Mortgage Tips for Informed Loan Decisions

Mortgage Tips for Informed Loan Decisions



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–(HISPANIC PR WIRE – CONTEXTO LATINO)–Interest rates are going up and chances are “the Fed” will continue that trend for a while. This fact along with “through the roof” home appreciation in many parts of the country have led consumers to question whether they should buy a home or refinance sooner versus later. And, if they do buy or refinance now, what are some options to maximize their financial situation and make sense of the loan process and options available? These, along with other valuable questions and helpful information are addressed by Wilson Avila, a seasoned loan consultant and branch manager of Premier Mortgage Funding office in North Miami Beach, FL.

With rates expected to rise does it make sense to buy now? Although rates could drop in the future chances are they won’t. Historically rates are at their lowest. And, even if there is a slight drop or increase in rates, some banks offer a float lock. This means you can lock in today’s rate for as long as 60 days.

What if I have little money to put down? Even with little money to put down, if your credit is good, and you have conservative debt-to-income ratios — the amount of monthly debts you have compared to your monthly income before taxes — some lenders offer up to 106 percent towards a first-time home purchase. That’s the entire purchase price plus additional money to cover closing costs.

Other programs eliminate paying PMI (Private Mortgage Insurance, which is imposed on you if you cannot meet the customary down payment of 20 percent of the purchase price), your mortgage broker might suggest splitting the loan in two and putting the minimum down. These types of loans are called an 80/15/5 (which means you put 5 percent down) or and 80/10/10 (which means you put 10 percent down).

My credit is less than perfect and I carry a lot of monthly debts. What are the best loans for me? Many consumers fall into these “less than perfect” scenarios where the debt-to-income ratio is higher than the industry standard set by Fannie Mae — 33 to 45 percent, and/or their credit scores are below 620 which is called B/C or sub-prime loans. In this case, a good option is getting a government loan such as an FHA (Federal Housing Administration) loan, which requires very little down, and is not so stringent when it comes down to credit scores.

What are closing costs, when do I pay them and how much are they? When you close on a home you will also have additional closing costs that you will have to pay out-of-pocket unless you are refinancing a home, when you have the option of putting the costs into your mortgage. Closing costs include items from the lender and title company like recording fees, tax fees and courier fees, to name a few. Make sure and ask your lender if any of these are “junk” fees that can be eliminated. On a purchase a good rule of thumb is to figure your closing costs to be equal to at least 3 percent of the loan amount.

How do I know if refinancing is right for me? The rule of thumb is your rate has to decrease at least 2 percent from your current mortgage rate. When deciding if refinancing your home to take advantage of lower rates or a more creative program always remember that you are refinancing over another 30 or 40 years, depending on the loan terms. This means that although your monthly payment might be lower you’re essentially “starting over” in terms of the number of years for paying off the loan.

Can foreign nationals find affordable programs for buying in the states? Yes. Foreign nationals who want to invest in the U.S. real estate market can sometimes find lenders who will lend from 70 to 90 percent of the appraised value of the home. The customer is expected to have the difference with a US Banking institution.

The bottom line is that buying a home is many times the most solid investment one can make. Once the process is understood the next step is finding the right loan to fit your needs. Wilson Avila and his team of loan consultants at Premier

Mortgage funding can be reached at (800) 407-0049, www.pmfinmiami.com , or premiermortgagefunding1@yahoo.com The multi-lingual staff specializes in the Hispanic market and is licensed in 33 states. Rony Hecker caters to the Puerto Rican community, he can be reached at Ronyhecker@yahoo.com or 786-287-3815.

Premier Mortgage is a Licenced Mortgage Lender, and an equal housing lender.

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Mortgage Tips for Informed Loan Decisions