Borrowing

A 20% Down Payment

You should make a 20% down payment when buying a home. Even though this is a significant amount of money, it will save you a ton of money in the long run. Making a small down payment will end up costing you thousands of dollars in interest over the life of the loan. Currently, an…

Lending

Shop Around

When you are ready to buy a home you need to shop around for the best mortgage you can get. You need to hunt for the best interest rate and best mortgage out there. The Consumer Financial Protection Bureau says that about seven in 10 homebuyers only apply to one lender for their mortgage. That…

Borrowing

House Fever

Have you experienced house fever? House fever occurs when you cannot wait to buy a house. You might be newly married or a young single professional. You have friends and parents urging you to buy a house. They say things such as, “Why are you paying someone else’s mortgage? You are throwing your money away…

Borrowing

Fannie Mae’s HomeReady Program

Fannie Mae (FNMA/OTC) has introduced HomeReady™ mortgage. This program is aimed to allow low and moderate income individuals access to an affordable, sustainable mortgage. While this program is not yet available, Fannie Mae will provide additional details to lenders in the coming weeks through a Selling Guide announcement. Lenders who use Desktop Underwriter® will be automatically advised of potentially…

Borrowing

Don’t do it

Fannie Mae and Freddi Mac have started backing low down payment mortgages. You can get a home by putting only 3% down. Don’t do it! Remember the housing crisis that hit just a few years back? It occurred, in part, because of this type of low down payments. The low down payment sounds attractive, but if…

Financial Planning

Seven Steps to Financial Freedom

If you take these seven steps to financial freedom, you will achieve financial freedom. The key is to do the steps and become committed to doing them. Also, if you are married both of you must become committed to doing the steps. The first step is to begin saving. You need to have savings in…

Borrowing

HARP 2.0

The expanded HARP program or HARP 2.0 took effect on December 1, 2011 for borrowers with a loan-to-value ratio of less than 125 percent and in the first quarter of 2012 for borrowers with a loan-to-value ratio of greater than 125 percent. The program was overhauled in an effort to reach more underwater homeowners. Some of…

Borrowing

How much house can you afford?

MRHerrera Financial Ministry How Much House Can You Afford? Archives Contact Resources Scriptures Useful Articles How Much House Can You Afford? How many of you have watched shows on the HGTV channel where people are looking to buy homes? The person tells the Realtor or Broker that they have a certain amount for a down…

Borrowing

Is it a good time to buy a home?

Some of you are asking yourselves, “Is it a good time to buy a home?” The answer depends on whether you can afford it. Yes, housing prices are down. There is a glut of foreclosures, new homes, and home resales. The prices are low, so you think maybe I should take the plunge and stop…