choose Center State Mortgage for your next home loan and mortgage!
Negative Amortization (Neg. Am) Loan
Neg am mortgage loan programs are all the rage these days. Mortgage lenders offer 1% interest rates to applicants with deferred interest refinancing and negative amortization for cash out, home improvements, consolidating debts and equity credit refinance loans online. Many mortgage lenders are offering several variations of these cutting edge loan products for home purchasing and refinancing.
This is a deferred-interest loan which is very powerful -- and the most misunderstood mortgage program because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The power of this loan lies in the borrower's ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower's income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the "lean times", and then make higher payments when funds are readily available.
Center State Mortgage is your #1 source for Negative Amortization Loans in Straten Island and New Jersey! They offer the lowest interest rates and best home loan option on the market! Choose Center State Mortgage for all your home loan and mortgage needs!
This is a deferred-interest loan which is very powerful -- and the most misunderstood mortgage program because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The power of this loan lies in the borrower's ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower's income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the "lean times", and then make higher payments when funds are readily available.
Center State Mortgage is your #1 source for Negative Amortization Loans in Straten Island and New Jersey! They offer the lowest interest rates and best home loan option on the market! Choose Center State Mortgage for all your home loan and mortgage needs!
Adjustable Rate Mortgages (ARM)
How to Decide if an ARM Is Right for YouAn adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes.
If my payments can go up, why should I consider an ARM?
The initial interest rate for an ARM is lower than that of a fixed rate mortgage, where the interest rate remains the same during the life of the loan. A lower rate means lower payments, which might help you qualify for a larger loan.
How long do you plan to own the house? The possibility of rate increases isn't as much of a factor if you plan to sell the home within a few years.
Do you expect your income to increase? If so, the extra funds might cover the higher payments that result from rate increases.
Some ARMs can be converted to a fixed-rate mortgage. However, conversion fees could be high enough to take away all of the savings you saw with the initial lower rate.
Center State Mortgage is your #1 source for all your adjustable rate mortgage needs in Straten Island and New Jersey! You will find the lowest interest rates and the best brokers to help you get your home loan! Choose Center State Mortgage for all your home loan and mortgage needs!
15 Year Fixed Mortgage
What is a 15-year fixed mortgage?
A 15-year fixed mortgage is a loan whose interest rate stays the same for the duration of the loan. For example, on a 15-year mortgage of $300,000 with an interest rate of 5.75%, the monthly payments would be about $3,097.90. So, the interest rate of 5.75% stays the same for the life of the loan.
Who should get 15-year fixed mortgages?
People who desire a predictable, fixed deduction from their monthly budget, want a shorter loan term, and can tolerate a higher monthly payment are well-suited for 15-year fixed mortgages.
What are the advantages and disadvantages of 15-year fixed mortgages?
The pros of a 15-year fixed mortgage: it's a predictable monthly payment; the paydown on a 15-year fixed is half the time of a 30-year fixed; the rates are usually lower than a 30-year fixed mortgage; and it's relatively simple and maintenance-free once you lock the rate (you don't need to worry about rate fluctuation).
The cons of a 15-year fixed mortgage: monthly payments are quite higher than a 30-year fixed mortgage, therefore making these loans more difficult to qualify for, and the mortgage tax deduction on a 15-year fixed is less than a 30-year fixed.
Center State Mortgage is your #1 source for 15-year fixed rate mortgages! Center State Mortgage works hard to help you get the home loan that is right for you and that helps you get that home! Choose Center State Mortgage for all your home loan needs in Straten Island and New Hampshire!
A 15-year fixed mortgage is a loan whose interest rate stays the same for the duration of the loan. For example, on a 15-year mortgage of $300,000 with an interest rate of 5.75%, the monthly payments would be about $3,097.90. So, the interest rate of 5.75% stays the same for the life of the loan.
Who should get 15-year fixed mortgages?
People who desire a predictable, fixed deduction from their monthly budget, want a shorter loan term, and can tolerate a higher monthly payment are well-suited for 15-year fixed mortgages.
What are the advantages and disadvantages of 15-year fixed mortgages?
The pros of a 15-year fixed mortgage: it's a predictable monthly payment; the paydown on a 15-year fixed is half the time of a 30-year fixed; the rates are usually lower than a 30-year fixed mortgage; and it's relatively simple and maintenance-free once you lock the rate (you don't need to worry about rate fluctuation).
The cons of a 15-year fixed mortgage: monthly payments are quite higher than a 30-year fixed mortgage, therefore making these loans more difficult to qualify for, and the mortgage tax deduction on a 15-year fixed is less than a 30-year fixed.
Center State Mortgage is your #1 source for 15-year fixed rate mortgages! Center State Mortgage works hard to help you get the home loan that is right for you and that helps you get that home! Choose Center State Mortgage for all your home loan needs in Straten Island and New Hampshire!
Mortgage Calculators
If you are looking to get a loan you might be wondering about how much your payments will be and what kind of interest rate you can get. You could just call a mortgage consultant to get the information, but that can often be cumbersome and the mortgage consultant may pester you to get a loan when you may not be ready. The way to offset this is to use a mortgage calculator.
The Center State Mortgage Calculator can be used to determine monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Center State Mortgage is your #1 source for mortgages and home loans in Staten Island and New Jersey! They offer a comprehensive mortgage calculator that can calculate an accurate answer for your mortgage questions without directly speaking with a representative! Choose Center State Mortgage for all your mortgage and home loans needs!
The Center State Mortgage Calculator can be used to determine monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Center State Mortgage is your #1 source for mortgages and home loans in Staten Island and New Jersey! They offer a comprehensive mortgage calculator that can calculate an accurate answer for your mortgage questions without directly speaking with a representative! Choose Center State Mortgage for all your mortgage and home loans needs!
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