Are you at Home? A very different #BestMortgageBook post

Greetings readers!  Long time no blog, sorry about that. What a ride! This year has been quite an amazing experience! I apologize for not posting more often this year. With the success of my #1 bestselling book (Thank YOU readers!), being nominated for a Pulitzer Prize in non-fiction literature, TV & Radio appearances, teaching first time home buyer seminars and of course serving my clients as a licensed mortgage loan originator I have been a bit busy. I have had the privilege of helping so many first time home buyers. It's such a joy to be at their loan closing and experience their joy, pride and sense of accomplishment with them. Wow! I have the best mortgage clients and am so blessed when they also become friends. And don't forget the investment property I bought and rehabbed earlier this year.  It's all done and now both sides of my new duplex are rented and cash flowing. I love real estate!

Ok, so now that you are updated on what's new with me....why am I choosing to invest time blogging again after my internet absence? I'm still just as busy as I have been, as I am constantly working to improve myself and help more people. Well, 2 reasons; the first reason I'll get to in a minute. The second reason is that I didn't realize how many of you are reading my blog. You don't comment often, so I didn't know how many of you have actually been reading and enjoying the information. I am so glad to see that so many of you find my blog posts and book a helpful resource for you. I realize that mortgages are not the most interesting topic, so I do try to make it fun & interesting while saving you thousands of dollars. My mission is to save as many people as possible as much money as possible and for you not to have too much trouble with your paperwork while going through the mortgage process. Oh, and most important in that experience, that you actually get approved and close on your loan for your home. Please feel free to email me at info@bestmortgagebook.com with any questions. I'm happy to answer you. Also, I welcome your positive comments and questions on my blog. 

Now back to reason #1 for my blog post today. Are you at Home? What is Home?  What does Home mean to you? Ah, Home, lots can be said about the word Home. There are many little phrases and cute anecdotes; we've all heard, "home is where the heart is", right? To me, home is where I am at peace. If I am at peace, my heart will be there as well. This can be anywhere, however, to me it's most enjoyed with those I love around me and the bonus is my creature comforts.

I've had the tremendous pleasure of traveling all over the globe in the past few years and visiting many friends in their homes as well as staying in hotels. While I enjoy the convenience of someone else making the bed and cleaning my room at a hotel, the warmth, kindness and generosity of friends of course always wins me over, as I am addicted to good stimulating conversation and the opportunity for genuine human connection. Those cherished moments in a friend’s kitchen while cleaning up after making dinner together or brewing morning coffee is the glue that binds our friendships and continues to stimulate my mental and emotional growth. I am so grateful for all those in my life who have hosted me at their homes. I am so blessed to a variety of friends who live in a variety of places who have welcomed me into their homes. I have friends that own their homes, friends that rent their homes, friends that live in the city, in the country, on the ocean, on a river, on a boat, in a river millhouse, on a vineyard, in the mountains, in the suburbs, in a condo, in a single family home, in a townhouse, all varieties.

This morning, as I watch the beautiful sunrise come up over the Atlantic Ocean at a generous friend's home and have the warm feeling of peace in my heart I invite you to have a dialog with me.  What does HOME mean to you? And what is the benefit of owning that home to you?  For some it's financial security. For others it's knowing that it's theirs, that peace of mind and comfort of their worldly possessions being in one place and that they can personalize it anyway they see fit. For others it's the experience of growing roots and becoming involved in a community and contributing. I'm also personally fond of the pride of home ownership as well. There's also something to be said for making your very own space perfect for you. How about all of the above? In your home, you can create whatever you want and contribute to your community in however you see fit. You have the option to choose.

So, please tell me what does HOME mean to you?  If you own, tell me why you own. If you rent, let me know why you want to own your home.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube Channel: https://www.youtube.com/c/ElysiaStobbeMortgage

Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe

See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe

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How do interest rates really impact your buying power?

What can you really buy for your money?  Well, it depends on where you are buying and what type of property you are buying. This can vary greatly from state to state as well as from the city to the suburbs. I'm a big proponent of considering your future housing needs as well as your current financial situation before you decide to get pre-qualified and start your new home hunting. There are so many factors to consider, such as how long you are going to stay in your area, do you plan on starting or growing a family and how much disposable cash you have for a down payment.

