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Fed’s hike of .25 point in short-term interest rates

By, Jesus Flores, Loan Officer

For the first time in a year and only the second time in a decade, the Federal Open Market Committee (FOMC), the policy making arm of the Federal Reserve, voted on Wednesday in its eighth and final meeting of the year to raise the federal funds target rate by 25 basis points up to the 0.50 to 0.75 percent range. Analysts in the housing industry have been speculating for weeks as to what the effect of a Fed rate hike would be on mortgage interest rates and overall affordability. In the month prior to the Fed voting to raise the federal funds target rate, the average 30-year FRM rose by more than 50 basis points to a level above 4 percent for the first time in more than a year.

“While the Fed’s hike of 0.25 point in short-term interest rates may trickle down to long-term rate products like 30-year mortgages, the more immediate impact will be felt by borrowers with variable-rate mortgages and home equity lines of credit who can expect an increase in their payments at their next rate reset,” said Tim Manni, mortgage expert at NerdWallet. “Homebuyers shouldn’t be particularly concerned with today’s Fed move. Even with rates hovering over 4 percent, they’re still historically low.

The Fed released a new forecast Wednesday and it projects U.S. economic growth this year to be 1.9% and next year to be 2.1%, both slightly better than the Fed’s previous projection in September. The rate increase indicate that the U.S. economy no longer needs the Fed’s crutches and consumers and businesses can afford to pay more to borrow.

Should you have a comment, questions or inquiries just reach us 714.493.2657 or email us at  jflores@homeloansondemand.

We are here for you, every step of the way!

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1% Down Payment: Equity Boost Program

One month’s rent could get you into your Dream Home.  TODAY you can buy your first home with the new conventional 1% Down Equity Boost Program. This is how it works,  you bring  1%  Down Payment, and lender provides a down payment assistance grant for 2% of the purchase price, giving  you the borrower 3% equity in the property at closing. Gets even better than that, this Equity Boost Program is available as well with no Private Mortgage Insurance.  Low Rates. Closing could be 30 days or less depending on how fast we get all paperwork together.

Keep in mind the 2% down payment assistance grant is a true grant and you don’t need to repay it to the lender.

Should you have a comment, questions or inquiries just reach us 714.493.2657 or email us at  jflores@homeloansondemand.

We are here for you, every step of the way!

 

 

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Mortgage and Discount Points. What are they?

Discount points are fees specifically used to buy-down your rate. This makes them different from “origination points”, which are fees that a bank charges to “do your loan”.

Discount points also can be tax-deductible, depending on which deductions you can claim on your federal income taxes.

To really benefit from it, it’s important to consider how long it will take for you to recoup the cost of buying points. This is called the break-even period. You will be able to know if buying discount points will be financially beneficial for you at the long run.

We at Home Loans On Demand are committed to your real estate financial needs as we partner to assure you receive only the best home-loan solution specifically suited to your financing and lifestyle needs.

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Loan Origination Fees Vs Discount Points

When taking out a mortgage, you probably were considering buying discount points whether for a new purchase or to refinance an existing loan, one decision you’ll undoubtedly will have, is to   make sure it’s worth paying discount points to obtain a certain interest rate on your mortgage.

Before going any further, it’s important to note that the term “points” gets thrown around loosely, and can refer to the loan origination fee and/or discount points. The loan origination fee is the commission charged by the bank or the loan officer for working on your loan, where on the other hand discount points are used to buy down your interest rate.

It’s an important distinction because the loan origination fee pays for the costs of originating the mortgage and these fees involves:

  • Paperwork
  • Verification’s
  • Calculations done to determine your mortgage rate

Finally, it is important to know that a good credit score may help you get a lower origination fee, and an excellent credit score can be an even better bargaining tool in your negotiations.

While paying discount points (prepaid interest) is entirely optional depending on the rate you desire. Discount points are a one-time, upfront mortgage closing cost which give a mortgage borrower access to “discounted” mortgage rates as compared to the market.  

We at Home Loans On Demand are devoted to your real estate financing needs as we partner to assure you receive only the best home-loan solution specifically suited to your financing and lifestyle needs

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What Are Today’s Mortgage Rates?

