Realty Vision


Posted by Realty Vision on 12/3/2015

There are lots of different types of mortgages out there but the most popular mortgage is a fixed-rate mortgage. A fixed-rate mortgage has a fixed interest rate for the entire term of the loan. The interest rate is determined at the loan's origination. One of the main advantages of a fixed-rate mortgage is that the loan payment amounts will stay the same for the life of the loan and will not fluctuate with interest rate movements. Lenders offer 50, 30, 20, and 10-year fixed loans. The two most popular are the 30 and 15 year fixed loan. A 30-year fixed loan amortizes over thirty years, with the majority of early payments going toward interest, later payments go mostly toward the principal. A 15-year fixed loan, amortizes over fifteen years, and significantly reduces the amount of interest paid on the loan. When considering a mortgage understand and measure risks of all the different types of mortgages.





Posted by Realty Vision on 4/9/2015

Buying your first home can be confusing. Securing a mortgage is one of the most important parts of the home buying process. Making sure that you have the right loan and have chosen the right loan officer are among the things a first time buyer has to do to start the process. Here are some more tips on how to ensure a successful purchase: 1. Make sure your deposit is in order. Talk to your loan officer about what amount of a deposit is required for the purchase and type of loan. You will also want to make sure the funds are accounted for and readily available. You can expect deposits to run anywhere between 3 and 20 percent of the purchase price. 2. Plan to have a cash reserve in addition to your deposit. You may want to have a reserve of at least two months mortgage payments. 3. Ask your lender to go over all the fees that apply to the purchase. It is better to be prepared and know how much the actual purchase will cost. These costs are typically added into your loan but there may be some out of pocket expenses too. 4. Consider how much you can comfortably afford not how much you have been approved for. These numbers may vary considerably. Your mortgage costs should not be more than 30% of your household income. 5. The lowest rate is not always the best deal. You will want to look at not only the rate but also the terms and fees associated with the loan.      





Posted by Realty Vision on 4/10/2014

You might have seen the ads on TV about reverse mortgages, but what is a reverse mortgage? It is a loan for older homeowners that uses a portion of the home’s equity as collateral. Instead of the homeowner paying the lender, it is the lender that pays the homeowner based on the equity in the home. How much can be borrowed? The amount that can be borrowed in a reverse mortgage is determined by an Federal Housing Authority (FHA formula).  The formula considers age, the current interest rate, and the appraised value of the home. What are the requirements for a reverse mortgage? You must be at least age 62 The home must be owned free and clear or all existing liens. Any mortgage balance must be paid off with the proceeds of the reverse mortgage loan at the closing. There are usually no income or credit score requirements. How is the loan repaid? The loan cannot become due as long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA requirements (keeping taxes and insurance current). The must be repaid when the last surviving homeowner permanently moves out of the property or passes away. The estate will have approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance.  







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