When you’re starting to apply for home loans, you’ll come
across some financial terms during your research. While you might be familiar
with a few words and phrases, there could also be a couple of confusing ones
too. Loan jargon isn’t a part of everyone’s vocabulary, which is why we have written
down terms that might be helpful on your loan application journey!
Prequalification
A quick way for lenders to tell you what kind of loan, if
any, you may qualify for. It’s important not to confuse prequalification with
preapproval, which is a more formal commitment from a lender and often requires
additional documentation.
Net Income
Your take-home pay after taxes
and other deductions, such as health insurance. Simply, this is the amount
you see on your paycheck. Note: your net income is different from your gross
income, which is your wages without any deductions.
Cosigner
A cosigner is someone who signs for your loan with you. If
your credit score isn’t high enough, a cosigner,
which is essentially someone who is legally obligated to repay your loan if
you’re unable to, may be a way to get the money you need.
APR
This stands for annual percentage rate. An APR includes your
interest rate, but also wraps in things like one-time
charges and annual fees. You can use an online loan calculator to determine
how APR can affect your monthly payments.
Debt Consolidation
If a lender mentions debt consolidation, this means a combination
of debts into a single loan. Anything from credit cards to house
bills is included.
Conclusion
At American Mortgage Resource, Inc., we make the loan application
process simple. If you have any questions about our programs or lending
options, visit our website for more information.
You can also contact our team by calling 617-972-8588. Get approved today!
Refinancing can seem enticing; however it is important to know when the most optimal time to refinance your mortgage is. If you’re ever wondering when the right time is, continue reading along with this month’s blog!
First
The only way you will be able to refinance your mortgage is if you are approved for the loan. If you aren’t approved, you will not be able to reap the benefits of refinancing. However, this is usually the last step in your process. When it comes to refinancing, you should always anticipate that you would be approved. If you know for a fact that you are going to qualify, this is the first step in deciding! Knowing that you will qualify and be approved will save you time in the long run.
Second
When considering the option to refinance your mortgage, you should anticipate living in your home for at least five more years. If you’re already considering a move or wondering how soon you can leave, refinancing might not be the best option for you. However, if you’re interested in investing time in your home, refinancing is perfectly acceptable!
Lastly
Last but certainly not least; you should only consider refinancing your mortgage if the current interest rates are lower than your existing rate. We suggest ensuring that the interest rate is at the very least 1% lower. Otherwise, there is no true reason for refinancing your mortgage as you are already reaping as many benefits as possible. If you are still interested in eventually refinancing, continue to check with the current rates. When you finally see a drop that is satisfying, then you can jump on board with starting to refinance your mortgage.
Conclusion
If you are interested in refinancing your existing mortgage, be sure to check that now is the right time. If you are confident and ready to get stared, be sure to check out American Mortgage Resource, Inc. to learn more!
A home loan, also referred to as a mortgage loan, is an
agreement where you are loaned money to purchase a home. In this agreement you
are allowing your lender to take action if or when you are negligent to making payments
on your loan. Most importantly, the bank lending you this loan can take your
property and sell it, should you refuse to pay, forcing you to move out. Now that you know the basic of what a home
loan is, we will get deeper into the discussion of the steps you need to take
in order to get a home loan. These steps will help determine how much you
pre-qualify for so that ou can make an offer on your dream home!
How much can you
borrow?
Determining how money you can borrow is determined by a few
factors: how much of a monthly payment can you afford, credit and employment
history, income and debt, and the amount that a bank can lend you. By speaking
with a representative from American Mortgage Resource, Inc. we will be able to
determine what kind of terms and loan programs you can benefit from most.
Pre-qualifying for
your loan
Pre-qualifying for a loan is the most important step as it
is where you save the most money. During the process you will share with us
financial and personal information that is used to determine your
pre-qualification. Once this is all processed we deliver a pre-qualification
letter that your realty agent will use as buying clout when making an offer on
your future home.
Apply!
Once an offer has been placed on your home, and it has been
accepted, the loan application process is to be completed. We make it easy to
do through our website. And when the time is right, an appraisal on your new
home will be made.
We coordinate with the escrow company who is handling the
funding of your approved loan to make sure all papers your lenders will need
are completed and in order.
Overall, the process to getting a home loan might seem a bit
intimidating, but when you work with our team, it becomes easier. We have years
of experience working with future home-owners and know how to make the home
loan process easy to understand and enjoyable. For more information about our
services, visit our website.
