Testimonials

Payment Calculator

This calculator helps you determine your monthly payments for a mortgage loan.

Are Mortgage Applications Up?

Posted on February 10, 2018 by Scott Li

Per the Weekly Mortgage Applications Survey provided by the Mortgage Bankers Association (MBA) for the week ending the 5th of July, mortgage applications are up – and significantly so. The Market Composite Index measures the volume of loan applications coming in through lenders across the country, and per this index, there was a tremendous increase in applications in the first week of 2018.

Statistics

Per the Market Composite Index, loan application volume went up 8.3% on a seasonally adjusted basis. On an unadjusted basis, that number is even higher and represents a 46% increase. Of course, the results have been adjusted to account for New Year’s Day, when lenders were unavailable to take application. On top of this, there was an 11% increase in the Refinance Index, and the Purchase Index rose, as well, by 44% on an unadjusted basis and 5% when seasonally adjusted. Though mortgage applications are up, the Purchase Index declined by 1% from the same week in 2017. read more

How to Shorten Your Mortgage

Posted on February 9, 2018 by Scott Li

Many people today wait until later in life to tackle the challenge of homeownership. Getting out from under student debt takes time, and potential homeowners are working hard to ensure they have the funds to cover their monthly payments. As a result, people are often continuing to make mortgage payments into their 60s – and even past retirement. Here are some tips to shorten your mortgage if you are thinking of homeownership later in life.

Mortgages Then and Now

Back in the 1920s, the average homeowner paid about 40% down and made the remaining payments over the course of only 10 years. People in those days didn’t live as long as they do today, so these terms allowed for what was then considered to be affordable homeownership. It allowed people to spend the first couple decades of their adult lives saving for the down payment, and then paying off their homes quickly. This was ideal at the time and worked well for many people.

Over times, things changed. These days, the most common mortgages require 30-year terms, and while lenders recommend 20% down payments, most people put down about 5%. For people who are now living longer, and with the average age of retirement being about 65, more people than ever before are entering their retirement years with a mortgage balance still over their heads. This can be problematic. read more

How Will Tax Reform Affect Real Estate?

Posted on February 8, 2018 by Scott Li

Big changes in the tax code went into effect at the start of 2018, and while people across the country continue to try to determine how this will affect their personal and business finances, some are equally worried about how tax reform might affect real estate. Here’s what you need to keep in mind if you’re considering buying or selling a home in 2018.

You Can’t Deduct as Much Interest

For the 2017 tax year, homeowners could deduct up to $1 million in mortgage interest debt when they filed their taxes. In 2018, this number has decreased to $750,000, which is significantly impacting those who own high-end homes. On top of this, any amount of mortgage interest deduction is simply less valuable. Homeowners must itemize their taxes to take advantage of it, but because of increased standard deductions, fewer people will want to itemize, which puts homeowners in a tough situation. read more

Is Mortgage Design Changing?

Posted on February 7, 2018 by Scott Li

For many years, mortgages have been designed around the buyer – to provide incentives for people to buy homes, and to make it possible for them to do so. However, in the last few decades, things have changed significantly, and if a couple of real estate experts have it their way, things may change yet again in the future.

The Original Mortgage Design

Once upon a time, in the 1920s, lenders designed mortgages with affordability in mind. After all, people could not buy homes if those homes were not affordable, and it was up to the lender to make borrowing affordable enough to entice potential buyers. Back in those days, it was normal for people to put 40% of the value of the home down, then pay off the remaining balance – plus interest – over the course of 10 years. This means lesser risk for the lender, and it also meant that homeowners could pay their homes off completely in a single decade, even if they had to save for a decade to accumulate the 40% down payment. read more

Are 30-Year Fixed Mortgages on the Rise?

Posted on January 18, 2018 by Scott Li

Just a couple of years ago, the amount of interest you’d pay over time on a 15-year mortgage as opposed to a 30-year mortgage was significantly less. People opted to pay a higher monthly payment for a shorter period of time to save tens of thousands in interest payments alone. However, as the gap between the two mortgage terms continues to grow smaller, more people than ever are opting for 30-year fixed mortgages.

Increasing Long-Term Mortgage Interest Rates

In early December 2017, long-term mortgage rates increased just slightly, which is nothing out of the ordinary. However, per Freddie Mac’s weekly Primary Mortgage Market Survey, the gap between long-term and short-term interest rates continues to narrow nonetheless. This means that homeowners who might otherwise opt for a shorter mortgage term might not save quite as much as they would have hoped, and there may be little benefit in making higher monthly payments over time. read more

Is Taking Cash Out to Buy Bitcoins Smart?

