Bob Falter, CRS, GRI - ERA Key Realty Services | 508-612-1649 | [email protected]


Posted by Bob Falter, CRS, GRI on 8/29/2018

If you plan to pursue a home in the near future, there is no need to wait to get a mortgage. Because if you enter the housing market with a mortgage in hand, you'll know exactly how much you can spend to acquire your dream house. As a result, you'll be able to map out your home search based on your property buying budget.

There are many things you can do to ensure you can get a great mortgage prior to launching a house search. These include:

1. Learn About Your Mortgage Options

Banks and credit unions offers a wide range of mortgage options. If you meet with these financial institutions, you can learn about all of the mortgage options at your disposal.

As you assess your mortgage options, it is crucial to weigh the pros and cons of each option. That way, you can make an informed decision about a mortgage and decide which option will serve you well in the years to come.

2. Ask Mortgage Questions

If you are uncertain about what differentiates one mortgage option from another, it is important to remember you are not alone. Fortunately, you can ask mortgage questions to home financing professionals to determine which mortgage option is right for you.

Banks and credit unions employ friendly, knowledgeable home financing specialists who are ready to respond to your mortgage queries. Thus, if you discuss your mortgage concerns with home financing specialists, you can get the guidance you need to choose the best mortgage based on your individual needs.

3. Improve Your Credit Score

Your credit score may have far-flung effects on your ability to get pre-approved for a mortgage. However, if you analyze your credit score, you can determine if you need to take steps to improve this score before you apply for a mortgage.

You are entitled to a free copy of your credit report annually from each of the three credit reporting agencies (Equifax, Experian and TransUnion). Take advantage of this complimentary perk, and you can analyze your credit score at your convenience.

If you have outstanding debt on your credit report, you may want to pay this off as soon as possible. Remember, the sooner you pay off outstanding debt, the sooner you can bolster your credit score.

In addition, if you identify any errors on your credit report, notify the agency that provided the report immediately. This will allow you to correct any credit report mistakes before you submit a mortgage application.

As you get set to apply for a mortgage and conduct a home search, you may want to hire a real estate agent too. A real estate agent can provide expert guidance as you pursue your dream residence. He or she will help you find a house that matches your budget, attend home showings and much more.

Ready to launch a comprehensive home search? Get pre-approved for a mortgage, and you can take the first step to establish a budget for the homebuying journey.




Tags: mortgage   buying a home  
Categories: Buying a Home   Mortgage  


Posted by Bob Falter, CRS, GRI on 11/1/2017

Adjustable rate mortgages are also known as “ARM” loans. These are home loans with monthly payments that move up and down along with interest rates and the market. There’s different periods that occur throughout the time of the adjustable loan including an initial period where the rate is fixed for a certain amount of time. The rates will change along with preset intervals of change. 


Rates Start Lower Than Fixed Rate Mortgages


Interest rates during the fixed rate period of an adjustable mortgage are usually lower than that of fixed-rate mortgages. The most common type of adjustable rate mortgage is called the 5/1 ARM. This means that the rate is locked for a total of 5 years before it becomes truly adjustable. After the 5 years the rate will change every year. Other forms of ARM loans are the 3/1, the 7/1, and the 10/1.


Rate Indexes And Margins


Following the fixed-rate period, the interest rate adjusts with what’s titled the index interest rate. This rate is set by the market and is released periodically by an independent party. Since there are a variety of indexes, your loan will state which index your adjustable rate mortgage will follow. To set your exact rate, your lender will look at the index and then add a number of percentage points that has already been set in place. This is called the margin. For example, an index rate of 2.5 percent and a margin of 2 will equal an interest rate of 4.5 percent. As the index changes, this number will go up and down.


Adjustable Rate Mortgages Come With Caps


If you do decide to go with an adjustable rate mortgage, you should know that you’re protected from extreme rate increases. These loans come with caps that limit the amount that both rates and payments can change by. There are several different kinds of caps including:


Periodic Rate Cap

This limits the amount that an interest rate can change from one year to the next.


Lifetime Rate Cap

This type of cap limits how much the interest rate can change overall throughout the life of the loan. 


Payment Rate Cap

This limits how much the monthly payments can rise over the life of the loan in a dollar amount. This is different than other caps, since it denotes dollars instead of percentage points.


Is This Type Of Loan For You?

Adjustable rate mortgages can be good, depending on the state of the economy and your own financial situation. Stay educated and shop around in order to get the best rates available for you.





Posted by Bob Falter, CRS, GRI on 8/23/2017

One of the challenges that individuals and couples face when buying a house is finding the money to put toward their mortgage down payment. Since you'll work with a lender to cover the balance of your mortgage, taking on another loan to cover your mortgage down payment may not be what you want to do.

Build your mortgage down payment early

The sooner you decide to buy a house, the sooner you can start cutting back on spending and increasing your savings. This single move keeps you from taking on unnecessary debt. It also teaches you better money management skills.

Expenses that you could trim or cut out altogether to improve your savings include clothes, tickets to live entertainment events like concerts and stage plays and jewelry. Money spent on eating out at sit down restaurants, out-of-town trips and electronics are other expenses that you could cut and invest in your savings.

In addition to cutting back on spending, following are more ways to find more for your mortgage down payment. Use three or more of the steps to make it easier for you to build $10,000 or more in savings.

Open separate bank account - Start a bank account that you use solely to invest in your mortgage down payment. This bank account should not be attached to a debit or credit card. Use the account strictly to deposit money for your down payment into.