Founded in 1630 by Puritans seeking religious asylum, Boston is one of the oldest cities in the United States. Its long and storied history includes a pivotal role in the American Revolution, and one of the most iconic events leading up to that conflict: the Boston Tea Party. As America grew and expanded as a country, so did the city of Boston. Today, Boston is a cosmopolitan center of commerce, technology, and medicine. Over 4 million people live in the greater Boston area.
You’re passively taking in centuries upon centuries of history, simply by taking a walk along the streets of Boston! If you’re a Bostonian, or looking to settle down in the city known as Beantown, the beautiful, historic architecture is one of the more prevalent appeals of this iconic city. This blog will take a look at a couple of Boston’s most storied, beautiful buildings.
Custom House Tower
Boston’s original skyscraper, the Custom House Tower, was originally not intended to be a skyscraper at all! Initially dubbed the U.S. Custom House, the building (sans tower) was completed in 1847, sporting Roman columns around the exterior and composed mostly of granite. The original building’s most striking aspects lay on the inside, as opposed to the outside. A rotunda, or circular ground room, greeted visitors inside, finished with white marble. Looking up revealed a skylit dome, likely to the delight of many historic visitors.
Unfortunately, the building was rendered obsolete by the 20th century. The Custom House needed a face lift to regain traction, and it received much more due to a number of fortuitous circumstances. The famous architects at Peabody & Sterns proposed constructing a new clock tower, on top of the existing building. This would not have been possible due to zoning laws at the time, but the House was owned by the federal government, which meant that it could bypass zoning laws that restricted buildings from rising above 125 feet.
The new tower ended up bypassing this restriction by an egregious amount; by the time Peabody & Sterns finished construction in 1915, the Custom House Tower – as it was now called – it stood an impressive 495 feet tall! The tower was by far the tallest building among the Boston skyline for almost 50 years, when the Prudential Tower was finished.
With this beautiful new addition, complete with an intricate clockwork system at the top, the building enjoyed usage from various federal groups. From 1986 until 1997, the tower was unused, standing alone as a beautiful, albeit seemingly obsolete, part of the Boston skyline. In 1997, it gained a new usage as a Marriott hotel and has remained there since.
City Hall
One of Boston’s most iconic buildings, Boston’s own City Hall doesn’t quite owe its popularity to aesthetically pleasing design and impressive use of color. In fact, City Hall is the subject of constant debate over its appearance, and whether its blocky, austere nature is a welcome addition to the city’s landscape, or a blemish on it.
City Hall is an example of Brutalist architecture, a style which originated in the 1950s. This style makes extensive use of poured concrete, which is visible in City Hall’s exterior as well as its interior. Completed in 1968, the building’s small windows and lack of curvature further contribute to its stiff, austere look. Compared to the classic beauty of Old City Hall, a building that still stands in Boston, the transition from the old building to the new one was met with shock and disdain from citizens and architects alike.
Coincidentally, “brutal” may be a term that comes to mind when you take in City Hall’s blocky shape, heavy use of straight lines, and overall rigid design, which extends all the way to the thin windows and columns. However, the term “brutalism” does not come from the word “brutal,” but rather from the French term “Béton brut,” which means “raw concrete.” This refers to the unfinished concrete that makes it onto the final design of a building. This is an essential part of City Hall’s design. Whether you think City Hall is beautiful or not, it’s undeniable that it stands as an important architectural monument, as well as serving a vital purpose to the city.
Conclusion
The city of Boston houses countless historical buildings, many of which are as beautiful to observe as they are to learn about and explore. This feeling of storied beauty extends to Boston’s housing market, which contains a bevy of old-fashioned and cutting-edge homes alike. If you’re on the market for a home in Boston, you’ll want an agent that can help you secure a property at a great price. Visit our website at visitamr.com to see how you can settle down in one of America’s most iconic cities!
Every single day people all across the globe make small financial decisions in hopes they will add up to big savings and more money in their wallets. However, a dollar saved here and there will only make a ripple in the wave pool of your financial life. Deciding to lower the interest rate on your mortgage is a brilliant financial decision that will help you save huge amounts of money every single month.
Improve Your Credit Score
Putting in the effort and taking the necessary steps to improve your credit score will benefit your financial future in countless ways. Proving to your lender that you are an increasingly financially responsible person will show them that you may deserve a lower interest rate on your mortgage. Some simple steps that will help improve your credit score are to pay all of your bills on time, pay off as much debt as possible, keep credit card balances low, and try to limit the number of hard inquiries on your credit report.
Find the Best Rate
When it comes to your interest rate, just as with anything else, it can pay off to shop around rather than settling on the first option that comes your way. Don’t be afraid to venture outside of the banks and credit unions you are most familiar with in order to land a lower interest rate on your mortgage. Applying and inquiring with multiple lenders is the best way to compare and contrast your best options.
