Tag Archives: Home Mortgage

Choosing The Right Mortgage Lender

Brenda Alfano, guest blogger and mortgage expert, shares some interesting insight into the mortgage process and things to consider when shopping for a lender.

Happy 2015! Do you have goals for 2015? Is one of them to buy a home or perhaps to refinance a home? Does either of those goals make you want to run screaming the other direction because you have heard horror stories?

Let me be honest here, the mortgage process is not an easy one. However keep in mind, some financial institution is going to lend you thousands of dollars, they want all the bases covered. Yes, I know that was not the system before the housing crisis; it was easy peasey and very little hassle. Now remember where that put the economy. Hmm, yes, they are far more cautious now. We also had a terrorist attack on our country. That caused tremendous changes in many areas as we know, especially the financial arena, which is why we in the lending world have to ask for soooo much documentation. The bad apple syndrome in play.

I recently read an article in which the Consumer Financial Protection Bureau (CFPB) was suggesting that borrowers not get their information about mortgages from a lender but rather from the internet – because lenders may have a vested interest in the mortgage they obtain. I don’t know about you, but I think that idea is pure crazy for 2 reasons.

First, who is putting that information on the internet – perhaps lenders!? Second, how much incorrect or contradicting information have you found when you research something on the internet? I have found plenty and it is very confusing!!

So my suggestion – do talk to a trusted professional or two whose name(s) you have received as a referral from someone you know and trust that may have just bought or refinanced a home. Or perhaps they used that lender several years ago and that lender stays in touch with them to be sure all is still working well with their mortgage. *Caution* Don’t always believe reviews on the internet as they can be manipulated. Talk to people you know.

When you work with a trusted lending professional, you will have more knowledge and less fear so you won’t feel the need to go screaming in the other direction!

It’s a good life!

Brenda Alfano
Mortgage Consultant
Absolute Mortgage
MLO# 229897

Mortgage Interest Rates & Home Values

Brenda Alfano, guest blogger and mortgage expert, shares some interesting scenarios regarding mortgage interest rates and home values, and how it could affect home sellers and buyers.

Hello from Brenda Alfano, Mortgage Consultant!

Last month I gave you some industry news of the moment. Hope that might have interested some of you.

The news lately is that rates are staying steady but they are expected to start going up slightly next year as the Federal Reserve recently mentioned. What does this mean to the home buyer?

Well basically it means for the same house price you would be paying a higher payment. If the house price goes up as well, as they have been steadily doing, you will have less buying power for the same payment as today. Here is an example of what I mean:

If you bought a home today for $450,000 putting 10% down and loan amount would be $405,000 and “suppose” the rate was 4.25%, Principal and Interest payment would be $1992.36.

If you bought the same house with a price increase of 6% (based on earlier this year, that is a conservative estimate) so the price would be $477,000 and the rate increased to 5.25%, the Principal and Interest payment would be $2370.61. That would be an increase of $378.25 in payment. Significant difference!

Rates are just used for scenario purpose only – actual rates based on credit and market conditions at the time of purchasing.

So the moral of the story is: if you are thinking of buying (or selling then buying) now is really a great time to move on that thought.

I would be happy to work this scenario up with different purchase prices for anyone as well.

Until the New Year, may you have a great Holiday Season, Merry Christmas and Happy New Year!!

Brenda Alfano
Mortgage Consultant
Absolute Mortgage
NMLS 229897