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InstaMortgage Announces $625,000 Conforming Loan Limit for all Counties

InstaMortgage Announces $625,000 Conforming Loan Limit for all Counties

  While all the other mortgage lenders are offering a base conforming limit of only $548,250 for 1-unit, InstaMortgage announced that they will allow conforming loans up to $625,000 for all the counties where the conforming loan limit is only $548,250. How does this work? If you are buying or refinancing a home in a county where the conforming loan limit is only $548,250, you can now qualify for up to a $625,000 loan amount following the same guidelines. The loans will still be backed by the same government agencies - Fannie Mae…continue reading →
What are Mortgage Points and How Do They Work?

What are Mortgage Points and How Do They Work?

One of the most expensive and profitable things a person can do in life is to buy a house. There are some strategies that we can make use of to reduce the interest on a mortgage. This is the case with mortgage points. What are Mortgage Points? Mortgage points are a fee that a borrower pays to a lender to reduce the interest rate on the loan. They also be called discount points. For each point the borrower purchases, it costs 1% of the mortgage amount. Or, $1,000 for every $100,000. In short,…continue reading →
Rent Payment History to Help Increase Homeownership

Rent Payment History to Help Increase Homeownership

To help increase homeownership opportunities for borrowers, Fannie Mae is enhancing its underwriting guideline to consider a borrower’s positive rent payment history in the credit risk assessment. Effective immediately, when the borrower is currently paying rent of $300 or more, and a 12-month Verification of Asset (VOA) report is obtained by the lender, Fannie Mae, a government agency, will improve the credit risk profile of a borrower helping them to qualify for a mortgage which they might not have otherwise. The borrower and the property must meet the following guideline: The borrower must…continue reading →
What Kind of Mortgage Can I Afford?

What Kind of Mortgage Can I Afford?

Buying a home is one of the most important steps in anyone's life. Determining what kind of mortgage you can afford is a key factor in making a smart decision. Taking care of your and your family's finances should be a priority. That's why in this post we share with you the key elements so you know what type of mortgage you can afford without putting your money at risk. Crunching the Numbers The first step to follow is to know your budget. Take into account all sources of income you have. From…continue reading →
Fixed Rate vs Adjustable Rate Mortgage (ARM)

Fixed Rate vs Adjustable Rate Mortgage (ARM)

Whether you are buying a new home or planning to refinance, you may be asking the question - Adjustable Rate Mortgage (ARM) or Fixed mortgage rate - which one is better? When you are trying to make a decision on whether to take an Adjustable Rate Mortgage or a Fixed Rate, you should consider two factors: How long do you plan to stay in the property? What is the difference in the interest rate between an ARM & a Fixed? Let me elaborate this: Rates on ARMs are usually lower than fixed-rate loans.…continue reading →
15 Year Mortgages: Are They Worth It?

15 Year Mortgages: Are They Worth It?

For most buyers, a 30-year mortgage is a first and only option when it comes to borrowing to buy a home. However, whenever it is possible, a 15-year mortgage is the ideal choice for some homebuyers who are able to afford higher monthly payments. As suggested by the timeline in the name, this mortgage gives those homeowners the ability to pay it off in half the usual amount of time. That can be a big burden off of their shoulders and can save thousands, or possibly tens of thousands of dollars of interest…continue reading →
Understanding the Digital Mortgage Process

Understanding the Digital Mortgage Process

The financial industry is leaning toward democratization more and more every year. From decentralized finance to online-only banks that provide all of the financial services of a traditional bank branch, consumers have more options than ever before. One of the barriers many consumers had in the past was the digital mortgage. For people to get a mortgage, they needed to go into a bank, often after building a relationship with the lender and go through a time-consuming process filled with paperwork.   Now, institutions are opening up the process of applying for and…continue reading →
Shopping for Mortgage Rates: Do’s & Don’ts

Shopping for Mortgage Rates: Do’s & Don’ts

Shopping for a good mortgage rate can sound and feel intimidating because of the many avenues you can take to find the mortgage of your dreams. A mortgage is often a long-term loan designed for homebuyers to purchase a home while making monthly payments. The mortgage is the best tool potential homeowners have of entering homeownership and getting on the property ladder. While shopping for a mortgage has become a lot easier thanks to online tools for finding and comparing rates and lenders, there are still a few key things to know that…continue reading →
When is it a Good Time to Refinance?

When is it a Good Time to Refinance?

A person usually considers a refinance when they need to change the terms of the loan they purchased to make it easier to manage their mortgage. This article will help you understand what a refinance is and how it works.    What is a Refinance?  When a person reviews the terms of their mortgage loan and needs a new agreement, they may have to refinance. They may want to lower their current interest rate, or to change their payment dates, or simply need to have the terms of their loan modified due to…continue reading →
What You Need to Know About Closing Costs

What You Need to Know About Closing Costs

When you buy a home, you not only have to provide the down payment but, you must also take into consideration the amount you pay the lender for servicing the loan. Many buyers do not take into account all the expenses involved in buying a new home. One of these expenses is closing costs.     What are Closing Costs?  Closing costs are all those expenses that go beyond the cost of the property you are about to purchase. That is to say, they are the expenses paid to the lender for the services…continue reading →