Refinance
Refinancing your mortgage ultimately means replacing your current home loan with a new one. There are many benefits to refinancing your home, but achieving a lower interest rate is a big one. The current market conditions and your credit score will play a big part in the interest rate you’re granted. Refinancing to a shorter term loan will also help save you money on interest in the long run.
Conclusion
When all is said and done, you should have power over how your money is being spent and invested. It pays off to educate yourself on how mortgages work, how they can be adjusted and why you don’t have to be forever tied to your current interest rate. Call on the experts at American Mortgage Resource Inc. when you are shopping for a lower interest rate or need help refinancing your mortgage.
The idea of saving up for a home is an exciting one. You picture having your own yard that can host plenty of barbecues and your own space to make as much noise as you want without worrying about waking up the neighbors. But until this dream can become a reality, you have to save up for the down payment while paying the sky-high cost of rent. It might seem impossible to accomplish such a large savings goal while paying monthly rent, but it is possible with a few adjustments. Below we list a few ideas to help accelerate your savings!
Pay Debts and Set up
A Savings Account
Have a plan in place to pay down debts
The more you pay down your debts before purchasing a home, the better you can free up extra funds for say, an emergency home repair. Being debt-free can also help raise your credit score, allowing you to get better rates for your mortgage. Setting up a savings account designated for your down payment is another great way to speed up your savings efforts. When you set up an automatic savings, the money is gone from your account without realizing it was even there!
Get a roommate
Splitting costs with a roommate is a great way to free up
funds for a down payment. You can split bills such as gas, cable, water, and
electricity along with the cost of rent. Want to save even more? If your
apartment or home you are renting accommodates it, having multiple roommates
will really crank up the savings by splitting the costs three or four ways!
Get a Second Job
It might sound daunting having a second job outside of your
full-time position, but nowadays there are plenty of side gigs you can do that
won’t inconvenience your personal life at all! If you have a particular skill,
such as home repairs or graphic design, you can advertise your services on the
many freelance websites available to earn extra money during your free time.
Prepare Your Own
Meals
Preparing your own meals can save you a substantial amount of money.
An average lunch out can cost you about $10.00 a day and eating out for dinner can be much higher! You can easily save a few extra dollars a month by limiting how often you eat out. Preparing meals at home costs less and batch cooking ahead of time will ensure food is prepared for even the busiest days. You can have leftovers for lunches the next day and packing a few healthy snack options will save you from visiting the vending machine throughout the day.
Cut Back on Cable
The cost of cable nowadays is sky high! With the added
service fees, you end up paying a bundle for a service you no longer really
use. With more affordable streaming services available, you can easily drop
your monthly cable service and still watch your favorite shows when it is
convenient for you. Not only will you lose any bulking equipment, you will lose
that bulky bill as well!
Conclusion
Saving up for a down payment while paying rent takes time
and effort, but with a few lifestyle adjustments, you will be amazed at the
amount of money you can put away to buy a new home. When you are ready to
purchase a home, make sure to seek out a reliable mortgage company for the best
rates possible. The experts at American
Mortgage Resource, Inc. are here to help you purchase the home of your
dreams!
Mortgages are not unique to America, but American mortgagors
do enjoy significantly many more advantages than do their international
counterparts. How these advantages came to be is the topic of this blogpost.
Simply scroll down to find out!
The HOLC Hulks Out
For this story, we have to go back in time to the Pre-Depression era, when renegotiating loans annually was the status quo for American homeowners. At this time, residential mortgages were short-term (usually five to ten years) and came with payments of principal (“bullet” payments) that were due at term; paying off the outstanding loan balance became a must if the borrowers couldn’t find a way to refinance these loans. The variable rate of interest that accompanied many of the loans was also another burden, but wasn’t too weighty since properties could be liquidated when needed. When the Great Depression hit in 1929, however, property values plunged by half the original amounts. Cornered by the prospects of financial instability, mortgagors didn’t budge despite needing to pay off their outstanding loan balances. After they defaulted, approximately 250,000 foreclosures occurred annually until 1935. As part of President FDR’s New Deal, the federal government stepped in to pick up the pieces; one of the organizations it founded was the Home Owner’s Loan Corporation, or HOLC, which fundraised via government-backed bonds. The HOLC used the money to buy defaulted mortgages fromfinancial institutions and reinstated one million mortgages, even transforming short-term mortgages into fixed-rate, long-term (20 years) ones.
President Franklin D. Roosevelt signing the Social Security Act into law. PUBLIC DOMAIN.