Obviously, the lower th einterest rate, the more home you can buy. But by how much?  Well, for a $300,000 loan, the principal and interest payment for a 30 year fixed rate of 4.0% is $1432.25.  For every change in 0.125% in interest rate, the monthly payment changes by $21.54.  Not as much as you thought, huh?  Yeah, people tend to be a bit over dramatic when it comes to interest rate. In my humble opinion, the most important thing to consider is, "Can you afford the payment comfortably?"

There's also a great article today that addresses that, On The House:  On mortgage rates and what gets people to buy

These interest rates are for the purposes of example only.  You are not guaranteed these rates, you may or may not qualify for a loan.

For more information, pick up my #1 Best Selling Book at ElysiaStobbeBooks.com

For more mortgage tips check out our website www.bestmortgagebook.info
For video mortgage tips and tools subscribe to our YouTubeChannel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe
For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make courtesy of Ivestopedia

Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make.
http://www.investopedia.com/articles/personal-finance/083115/avoid-5-most-common-renttoown-mistakes.asp

Grab our new kindle version of my #1 Best Seller on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/c/ElysiaStobbeMortgage
Follow Elysia on Twitter at  https://twitter.com/ElysiaStobbe
See what's new with Elysia on LinkedIn at  https://www.linkedin.com/in/elysiastobbe

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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How Can Knowing Your Mortgage Options Help You?

Rich Rosa, co-founder and co-owner of Buyers Brokers Only, LLC asks “Is a Lack of Understanding About Mortgages Holding Back Home Buyers?”

Possibly….this is one of the reasons I wrote my book. The mortgage process is confusing to say the least and whether you’ve never applied for a mortgage before or have multiple mortgages, the more you know about the process, the better. I believe that an educated consumer is our best client. An educated consumer asks better quality questions and is more comfortable discussing and exploring their loan options.

Most people don’t know how much home purchasing power they have, how much to expect for closing costs (varies by state), or how much paperwork is involved when applying for a home loan. Most people have no idea the difference between loan programs from bank to bank, lender to lender, or broker to broker— or what the differences are between the main types of residential mortgage providers. Most people have no criteria for choosing a lender, the type of loan to seek, or how much down payment is best for them. For example, are their differences between the types of property that may affect down payment?

The mortgage industry is packed with nuance, which can lead to confusion for the consumer. While trying to buy a home, you may have people from many different professions telling you what you should do and how to make decisions—who should you listen to in which situations? Your most personal financial information is critical to the mortgage process and yet do you know who you are sending it to? What about mortgage insurance? Why is it required and when?

The two questions I most often hear are: “What’s the payment?” and, “What’s the interest rate?” While these questions are important, there are several other questions that are just as critical: what is the right loan type for me; is there an up-front funding fee for this loan; what are the differences in available mortgage insurance; how will property type restrictions affect my loan; what are the pros and cons of this loan; what is the down payment requirement with this loan choice over another; what are the closing costs associated with each loan type; and, who is allowed to pay the closing costs? Successfully navigating the maze of questions, regulations, and requirements ultimately leads to a mortgage closing.

Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.

For more information on loan documents, read my #1 Best Selling Book on Amazon

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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The Fun and Excitement of Loan Documentation - Ok, its Not Really Exciting, More of a Necesary Evil

Teresa Mears of U.S. New & World Report, Money has written a great article about the documents needed when applying for a loan.  Thank goodness someone else is talking about this! I can’t emphasize enough how much documents impact your loan timeline as well as your loan approval.

While this may seem more boring and makes you want to Stick A Fork In Your Eye, documents can make or break your loan. With documents, the devil is in the details. You will submit your asset accounts (checking & saving accounts, money market, IRA, CD, 401K, 403B, brokerage accounts, etc.)— any accounts you plan to draw money from for your down payment and closing costs. Supplying the proper documentation in the correct form can save you days of frustration and loss of time. The clock starts ticking when you sign a sales contract and everyone is working hard to get you to closing; so, if you do not respond quickly to document requests, you are not only risking your mortgage and your binder, you are also making it very difficult for the lender to finalize full approval for your loan. Also, if you cut corners and do not send documents in the proper form, you are burning time. Sending incorrect documentation can burn up several days—a day for the request, another day sending incorrect documents, another day the lender has to request correct documents… and so on.