Today’s mortgage rates are probably lower than they’ll be at the end of 2017, per most experts.   However, your actual mortgage quotes depend on several factors — like your credit rating, loan amount, and how you intend to use the property.   Advertised rates can’t consider these factors and are not as accurate as custom quotes that you get by contacting mortgage lenders.

Whether you are purchasing your dream home, refinancing an outstanding loan, or consolidating debt, our highly-experienced team can help you find the right loan program.  

Call us today @ 714-493-2657

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FHA 2017: Abriendo más puertas para Compradores de Casas!

2017 se inicia con más oportunidades para las familias de bajos ingresos económicos que quieren ser dueños de su casa propia. La Agencia Federal de la Vivienda (FHA) acaba de aprobar la reducción del seguro hipotecario en los programas de préstamos del gobierno FHA, permitiendo ahora a más compradores calificar para estos préstamos ya que se verán ahorros en este tipo de préstamos.

La reducción de las primas de seguro hipotecario reflejara un aumento en el número de prestatarios que serán elegibles ahora para comprar una casa a través del programa FHA

Más familias van a ver HOY que si se puede hacer realidad el sueño de la casa propia.

El nuevo programa entra en efecto el próximo 27 de enero, y por propósitos de ilustración se espera un ahorro promedio aproximado de $500 dólares al año por cliente en estos costos.

Tu algún día seré dueño de mi Casa Propia comienza HOY!  Llámanos para darte toda la información que necesitas o visita nuestra página de internet www.homeloansondemand.com

¡Estamos contigo cada paso del proceso!

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why refinance your home

By, Jesus Flores Loan Officer

Because refinancing with a new loan can bring you many options and benefits. However, make sure you understand why refinancing your home will be a solution that  will actually benefit your unique situation such as:

lowering your monthly payments

refinancing at the right time especially when interest rates drop one percent or more lower than your current mortgage interest rate can make a notable difference in your monthly cash flow.

refinancing may shorten your repayment period but increase your monthly payments: You may find it’s a worthy tradeoff to make higher monthly payments in order to own your home sooner, especially if interest rates are favorable to you. Your personal financial situation and long-term goals will help determine the right move.

refinancing to obtain cash: Cash out refinancing allows you to get an additional lump sum of cash right away to use for major purchases, including home improvements, automobiles, vacations or weddings. However, you should compare the benefits of refinancing to other methods, including home equity loans – especially if you don’t need a large amount.

it is important to consider the following:

know what you owe: determine the payoff amount on your existing mortgage to know how much you will need to borrow from a new loan. Also, find out if your current lender charges any fees or penalties for paying your entire mortgage before it’s due (called prepayment)

you have options: there are numerous loan options out there for your home, ranging from loans that give you a more stable interest rate to those that help consolidate your debt. Work with a lender to determine if any option benefits you more than your current mortgage loan.

refinancing will include closing costs:  you will need to go through another property appraisal, as well as provide essential documents  which will vary based upon your location and loan option. Closing costs are also involved.

 

you have time to change your mind: By law, you have three business days after you sign your loan contract to cancel the loan for any reason. For this same reason, you do not receive any money until three days after signing the contract. This applies to primary residences only.

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what you should know about your credit

By, Jesus Flores, Loan Officer

Owning a home is one of the most single important decisions we make in our lifetime. However, one critical element for realizing this dream is developing and maintaining good credit.

Although credit simply means you are using someone else’s money to pay for a purchase with a promise to pay that money back, it will help you obtain a loan when you want one, with favorable terms, and it also gives you more control when shopping for loans.

Why not pay with cash?

Paying cash for smaller items, such as clothing and groceries, is generally a good idea. However, using credit cards for larger purchases, such as appliances, can help you establish the good credit history that will help when it comes time to make even larger purchases, such as cars and homes. But remember: your credit is only as good as how well – and on time – you pay your monthly debts.

Does it matter how many credit cards I have?

Yes. Having numerous credit card accounts open, even if the accounts have low or zero balances, may affect your ability to get a loan. This is because a potential lender considers all available credit limits – not just debts – when deciding if you would be a good credit risk.

What happens if I don’t make timely payments?

Each time you make a payment after its due date, you may have to pay penalties or late fees. In addition, a history of making late payments may affect your credit history and ultimately mean higher interest rates on subsequent loans.  

What is considered a late payment?

