Category Archives: Interest Rates

Gay Real Estate and the 15 Year Mortgage

Although 30-year fixed rate mortgages were the standard choice in the past, today lenders offer loans of varying lengths. Fixed rate mortgages are home loans where the interest rate remains the same throughout the life of the loan. Following are some advantages and disadvantages related to gay real estate and the 15 year fixed rate mortgage.

Benefits

images1. You will save money by paying less interest over the life of the loan. For example, a $100,000 loan at 8 percent interest for 30 years with a monthly payment of $734 adds up to $264,240, while a 15 year loan on those same terms results in a monthly payment of $956 and adds up to $172,080. The 15 year loan results in a savings of $92,160.

2. You may save money in interest. Many lenders charge lower interest rates on a 15 year loan than for longer term loans. For example, on the 30 year loan referenced above.

3. Your equity in the home builds up much faster than with a longer term loan. Equity is the difference between your home’s value and the amount that is owed on the mortgage. For example, if your home is valued at $150,000 and you owe $100,000 on your mortgage, your equity is $50,000.

4. You will own your home free and clear in a much shorter time. This may be very beneficial if you plan to retire in 15 or 20 years and do not want to worry about making a mortgage payment.

Disadvantages

1. Your monthly payment will be higher than for a longer term loan.

2. Since the amount of interest you pay over the life of a 15 year loan will more than likely be less than it would be for a longer term loan, you will have less of a mortgage interest tax deduction every year.

3. The higher monthly payments could be a disadvantage if one of you suffers a loss of income or unexpected expenses.

There are other aspects to obtaining mortgage loans that could save you money including mortgage discount points. These points can be purchased and paid for at closing. In return, you will pay a lower interest rate on your mortgage. The amount varies depending on the lender.

If you are considering a 15 year mortgage, you should consult with your lender to find out your options. The Federal government and each state have enacted laws that apply to mortgage loans. It would be wise to consult with a local LGBT friendly realtor or attorney to review your mortgage loan agreement before signing on the dotted line. Any of the gay realtors at GayRealEstate.com can assist you in referring you to lenders who are gay/gay friendly, and may give you the best options. We hope that this article has helped you understand a little about the 15 year mortgage.

Top 3 Ways for Same Sex Couples to finance a Home Purchase

There are several ways that same sex couples can finance a home purchase including traditional mortgage lenders and possible other options. Following are the top 3 ways for same sex couples to finance a home.

images1. The U.S. Finance and Administration, FHA, is a division of the U.S. Department of Housing and Urban Development, HUD. Because discrimination based on marital status is prohibited, it makes no difference if you are married or not when applying for a loan. Federal law also prohibits FHA from considering sexual orientation or gender identity of loan applicants.

FHA insures loans so that qualified lenders can offer you easy qualifying and low closing costs on your new home. FHA requires a down payment of 3.5 percent of the purchase price, well below the percentage that must be paid with most traditional mortgages.

FHA does not actually make loans; it is an insurance fund that guarantees loans so lenders can offer good terms to home buyers. Since each FHA approved lender sets its own interest rates and costs, it would be wise to check with several lenders to find the best rates possible.

For more information on FHA loans, you should contact your gay realtor for a referral to a gay friendly FHA qualifying lender.

2. The Veteran’s Administration, VA, offers guaranteed loans to veterans. The VA does not make loans. Like the FHA, the VA insures loans made by approved lenders. If you or your partner is a veteran, you could qualify for a lower interest rate loan.

Unmarried same sex partners may apply for a joint loan, but the VA will only guarantee approximately 40 percent of the total loan if only one of you is a veteran. If you are married, it is likely that you will quality for a VA loan unless you live in a state that does not recognize same sex marriages. The Veteran’s Administration is evaluating those applications on a case-by-case basis.

Generally, obtaining a VA loan allows lenders to mortgage your new home with no down payment and negotiable interest rates. Closing costs are comparable or lower than traditional mortgages and you may be able to finance VA’s funding fee in the mortgage.

For more information on VA loans, you should contact your gay realtor for a referral to a VA qualifying lender.

3. Seller financing is available on some homes. When a seller finances the home, there is no need to apply for a mortgage from a traditional or other type lender. You will sign a promissory note and make your payments, including interest, directly to the seller. If you live in a state, such as California, that has enacted anti-discrimination laws because of sexual orientation or sexual identity, the seller would be forced to sell to you if you meet his qualifications including down payment and credit worthiness.

The benefits of seller financing include no lender origination or other fees and there is no need to worry about strict mortgage lender requirements. Since the terms are negotiated between you and the seller, you may end up with a lower down payment and interest rate than you would with a traditional mortgage.

If you are interested in purchasing a seller financed home, you should check the laws in your state to ensure that you cannot be discriminated against.

In addition to the above, many states offer mortgage assistance programs. For example, MaineHousing’s First Home Program offers low fixed rate mortgages. You should check with your state government to find out what options are available in your area.

A great way to get started is to contact a top gay realtor at GayRealEstate.com. The Nation’s Oldest and Largest Gay Realtor Directory. No Cost or Obligation to find the Perfect Agent.