Posted on January 17, 2018 by Scott Li

There’s been some economic uncertainty in the US for several years now, and this means Americans are taking some unlikely routes toward financial security. One of the latest trends involves homeowners taking out mortgages to buy Bitcoins, a virtual currency that’s slated to become more popular over the next several years. Is this a smart move, or are these homeowners simply throwing their dollars away?

The Beginning of the Bitcoin Mortgage Trend

Early in 2017, one Reddit user took out an equity loan for the sole purpose of buying Bitcoins. At the time, it was trading for around $3000 a coin, and prices have since skyrocketed. That Reddit user is now quite a bit richer and his investment certainly paid off, but his daring attitude is rubbing off on others. According to Joseph Borg, a securities regulator, people are now using all their available lines of credit to buy into Bitcoin. This includes maxing out credit cards, using their home equity, and even taking out second mortgages all to get in on the Bitcoin craze. read more

Key Differences between Fixed-Rate and Adjustable Rate Mortgages

Posted on January 16, 2018 by Scott Li

Though most everyone understands the basics of what a mortgage is, there are some factors and variables that tend to get confused. If you’re shopping for a mortgage, you might hear the terms “variable rate” and “fixed rate” from time to time. Understanding the differences between the two can help you make better personal decisions when it comes to taking out home loans.

What is a Fixed-Rate Mortgage?

To put it as simply as possible, when you take out a fixed-rate mortgage, the amount of interest you’re charged for that mortgage never changes throughout the entire lifetime of the loan. If you take out a 3.8% fixed-rate loan, you will pay 3.8% interest for the entire duration of that loan. Your monthly mortgage payment is the same each and every month, but your lender will adjust the amount of that payment that goes to the principal balance (the amount you borrowed) and the interest (the fee you are charged for borrowing) automatically. For example, if your monthly mortgage payment is $1000, then with your first payment, you might be paying only $300 toward the principal balance and the other $700 in interest. As time goes by, you pay more on the principal and less on the interest with each monthly payment. read more

Things to Consider when Getting a Mortgage in 2018

Posted on January 15, 2018 by Scott Li

Though the stock market seems to be the hotspot for investors going into 2018, real estate still remains a lucrative and fruitful investment opportunity, as well. If you’re considering a mortgage in 2018, whether you’re simply making an investment or buying your first family home, there are three very important factors you should consider.

#1 – Tax Changes on Large Mortgages

A million-dollar home isn’t in everyone’s budget, but even for those who have the credit scores and who can afford the monthly payments, things might change this year. If you’re considering a high-dollar home, be sure to consider the notion that the provision allowing you to itemize mortgage interest on loans up to $1 million in value may no longer exist. In fact, there are lawmakers working to halve that amount, which can take a significant chunk out of your wallet come tax time. read more

Unique Ways to Find your Down Payment Money for Purchasing your First Home

Posted on December 1, 2017 by Scott Li

Coming up with enough money for a down payment is one obstacle that gets in many people’s way. After all, it can take years to save the thousands of dollars that’s needed to qualify for a traditional mortgage. That does not mean you are destined to wait forever, as there are plenty of creative ways you can come up with enough money for a down payment right now.

Ask Family Members for a Gift

Do you have a well-off relative who could afford to part with some extra cash? How about a parent or grandparent who might leave you an inheritance one day? Convince them to offer you a one-time gift, and both of you will win. They can enjoy a hefty tax deduction while allowing you to collect the keys to your brand new residence. read more

Items You Should Never Buy with a Cash-Out Refinance

Posted on November 30, 2017 by Scott Li

A cash-out refinance can help you consolidate debt and lower your mortgage payment. That doesn’t mean you can use that extra cash however you see fit. There are some limits as to what is prudent use of the money and what isn’t. To make the most of your refinance, avoid spending those extra funds on the following.

#1. A new car

The idea of paying for a new car with cash may sound exciting, yet is something you should definitely avoid. After all, you are not actually paying cash, but rather financing your new vehicle for the life of your mortgage-something that could be as long as 30 years. Do you really want to pay on an automobile that long? We didn’t think so. read more

← Older posts

Newer posts →

Get a Mortgage Quote Now

Protected with 256 bit SSL