Helpful Mortgage And Real Estate Advice

Save More By Owning A Home

Since the economy is picking up speed for the better, many renters have seen their monthly rent increase as well. Based on the nation’s housing market, homeowners are saving more on a monthly basis than renters, Mortgage Home Base is ready to guide first-time homebuyers in the right direction.

Eligibility requirements for a mortgage has become a lot more simple. Banks across the nation are now more reasonable when it comes to a borrower’s financial situations. Credit score minimum requirements have decreased along with 2014’s mortgage rates. Within today’s market, more homebuyers are becoming homeowners.

With the help of Mortgage Home Base, you can check to see what you may be eligible for with no obligations or fees necessary. Take advantage of today’s market offers and find out if you qualify!

The Anticipated Rent Amount by 2015 Doubles

A most recent survey gathered from Fannie Mae showed that many consumers today are still unsure of the direction the housing market is headed towards, but rates are lower than ever. Fannie Mae’s survey consists of monthly observations of consumers across the nation. This bit of information gives us a better sense of expectation not only for months ahead, but for 2015 as well.

The topic of these surveys are usually:

  • Broad Economic Themes
  • Home Prices
  • Mortgage Rates
  • Rent

In the survey, 45% of consumers are anticipating for home values to increase within the next year. 10% of consumers expect for home prices to decrease, and an average of 2.1% annually in home values. Consumers responding to Fannie Mae’s survey is also expecting for rent across the nation to an increase of 4.1%.

Usually when rent amounts are increasing faster than values of homes, the equation of renters oppose to buyers change as well. This is can be a solid expectation for many with the continuance of mortgage rate drops.

The recording and tracking of mortgage rates started in 1971. During this time the 30-year fixed rate terms were averaging close to 8.50%. Today’s mortgage rates since then has been averaging at 4.10%. You may even find many lenders quoting rates today as low as 3%.

With today’s low rates, renters are better off owning if they are looking to save. Owning can help stabilize a person’s financial situation. Coming up with a budget and sticking with it is hard if your rent goes up every month or year. For a more promising result, a long-term mortgage may be the best thing to go with if you are not planning on moving and are sure that your income isn’t going to change anytime soon.

Are you renting and looking for a better way to save and still keep a roof over your head? Find out more information on what you may be eligibility for!

Great Mortgages for First-Time Homebuyers

For the past seven years renters have been waiting to buy, and now is the best time for first-time buyers to get approved for a mortgage and start living the American dream as homeowners. Renters who have already established credit over the years have several mortgage programs to choose from with discount points as well. Some programs even accept credit scores as low as 580. However, keeping in mind that the lower your credit the higher your interest rate and down payment in most cases.

FHA Home Loans

The FHA Program is one of the most popular program for many first-time homebuyers since it usually requires a 3.5% downpayment depending on your choice of property. The only thing that homeowners are having trouble with today in regards to the FHA program is its required Mortgage Insurance Premiums (MIP). There are two types to be exact, one of them is a 12 month installment. The other is an Upfront MIP, which is added to the size of your loan. Because of the increasing MIP today many homeowners are turning to refinancing to remove FHA’s MIP

Many first-time homebuyers with credit scores ranging from 580-640 have found FHA rates to be lower than other mortgage program rate quotes. Buyers with credit scores of 640 -740 may find that there are several more rate options to choose from such as Conventional.

Conventional Mortgages

Conventional mortgages are ideal for first-time homebuyers with good credit score ratings of 740 or higher. However, mortgage rates for a Conventional loan are typically higher, but it doesn’t require MIP, if you do need to have mortgage insurance it is often less than FHA’s. Fannie Mae and Freddie Mac usually requires a 5% downpayment for a finance with Conventional. All loans that meet Freddie Mac and Fannie Mae’s program guidelines are considered “Conventional”.

USDA Loans

Backed by the U.S. Department of Agriculture, the USDA home loan is great for borrowers looking to settle in a rural area with a medium-to-low population rate. As long as borrowers are able ot meet its income limits, there is typically no downpayment required. Even though mortgage insurance premiums are included, they are a lot less than those of Conventionals and FHAs. The credit score requirement for a USDA home loan is usually 620 or higher and only offers the 30-year fixed rate mortgages.

VA Home Loans

With only a minimum credit score of 620 and a Guaranty program allowing 100% financing, the VA loan is one of the best mortgage programs around for veterans and our active military personnel. Not only does the VA home loan offer some of the lowest rates, they are backed by the Department of Veterans Affiars and can be used for home improvements on an existing home as well as upgrades for energy efficiency. The VA home loan usually does not require mortgage insurance either.

With all of the different options to choose from and low rates offered to first-time homebuyers, soon enough there will be a significant amount of homebuyers come 2015!

About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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