Why a 15-Year Fixed Mortgage is the Better Option

Posted on March 29, 2017 by Scott Li

You have lots of options when it comes to a mortgage, but one that is often overlooked is the 15-year fixed rate loan. This type of mortgage has numerous advantages, and here are just a few of them you may want to consider.

Saving Money in Interest

The fact that you will pay on a 15-year mortgage only half as long as you would a 30-year loan naturally means a tremendous savings in interest. Even so, a shorter term is not the only thing that saves you interest money. Short-term loans tend to come with lower interest rates to begin with, and that includes mortgages. Right off the top you could save half a percentage point or more, leaving you paying as little as one-third the amount of interest over the life of the loan. read more

What you Need to Know about FHA Loans

Posted on March 23, 2017 by Scott Li

Federal Housing Administration (FHA) loans can be an excellent choice for first-time homebuyers, as well as those who have very little money to put down on a house. They do operate differently than conventional mortgages, which is why you should know a little bit about them before applying.

What are FHA Loans?

FHA loans are ones that are insured by the department of Housing and Urban Development (HUD), which allows approved lenders to offer more favorable terms. Contrary to popular belief, they are not financed through the Federal Housing Administration, meaning you will still make your payment directly to the lending institution as you would with any other mortgage. read more

Is the Time now for a Mortgage in Greater Philly?

Posted on March 16, 2017 by Scott Li

As the number of job opportunities and amenities in a given city increase, so does the demand for housing, resulting in a drastic increase in home prices. In some areas of the country, the laws of supply and demand have resulted in a lack of affordable housing for middle and low-income families. That’s not the case in the Philadelphia metropolitan area, a city where housing is typically very affordable across the board. If you have been considering home ownership in the Greater Philly area, now is an excellent time for a number of reasons. read more

Looking to Buy a Home? Now’s the Time to Secure a Mortgage Company

Posted on March 2, 2017 by Scott Li

When shopping for a home, most people plan to find their dream property and then secure a mortgage company. There are actually several reasons to find a lender before signing a purchase agreement, and here are a few reasons why we think so.

Greater Ability to Screen

When it comes to finding a mortgage company, you’ll need to do more than just compare interest rates. Terms, fees, and even turnaround time can vary significantly, which is why you need to compare multiple factors. Some information you should gather includes: read more

What Recent Dow Numbers Mean for Mortgages

Posted on February 26, 2017 by Scott Li

With the Dow Jones Industrial Average setting records early in 2017, there’s some speculation that mortgage rates will be on the rise. Although the stock market and the housing market don’t perform in perfect synchronicity, the two are somewhat related. Here’s what the current Dow numbers might mean for mortgages throughout 2017.

The Relationship between the Stock & Housing Markets

The interest rates associated with mortgages are determined in part by the bond market and the overall demand for mortgage-backed securities. This means that mortgage rates significantly influence the trends of the 10-year Treasury. Although the Federal Reserve does not set mortgage interest rates, mortgage interest rates climb alongside the Federal Reserve rates, and they fall alongside them, too. It’s also important to note that stocks and bonds typically move in opposite directions, as well. When bonds increase in value, stock values plummet. read more

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