If you want to be a proactive participant in your loan process, pay attention to what is requested and what you send. Failure to provide the correct documentation for loan approval will stop the loan process. If you are not able to provide the requested documentation for the underwriter, sorry to say, you will not be approved for the loan. I was working with a client last year that sent a scanned copy of his wife’s driver’s license that was illegible. After months of requesting a clear and legible copy of the driver’s license, we finally received a clear copy and were able to move forward. Thank goodness! Something as simple as taking a picture of your driver’s license with your smart phone and emailing it to your lender is a silly thing to hold up your loan closing.

Be prepared to get lots of documents and you will save yourself time and mental anguish. I once had a client that was wondering why his loan was not closing quickly. We had asked the borrower again and again for the documents, but he just said he couldn’t find them. Unfortunately, as much as I despise paperwork, if the underwriter needs it to approve your loan, you must provide it. If you need help with the document format or where to find some documents, just ask your lender. They should be happy to help you. If not, get a new lender!  Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.

Many of the documents you are asked to supply, such as a driver’s license or photo ID, are required by law. If you have questions about the document requests— wonderful!— I can’t preach enough about staying informed. Just make sure to ask your questions right away to keep the momentum going towards full approval and a fast closing. As you’ll see in more stories below, just a little attention can save tons of time and contribute to the smoothest loan process possible. Although everyone is working for you via the fees you pay them, they are also human beings working to get you a lump sum of money that you would not have otherwise. Keep in mind that all of these people want your loan to be approved and they have the best intentions in being your advocate for loan approval.

For more information on loan documents, read Chapter 11 in my #1 Best Selling book on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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What? Interest Only Loans Are Back!

Just when you thought the mortgage environment was safe….Oh NO! According to USA Today Interest Only loans are back!  This can be seen as both a good and bad thing. The fact that Interest Only loans are being offered means that the higher ups in the lending world think that the real estate market will stay flat or go up. The fact that banks are betting on that reminds me of 2006, that makes my insides flip and that’s not good.

What’s an interest only loan you ask? I’ll tell you…An Interest Only loan is a type of balloon loan. Each month you are only required to pay the interest on your loan, not the Principal & Interest. Why is this scary to me? If you only pay the interest, you will not be paying down the principal of the loan. So, in 10 years you will still owe the exact same amount as when you started. Most of the Interest Only loans require that the interest start being paid in five or ten years. That means a big payment increase for you; OUCH! Or possibly your entire loan coming due; OUCH OUCH! Be extremely careful and consider all your other options if you are considering this type of loan.

Is there a benefit to an Interest Only loan? Yes, when you pay over the interest required any principal is applied to your loan balance and the loan is recast. What does that mean? The extra you pay towards your principal is applied to the outstanding balance and your new payment reflects the updated balance. If you are disciplined and want to pay down your mortgage faster, an Interest Only loan may help you achieve that goal. An interest only loan can also be beneficial to those of you on commission. If you can pay your Interest Only payment with your draw or base and when you get your commission or bonus and you put that towards your loan balance that may also benefit you in paying off your loan quicker.

Keep in mind that this type of loan is not for everyone and you need to clearly understand what you’re getting into with this type of loan product.

For more information on loan types, check out my #1 Best Selling book on Amazon.

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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There's No Need to Get Stressed Out Buying a Home!

The stress of buying a home is right up there with death of a loved one, getting married or divorced. Moving is a life stressor and a major contributor of mental and physical disease according to HealthCentral.com. Add to that you can lose hundreds of thousands of dollars in the biggest purchase of your entire life and you can be stressed out if you don’t know what to avoid!

I wanted to share with you some of the information I presented last month at the FL Times Union Home Buyers Expo 

One of my presentations was 3 Monumental Money Mistakes To Avoid.

