Again, it is very important to look at all of the variables when determining how much you can qualify for when it comes to a house payment.

The other thing to consider is how much you can comfortably afford to pay every month – just because you can make the ratios work on a larger loan on paper doesn’t mean you are comfortable with the higher monthly payments in practice

Contact us today at our home purchase page and we can connect you with a lender that is authorized to administer government-backed mortgages. They can run all your numbers for you and help you figure out how much you can qualify for and what your best bet is in terms of available programs.

The global pandemic that has gripped the world for the last year has not only been a health emergency, but has also massively impacted financial markets. One of the side effects of widespread fear in the markets has been an uptick in intervention by the US federal reserve, in addition to a flight to safety by many investors. These factors drove mortgage interest rates to drop to unprecedented lows in 2020, and the good new is rates are still hovering near all time lows.

If you have considered refinancing to a lower rate and payment or perhaps to get cash out, there may never be a better time than now to look into a refinance. And if you’ve been considering buying a home, these historically low rates are allowing borrowers to qualify for more than ever before. Contact us in the sidebar to learn more about refinance options or if you are considering buying a home, contact us at our home purchase page. There is no telling how long these record low rates will be available so it would be prudent to take advantage of these rates before http://loan-on.com/payday-loans-la/ they bounce higher again.

The rates tend to be pretty similar or even sometimes slightly better than the 20% down option because the PMI reduces the risk to the loan investors

Market forces have converged in recent months to push mortgage interest rates to lows no seen since the fall of 2016. In addition, values of homes have been steadily rising all across the U.S. for the last several years. These lower rates and increased home values have made it an excellent time for many families to refinance a mortgage for several reasons: To lower rate and monthly payment, to remove mortgage insurance (PMI), to get cash out, or possibly to go to a 15 year fixed mortgage.

If you are interested in getting an estimate for a refinance please fill in the refinance contact form in the sidebar here. Or to research pre-qualifying to purchase a home see our home purchase page here.

On occasion consumers will ask us “what is the optimal down payment amount for a home purchase?” The answer to that question depends on the circumstances of the borrower, but the following are some rules of thumb to follow:

In some cases, such as when a borrower is selling a current home and buying a new home, borrowers will have more than 25% down. There are several advantages to having a larger down payment like this:

– Lower loan amount means a lower monthly payment – Putting more than 20% down means no private mortgage insurance (PMI) required – At 25%+ down the interest rates tend to be the lower than with smaller down payments

The benefits of 20% down mostly match the 25% down but rates tend to be a little higher with the 20% down option

With 10% down borrowers normally are required to include PMI in the monthly payment (except with VA loans). The other advantage of 10% down is buyers are allowed to get up to 6% seller concessions with Fannie Mae and Freddie Mac conventional loans.