Top Real Estate Articles

30 Year Fixed Mortgage Rates The Basics

Sep 9, 2009 Mortgages

If you are new to mortgages or just don’t remember going through the process the last time you financed a home purchase, this article will explain some important features of the loan known as the fixed rate loan or fixed rate mortgage. These are pretty easy to come by and the product that is the most familiar to people purchasing or refinancing homes. A purchase of a home is most likely the largest outlay of funds you’ll experience during your life, so understanding the fixed rate mortgage is important knowledge to have.

These fixed rate mortgages are the most common type of mortgage product. They are not the only type of product, of course, by they are very prevalent. When people speak about getting a home loan, they are usually referring to this type of loan. The fixed rate mortgage product is the one that is probably advertised the most, at least with most state laws, the advertising you’ll here on the radio or see on TV or other media is typically providing information about their lowest fixed rate product.

The most common fixed rate mortgage is a 30 year mortgage. There are also other options including a 15, 20 and even a 40 year mortgage product. This may change in the future as well, but these are the most typical offers you’ll see when evaluating your options. The longer the mortgage term, the lower your interest rate may be, but you’ll typically pay more in interest over the life of the loan. This is why you’ll see a 15 year mortgage with a higher rate than a 30 year mortgage typically. The payments for a 15 year are higher as well simply because the loan amount may not change and to pay off your home in a shorter period, it will require higher monthly payments. Simple math I know, but better to not assume too much.

One of the main advantages to the fixed rate mortgage is that the rate doesn’t change. This can be great as your payment may stay low for the duration of the loan even if inflation or other financial considerations may change over that same period of time. Some mortgage programs also have a bi-weekly payment option where you’ll pay your mortgage every two weeks. Assuming your monthly mortgage was $2000 per month, this is broken down to about $1000 every two weeks which is nice because it has two benefits, one benefit is that it matches some pay structures, i.e. many companies in the US typically pay your salary every 2 weeks. Of course this also means that instead of 12 payments of $2000 or $24,000 per year, you’ll pay $1,000 every other week which would be 26 payments (52 weeks per year / 2 (every other week)). The total amount of funds that would then contribute to your loan amount would be $26,000 which would pay down your loan more this way or reduce your overall payment amount. Consult your loan officer for details on the bi-weekly payment plan.

There are several loan products or mortgage programs that have what is known as a “balloon” payment where payments are made either directly to the interest as in the case of an interest only loan or even interest and principal with a lump sum due at the end of a given period (usually a couple of years). The fixed rate mortgage is different in this regard, at least the traditional style of mortgage here this article discusses. When you pay off your mortgage with a fixed rate mortgage, you owe nothing more to the bank or lender. There is no need to refinance your home or come up with cash to pay towards a lump sum payment or balloon payment. This style of mortgage is probably the most conservative of the various mortgage products.

With a fixed rate mortgage, a percentage of your payments each month will go towards the interest and the rest will go towards the principal. This is not an even amount. What I mean is that the the first few years of your mortgage, the majority of the monthly payment goes to pay the interest and the smaller percentage goes towards the principal. Of course you can make extra payments on the principal which means the interest payment will decrease simply because the interest paid is done so on the balance, which if you pay more towards the principal above and beyond the monthly payment, there will be a lower balance due and less interest. This doesn’t mean your monthly payment will change, but it will decrease the amount of interest due and increase the percentage of your payment that is applied to paying down the principal.

This conservative mortgage program is possibly the easiest to understand of the mortgage products that are available. The key to success with this style or any other style of mortgage is to find a loan officer that you can trust who will guide you through the process of pricing loans, understanding the terms of a loan, whether a fixed rate, variable, interest-only, or other loan, and basically someone you can work with who can become familiar with your situation and provide appropriate advice for what your home ownership goals and objectives are. A good loan officer will typically be familiar with other loan products that will work for you as well.

Did you find this article interesting at all? If so, I have a website that is dedicated to mortgages in Utah that covers not only the basics for the state of Utah, but mortgage information in general as well. You can also review additional information about mortgages from Brian’s other website about Salt Lake City Mortgages.

Tags: "mortgage, finance, financing, home, home loan, home plans, living, loans, Mortgage Rates, Mortgages, remodel, salt lake city mortgages, Utah

What You Need To Know About Fixed Rate Mortgages

Sep 6, 2009 Mortgages

For those of you who are new to mortgages or new to the process of applying for a home loan, this article will be a valuable resource to introduce you to the basic fixed rate mortgage. This is one of the easier mortgages to understand and also relatively easy to calculate. A basic understanding of the fixed rate mortgage will help you understand how other mortgage products may differ from the fixed rate, but also help you to ask intelligent questions when speaking with and evaluating a loan officer you may potentially be working with.