1.     Shop for the best lender, not the best rate.
-Do you start haggling with a car salesperson before you pick your car? No, so don’t make that mistake with the biggest purchase of your life. Shop for Lenders who are licensed, knowledgeable and can give your written references and success stories.  The best lender will get you the best loan program to suit your needs as well as the best interest rate.  This will save you thousands of dollars over the life of your mortgage loan.

2.     Get PreQualified or PreApproved before you start home shopping – Don’t waste time and money looking for houses you don’t qualify to buy.  Know your buying power.

3.     Choose your Team Wisely
– Would you choose a school without knowing where they rank in test scores in the state?  Would you choose a heart surgeon without knowing their education, what hospital they work for and how long they have been practicing?  You need to interview everyone who will be working for you during the home buying process:  Lender, Realtor, Title Company, Home Inspector, Insurance Agent.  They all need to work together to get you to closing on time.

I hope you find this information useful.

All of this information can be found in much more detail in my book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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July's Real Estate Market

Welcome to July.  It seems that it is a seller’s market, with about 5 months of inventory available.  Once this surpasses 6 months supply we may see a transition to a buyer’s market. But for now, the sellers have the upper hand.

What does this mean for you? Well, it could mean higher sales prices, bidding wars and less contingencies. What’s the best way you can be prepared?

As always, I recommend getting pre-approved instead of pre-qualified. This lets you know your true buying power. Also, a pre-approval is stronger than a pre-qualification.  In some markets, usually the hotter markets, Realtors ® and sellers won’t accept pre-qualification letters, they will only accept pre-approval letters.

In addition, select your team ahead of time so once you are under contract you are not scrambling to put together the pieces.  By team, I mean your Real Estate Agent, your lender, your title company, your home owner’s insurance agent and your home inspector. Take the time to ask questions of each and make sure you are comfortable with their answers. Once you are under contract you will have limited time to make decisions and that’s no fun if you are stressed out.

Here are Key Considerations when Selecting a Real Estate Agent

·        Look for Success and Experience

·        Look for a Listener that Hears YOU

·        Choose Team Sports Over King of the Hill – Look for a Real Estate Agent that works well with Others

·        Are there specialties that are relevant to YOU?  Such as MRP- Military Relocation Professional.  For a complete list of the National Associations of Realtors ® Certification, check out www.realtor.org/designations-and-certifications

For questions to ask your lender, check out my free download, Top 10 Questions to ask your Lender at www.BestMortgageBook.com

All of this information can be found in much more detail in my book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Common Questions Asked By First Time Home Buyers

Wow!  What a ride!  I cannot thank you enough for your support. My book launched on Friday and became the #1 New Release in Mortgage Books on Amazon. Amazon likes it so much they just reduced the paperback price to $8.99!  Grab your copy here: www.elysiastobbehomeloans.com
I consider it a privilege to share this information with you.

I wanted to share with you some of the questions I got yesterday at the FL Times Union Home Buyers Expo. Over 1500 people attended, it was a huge success!  I was honored to be asked to speak to their audience.

I did two presentations.  Each presentation gave a quick overview of two topics.  The first presentation was 3 Monumental Money Mistakes To Avoid & Why Shopping for the Best Interest Rate can Cost you Money. Common questions pertained to the differences in FHA and Conventional Loans and the different mortgage insurance rates for each as well as the funding fees for government loans.

The second presentation covered 7 Massive Mortgage Mistakes to Avoid & VA, FHA & Conventional Financing Highlights. A common question was, "What if I have a 640 credit score and I am a first time home buyer, can I put down only 3%?"  Yes, if you are a first time home buyer and qualify for conventional loan financing, you can put down as little as 3% with a 640 credit score. However, the monthly mortgage insurance will be more expensive due to the 640 credit score. Here are some highlights from the 2nd half of this presentation.  I hope you find this information useful.

