How to use your tax refund towards homeownership.

Here are ways you can make your tax refund work for you when buying a new home:

Down payment.   Saving for a down payment can be one of the biggest barriers to buying a home.  With low down payment options (3.00% on Conventional loans and 3.50% on FHA Loans) homebuyers are taking advantage of using their tax refunds to buy their new home.   Depending on your credit history and other factors we can assist you on which programs works best with your financial needs.   

If you are not eligible for the 0% down VA Loans, contact us to evaluate your options with low down payment options or our down payment assistant programs.

Pay for closing costs.   A home buyer typically pays between 2-4 percent in closing fees and prepaid items at closing.   IF you were able to come up with your own closing costs you may be able to purchase your new home at a lower price.  

Pay down installment and credit card debt.   Your credit score is one of the more crucial factors that will determine your mortgage interest rate. One of the easiest ways to increase your credit score to buy a house is to pay off high-interest credit card debt.

Lower interest rate option.   You can get a lower rate by paying discount points to buy down your mortgage rate.   For example:  A “point” equals one percent of the loan. It’s essentially an upfront interest payment to lock in a lower interest rate on your fixed–rate mortgage. So, if you are borrowing $200,000, paying one discount point would mean paying $2,000 upfront at closing — but it may end up saving you more in interest payments over the life of the loan.  Ask us the difference with rates vs point options.  

Upgrade your home with a larger down payment.   Is it smart to use your tax refund towards buying a home?   It depends on who you ask.   Mortgage rates are still low where borrowers can use their refunds to buy bigger homes with more of a down payment.    Putting your refund towards a lower loan amount will give you a lower monthly payment.  

The first step is talking to a mortgage consultant to find out your options.   Contact us today at 833- START VA or  Click   GET STARTED

 

 

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

 

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

 

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

Capacity: Your current and future ability to make your payments
Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
Collateral: The home, or type of home, that you would like to purchase
Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line
Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.

Source:  Keeping Current Matters

 

 

Lowest rates in 9 months

There is a quiet refinance boom brewing, as mortgage rates sink to 9-month lows.
Not since April 2018 have rates been this low.
Freddie Mac, in its weekly mortgage rates survey, reported that the average 30-year mortgage rate hit 4.45%, sinking below the psychologically important 4.5% mark.
What’s more, rates have come down from highs near 5% as recently as November.
That drop represents a savings of $90 per month on a $300,000 mortgage.
Consumers a flocking to refinance. No one knows how long this good fortune can last.

15-year fixed and 5-year ARMs drop into the 3s
The 30-year fixed rate gets all the attention, but other types of mortgages should be making headlines, too.
Rates for 15-year fixed and 5-year ARM loans are now in the 3s according to Freddie Mac.
15-year fixed: 3.89%
5-year ARM: 3.83%

These alternatives to the 30-year give homeowners the opportunity to secure pre-2018 rates — before rates started spiking in earnest.
For instance, someone buying a home may have found they could no longer afford monthly payments at today’s 30-year fixed rate.
But they choose a 5-year ARM rate instead and shave more than $100 per month from today’s 30-year payment.
Five-year ARMs are fixed for five years, then start adjusting based on the market. These loans are perfect for homeowners who plan to stay in their homes only 5-7 years.
Those who are impressed at today’s dropping 30-year rate will find short-term rates even more enticing.
How do I check my rate?
Mortgage rates suddenly turned low again, sparking new interest for home buyers and refinance applicants alike.

Each applicant, though, needs a personalized rate quote. Average rates are only that — an average. Your rate might be higher or lower depending on credit score, down payment, home equity, or other factors.

Get your live rate quote now.  A quick conversation with VA Mortgage Corp. can reveal significant savings for you.

VA Mortgage Corp NMLS# 1635553

www.nmlsconsumeraccess.org 

The VA loan is an option for active duty military personnel, veterans and their families. It is backed by the department of Veterans Affairs (VA). This does not mean that the VA actually lends the money, but they do insure the loan for private banks and lenders. For that reason, VA loans do not require mortgage insurance- but that is just one benefit of using your VA benefits. 

VA Loan Benefits

  • 30 year and 15 year fixed–rate loans, and 5–year ARM loans available
  • Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates out of all loan types
  • Jumbo VA loans available
  • Buy a home with no money down
  • No monthly private mortgage insurance (PMI)
  • Refinance your current VA Loan using the IRRRL – you may not need an appraisal‚ credit check or financial documentation to take advantage of this streamline refinance with a lower funding fee
  • An assumable mortgage‚ typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment‚ which can be a big benefit in an environment of rising interest rates

How the VA loan works

  • Credit scores as low as 600 may qualify for VA loans
  • Use your basic allowance for housing toward your monthly mortgage costs
  • Prepay your mortgage at any time without penalties
  • Add the funding fee into the loan amount to limit closing costs
  • Limitation on buyer’s closing costs. Sellers can pay all buyer’s loan–related closing costs and up to 4 percent in concessions.

The VA Home Loan Program is more important than ever to our service members and we salute your dedication. It would be an honor to assist in achieving your homeownership goals. 

Call your trusted VA Mortgage Experts toll free at (833) START VA or (833) 782-7882 today to see if you qualify for the VA Loan Program.