When buying a home, there are several factors that affect how much mortgage you can afford. Two of the most important are the property prices and current mortgage interest rates. Is it better to search for the absolute lowest rate or is it more helpful to choose a less-expensive home? Here’s how the two factors are related and how to make the right choice. Mortgage Rate/Home Price Relationship Since higher mortgage rates make homebuying more expensive for buyers, you might think that home prices would tend to fall during high rate climates in order to compensate for those c...
July 31st, 2019 | Home Buying or Selling, Interest Rates, What’s More Important: Lower Home Prices or Mortgage Rates?
You recently closed on your mortgage loan and have been making your payments to your lender. Then one day, you get a letter in the mail informing you that your loan has been sold and you have a new mortgage servicer taking care of your loan. What does this mean and how does it affect your mortgage? Here’s what you need to know about mortgage servicers: It is very common for your lender to sell your loan soon after originating it. Many lenders and brokers do not have enough reserves to keep mortgage loans on their books. Instead they sell them to investors or government-backed enterpri...
July 24th, 2019 | Mortgage Basics, What is a Mortgage Servicer?
Shopping for a mortgage can be a frustrating ordeal, but you don’t have to do it alone. The one sure-fire way to reduce the amount of legwork needed to find a better deal for your mortgage is to hire the right Utah mortgage broker. A mortgage broker is a sort of matchmaker who wants to connect you to a lender who meets your specific needs. There are several reasons to hire a mortgage broker instead of going straight to the lender yourself. The following blog will offer you a little more insight. Access to a Multitude of Loan Lenders When it comes to a broker, they have acce...
July 19th, 2019 | Saving Money, Mortgage Basics, Benefits of Using a Utah Mortgage Broker
The federal government has aimed to help increase homeownership for decades. One of the Federal Housing Administration’s many programs to help Americans, including those in Utah, in their homeownership dreams is the Energy Efficient Mortgage program (EEM). Many homes, especially older ones, could be much more affordable if they were updated to be more energy efficient. The EEM allows borrows to make those updates and save money as new homeowners. The Department of Housing and Urban Development (HUD) first created the Energy Efficient Mortgage program in 1992 and piloted it in fiv...
July 17th, 2019 | FHA Loans, Saving Money, Home Buying or Selling, Energy Efficient Mortgage Program
Once you get serious about buying a home or refinancing your current mortgage, you will probably hear the term “loan-to-value ratio” mentioned by your mortgage broker. What is this ratio and how does it affect your Utah mortgage? Loan-to-Value Ratio Defined A Loan-to-value ratio, also known as an LTV ratio, is the calculation of how large your mortgage is compared to the value of your property. In order to find your LTV, divide your loan amount by the appraised value or the purchase price, whichever is lower, of the property in question. In general, the low...
July 10th, 2019 | Home Buying or Selling, Credit and Debt, Interest Rates, What is a Loan-to-Value Ratio?
U.S. military veterans can now apply for VA mortgage loan that now exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). The Blue Water Navy Vietnam Veterans Act, unanimously approved by the Senate and signed into law Tuesday by President Trump, removed the previous loan cap of $484,350 for VA loans. However, there will be some increase in VA fees as the law also provides disability compensation for veterans who suffer from Agent Orange-related diseases. The increase in fees will help to pay for those health care benefits.
July 8th, 2019 | VA Loans, VA Mortgage Loan Cap Eliminated
