The Cascade Team Blog - Mortgage Information

Saving For A Home

If you're saving for a home while prices are rising, why not let the market help you?

It's great to save up for a large down payment of 20% or more. Yet, when prices are on the rise, saving quickly enough to keep pace can be extremely difficult.

In times such as these, why not let the market build equity for you instead? Owning a home in an appreciating market can build equity faster than most people can save. For example, a $200,000 home that appreciates by 6% gains $1,000 per month in equity.

What are the benefits of buying now?

Getting ahead of rising prices and rates. Purchasing with a small down payment often means you're required to purchase mortgage insurance (MI or PMI for Private MI). Your total…

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Buying Your First Home

We all know the old line about location. But buying a home takes research, research, research, too.

You will want to determine:

How much you can comfortably afford. The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you.

How much cash you need to close. Knowing how much cash you'll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later.

What kind of property you really want. Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split,…

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If You Really Love the House… Don’t Lose the Bid

In the housing market, the best deal doesn’t always come with the lowest price.
Price vs. Payments - If you’re financing your purchase, you’ll probably never come close to paying the actual price. You’re making a comparatively small down payment and then paying interest on the loan until you refinance or sell. Yes, you will have a higher payment if you pay more for the home, but an extra $10,000 of mortgage money can add less than $50 per month on a low-rate, 30-year loan.

Relative Prices - Our natural tendency to pay as little as possible is not as meaningful for an investment, such as a home, as it is for a consumable. In this case, what you pay now can affect your sales price later. There may be little difference in total earnings if you pay less…

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Mortgage DOs and DON'Ts

At Absolute Mortgage in Issaquah we're all about educating our clients so they can make informed decisions when it comes to the financing of their home.

Here are Mortgage DOs and DON'Ts to follow during your loan process.

DO:

Keep All Records in Good Order.

• Availability - Keep your financial records close at hand in case updates are requested.
• Income – Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRS tax transcripts. Hold onto new paystubs as received.
• Assets – Continue saving incoming account statements. Keep all numbered pages of each statement. Ex. 8 of 8.
• Gifts – If you're receiving any gift money from relatives, they'll need to sign a gift letter…

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5 Things to Determine Before Buying Your First Home

We all know the old line about location. But buying a home takes research, research, research, too.

You will want to determine:

1) How much you can comfortably afford. The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you.

2) How much cash you need to close. Knowing how much cash you’ll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later.

3) What kind of property you really want. Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split,…

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Did you know FHA Loans have Assumability? More FHA Loan Facts Revieled HERE!

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Shopping for a mortgage? Before going the ordinary route, take some time to consider an FHA loan, which comes with a benefit that can be especially appealing at a time of rising interest rates: assumability.

In other words, when it comes time to sell your home, a potential buyer may qualify to simply take over your mortgage at today's relatively low interest rate rather than resorting to a new loan, minimizing your buyer's monthly payment. That could be a strong selling point if, at that time, new mortgages charged more. Assumability could make it easier to find a buyer, and perhaps to get a higher sales price.

Unfortunately, FHA loans carry some heavy upfront costs, which need to be weighed against the uncertain…

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Loan Demand Slips as Mortgage Rates Inch Down

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Mortgage applications moved slightly lower last week, as interest rates moved to the lowest averages since November, the Mortgage Bankers Association reports. 

In its seasonally adjusted index, the MBA reports that overall mortgage applications -- including those for refinancings and home purchases -- dropped slightly by 0.2 percent for the week ending Jan. 24. 

Broken out, refinancing applications dropped 2.2 percent for the week, and applications for home purchases -- viewed…

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What really determines mortgage interest rates on a daily basis?

Most prospective home buyers and borrowers are not likely to know how mortgage rates are truly determined on a daily basis. Many borrowers are often surprised to discover that mortgage rates change daily, occasionally changing numerous times throughout the course of the day.

Borrowers who are trying to make a decision as to when to “lock in” their interest rate and/or may be deciding on which lender to use, may find that comparison shopping is a bit more difficult to do when interest rates are a moving target. The way the mortgage lending industry works and how mortgage rates are set may be viewed as somewhere between “a bit confusing” to “the entire banking and mortgage lending world seems to be engaged in an industry version of 3…

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New mortgage rules and regulations will be implemented on January 10th, 2014

What does it mean for most new home buyers or those looking to refinance?

Most of the new regulations applied to mortgage lending will take effect on January 10, 2014. For consumers, loan applications taken on or after this date will be subject to the new rules. These new rules and regulations have been adopted by the Consumer Financial Protection Bureau (“CFPB”) and implement changes in the laws that govern mortgage lending, specifically Regulation Z and Regulation X, as mandated by the Dodd-Frank Act. (Officially, Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)

As we approach January 10th, 2014, consumers may begin to see and hear a great deal…

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New, 8 point evaluation for lenders to determine in you qualify for a mortgage:

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Getting a Mortgage is About to Get Harder           

Mortgage reform is kicking in on Jan. 10, bringing significant changes to home loan financing.

The new rules were written by the Consumer Financial Protection Bureau to protect homebuyers from risky mortgages like the ones that led so many homeowners into foreclosure in recent years. The rules also protect investors from buying shoddy mortgage-backed investments.

Money Talks News founder Stacy Johnson describes the changes in the video below. Check it out, then read on for more details.

The downside for consumers is that the rules make it harder for some people to qualify for a home loan. So, if you’re shopping for a mortgage or refinancing right now,…

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