Author: super_admin

  When it comes to mortgages, there’s no shortage of misconceptions—and believing them can cost you thousands of dollars or cause unnecessary stress. Whether you’re buying your first home, upgrading, or refinancing, it’s essential to separate fact from fiction. Here are some of the most common mortgage myths I hear—and the truth behind them. ________________________________________ 🏠 Myth #1: You Need a 20% Down Payment to Buy a Home Truth: While putting 20% down helps you avoid private mortgage insurance (PMI), many loans require far less. First-time homebuyer programs, FHA loans, and VA loans often allow down payments as low as 3%. Waiting to save 20% might delay your dream of homeownership unnecessarily.   👉 Are you a homebuyer with a signed contract? Get your mortgage rate here! ________________________________________ 💳 Myth…

A balloon mortgage is a unique type of non-qualified (non-QM) home loan that offers lower monthly payments upfront but requires a large lump sum—known as a balloon payment—at the end of the loan term. Typically structured for five, seven, or ten years, balloon mortgages are appealing for those looking for short-term affordability. However, they also come with risks, including higher interest rates and the potential for financial strain if the borrower cannot afford the final payment. Since these loans don’t conform to the Consumer Financial Protection Bureau’s standards for a qualified mortgage, they are less common and often come with more flexible application requirements. How Does a Balloon Mortgage Work? Unlike traditional mortgages, balloon loans can have different payment structures depending on the lender. Some loans require both principal and…

  Typically, sellers choose spring and summer as the time to list their homes, as most buyers are out in the market looking to buy a home. 👉 This blog post is to help anyone currently looking to buy a home and do it in the smartest possible way. While every mortgage company provides more or less the same thing—a rate quote, loan costs, and a willingness to make themselves your new best friend so you don’t “shop elsewhere”— We are different. Yes, we’ll give you a rate quote and explain all the loan costs, but our focus is on helping our clients create wealth for their families by using the money in their pockets intelligently to buy real estate. (And no, we don’t really care so much about being…

Recently, I helped a client refinance their mortgage by reducing their rate from 7.75% to 6.875%, saving them $373.10 per month—with zero dollars in loan costs. Everything was going smoothly until the borrower reviewed the documents and saw the Cash to Close number. Even though they could clearly see the no-loan-cost refinance, they were stunned by the cash to close amount and asked for further clarification. This is a common concern, so I’m writing this post to clearly explain what loan costs are, how to use lender credits to reduce or eliminate them, and what to expect with cash to close. ________________________________________ Loan Costs: The One-Time Fees That May or May Not Apply When refinancing, lenders typically charge one-time fees that include: ✅ Appraisal Fees ✅ Lender Fees ✅ Title…

No-doc loans (short for “no documentation” loans) can sound like a dream come true for borrowers who want to avoid the usual hassle of paperwork. Unlike traditional mortgages, which require reams of income and asset statements, pay stubs, and tax returns, no-doc loans promise a more streamlined process. But as easy as they might sound, these types of mortgages come with unique requirements, higher risks, and often steeper interest rates. In a typical mortgage application, lenders scrutinize everything from your credit score to your debt-to-income ratio (DTI) and employment history. With a no-doc loan, the name says it all: You’re not asked to provide detailed paperwork to prove your income. Instead, you generally just state what you earn — though be aware, lenders still run credit checks and require some…

If you’ve been dreaming of a luxurious home or a property in a high-priced neighborhood, a regular mortgage might not cut it. In cases where the price tag climbs above standard loan limits — typically over $806,500 in most of the U.S. for 2025 — you’ll need what’s known as a "jumbo loan". These mortgages are designed to finance homes with higher price points, whether it’s a sprawling mansion or simply a modest home in a more expensive market. Jumbo loans share much in common with “regular” mortgages: You can opt for fixed or adjustable rates, choose from various term lengths, and use the loan for primary residences, vacation homes, or even investment properties. However, there are some key differences. Jumbo loans generally have stricter qualification guidelines because they aren’t…

Securing a mortgage doesn’t hinge on meeting a single, magic income threshold. Instead, lenders look at a variety of factors, including your debt-to-income (DTI) ratio, credit score, and even your employment history, to determine if you’re able to afford your monthly payments. While certain programs like HomeReady and Home Possible do impose maximum income limits, most conventional or government-backed mortgages simply require that your income supports your monthly debts and prospective mortgage payment. So, don’t be deterred if you think your salary isn’t high enough — there’s likely a loan program that fits your financial situation. When you apply, one of the first things your lender will calculate is your DTI ratio. They’ll add up your monthly debt obligations (like credit card payments, car loans, and student loans), plus your…

For years, private mortgage insurance (PMI) had a bad reputation among homebuyers, often seen as an unnecessary expense to avoid at all costs. PMI is typically required for conventional mortgage borrowers who put down less than 20% on a home, and many buyers viewed it as just another financial burden. However, recent changes in the industry have made PMI more affordable and, for some, an appealing option that can actually help unlock homeownership sooner. What Is PMI and How Does It Work? PMI is a type of insurance that protects the lender if the borrower defaults on their mortgage. Although the borrower pays the premium, it’s the lender who benefits. PMI is required when your down payment is less than 20% of the home’s purchase price, but it’s not a…

As we dive into 2025, many homeowners and prospective buyers are wondering what the year will bring in terms of interest rates. While it's impossible to predict with certainty, we can take a look at current trends and insights to help you make informed decisions about your mortgage. We're committed to keeping our clients up-to-date on the latest developments in the mortgage market. One thing is clear: interest rates have been a major topic of discussion in recent years, and 2025 is shaping up to be no exception. With the economy continuing to evolve, lenders are closely watching key indicators to determine the direction of interest rates. While some experts point to potential factors that could influence rates, such as inflation and economic growth, others note that rates have remained…

In 2024, mortgage rates have continued to fluctuate, reflecting broader economic shifts, but this is just the latest chapter in a long history of change. The residential mortgage, as we know it, is less than a century old. Before the Federal Housing Administration (FHA) was established in 1934, homeownership was a rarity, with only one in ten Americans owning their homes. That all changed during the Great Depression with the introduction of the 30-year fixed-rate mortgage, making homeownership a reality for millions and redefining the American Dream. Historical Trends: Decades of Change Over the decades, mortgage rates have experienced dramatic highs and lows. The 1980s saw rates soar to a staggering 18.4% in 1981, driven by the Great Inflation. By the 1990s, rates had eased to an average of 6.91%,…