An Unexpected Felix Culpa
After having hulked out and served its purpose, the HOLC faded from existence in 1936. Two years later, the Federal National Mortgage Association (the present-day Fannie Mae) took its place. To stimulate more gusto in investors, the federal government created the Federal Housing Administration (FHA) and encouraged mortgage purchases. An unexpected blessing arrived amidst disasters when America entered World War II to side with the Allies against the Axis powers. American firms generated much revenue since they were major sources for the things that Allied nations desperately needed for war. Thus, although one in three American banks had crashed in the Depression, the housing market catapulted to the peak it enjoyed in 1925. Thanks to the combination of government spending of the New Deal and capitalist enterprising, the Depression was over by 1941. Three years later, the G.I. Bill (of Rights), which arrived through the Servicemen’s Readjustment Act, developed the Veterans Administration mortgage insurance program, and helped stimulate the housing market. Heroes of the war could now become mortgagors with very low down payments. After the FHA relaxed its terms, the maximum mortgage term became 30 years (formerly 20) and the loan-to-value ratio became 95 percent (instead of 80) for newly constructed homes. As long-term (hence, affordable), fixed-rate, self-amortizing mortgage became available, homeownership became more and more widespread. The pattern continues today.
Beginning of the attacks on Pearl Harbor. (Photo taken from a Japanese plane.) PUBLIC DOMAIN.
Conclusion
Before the Depression was fully over, there was even a
brief recession in 1938. And many more events, like the advent of the FIRREA (Financial
Institutions Reform, Recovery, and Enforcement Act) and Freddie Mac helped
shape the mortgage scene we know today. To learn more about the full details of
mortgages, simply enlist the help of American
Mortgage Resource, Inc.!
The holiday season is great for spending time with
family, eating delicious food, and decorating your home with lights and
ornaments. It is not, however, the best time of year to save money. After weeks
of buying gifts for all your friends and family, your budget can suffer a major
shock. The following are a few tips to keep your mortgage and other bills
affordable during the holidays.
Record
Your Base Income and Essential Expenses
First, you
need to know exactly how much money you have coming in. What counts as income,
you ask? All money that comes into your account each month is considered
income. This includes paychecks, side jobs, residual income, gigs, and etc.
Make a list of all your revenue streams and then add them up.
Before the
month begins, write down every expense you know is coming your way. The
essentials like food, shelter, clothing, transportation, and utilities should
be recorded first followed by things like phones, streaming services, cable and
so on.
Plan Ahead for Christmas
You know
Christmas is in December every year, but sometimes it just sneaks up on you
anyway. To mitigate this problem, start saving money for your Christmas gift
budget months in advance if you can so it won’t feel like it’s wiping you out
at the last minute.
It’s not
just gifts either. Don’t forget that you’ll need things like gift wrap,
decorations, and ingredients for that secret Christmas-cookie recipe. If your employer
throws a Christmas party or gift exchange, you have to add that to the
Christmas budget too!
Subtract
Income from Expenses
Once you
have a solid understanding of how much to have to spend, you can start to put
the numbers to work by deducting your expenses from your income. Don’t be too
troubled if your income and expenses don’t balance each other out initially.
All this means is that you need to do something to bring one of the numbers up,
the other down, or both. Don’t spend anything that’s not accounted for. If the
budget for your brothers present is $50, stay within that, or subtract the
difference elsewhere to make it balance.
If it turns out you’re still spending more than you’re taking in, make a few cuts to your discretionary spending. Try buying generic groceries, cutting out your daily trip to Starbucks, or taking a carpool or public transportation to work.
Take a look
at how much you spent on Christmas gifts last year. Is it reasonable to increase
your budget or decrease it? Set a goal for your gift fund and use your Christmas
budget to help you get there, one responsible spending decision at a time!
You’ll be amazed at how much disposable income you will have at the end of it.
Conclusion
It’s always
better to give than to receive during the Christmas season. While it can be
stressful to reconcile your mortgage payment and other expenses with
gift-giving during the holidays, the above tips can help immensely and keep
your bank account healthy. For information on mortgage budgeting and other
financial resources, contact the professionals at American Mortgage Resource, Inc.
When you’re ready to
start shopping for a home, it’s good to come prepared with a pre-approval letter.
Marilyn Lewis from NerdWallet
states that “unlike a pre-qualification, a preapproval letter lends weight to
your bid on a home, proving to sellers that you have the financial clout to
stand behind your offer.” From bank statements to W-2 forms, we’ve made a
checklist of the most important documents you’ll need to have on hand. Keep
reading to find out more!
Employment Records and Income
Your income can be
confirmed in a couple of different ways, some of the easiest forms being a tax
return or a W-2 form. The tax return copy will need to be two of your most
recent federal and state returns. As for your employment records, these
documents may vary depending on your source of income:
Salaried or hourly
workers with a company: a W-2 form and recent payroll stubs can be submitted.