The fixed rate mortgage is by far the most common type of mortgage. When new homebuyers begin pricing loans, these are typically where people will start. Most fixed rate mortgages advertised also usually talk about the rate for a 30 year “fixed” rate. When people talk about their mortgage, there is a very good chance that they are referring to their 30 year fixed. A little less common are the adjustable rate mortgages. Of course there are dozens of different mortgage products available based on the needs you have. Interesting that the selling of “money” is basically packaged in different forms just like any other product or service.

The fixed rate mortgages have a specific time period with them, such as a 30 year fixed rate mortgage. There are also 15 years which are probably the second most common. I have also seen 20 year and 40 year mortgages. Lenders have different programs that will work with what you are looking for. There are enough lenders out there that it would be uncommon to find a loan officer who couldn’t give you multiple options with your loan duration.

One of the main benefits to the fixed rate mortgage is that your monthly payment won’t change for the duration of the loan. In many companies in the US, you’ll also have the advantage of being paid every 2 weeks. If you setup your mortgage to work on this same two week payment schedule, you’ll end up making 26 payments per year (52 weeks per year / 2 for every other week) which is the equivalent of 13 months of payments instead of 12 months. Of course this option can be worked out at the time you’re applying for your loan as well.

The other benefit to a fixed rate mortgage is that at the end of the loan, you don’t have a balloon payment or the need to come up with any other money that you haven’t already been paying. Some mortgage products have a balloon payment that would require you to come up with additional funds at the end of the term or cause you to refinance the balance in order to keep your home.

The fixed rate mortgages often make the most sense when the owner will be in the home for the duration of the loan, or in a situation where the home is appreciating in value. The reason for this is that for the first 22 years of the loan (assuming a 30 year mortgage), you’ll be paying more in interest than you will in principal. This can be a bit disconcerting, but this also has the advantage that when you are able to submit additional funds toward the loan, these funds are applied directly to the principal. This is sometimes known as a mortgage acceleration program of which there are several types.

Getting a fixed rate mortgage is a good program for a large percentage of home owners in today’s society. Keep in mind, however, that this is not the only option. But, if you understand the basics of the fixed rate mortgage, you’ll better understand the other mortgage products that are available as they are explained to you by your loan officer. It’s important to find someone you can trust to work with on your home loan. This will get you most of the way to where you need to be for getting a mortgage or looking into refinancing.

Did you find this article interesting at all? If so, I have a website that is dedicated to mortgages in Utah that covers not only the basics for the state of Utah, but mortgage information in general as well. You can also review additional information about mortgages from Brian’s other website about Salt Lake City Mortgages.

Tags: "mortgage, finance, financing, home, home loan, home plans, living, loans, Mortgage Rates, Mortgages, remodel, salt lake city mortgages, Utah

Keeping Intruders Out of Your Vacant Rental Home

Jul 7, 2009 Real Estate Properties

While your rental home in Utah is vacant waiting for tenants to arrive, it’s a good idea to make sure your home is secure from unwanted intruders. People may see that your house is empty and may try to break-in since there is no one there to see them. It can be difficult to figure out how to stop outsiders from vandalizing or trespassing on your Utah rental property, but there are ways to reduce the risk of it happening.

In order to protect their vacant rental property, homeowners have turned to using security alarm systems, lockboxes, securing doors and windows, and maintaining their yards. Security alarm systems are used so when an intruder happens to break-in, an alarm will go off which will alert neighbors and most likely scare your intruder away. These are good investments to use since they can be used whether someone is living there or not and will serve its purpose well.

Lockboxes are also a sure way to provide more security. Many sellers feel comfortable if a lockbox is placed on their front door which releases a key when the right code is entered. This lockbox creates a harder way to break into the door since you must know the code to get the key and remove the lockbox from the handle. Utah property management like KeyRenter uses lockboxes on the doors of their clients’ homes. This is mainly for the purpose of letting interested tenants look at the house without an agent having to make an appointment with them. But, it also provides the needed security an owner might have about their Utah rental home.

Closing your windows and doors properly will also prevent any intruders. Lock all possible entry ways to the house which includes gates, fences, garages, windows, and doors. Make sure the blinds are closed as well so no one can see in to see what there is to steal in your home. There might not be any possessions in the house at the time, but burglers could still steal home appliances and home decor.