Pay off accounts that require you to pay interest - Examples of these accounts are credit cards, computers and furniture accounts that attach interest to your payments. Definitely, pay off high interest accounts as soon as possible. You could make payments 10 or more days before they are due to reduce the amount of interest you pay on the accounts. Similar to how American Express works, try to pay off your total credit card balances within 30 or 31 days. Some credit card companies charge higher rates if you keep balances on a card for two years or longer.

Invest in certificates of deposit (CDs)- If you have an IRA or 401(k), consider working with your financial advisor to purchase CDs. You'll get a bigger return on CDs if interest rates increase.

Contact state housing agencies - You may be able to get financial assistance from state housing agencies. This help may come in the form of grants or loans. To avoid taking on debt, opt for the grant path.

Sell products and items - Raise money for your mortgage down payment by selling clothes, shoes and household items that you don't use. Online resellers are just one avenue that you could use to raise money by selling items.

Freelance or take on contract work -The freelance community is growing. All you need is a computer and a skill to start earning money as a contractor. Jobs you could take on as a freelancer include web designer, writer, virtual assistant, life coach or consultant. You could also find money for your mortgage down payment through gigs with taxi and transportation companies.

Despite your current financial situation, you can grow your savings. You can find money to put toward your mortgage down payment. To successfully save your mortgage down payment, you need to focus. You need to track your monthly expenses. If you're striving to become financially disciplined, you may need to track how much you spend on a weekly basis.




Categories: Uncategorized  


Posted by Bob Falter, CRS, GRI on 8/9/2017

The U.S. Department of Agriculture (USDA) offers multiple housing assistance programs for people hoping to achieve home ownership.

In spite of being offered by the USDA, you don’t need to be a farmer or rancher of any kind to qualify for a home loan. Similarly, you don’t have to buy a home miles from civilization--many popular, thickly-settled suburbs across the country also qualify for USDA programs.

In this article, we’re going to explain the different programs offered by the USDA, how to check your eligibility, how to find out which locations qualify, and how to get started with a loan.

USDA Assistance Programs

The USDA offers two types of home loans for prospective buyers. The direct program, or Section 502 Direct Loan Program, is designed to help low-income persons to acquire safe, affordable housing. The assistance for this loan comes in the form of a subsidy that can be applied directly to the applicant’s mortgage, reducing monthly mortgage payments for a certain period of time.

Another type of home loan offered by the USDA is the Single Family Home Guarantee. Much like an FHA or first-time homeowner’s loan, this type of mortgage is insured by the government. As a result, buyers can often qualify for lower interest rates and smaller down payments from their lenders.

Guarantees may be applied towards the purchase, rebuilding, or building of a rural home as an incentive to developing rural areas. Later, we’ll talk about what is considered “rural.”

Outside of help with buying homes, the USDA also provides grants and loans for repairing and modernizing rural homes.

Who is eligible for USDA mortgage assistance?

In general, those applying for USDA assistance must meet certain criteria. Applicants must meet income eligibility, be a U.S. citizen or qualified noncitizen, and must purchase a qualifying property.

For the Direct loan program, applicants must be without safe or sanitary housing and be unable to secure housing through other means. Whereas for USDA guaranteed loans, applicants need only fall under the maximum income limit.

To find out if you’re eligible immediately, fill out an eligibility form from the USDA.

How do I know which houses qualify?

Generally speaking, homes located within large, metropolitan cities won’t qualify for USDA loans. However, suburbs just outside of some larger cities often do. For example, towns located just a half hour’s drive outside of Boston have a good chance of being eligible.

To view the map of property eligibility, simply fill out the online eligibility form.

How Do I Get Started?

If you’re seeking a direct loan, you’ll have to contact your local Rural Development office. Applications for a direct loan are accepted year-round and are awarded based on funding availability.

For people looking for a private loan guaranteed by the USDA, applicants should contact an approved lender in the area. The lender will then work with the USDA loan specialist in your state.




Tags: mortgage   home loans   USDA Loans  
Categories: Uncategorized  


Posted by Bob Falter, CRS, GRI on 5/25/2016

Trying to decide what type of mortgage is right for you can be tricky business. So you may be wondering what is an adjustable rate mortgage? An adjustable rate mortgage or ARM, has an interest rate that is linked to an economic index. This means the interest rate, and your payments, adjust up or down as the index changes. There are three things to know about adjustable rate mortgages: index, margin and adjustment period. What is the index? The index is a guide that lenders use to measure interest rate changes. Common indexes used by lenders include the activity of one, three, and five-year Treasury securities. Each adjustable rate mortgage is linked to a specific index. The margin is the lender's cost of doing business plus the profit they will make on the loan. The margin is added to the index rate to determine your total interest rate. The adjustment period is the period between potential interest rate adjustments. For example, you may see a loan described as a 5-1. The first figure (5) refers to the initial period of the loan, or how long the rate will stay the same. The second number (1) is the adjustment period. This is how often adjustments can be made to the rate after the initial period has ended. In this case, one year or annually. An adjustable rate mortgage might be a good choice if you are looking to qualify for a larger loan. The rate of an ARM is typically lower than a fixed rate mortgage. Remember, when the adjustment period is up the rate and payment can increase. Another reason to consider an ARM is if you are planning to sell the home within a few years. If this is the case you may end up selling before the adjustment period is up. Federal law provides that all lenders provide a federal Truth in Lending Disclosure Statement before consummating a consumer credit transaction. This will be given to you in writing. It is designed to help you compare and select a mortgage.