Tag Archives: mortgage

Home Loans for Medical Professionals: Tips on Choosing the Best Mortgage Company

Home Loans

Home LoansBuying a home through a mortgage can be galling experience when you fail to secure it from a friendly lender. The burden of repaying the mortgage can follow you for several years eating a big chunk of your earnings.

It is important to research and find a company whose rates and terms are friendly and professional in handling the proceedings. For medical professionals in need of a home loan, companies will help you achieve your desired objectives. When shopping for a mortgage company, it is vital to be informed of factors that can help you enter into a fair deal and so that you will not encounter problems while repaying.

The interest rates

Knowing the interest rates will help you know which company is the most suitable for your plans. You should conduct research and analysis to discern who offers affordable rates that your salary can withstand for the set period. You can gather information regarding the rates from online sources or probably from mortgage agents and brokers.

Your credit score

You need to know whether your credit score allows you to take a mortgage loan. It is also important to consider your profession before going for the loan. Most lenders prefer certain occupations, for instance, medical professional loans are very prevalent, especially for doctors.

Portability of the mortgage

Portability means the ability of a mortgage lender to allow you relocate to another house with the same mortgage. Portability reduces the rates by reducing the rates you had previously paid. Loans which are not portable are very costly because they demand the payment of similar rates to the ones you had paid before relocation.

Cost of mortgage insurance

When your lender requires that you take mortgage insurance, you should consider an insurance policy that you can be able to handle. Most of the policies are expensive making the mortgage and home loans even more costly to repay.

Home loans are good since they create an avenue through  which you can afford a home. The most important thing for you is to be informed to ensure that you commit to a loan that your capacity enables you to handle efficiently.

4 Reasons to Work with a Mortgage Broker

Mortgage Broker in UtahThe right mortgage broker in Utah would make obtaining a mortgage easier for you whether you are looking to purchase a mortgage or refinance an existing one. You can easily work directly with the lender. However, hiring a broker comes with many advantages, some of which are discussed below.

Mortgage Brokers are Well Connected

Since mortgage brokers are always in regular contact with a plethora of lenders, they would save you a headache that comes with finding lenders on your own. A broker’s familiarity with how different lenders work would see them steer their clients from unreliable lenders or lenders with onerous lending terms.

Brokers are Reliable Sources of Information

A mortgage broker would offer comprehensive mortgage related information to fresh mortgage buyers. With so many different types of mortgages, and each coming with its own technicalities and parameters, finding a mortgage plan that would be perfect for your circumstances is likely to be a challenge. A broker would help you avoid the confusion that might lead to your choosing of the wrong mortgage.

Mortgage Brokers can Find You Acceptable Rates

Mortgage brokers work on behalf of their clients. Their broad connections in this industry enable them to comparison shop. This means that they would be able to compare a couple of lenders simultaneously to find their clients a quality loan program. Seeing all that is out there would ensure that you do not waste time applying more than once for a mortgage.

Saving on Fees

Taking a new mortgage usually comes with several types of fees such as origination, appraisal, and application fees. Mortgage brokers can easily have these fees waived, something that would save you hundreds of dollars.

A mortgage broker would only deliver if they are dependable, Citycreekmortgage.com reminds. When choosing one, make sure that they are licensed, as well as competent. It is also important to inquire about their fees prior to signing any contract.


For Existing HUD Borrowers: How the HUD 223a7 Loan Can Help You

MortgageEssentially, the U.S. Department of Housing and Urban Development (HUD) loan solely existed to refinance existing HUD debt exclusively on healthcare and multifamily properties. This is done to increase amortization, lower interest rates, and consequently improve the property’s cash flow, all while lowering debt service costs to lessen the risk of defaulting on the HUD loan.

The Basics of a HUD 223a7 Loan

Plenty of HUD multifamily borrowers don’t usually consider refinancing their loans since it’s fully amortizing and doesn’t come with balloon payments. However, the 223a7 loan offers borrowers an efficient, streamlined procedure that enables existing HUD borrowers to quickly reduce their interest rates on their existing HUD loans.

This new HUD load could actually absorb prepayment penalty costs — this means you won’t have to wait for 10 years for refinancing in case treasury yields are experiencing significant downward pressure. To further enhance the economical and streamlined features of the HUD 223a7 loan, you won’t have to get a market study, appraisal, or environmental report — only a project capital needs assessment or PCNA report.