Keeping your house well-maintained is another way to turn off intruders. When you keep the lawn mowed and pick up the mail and newspaper daily, it looks like someone is still living in the house. If you let your lawn become unruly and let the newspapers pile up on your porch, then those are signs you are giving to outsiders that no one is home to take care of duties and probably no one is living there.

Security issues can also be lessened when you get someone to move into your house in a timely matter. This leaves the house vacant for just a short time which lowers its chances of having outsiders intrude. KeyRenter is able to find high-quality tenants quickly through their marketing skills in print and online and by processing applicants thoroughly and swiftly for their clients with homes for rent in Utah. This way, it gets your unoccupied rental home in Utah quickly filled to keep it safer.

Tags: e, f, finance, h, home safety, home;improvement, homes for rent utah, l, Landlord, lease, leasing, m, moving, r, Real Estate, Real Estate Properties, real;estate, Relocating, rent, rental homes utah, rental industry, renting, s, selling, t, u, Utah, Utah Property Management

Tips on Getting a Rental Home

Jul 6, 2009 Real Estate Properties

You’ve decided to become a first-time renter, but having no luck of finding a rental home who accepts your application. What do you do? There are several tips you should follow when applying for rental homes in Utah. Also, Utah property management can help tenants find the perfect rental homes that fit them.

At KeyRenter, they want to find quality tenants for their clients. To be qualified, follow the tips stated above to have a better chance of getting the rental home of your choice. Utah property management like has several rental homes in Utah that they would love to occupy with tenants. Just be yourself, be persistent, and follow through and your search for a rental home won’t be in vain. There are other tips you should follow:

Be in a persistent frame of mind: You’ll making a lot of phone calls, leaving messages, and setting up appointments to look at rental homes in Utah that you’re interested. This means you need to be prepared and persistent to meet people who could potentially be your new landlord.

Your checkbook should always be with you: Keep your checkbook with you when looking at rentals, just in case you fall in love with a rental home and want to reserve it immediately before anyone else does.

Prepare references and rental background: Have your references information and contact ready as well as your rental background which includes the name of your previous landlords and the addresses of your rental homes. This information is usually asked by landlords. It is best to have this information on hand so you can immediately apply and not have to wait as long for the background check to go through.

Dress appropriately at rental appointments: You may find the rental home you want, but you don’t impress the landlord with your sloppy grooming and dress. Be sure to make the best impression when looking at rentals. You never know if that’s going to be the one you are going to apply for. Good first impressions are always the best.

Tags: a, b, buying, e, f, finance, h, home;improvement, l, Landlord, leasing, o, r, Real Estate, real estate industry, Real Estate Properties, real;estate, Rental Homes, renting, s, selling, t, tenant, u, Utah, utah homes, Utah Property Management, utah rental homes

Investing in Utah County Real Estate

Jun 22, 2009 Real Estate Properties

We all have dreams. One of the most common American dreams is to, someday, own a home of your own, either for yourself or for your family. We live in volatile times right now because of the economy, but we must remember that this doesn’t mean that buying a house is a bad investment.

In fact, here, in our utah county real estate, it is unlikely you can go wrong. During a time when home prices are down; we all know this signals a buyers market.

There are plenty of reasons to jump into real estate right now. Obviously, if you are selling, then you may take a hit and buyers will reap more benefits. Keep in mind though, if you are selling then you most likely will reap the benefits through the home purchase that you make to replace the one that you sold. If you are looking into buying in the utah county real estate right now then there are a few things to keep in mind in order to keep you focused as to why buying truly is the best investment.

For one, in a typical market houses do appreciate with time. Though we are going through a slump now, those who are able to wait it through will eventually see the numbers go back up. I believe also, that we will not see this bubble happen again because we have learned from our mistakes. All that to say, that a home can be a savings account of sorts. Whether you are diligent at saving or not, a house will save money for you with no effort on your part. The next huge benefit is that all of your interest and taxes that you pay in order to have a mortgage are tax deductible.

So, it actually really benefits you at tax time to be able to pencil in that mortgage.

If you are wanting to buy or sell here in Utah and are interested in doing anything involving utah county real estate then it is important to get yourself educated. If you are selling, know what your house is worth and about your surroundings. Be smart about how you list and be sure to find an agent that will work for you and get your needs met. If you are in the market for a home, then do the same, get educated.

Know what you want and what you can afford. Be sure to be realistic about what you can afford in a mortgage and remember that this is a good time to buy. Again, find yourself a realtor that will go to work for your needs and wants. Lastly, always, always, always ask questions.

