Lock in Your Loan

Real Estate Matters with Tim Bro

Lock in Your Loan

A lock-in holds an interest rate and points for a specified period of time, usually 30-60 days. Depending on the lender, you can lock-in at the time of application, during loan processing, at the time of loan approval, or later.

A lock-in at application is useful when interest rates are on the rise, protecting against rate increases. If interest rates are falling, it may be best to wait until after application approval to lock in.

Lock-ins aren’t always free. Some lenders charge up-front fees, which may or may not be refunded upon application withdrawal or denial. Other lenders charge the fee at settlement. The fee may be a flat fee, a percentage of the mortgage amount, or a fraction of a point added to the lock-in rate.

To get started with your home sale or purchase, call Tim @ 858-354-2354, “The Right Choice in Real Estate”.  BRE #01224576

www.youtube.com/c/TimBroHomesUS

www.TimBroHomes.US

Two Kinds of Lender Points (fees)

Real Estate Matters with Tim Bro

Two Kinds of Lender Points (fees)

1.    Discount points are prepaid interest on your mortgage loan—you’re basically paying finance charges in advance. Discount Points are used to "buy" your interest rate lower. This is known as a rate "buydown." A general rule of thumb is that one full Discount Point will lower your fixed interest rate .250 percent or your adjustable rate .375 percent.

Lenders regard this type of points as covering their cost for offering a lower interest rate over the length of the loan. The more points you pay, the lower the interest rate on the loan, and the fewer you pay, the higher the interest rate. Paying discount points is a good idea if you plan to live in the house for a long time.

2.    Origination points are charged by the lender to offset the costs of making the loan or to boost profits. Most loan officers’ compensation is based on origination points, but they still may be negotiable in whole or in part. Some lenders add origination points into their quoted points while other lenders add an origination point in addition to their quoted points. Origination points are gross profit for the lender. They are not tax-deductible.

To get started with your home sale or purchase, call Tim @ 858-354-2354, “The Right Choice in Real Estate”.  BRE #01224576

www.youtube.com/c/TimBroHomesUS

www.TimBroHomes.US

Home Equity: How to Use It

Real Estate Matters with Tim Bro

Home Equity: How to Use It

A refinance pays off your current mortgage and gives you cash based on your equity. These are good for:

·         Lowering or locking in your mortgage interest rate

·         Getting large sums of money ($30,000 or more)

Home equity loans (second mortgage) are installment loans that are paid out in one lump sum. They’re good for:

·         repaying credit card debt

·         remodeling projects

·         buying a new vehicle

A home equity line of credit works like a credit card – you agree to a pre-set limit and then borrow as you need to, or in the event of an emergency, usually for up to 10 years, repay/reuse. Good for:

·         debt consolidation

·         major home improvements

To get started with your home sale or purchase, call Tim @ 858-354-2354, “The Right Choice in Real Estate”.  BRE #01224576

www.youtube.com/c/TimBroHomesUS

www.TimBroHomes.US

Find a House That Meets Your Budget

Real Estate Matters with Tim Bro

Find a House that Meets Your Budget

Finding your dream home can be difficult for many reasons, one of which is that your budget often restricts your choices. Keeping a healthy budget coupled with strategic house-hunting practices can yield the best possible property that not only fits your personal budget, but also meets your lifestyle needs.

You can’t make a budget if you don’t know how much you make and spend every month. Sit down and write the hard numbers. Are you mortgaging a house as a single buyer or as a couple? The implications of each option are noteworthy and can greatly impact your finances in the long run. You’ll want to have a wide positive margin between your income and expenses if you are to pay off your monthly mortgage premiums successfully.

To get started with your next home purchase, call Tim @ 858-354-2354, “The Right Choice in Real Estate”.

When Real Estate Matters, contact Tim.  BRE #01224576

www.youtube.com/c/TimBroHomesUS

www.TimBroHomes.US