More importantly, you’ll only have to pay for 0.3% of your overall loan amount for the application fee, and half of it will be refunded to you after closing. HUD loans like this normally close around 60 days starting from the application.

Cashout isn’t required, but the overall loan amount could be increased for financing closing and transaction costs, as well as improvement and repair expenses. Existing debt acquired in relation to capital renovations already done on the property could likewise be included in the overall loan amount, subject to approval by the HUD.

The HUD 223a7 loan is really the most economical, easiest, and quickest multifamily loan you could get if you’re looking to refinance. However, the loan you’re planning to refinance must be an existing loan with the HUD including the 221d4, 223f, and other HUD insured healthcare and multifamily loans.

Things to Consider in Getting a Mortgage Broker

Mortgage Broker

Mortgage Broker in UtahWith the ever-improving economic conditions as well as an overall downward trend of mortgage loans, you would agree that it is one of the best times to purchase your own home. While you will still require considerable amount of money to buy yourself a property, there are lenders out there that can help ease the burden of payments for you. 

And if you’re a newbie in the world of mortgage, the services of a licensed and duly certified mortgage broker will be all the help you need.

Why Hire a Mortgage Broker?

Before deciding on which mortgage broker to hire, you need to understand the main difference between a broker and a lender, citycreekmortgage.com clarifies. Both will be in the business of preparing you for your mortgage application including different mortgage plans as well as financing options. Whereas a mortgage lender will be connected to a single lending company, a mortgage broker does not.

This means that your mortgage broker will be providing you with a host of different mortgage products from different lending companies. Each of these products will be explained to you by your broker so you will have an idea of which mortgage company to use. A mortgage lender will only show you the products of his own mortgage company, not the entire market.

What to Consider in Hiring a Mortgage Broker In choosing a mortgage broker, try the following advice.
  • There are two types of brokers: tied and independent. Choose one that is independent because a tied broker will often be limited to the mortgage partnerships his company have. An independent broker, on the other hand, can scour the whole market for the best deal for you.
  • Check the credentials of your mortgage broker. He must be duly certified and well recognized in your community as a mortgage broker. In any country, these professionals often have a national registry so make sure to validate their authenticity.
  • Ask around, especially those who have recently bought their own homes. Ask for recommendations and then compare your notes with feedback from your own network of friends. Chances are there will be a few names that will keep cropping up.
  • Sit down for an interview with your prospective mortgage broker. Ask how he is expected to be paid and how much. Stick to the mortgage business and never fall into the trap of being bullied into using a particular mortgage firm.

Mortgage brokers are your financial advisers when it comes to securing a home. Choosing the correct one is tantamount to choosing the best mortgage plan for your dream home.

Should You Apply for a Fixed-Rate Mortgage or an Adjustable-Rate Mortgage?

mortgage in St. George

mortgage in St. GeorgeWhen planning for the financing of your first home, one of the things you need to think about is the type of mortgage you will be getting. With all the special options offered by lenders, this subject can be overwhelming to someone who is not too familiar with financial matters.

To give you a background, here are two of the common mortgage options you will encounter:

Fixed-Rate Mortgage

This fixed-rate mortgage accounts for as much as 90% of all home loans in the United States. This type of mortgage has the same interest rate for the whole term of your loan. For instance, your periodic payment will remain the same if you get a 30-year fixed-rate loan.

With this type of mortgage, you have an idea of how much you will be paying for the duration of your loan. This provides you more freedom in planning the budget for your home’s financing.

Adjustable-Rate Mortgage

The adjustable-rate mortgage (ARM), or floating-rate mortgage, is the opposite of a fixed-rate loan. Under this type, interest rates can change during the loan term. This means your payment may go up or down, depending on the current rates. Borrowers may obtain lower rates at the start of the mortgage, which, in turn, allows them to qualify for bigger loans. Some mortgage companies in St. George may offer loan terms for one, five, or seven years.

An adjustable-rate mortgage also has variations. One of the common variations is the interest-only loan. In type of arrangement, a borrower may only pay for the interest during the initial period until it reverts to the fixed type.

The right mortgage will depend on a number of factors, such as your needs, current financial condition, and even your plans for the house. Each loan type has its own benefits, so you have to be thorough with your choice.