This economy will eventually turn around but unfortunately it will take some help from you and I going out and putting ourselves back in utah county real estate as well as national real estate. If we freeze up the housing market then our economy will not bounce back as it could. It is up to you and I to get back out there and make America what it used to be.

Tags: Real Estate, Real Estate Properties, Utah, utah county

Salt Lake City Mortgages - Be Proactive rather than Sorry

May 13, 2009 Real Estate Properties

As we all know already, the world is experiencing one of the worst economic crises of the last few decades, which has affected pretty much everything in our lives. Although the government has taken measures so as to deal with the crisis, several sectors of the financial market are still in significant trouble. The real estate market is hurting, foreclosures are taking place in a frantic rhythm and mortgages are harder to obtain. People with a less than perfect credit history may not be approved for a mortgage. If you looking for a home loan, an excellent thing you can do is to educate yourself on the current economic situation and find out about your alternatives; Salt Lake City mortgages can still be approved if you have the knowhow:

Use an expert: there are professional mortgage brokers who have experience in home loans and how to apply for them. This is their job, so the good ones pay attention to the mortgage market and have contacts at a variety of lenders. They are often better options than friends or neighbors to advise you and help you pick a mortgage product. Especially during harsh times, like the ones we are going through now, experts are more likely to be aware of the options available and can help you either find a loan program for which you can qualify, or can advise you how to improve your credit score so that you will be able to qualify in the future. They can also help you learn understand the different terms related to mortgages and the legalities of the process. If you do not know any dependable and experienced broker, you can either check online and see the available options or ask for recommendations.

Brokers can save you time by comparing rates for you. But rates aren’t the only important factor to consider. Good brokers look at the turn around times for different lenders, and can help you find the quickest one - if that’s something that is important to you.

Before applying for mortgage, you should understand the different terms and conditions of a mortgage. What is the difference between a fixed rate and an ARM? What is a LIBOR index? PPP? - what’s that? What about Mortgage Insurance? It is important to learn basic terminology, so as to be able to intelligently discuss your home loan with a lending institution.

Before actually signing the mortgage contract read the terms and check them with your broker or financial attorney. Do not sign something that you don’t understand or that is not clear enough.

With the constant change experienced in the mortgage world, it is wise to consult a mortgage professional when seeking your Salt Lake City mortgage. Whether it is a mortgage broker, or a loan officer with a mortgage bank, their experience can help you find the best possible options for your specific situation.

Tags: "mortgage, Buying A Home, Economy, finance, home, home loan, lifestyle, loan, moving, Real Estate, Real Estate Properties, Salt Lake, salt lake city mortgage, Utah

Choosing the Best Salt Lake City Mortgage

May 4, 2009 Real Estate Properties

Buying a house in a desirable city such as Salt Lake City, UT, is certainly a dream and expectation for many people today. Since not many people can afford buying the house of their dreams with cash, mortgage loans help these people make a decisive step towards the completion and fulfillment of their dreams. Choosing a loan program and applying for it can be easier if the applicant is prepared and well educated on the issue. There is a vast array of information to gather prior to application; let’s see some of it:

Learning about the loan market and loan programs will help you understand the implications and responsibilities associated with obtaining a mortgage. The knowledge will help you make a better decision about whether or not to mortgage a home, and if so, what loan program to get. There are numerous lenders who provide mortgages for Salt Lake City properties, and a little online research can help you pick one.

Part of choosing the right loan (or the right house for that matter) is first defining what your budget is. Much of the financial crisis we are experiencing came about because of people buying homes that were too expensive. Besides Federal laws, mortgage originations in Utah are regulated by the Mortgage Lending and Servicing Act. The lender is obligated to provide the borrower a variety of information related to his loan.

Your credit score is important when applying for a mortgage. Your score can play a role in what interest rate you receive and can determine whether or not you are eligible for a loan program. Right now it is much harder than it used to be for people with lower scores to obtain a mortgage. When looking at credit scores, lenders usually take the middle score from the three major credit reporting agencies. So for example, if your credit scores were 620, 680, and 700, the score used to determine whether or not you qualified would be the 680.

If you are not familiar with the best lenders in your city you can ask for recommendations, or go online and do a research. Reading people’s testimonials and feedbacks, as well as the information given by the lenders themselves will help you decide on the most convenient and practical solution for you. Keep in mind that getting a Salt Lake City mortgage is a huge obligation and commitment; therefore you should learn all you can and make an informed decision.

Tags: "mortgage, Buying A Home, finance, home, home loan, lifestyle, loan, moving, Real Estate, Real Estate Properties, Salt Lake, salt lake city mortgage, Utah