Here are some VA Loan Highlights:

•Minimum Down Payment 3.0% for first time home buyers, otherwise 5%

•No Funding Fee

•Monthly MI varies based on down payment, credit score, type of residence, varies from 0.22%-0.74%

•MI is automatically removed at 22% equity

•Minimum Credit Score 620 with 20% down payment or 640 with 5% down payment

***Veterans, THANK YOU for your Service!!

Here are some FHA Loan Highlights:

•Minimum Down Payment 3.5%

•FHA Funding Fee of 1.75%

•Monthly MI of 0.85% with 3.5% down or .80% with 5% down payment

•MI is for the life of the loan

•Minimum Credit Score 580

Here are some Conventional Loan Highlights:

•Minimum Down Payment 3.0% for first time home buyers, otherwise 5%

•No Funding Fee

•Monthly MI varies based on down payment, credit score, type of residence, varies from 0.22%-0.74%

•MI is automatically removed at 22% equity

•Minimum Credit Score 620 with 20% down payment or 640 with 5% down payment

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

All of this information can be found in much more detail in my #1 Best Selling Book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Why our World Would End if Mortgages Disappeared

Who better than Gary Keller, founder of Keller Williams and Jay Papasan, VP of KW Publishing  to share their opinions about mortgages…this is an excerpt from my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™

But before we get to that, here are my top 3 reasons to utilize a mortgage to your advantage when buying a home.

1.   Who wants to part with their cash?

No one.  Why would you?  If you can keep your cash in the bank and use the bank’s money to buy a home, why would you part with your cold hard cash? Or what if you don’t have the cash to buy a home? Who has $300,000 laying around?

2.   Interest Rates are at Record Lows

Interest rates are still hovering in the 4.0% range.  Why wouldn’t you grab this money that’s practically free while you can get it? If you’re going to borrower money, the cheaper you can get it, the better.

3.   Mortgage Interest is Still tax deductable

Check with your licensed CPA to make sure you can take advantage of this tax deduction.  Your tax specialist should be able to let you know how much you can save by becoming a home owner with a mortgage.

  

But seriously, why our World Would End if Mortgages Disappeared?  Well, for each real estate transaction with a mortgage, it takes about 25 people to get the job done.  From your licensed loan originator to the appraiser to your real estate agent and closing title company there are many people in the middle.  Also, if people could not use the bank’s money and had to spend their cash to buy a house, the housing industry would slow to a crawl. Which means retail would also be affected.  Such as the big box stores for home improvement and electronics.  Our economy would be seriously crippled if mortgages disappeared.  So, the next time you buy a house with a mortgage, feel great about helping the economy!

And without further ado, here’s the excerpt interview with Gary Keller & Jay Papasan.

Interviews with Gary Keller and Jay Papasan of Keller Williams Realty

As chairman of the board for Keller Williams Realty, Gary Keller helps provide strategic direction for the company at large. In addition to his leadership role with the company, Gary and his writing team have penned several national bestsellers: The Millionaire Real Estate Agent, The Millionaire Real Estate Investor, SHIFT: How Top Real Estate Agents Tackle Tough Times and The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results.

Jay Papasan, who after a successful publishing career in New York, co-authored the Millionaire Real Estate series with Gary Keller, collaborated on the best seller FLIP, and serves as Keller Williams VP of Publishing.

Elysia: Please share two pieces of advice you have about mortgages.

Jay Papasan: A mortgage is a serious responsibility and warrants very careful attention to what you can truly afford and what kind of mortgage can best help you reach your financial goals. However, a mortgage is a tremendous privilege. Imagine: if you couldn’t borrow the money to buy your home, you’d have to pay cash. If you thought coming up with a down payment was challenging, imagine what it would be like to save the whole purchase price!

In general, you’ll probably discover that mortgage loans are less confusing than you might imagine. Actually, what appears as a vast array of loan choices in the mortgage market today are all just simple variations on a few major types.

Elysia: Gary, what are your top three guiding principles for client service?