Prequalification for a Home Loan

If you are shopping around for a home and then applying for a home loan it means that you are putting “the cart before the horse.”  Knowing the amount of the mortgage you prequalify for before you shop around for home spares you the heartbreak of choosing a property and then being told by a lender that you cannot afford it. Having this information in-hand also impresses everyone involved in the real-estate transaction and may give you an edge in the bidding process.

bankYour first step to finding a loan is to visit the bank that offers you the lowest interest rate, but you also need to make sure that there are no “catches” to the offer. Sometimes banks advertise lower interest rates as a way of luring you into doing business with them but there can be factors involved that can elevate the cost of your mortgage. For instance, there may be a minimum down payment required on the loan before you qualify for the lower interest rate. You will also definitely be required to have a high credit rating before you will be considered for any mortgages with lower interest rates.

There can also be other hidden costs when applying for a prequalified mortgage that only really become evident once you have successfully acquired the home and it is time to sign an agreement. These hidden costs can include the closing costs, application fees and origination fees.

Before you talk to a lender it is a good idea to acquire a mortgage payment worksheet or use an online mortgage rate calculator to determine what the ballpark figure is that you can spend on a mortgage.

There is also next to no point in visiting a lender to acquired mortgage prequalification unless your debts are paid off or at the very least being paid absolutely on time; you have several active forms of credit in use including major credit cards from a prime company such as Visa, MasterCard or American Express; and ideally an already established credit line or proof that you have paid off a credit line on time and in full in the past.

Finally, if you are planning to apply for a mortgage prequalification do not buy a car, appliances or any other type of large item on credit at the same time as this can cause the lending institution to lower the amount it is willing to lend you.  It is also not a good idea to try and change jobs and buy a home at the same time, as most banks will not prequalify you for a mortgage unless you have been employed at least two years

Prequalification for a mortgage is, in a way, all about timing so make sure that you have all of the paperwork that is required in place. It is also a good idea to make sure that you have copies of everything that relates to your financial standing in place and ready to present to the lender in a meeting.

The ‘Fiscal Cliff,’ QE3, and the Future of Interest Rates

Economists from the Mortgage Bankers Association sounded an optimistic note at a press conference yesterday afternoon during the organization’s Conference & Expo in Chicago, with predictions that unemployment will go down, home purchase loan originations will go up, and mortgage rates will remain low in 2013. All of these point to a continued housing recovery, but they cautioned that major economic challenges loom that could bring about a reversal — particularly in interest rates.

“The most immediate threat is the fiscal cliff,” said Jay Brinkmann, the MBA’s chief economist and senior vice president of research and education, referring to the deep cuts in taxes and government program spending that will take place at the end of this year if some sort of financial compromise isn’t reached by legislators on both sides of the aisle before then. The Congressional Budget Office estimates that U.S. gross domestic product will fall four percentage points in 2013 if an agreement isn’t forthcoming, which would make it a recessionary year.

Mike Fratantoni, vice president of single-family research and policy development for the MBA, predicted there will be some sort of resolution. “It may not be clean, and it may not be timely,” he added. Any major delays would likely lead to a spike in interest rates and, consequently, declines in home sales.

Over the long haul, interest rates will likely remain below historical lows because of the flight of global capital to the U.S. caused by the continuing European debt crisis and the Fed’s rollout of another round of quantitative easing (often referred to as QE3). This Fed initiative — which will probably last at least a year and possibly as long as two — will involve the central bank purchasing tens of billions of dollars in mortgage-backed securities each month.

“[QE3] wasn’t surprising,” Fratantoni said. “The aggressiveness, the open-ended nature of it, and extreme focus on the mortgage market was a surprise.”

However, if the Fed determines that they’re crowding liquidity out of the market with QE3, they may shift to purchasing longer-term securities such as Treasuries, Brinkmann added.

 

The author of this article is: realtormag.realtor.org

 See the original post at: http://realtormag.realtor.org/daily-news/2012/10/24/fiscal-cliff-qe3-and-future-interest-rates

At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.

         Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.


If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at:
manager@gayrealestate.com

Posted on October 24, 2012 in Interest Rates

Low Interest Rates Help Americans Save Money

Ultra-low interest rates have helped the average American to save more than $3,000 a year, according to a USA Today analysis.

Interest payments on mortgages have contributed to some of the largest savings. USA Today reports that mortgage interest payments have fallen 30 percent since peaking in 2007.

According to the Bureau of Economic Analysis, Americans spent 5.8 percent of their after-tax income paying interest on mortgages, credit cards, car loans, and on other debts — the smallest share since 1977.

Indeed, interest payments have fallen drastically on debt. Interest payments averaged $469 per month at the end of last year compared to the $728 per month peak in 2007.

Low interest rates are expected to continue too. The Fed has made a rare vow to keep key interest rates low through 2014.

 

The author of this article is: realtormag.realtor.org

 See the original post at: http://realtormag.realtor.org/daily-news/2012/03/27/low-interest-rates-help-americans-save-money

At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.

         Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.


If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at:
manager@gayrealestate.com

Posted on April 3, 2012 in Interest Rates