Generally, a payment is considered delinquent if it’s received 30 days past its due date. A mortgage payment, however, is considered late when it’s received 15 days after its due date. If an account has payments that are 60 or 90 days late, that account is considered to be in serious delinquency. Any late rent or mortgage payments in the past 12 months could affect your qualification for a mortgage loan and its interest rate.

A typical credit report is made up of four types of data: personal information, credit information, public record information and inquiries about your credit. Credit information includes details for all loans and lines of credit: the date it was opened, the credit limit or loan amount, the total balance and the monthly payment amount. The report also shows your payment history over the past several years and the names of anyone else responsible for paying an account, such as a spouse or a co-signer.

 

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my credit score

What is a credit score?

A credit score is a statistical measurement used to predict how likely you are to repay a loan. The score is drawn from information on your credit report and data from millions of consumers. It provides lenders with a fast, objective way to evaluate your credit history.

What factors influence my credit score?

Any action you take related to your credit practices influences your credit score, from timely, regular monthly payments (which will have a positive influence) to minimum payments on maximum credit card balances (which will have a negative influence).

What is a good credit score?

Credit scores typically range from 300 to 850. A credit score that falls between 680 and 850 is considered more favorable and a lesser credit risk.

Can I change my credit score?

Yes – in fact, you are the only person who can change it. You can improve your score by paying off loans, reducing credit card balances and making monthly payments on time. After a period of time, generally a year or two, such practices will usually be reflected in your credit score.

Does a lender take anything else into consideration when I apply for a loan?

Yes. Although lenders rely heavily on credit scores, other factors are taken into consideration, including your job history, income, savings and checking accounts, the types of loans you currently have and the type of mortgage loan you want.

What can I do if I don’t have credit?

If you don’t have credit as reported by the credit-reporting agencies, most lenders will accept alternative sources of credit. This could include “credit references” in the form of bills you have paid on a regular basis for rent, utilities, cable TV or insurance.

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5 things to know before purchasing your first home

By, Jesus Flores, Loan Officer

Buying your first home is a big investment – one that can affect your lifestyle and your credit. The more information gathering you do before making your decision, the greater your satisfaction is likely to be before, during and after your move. To get you started, here are 5 things to know before buying your first home.

How much you can afford: Consider all costs involved, including the down payment, closing costs, your monthly mortgage payment, taxes and maintenance, insurance and any applicable association fees.

Your credit score: Credit is an agreement to borrow money with the promise that you will pay it back later through scheduled payments. Good credit may get you a lower rate on your loan. To learn about credit and how to get your score.

Your financing options: Rates, terms, discount points and other details vary by loan type and with your credit. If you’re ready to take the next steps, find out what’s available to you. .

The right real estate agent for you: Real estate agents specialize in a variety of areas and are each familiar with different neighborhoods.  Choose one who you feel best aligns with  your needs and personal preferences.

The neighborhood: Safety, commute times, noise and other surrounding factors can influence your quality of life. Make sure you visit the area, walk around the neighborhood and get a feel for the community. Take the time to research the community online to learn of any upcoming developments that may impact the housing market in that area, and look for other red flags that may impact your choice to live there.

Ready to get started? Find out more about your financing options, the home-buying process and what you can afford by contacting us at 714.493.2657

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Refinancing your Home Loan could benefit more than you think

One of the largest, singular monthly expenses for the average household in the U.S. comes from Home Loan repayments.   A refinancing loan will essentially see you take out a new loan to cover your previous loan, and while this might sound counter-intuitive, it could actually help you manage your current mortgage and monetary needs more efficiently.

Here are some reasons why:

  • Better interest rates
  • Remove Private Mortgage Insurance
  • Extend your loan maturity day to pay lower monthly installments.
  • Debt and need to consolidate
  • Better Home Loan Programs

Refinancing can offer a way out of high interest rates, unaffordable repayments, and a way into more freed cash. Therefore it’s imperative to review your loan commitments periodically and as a result, get more for your money.

The best way to score a good deal on refinancing mortgages is by simply comparing and shopping around. For quick and effective access to the most attractive rates and loan packages.

 

Should you have a comment, questions or inquiries just reach us 714.493.2657 or email us at  jflores@homeloansondemand.

We are here for you, every step of the way!