Self-employed and
independent contractors: may use their 1099 forms and income tax statements. Lenders
may also require a Social Security Number to verify employer’s name and
address, hire date, and/or credit scores.
Assets
Another part of the pre-approval
process is organizing your list of assets. These records can be anything from bank
statements to investment accounts. The more assets you can verify,
the better chance you have at qualifying for a higher mortgage loan. Your
lender will want copies of additional documents such as:
Bank statements: a
copy of statements for every account whose assets you’re using to pay off the
mortgage with. Include blank pages of the statements.
Investment
statements: copies of IRA statements and investment account information for
401(k)’s, stocks and bonds, etc. Include blank pages of statements.
Debt
Monthly debt will also be
used to prove you’re making payments to your loans and other balances. Lenders
will want to get a comprehensive list of your monthly debt payments and the
following information along with them:
Auto Loans: Loan
balance and proof of payments, even if it’s the minimal amount
Student Loans: Remaining
balance with the loan company’s name and address
Mortgage: a copy
of the most recent statement with loan balance, account number, lender’s name
and address, and monthly payment
Credit Cards: Copy
of payments to each card and remaining balance
Quick Tip: If you do not
have a credit history, you can still show proof that you’re making monthly
payments with paperwork showing utility bills or other regular payments.
Conclusion
Our pre-approval list
features a few of the records you will need to be approved for a loan. However,
further documentation may be needed to qualify. To get in touch with a
professional loan officer, contact American Mortgage Resource, Inc. Our experts
can walk you through the process so you know if you’re qualified for a mortgage
loan. For more information, visit our website today!
Buying a home is both one of the most exciting events in a
person’s life and one of the most stressful. Ensuring you find the right house
while also deciding on the proper mortgage that will set you up for a
successful future can be an extremely difficult task, but with the right help
it is more than possible. Below we have listed the four most popular mortgages
when it comes to real estate, so read on if you’d like to find out which of
them is best for you!
Fixed Rate Mortgages:
Easily the most popular of any home mortgage, a fixed rate
mortgage basically means that a set interest rate is applied to your loan,
which provides a very stable and consistent monthly payment. The length of
these fixed mortgages can range from anything as long as 30 years to a much
shorter 15 years, which obviously just means you will be paying it off in
smaller increments over a longer period of time or vice versa. While close to
90 percent of home owners opt to go with the 30 year mortgage to start, due to
the lower monthly payments, the interest you pay on a short 15 or 20 year
mortgage can make for a much more reasonable loan, because it is much lower
considering how low the liability is for the bank.
Adjustable Rate
Mortgages:
While this is a less popular option than a fixed rate
mortgage in the United States, many different parts of the world like Britain
and Australia frequently take advantage of an adjustable rate mortgage (ARM).
The reason it would be wise to consider an ARM is because you are able to take
advantage of lower interest rates in a given year without refinancing your
home. On the flipside, there is always the chance that the rates will go up,
causing your payments to increase with it, but there are many benefits to
keeping your mortgage open to a yearly reassessment of its interest.
Balloon Mortgages:
This is a much different and specific type of mortgage,
which is best used only if you have a strong guarantee that you will have the
money necessary for the loan in the foreseeable future. Balloon mortgages are
often shorter in length, around 10 years and have much lower payments
throughout a majority of the mortgage term. Your payments are often just the
interest for a large portion of the term, however, the catch is the fact that
you are required to pay a majority of the entire mortgage sum at the end of the
term. There are a lot of upsides to a balloon mortgage, but the circumstances
have to match up very specifically to make it a good fit.
FHA Loans:
An FHA loan is for a very specific group of borrowers, but
can nonetheless be extremely beneficial if you qualify. Designed to be for
lower income individuals that are looking to secure a home, Federal Housing
Administration loans are approved in order to offer lower minimum down payments
for those that can’t afford a large lump sum at signing. They also have a lower
threshold for the necessary credit score in order to allow families that have
less immediate income to purchase. Oftentimes this type of loan is used by first
time buyers and eventually refinanced over time if their financial
circumstances improve, but it is important to understand that the smaller the
down payment you make, the more you will owe over the course of the mortgage.
Conclusion:
As is evident in our article, there are many different types
of loans that serve a large number of purposes for those that use them.
Regardless of what you may be looking for when it comes to your mortgage, there
is an option out there for everybody. At American Mortgage Resource, we want
nothing more than to walk you through the home-buying process and determine
what type of loan works best for you. Come in today and start the next great
chapter of your life!
