16
Dec
By First Rate Financial Group
Mortgage

Should You Consider Purchasing A Newly Built Home?

Should You Consider Purchasing A Newly Built Home?If you have been in the process of looking for a home for a long time, you understand just how difficult it has been. You may have considered building your own house, but after seeing the bidding wars for land before you even start building, you may have crossed newly built homes off your list. Now, there are a few reasons why you should consider adding new homes back to your search. 

There Is An Elevated Supply Of Newly Built Homes

Right now, there is an elevated supply of newly built homes. Even though the overall inventory of available houses continues to lag behind, new single-family home inventory remains elevated. This means that builders may offer incentives to sell the homes they have already started building. They want to keep building homes, but they cannot do so until they sell the houses they have already constructed. They may even provide you with discounts on special features.

You Have Fewer Repair And Maintenance Expenses

Another benefit of purchasing a new house is that you will have fewer repair and maintenance expenses. Down the road, you may have to replace the hot water heater, the HVAC unit, and even the roof on your house; however, when a house is brand new, there is a much lower chance of something going wrong. That can free up money that you can spend in other areas.

You Customize The House To Meet Your Needs

Finally, if you purchase a new house, you also have the option to customize it to meet your needs. For example, you might want a bonus room that can serve as a separate area in which your kids can play. Or, you might want your kitchen to be laid out in a certain way. You may also want your garage to be large enough to fit multiple cars. Your builder may work with you to provide you with those specific features.

Consider Purchasing A Newly Built House

If you are having a hard time finding a resale home to meet your needs, consider working with a construction company to build your own house. It may be more affordable than you think, as builders may offer incentives if they have an oversupply.

15
Dec
By First Rate Financial Group
Mortgage

Are Firefighter Mortgages Legit?

Are Firefighter Mortgages Legit?As a firefighter, you put your life on the line every day. You are there when people need you the most, and you might be wondering how you can finance a home. Even though the housing market has gotten expensive, there are special programs that firefighters can take advantage of. That way, you might have an easier time purchasing the house of your dreams.

Special Programs Are Available For Firefighters

As a rule of thumb, people are expected to put 20 percent down for a home. This can cost tens of thousands of dollars, and it might be difficult for you to save that type of money. Fortunately, there are special programs under this category that may allow firefighters to purchase a house with a down payment of as little as 2 percent down. You also do not have to worry about any resale or borrower repayment restrictions, and your credit score only needs to be 580 or higher. You can even come by in this special program with the FHA 203(b) program, which might make it easier for you to renovate your house after you purchase it.

What Are The Other Eligibility Requirements?

There are several other eligibility requirements that you might need to meet. For example, if you are the one taking out the loan, your total income must be equal to or less than 140 percent of the median area income. The program is also only available to first-time home buyers. Keep in mind that this program is also available to other first responders as well. This includes police officers, paramedics, emergency medical personnel, and other health responders. 

Explore All Options For Financing Your Home Purchase

Being a firefighter is a demanding career, but there are options available that can make your home purchase less stressful. If you are a firefighter, you should consider exploring home loan options through this program. You should reach out to an expert who can walk you through the process, as it could make it much easier for you to save up money for a down payment on a house. 

 

14
Dec
By First Rate Financial Group
Home Mortgage Tips

How Do I Know If It’s a Good Idea to Refinance My Mortgage?

You Ask, We Answer: How Do I Know If It's a Good Idea to Refinance My Mortgage?Are you interested in paying less per month on your mortgage? Or perhaps you would prefer if your mortgage was paid off a couple of months – or years – faster? If you are a homeowner with a mortgage, one option that is open to you is refinancing. In today’s post, we will explore the topic of mortgage refinancing and how to know if it is a good idea.

How Does Refinancing Work?

In short, refinancing is a process in which pay off your existing mortgage and borrow a new mortgage under a different set of terms. In most cases, homeowners will use the funds from the new mortgage to pay off the old one. Depending on the terms of your new mortgage, there may or may not be cash left over which you can use to invest, pay down debts, make renovations or for other purposes.

Refinancing To A Lower Interest Rate

Mortgage interest rates tend to fluctuate over time and because of this, refinancing to a mortgage with a lower rate is quite popular. If you initially borrowed your mortgage when interest rates were at 5%, you may be able to lock-in a new mortgage at a lower rate. Note that it can be tough to try to “time” the mortgage market, so check in with your mortgage professional to find out if the time is right.

Refinancing For Lower Monthly Payments

Another great use of refinancing is to reduce the monthly payment required on the mortgage. If you have ten years remaining on a 20-year mortgage, refinancing to extend the payments out to 15 years will lower the monthly payment.

Refinancing To Eliminate Other Debts

Finally, many homeowners will refinance their mortgage to use some of the home’s equity to pay off other debts. For example, a family might have $25,000 in debts that are being charged a higher interest rate than their mortgage. If they have built up enough equity, they can refinance and draw out $25,000 from the home’s value. This shifts the debt from the higher interest areas into the mortgage, where it can be paid off over time.

As you can see, there are many reasons why you might want to refinance your mortgage. To learn more about the refinancing process, or to discuss your options, contact us today. Our professional team of mortgage advisors is ready to help you choose the path that best suits your financial needs.