Archives for November 2014

How to Shop For the Best Mortgage Rate

November 18, 2014 By Sean Zalmanoff

Every home buyer wants to know – how do I get the best mortgage rate?

A home is probably the most expensive thing that you will ever buy in your life, and due to the huge price tag it comes with, you will certainly require a mortgage. This makes it necessary for potential homeowners to evaluate the different kinds of mortgages available and look for the best mortgage rates. The following steps from Sean Z Mortgage can be used to find the best mortgage to purchase a house.

1. Improve Your Credit Score

A credit score is used to determine whether a potential homeowner is qualified for a loan or not. A high credit score can get a potential homeowner a better mortgage rate. It is essential that you monitor your credit score properly.

2. Consider Various Types of Mortgages

The different kinds of mortgages available are as follows:

Fixed-rate mortgages have a fixed interest rate for the entire duration of the loan. This allows potential homeowners to forecast their total expenses across the term of the loan.
Adjustable-rate mortgages are mortgages where the interest rate constantly changes. The initial interest rate is normally low; however, it may increase over time. It is best for homeowners who intend to pay off their loan before the start adjustment period or for those who anticipate the interest rates to come down in the future.
First-time home buyers may qualify for FHA loans. These loans feature low down payments and strict borrowing requirements. FHA-financed homes require the borrower to live in the house and not offer it for rent.

3. Getting In Touch With a Lender

A number of lenders offer mortgages to potential homeowners. Since interest rates keep fluctuating, lenders may offer promotions for some loan products. Potential homeowners should consult and compare the rates offered by various lenders. They should also compare the rate differences in short-term and long-term loans. Sean Z offers a unique TBD Mortgage Approval Program. We will take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind.

4. Consider Other Expenses

Loans with the lowest rates may carry high loan fees, so they do not always make the best choice. It is essential to evaluate all associated fees so as to obtain the best deal for the house you aim to purchase. Points are fees that the buyer normally pays to a lender and are linked to the interest rate. As the number of points increase, the interest rate will decrease. People aiming to stay in their homes for a long time may consider points to get a lower interest rate on their loans.

Call Sean Z Mortgage at (314) 361-9979 to start your search today!

VA Loans Do a Great Job of Serving Those Who Have Served Us!

November 11, 2014 By Sean Zalmanoff

VA loans continue to provide cost-effective and accessible loans to military men and women and their spouses.

In today’s market there are many obstacles for a home buyer when it comes to applying for a mortgage. Many potential home buyers have been pushed out of the market altogether because of the stricter credit and income requirements. However, throughout the housing market meltdown, the VA loan program has done a great job of serving those who have served us! It has continued to provide cost-effective and accessible loans to military men and women and their spouses. Understanding how a VA loan works is the first step toward getting into your dream home. Equally important is understanding what qualifications you need to meet to be eligible for a VA loan.

Know the Benefits

Knowing what the benefits are of a VA loan is the first step. These types of loans are unique in that they do not have certain restrictions that most people have with conventional loans. Here are 3 major benefits:

No down payment
No PMI (Private Mortgage Insurance)
Competitive mortgage rates

The VA mortgage offers 100% financing to veterans and their spouses. In addition, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.
Because the VA mortgage gives lenders a greater degree of flexibility and safety, it offers more competitive rates than non-VA loans.

How to Qualify

Military men and women can qualify for a wide range of benefits and chief among these is an opportunity to take part in the Veterans Affairs Home Loan Program. While it is designed specifically for those who have served their country, there are a few requirements that they must meet. One of the following conditions must be met:

Served 90 consecutive days of service during wartime.
Served 181 days during peacetime.
More than 6 years in the National Guards or Reserves.
A spouse of a service member who died while in the line of duty.

Where to Start

Sean Zalmanoff has over a decade of experience helping St. Louis veterans get approved for VA mortgages in St. Louis. He can approve your mortgage prior to finding your new home with his one of a kind “TBD Mortgage Approval Program”, so you can shop with confidence. If you would like to find out what VA loan you are eligible for, call Sean Zalmanoff: USA Mortgage at (314) 361-9979 or apply online today!

Mortgage Rates 11/10/14 Update

November 10, 2014 By Sean Zalmanoff

Mortgage rates have been pretty steady for a couple of weeks, since we had the one day dip. Mortgage Backed Security, MBS, Pricing has seen pricing erode a little, almost, every day, except for last Friday when we say some price appreciation from the jobs report. When MBS appreciate in price rates get better, they are a bond and follow the inverse trading relationship. The markets are closed tomorrow, we have several treasury auctions and this Friday brings Retail Sales and Consumer sentiment numbers, these all could impact rates. You can see from the graph that MBS are trading just above support. With rates still being close to year lows it is not a bad idea to lock into these.

Five Alternatives to a Reverse Mortgage

November 3, 2014 By Sean Zalmanoff

What mortgage options are available in addition to a reverse mortgage?

Homeowners who are at least 62 years of age can convert home equity into cash through a reverse mortgage. This allows homeowners to use the equity from their home to obtain a credit line or a fixed monthly payout. Repayment starts once the person moves out, sells the home, is delinquent in paying insurance or taxes, or passes away. Repayment is also deferred unless the house is in bad condition. The house is sold and excess funds after repayment go to the homeowner or the heirs. Are there options in addition to a reverse mortgage to help generate income for older homeowners? The following are alternatives homeowners can use instead of a reverse mortgage.

Refinance the Existing Mortgage

An existing mortgage can be refinanced to reduce the monthly payment and interest rate. Refinancing may also help in building equity for the home quickly and allows the homeowner to retain the house as an asset.

Get a Home Equity Loan

Homeowners can borrow money using the equity on their home through a home equity loan or a second mortgage. The interest is normally tax-deductible for loans of up to $100,000. Since these are fixed-rate loans, the interest may be higher compared to other types of loans. Refinancing allows homeowners to retain the house as an asset.

A Home Equity Line of Credit (HELOC)

A home equity line of credit allows homeowners to borrow an amount to the approved credit limit. Payments are limited to the amount withdrawn by the homeowner. HELOCs can be adjusted and monthly payments are determined by fluctuating interest rates. Interest is normally tax-deductible for loans of up to $100,000. The home continues to be an asset to the homeowner.

Sell the House

The house can be sold so the homeowner can access the equity it created. This is a good option for people who find their existing home to be too big or costly to maintain. The proceeds can be used for purchasing a smaller house and the extra money can be invested or placed in the bank.

Sell the House to Children

Homeowners can sell the house to their children and the proceeds can be used to rent it back from the children. The children also benefit as they receive rental income. A private reverse mortgage can also be used so fees and interest rates stay in the family. The children make the payments for the house and they can recover their investment when they sell the house. However, this situation has some effects on tax and estate planning, and you would require the help of a tax specialist or lawyer.

St. Louis Mortgage Professionals

Homeowners who are short of cash can use a reverse mortgage to generate income. It may be a good choice for people who have a good amount of home equity, but do not earn enough for their retirement.

Call Sean Z Mortgage at (314) 361-9979 to speak with a mortgage specialist.

St. Louis Mortgage, USA Mortgage, Mortgage Rates

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