Gary Keller: Win, win or no deal. Integrity: do the right thing. Customers always come first. When we talk about client service, the definition of a professional is someone who knows what they know and knows what they don’t know. When you are faced with a situation with a client and you’re not sure of the answer, it’s not about looking like a professional, it’s about being a professional. Just be honest, and say, “That’s a great question. I want to give you the best answer. Would it offend you if I got back to you later today/tomorrow with an answer? I work with an amazing team and I’d love to run my thoughts by them and make sure you’re getting the best possible information.” Understand your strengths and leveraging the team around you and in your brokerage to give your clients the best service.

Elysia: Thank you Jay & Gary, I understand why you have raving fans and a successful growing international real estate company!

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

To get on our waiting list for my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, go to our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

For sponsorship opportunities go to:  sponsorbestmortgagebook.info

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Is Now a Good Time to Buy a Home?

We are in the midst of Spring Home Buying season and there are quite a few positive indicators that it’s a good time to buy a home. There are many factors to consider before deciding if it’s a good time to buy a home, such as the economy, interest rates, supply & demand, the cost of renting vs. buying and your own personal situation.

Where are interest rates?

Interest rates are hovering around all time lows (again!) right now, so that’s one important factor to take into account when considering buying a home.  What does this mean to you in real numbers? Well, let’s say you are considering purchasing a home with a sales price of $300,000.  In a perfect world, you put down 20%, which is $60,000. That leaves you with a loan amount of $240,000. Don’t worry; there are many other loan programs available with much smaller down payments, such as 3% and 3.5%, which would be $9,000 and $10,500 respectively.

If your interest rate is 4.0% for a 30 year fixed mortgage with a loan balance of $240,000, your monthly principal and interest payment would be $1145.80.

Let’s say your interest rate is 5.0% for a 30 year fixed mortgage for the same $240,000 mortgage; your monthly principal and interest payment would be $1288.37.

See the difference? That’s $142.57 a month you save on interest alone! Let’s look at it over the long haul…$1710.84 a year = $51,325.20 over the course of a 30 year loan!

Now, of course there’s more than one way to look at this.  That same $142.57 could also be a tax deduction for you.  Be sure to check with your CPA for interest deductions. The $142.57 a month could also be the same amount as one of your student loans. Only you know what’s comfortable for you when it comes to a monthly payment and what makes sense. Keep in mind that you are also responsible for home owners insurance, property taxes and any monthly home owners or condo association fees in addition to the principal and interest on your loan.

If you are a first time home buyer, you can save yourself time and money with my first time home buyer video tips at https://www.youtube.com/watch?v=YsL6BuJ8b-M

See what DS News has to say about buying a home now, "Analyst Says Buying a HomeNow Is a Solid Investment"

How long do you plan on staying in your area?

I think your own personal situation is the most important thing to consider when buying a home. Do you like the area? How long do you think you’ll be there? How long do you think you’ll be at your job? I bought my first home about two years after I graduated from college. My Mom was so nervous for me, but I wasn’t scared at all. I knew I liked the area (dear old Baltimore, MD my heart goes out to you) and wanted to be there for a while. I had moved around quite a bit in my early years and was looking forward to growing roots in the Baltimore community. I ended up living in that house for eight years. I rented out my house for the last two years I owned it when I moved down the road to Arlington, VA before I sold it. It became my first rental property. Since then I have owned and rented homes as I moved around the East Coast. Whether I bought or rented depended on all the factors I am sharing with you here; the economy, interest rates, the cost of renting vs. buying and my own personal situation.

CNN Money also says it’s a good time to buy, "Home Buyers In These Markets Have the Upper Hand"

What’s the cost of renting vs. buying?  

Does it cost more or less to rent than to buy? Any licensed loan originator as well as real estate agent should be able to help you with this calculation in your local area. Basically you take your total estimated monthly mortgage payment including property taxes, home owners insurance and any monthly home owners association or condo fees and compare it to the cost to rent something similar in location and size. To make it more complex, factor in your down payment and estimated closing costs spread over the time you think you will be in that location as well as any interest deduction your CPA thinks you would benefit from by owning. Other factors to consider are leverage and appreciation. For more help with this calculation feel free to contact me at bestmortgagebook@gmail.com.

Julian Castro, the Director of Housing and Urban Development is positive about buying a home in 2015.

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

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