Author: hallfinancial

Ways to Save on Your Monthly Payments

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mortgage savings

Source: Google

The mortgage industry has been experiencing an amazing year so far. The Federal Reserve (FED) has continued to cut rates. Need proof? Last week the FED dropped rates another quarter percent, we are currently hovering at a 2-2.25% rate.

What does that mean for you?

Well if you are looking to purchase you have the ability to buy more home for your money; however, if you are looking to refinance you are looking at saving money over the life of your loan, on top of potentially being able to lower your term.

Refinancing is one of the various ways you can utilize to help save money overall; however, if you find yourself needing alternative options and are looking to be proactive in your home financing needs, here are a few out-of-box ideas.

  1. Buy a Cheaper House – this is self-explanatory, learning to live below your means is a valuable lesson to learn and helps you budget more efficiently.
  2. Choose a Bi-Weekly Payment Option – Most loan servicers provide this option. When you choose to go this route, you end up making 26 payments a year; which adds up to you paying 1 extra payment towards your principle each year.
  3. Choose an ARM – this option is great if you don’t plan on living in your home very long. What’s the point of fixing yourself in a 30-year term if this isn’t your forever home?
  4. Extend Your Repayment Term – Example if you are in a 15-year term you can switch to a 30-year; this doesn’t change the amount of your loan but will overall lower your payments because you are extending the term.
  5. Make a Larger Down Payment – This option would make your parents feel like you are listening to them. You grew up with them harping you to save for a 20% down payment and there is a good reason why: it helps keep your monthly mortgage payment LOW.
  6. Get Rid of Your PMI – this option takes some time if your purchasing and your sellers don’t want to pay this off while negotiating. To be able to get rid of your PMI you must gain at least 20% equity in your home; once you achieve that you can request that your lender drop PMI.
  7. Pay for Points – when you pay for points you are paying for a lower interest rate. There may be more you pay for upfront in closing costs; however, over the term of your loan you aren’t acquiring unnecessary interest.
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HOMEOWNERSHIP = HAPPINESS

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Happy Couple Keys

Source: Google

Recent studies have shown that 93% of homeowners say that having a house makes them happier than renting did.

Why is that?

Experts are coining it “The Homeownership Effect” explaining that owning a home can make you a better person because you naturally find yourself enjoying new hobbies like gardening, landscaping, cooking, and if you are a big spender maybe even remodeling.

Besides allowing you to find and create more hobbies for yourself, it has been said by the Consumer Financial Protection Bureau, that owning a home helps with financial responsibility and overall better well-being. These can be attributed to homeowners living in an affordable, comfortable home located in a connected neighborhood with a reasonable commute.

However, don’t think that owning a home is the magic key to happiness. There does take a level of preparation and making sure you can comfortably afford things like property taxes, insurance, and unexpected (but relatively normal) home repairs. If you are curious whether or not your family is ready for this next step – click here – to talk with someone today about your current situation.

Mortgage Market Update- 9/12/2019

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Mortgage Market Update (1)

Even though summer is coming to a close and purchase season is slowing down. Freddie Mac reported that the average interest rate for a 30-year fixed rate dropped to another 3-year low at 3.49%. And as the unemployment rate remains historically low, this means that homebuyer demand is improving along with affordability.

August brought some significant good news, so take a deep breath and find solace in our current economy. Why? Fannie Mae is also predicting that the economy should continue to support the current refinance activity. How do we know that? August’s refinance volume was 150% higher than it was last year, which is in correlation to the increase in the demand for homes and affordability.

And if you are still thinking about refinancing know that Black Knight is here to tell us that roughly half of the homeowners across the United States are sitting on a combined total of 6.3 trillion dollars in tappable equity. We haven’t seen eligibility this high since the early 2000s.

3% or 20% – What’s Best For Me?

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Down Payment

Image source: Google

It is no secret that times have changed since our grandparents and even our parents have purchased homes. So much so, that with new programs and requirements, brokers/lenders have stated, you aren’t required to have the 20% down payment that you heard about growing up.

But now you are thinking… how much should I save for a down payment?

Here’s the good news it doesn’t have to be difficult, and you can do what works best for you and your family. To put it in perspective, if we were still required to put down 20% on a home loan, based on Mr. Cooper’s math, it would take renters nearly seven years to save for a 200K home on an average salary of 56K a year. Seven years!

However, there is a benefit to putting 20% down.

1.     Right away, there is more equity in your home.

2.     Lower monthly payment.

3.     Lower rates.

4.     You aren’t that high of a risk to your lender.

5.     You won’t need mortgage insurance.

6.     Future buying power.

Click here to calculate your ideal mortgage down payment.

 

Mortgage Rates Hit Another 3-year Low

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Mortgage Market Update (1)

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage fell to a 3-year low. The 30-year fixed-rate mortgage averaged 3.55% for the week ending August 22, 2019, down from last week’s 3.6%, which is close to 2018’s lowest percentage point. The drop-in mortgage rates benefit not only the housing market but also the economy as a whole. Home purchase demand is up 5% since 2018, and the refinance market has hit a significant surge. Homeowners that have refinanced are seeing close to a $140 of savings per month. The benefits of lower mortgage rates are also helping homeowners gain more equity.

More Than Hourly. [DH Sweet 16 #11]

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The Hall Way

more than hourly blog

Have you ever stopped and thought, “What could happen if I stayed an extra hour?” or “What could happen if I came in on the weekend?” or “What could happen if I beat everyone into the office?”

Not would, could.

Thoughts like that seem so absurd sometimes, don’t they? Who would want to stay longer, skip a party on a Saturday, or get up before the sun rises to come in and make a few extra calls?!

You know who? The people who are going to be successful.

If you’re not willing to put in the extra time because your ego says, “I’m not getting paid for this right now so I’m leaving,” how much do you really care about investing in your future success? Think about it.

You have to put in the time to see the results.

You may not be getting paid beyond your hourly rate or…

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Clap for Yourself. [DH Sweet 16 #14]

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The Hall Way

be your own best friend

Take a minute and think about who your best friend is. What is it about them that makes them your best friend? Is it because they push you and help you be the best version of yourself? Is it because they motivate you and don’t allow you to give up?

What if being your own best friend was the way to success? What if those things your best friend does for you were things you could do for yourself?

Sometimes, you are the only person you need.

You need to learn how to motivate and push yourself better than anybody. You can’t depend on others to be there to pick you up when you’re down or to give you that pat on the back when you do something well. YOU have to be that person for yourself. YOU have to be the back-patter and the picker-upper. No one else.

Feeling…

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Market Update: The Fed Rate Cut

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Mortgage Market Update (1)

Last week the Federal Reserve made the decision to cut rates for the first time since 2008. With wages on the rise and unemployment rates at a 50-year low, the decision was made to help boost the economy. This means potential savings for homeowners across America looking to refinance or sell their home since home equity is also on the rise.

Fed news pic

*These numbers are based on the weekly average data pulled in from Freddie Mac

With rates being at their lowest point in 3 years, now is an optimal time to purchase and refinance. We want you to take full advantage of the housing market’s favorable conditions!

Give us a call for a free 5-minute mortgage review!