American Mortgage Resource, Inc.

Providing the Best Financial Resources for Boston and Massachusetts

Tag: Mortgage Smarts

Home Loans 101

March 31, 2020 / / 0 Comments
Home Loans

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.

Budgeting Your Mortgage During the Holidays

December 27, 2019 / / 0 Comments

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.   

How Jumbo Loans Can Benefit You

August 26, 2019 / / 0 Comments

When it comes to Jumbo Loans, these are loans that are over $400,000. These type of loans are similar to traditional mortgages but jumbo loans are quite a bit more difficult to get approved for. It is for that reason that they are for individuals with a higher income range. If this individual or individuals want to look into buying a nicer home, they will naturally need a bit larger of a mortgage loan.

As the name suggests, a jumbo loan will offer the ability, to a qualified borrower, for a sum that is quite a larger sum than is typically allowed. There are many ways that Jumbo Loans can benefit you. Read on and find out a few.

The Basics of Jumbo Loans

Dependent on where you live in the United States, you will fall custom to various different loan restrictions. This is referred to as “conforming loan limit.” What this means is generally the highest amount a borrower can receive on a single mortgage. This amount is usually between $400,000 and $600,000 in most states.

Though this loan may be larger, as you were looking for, it does come with a few tradeoffs. This includes higher mortgage rates due to the higher risk assumed by the lender of your choosing. Not only that, but Jumbo Loans typically require a credit score of 720 or higher.

Jumbo Loans are Versatile

There are many more benefits that come along with Jumbo Loans. There is a lot more flexibility in income qualifications. What we mean by this is that our Jumbo Loans come with no private mortgage insurance attached. The fixed rates offered will often be as low as 4%. While many lenders will offer both 15- and 30-year loans, they will also offer both fixed and adjusted rates. This provides the option down the line to refinance, if needed.

Not only that, but Jumbo Loan lenders are attaching attractive offers including private medical insurance, reduced lender fees, and quicker processing of the loan application.

Now that you have a better understanding of what jumbo Loans have to offer you, it is time for you to figure out if this type of loan is right for you. For all of you mortgage loan needs, you can count on our team at American Mortgage Resource, Inc. to provide you with the exceptional service that you deserve.

The Benefits of Refinancing your Current Mortgage

July 30, 2019 / / 0 Comments

You absolutely love your home, but would be happy to see your mortgage rates drop. There are so many things that are on your list of things to pay for, including paying off expensive debts and saving for important events coming up in your life. If you are dissatisfied with your current mortgage terms and fees, it might be worth your while to consider refinancing your mortgage in favor of more desirable rates. In this blog post, we will further define refinancing and the ways it could help you save money on your home.

What is Refinancing?

Homeowners utilize this strategy to achieve their respective financial goals. Typically, people refinance their loans in order to acquire lower interest rates or to alter the terms of the mortgage itself. Refinancing your mortgage can also help you change your variable loan rate to a fixed one, which will provide you with more peace of mind. The initial loan gets paid off by the bank, then another loan can be created with new guidelines. It is recommended that you have a great credit score when attempting to refinance your home because this will ensure you get reduced interest rates. Those with a low credit score might end up with higher rates if they attempt to refinance, so it is important that you are aware of your own score. With time, people’s earnings tend to increase, which allows them to pay their bills more quickly and expand their credit score; this is the time to consider refinancing.

Advantages to Refinancing

The biggest benefit of refinancing your mortgage is achieving lower interest rates on your monthly mortgage payments, which will allow you to put your money toward your other priorities. You will be astounded by the hundreds of dollars you save annually with a refinance. Another reason people decide to use this strategy is because they are looking to secure enough money for a substantial purchase in their life, be it a car or paying off credit card debt. To do this, they refinance with the aim to get equity out of their home. First, an accurate appraisal is required, then the lender determines the percentage of the appraisal that they will loan out. Finally, the amount that was owed on the original mortgage is subtracted so it can be paid off. The homeowner is then left with the remaining balance to pay off their newly refinanced loans.

Are There Risks to Refinancing?

It is important to do thorough research to determine your potential savings prior to making this big decision. If you do choose to refinance your mortgage, there is the possibility that you will need to pay new closing costs. In addition, it is recommended that you hire a lawyer to help make sure you get the best deal possible. Along with inspection fees and application fees, refinancing your home might end up costing more than staying with your current mortgage costs.

Conclusion

Finding a way to lower the interest rates on your mortgage can seem overwhelming, but it can save you a significant amount of money in the long run. A qualified mortgage broker will make the entire process much simpler for you, so you can focus on more pressing things in your life. If you are looking for a home mortgage broker to help you make the best financial decisions for you and your family, you can count on us at American Mortgage Resource. We look forward to serving your financial service needs.

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