Posts Tagged With: home loans

Whats The Best Home Loan option for your situation?

Posted on August 12, 2013 by Mortgage Lender - Tulsa

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In an effort to originate more mortgage loans and provide more flexibility for the consumer, The Government & mortgage lenders have created many different loan programs to suit a wide range of needs and goals for each & every borrower. In fact, there are so many options out there that it might become confusing for borrowers to decide which loan is right for them. For example, you can get fixed rate loans for terms of 10,15,20 30 and with lender like ZFG Mortgage you can even get any thing in between 10 to 30 years. You can also get adjustable rate mortgages with fixed rate periods from 3 to 10 years. can get ARM loans that allow you to pay only interest for a certain amount of time. With so many options, it can be challenging to pick the right one for your situation. The following are a few guidelines that can help you make a smart educated decision.

Determine How Much You Can Afford

Different home loans require different payment amounts each month. Adjustable rate mortgages are designed to provide low monthly payments at least for a year or two (the payments may jump up dramatically thereafter.) A 30-year fixed rate payment will probably be higher than an ARM loan initially but may balance it out over time. If you decide to go with a 15-year fixed rate mortgage your payment will be much higher because you are attempting to pay off the loan in half the time.

The key is to determine exactly how much you can afford. It may be helpful to use the lenders’ rule of thumb to figure this out. Basically your total monthly debt, including your mortgage payment+Property Taxes+Homeowners Insurance should not equal more than 42 percent of your income. So for instance, you make $5,000 a month. Forty-Two percent of that would be $2100. If you have debts each month equal to $800, then you have $1300 that you can safely put towards a mortgage payment each month. Your lender can help you figure this out, but it would be smart to know how much you are comfortable paying before you apply for a loan, as some lenders may offer you bigger loans than you really want.

Determine How Long You Plan to Stay

How long you plan to stay in your home can often be a big determining factor in which loan makes the most sense for you. If you are certain you will be moving within a few years, it generally makes most sense to take advantage of the low initial payments of an ARM loan. (Be careful though Plans do change & If the market turns sour for mortgage rates and you are unable to sell your home as you initially planned you may have to pay more money to refinance into a new fixed loan later or simply make higher payments when your rate adjusts down the road.) If you plan to stay in your home long-term, however, a fixed rate loan may provide the best predictability and terms. In today mortgage market we always recommend that borrowers go with the fixed rate option. Mortgage rates have been rising since early May 2013 & probable will keep rising until they get back to normal levels.

Determine Your Financial Goals

Finally, the type of home loan you choose should also be a product of your overall financial goals. Some people find it extremely attractive to pay off their mortgage as soon as possible in order to be free of debt and to free up cash for other things, like college tuition for children. If this is your goal, you should consider the 15-year fixed rate loan. If however, your plans are more about saving on your own while taking advantage of the valuable mortgage interest tax shelters, a 30-year fixed loan will probably suit you better. You can always make an extra payment once in a while to pay down your balance quicker if you so choose.

The better informed you are going into a discussion with a mortgage company, the better prepared you will be to make a smart decision on the loan programs available. Considering your price range, your time frame, and your long-term financial goals can give you this edge when you apply for a mortgage home loan.

To Apply for a home loan with the #1 rated mortgage lender in Oklahoma for the last 4 years, Click the link below

Apply Now

or Call 918-459-6530 

ZFG Mortgage

http://www.ZFGmortgage.com

NMLS:193207

 

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Stagnant Economy is driving mortgage rates to the 2nd lowest level of 2013!

Posted on April 22, 2013 by Mortgage Lender - Tulsa

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The drumbeat of mediocre economic news continues, and interest rates have settled, with fixed rate mortgages sliding to a place near their lowest levels of 2013.

 The retreat for rates–taking Freddie Mac’s Fixed-Rate Mortgage Indicator (the overall average rate for 30-year fixed-rate mortgages–conforming) from a 3.63 percent high in March to the present 3.41 percent–has seen us move to the bottom end of the recent range, excepting the 2013 floor of 3.34 percent seen in January. An equivalent peak for rates was seen as recently as last August, and our current bottom-of-the-bottom record low of 3.31 percent was achieved in November, so we still fit right in between those markers.

The difference in mortgage rates from recent peaks to valleys may be more psychological than fiscal, though, since the difference in payment between 2013 highs and this week’s average is just $11.37 per month for a $100,000 30-year fixed rate mortgage.

Mortgage rates near yearly low

According to Freddie Mac’s weekly rate survey— found that the overall average rate for 30-year fixed-rate mortgages (conforming, non-conforming and jumbos) eased by a single basis point (0.01 percent) to 3.41 percent, its second lowest rate of 2013.

The Freddie Mac’s 15-year companion also dropped by one basis point (0.01 percent) to 2.65 percent for the week ending April 19.

FHA-backed 30-year fixed-rate mortgages followed along with their own decline of just one basis points (0.01 percent), falling to an average rate of 3.29 percent, while the overall average rate for 5/1 Hybrid ARMs failed to move at all, holding an average 2.61 percent for the week.

Housing markets helped by low mortgage rates

Housing markets are no doubt helped by persistently low mortgage rates. However, it would be a mistake to think that improvement will come in a straight-upward line, what with high levels of unemployment and caution about prospects for economic improvement just ahead. Although housing starts bounced 7 percent higher for March, all of the gain was concentrated in the multifamily portion of the market.

A slow growth period: Here and abroad

Overall, it seems to us that the economy is neither growing much nor declining much, but rather treading water at a moderate pace. Including China’s rate of growth sliding below 8 percent, we are in a slow growth period here and abroad.

Interest rates will have a tough time getting any upward traction in such a climate, although we could have flares higher from time to time, as we did earlier this year. It may be a long slog, too, with at least one Federal Reserve official predicting perhaps five to 10 years of financial instability ahead, with the Fed continuing unusually low interest rates as policy.

Mortgage rates seem content to wander at about these levels, with an equal chance of rising or falling a couple of basis points.

If your looking for to refinance your mortgage in Oklahoma, Contact the TOP Rated mortgage lender ZFG Mortgage Today.

1-877-205-7266

http://www.zfgnortgage.com

 

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Basic Mortgage Terms You Should Know Before Applying For A Mortgage

Posted on April 10, 2013 by Mortgage Lender - Tulsa

ImageIf it is your first time applying for a mortgage, there are a number of terms you should know. Educating yourself on the various mortgage terms you will run into will help you make better decisions when deciding which home you want to purchase. When you sign a mortgage contract, your home is used for collateral and it is your responsibility to make sure your payments are made on time each month.

The first term you should know is principal. The principal is basically defined as the amount of money you borrow for your home. Before the principal is provided you will need to make a down payment. A down payment is the percentage you will put towards the principal. The amount of the down payment will often depend on the cost of the home. Once you pay off the principal, the home is yours.

The next term you will need to know is interest. Interest is a percentage that you are charged to borrow a certain amount of money. Along with the interest rate, lenders may also charge you points. A point is a portion of the total funds financed. The principal and interest makes up the majority of your monthly payments, and this is a method that is called amortization. Amortization is the method by which your loan is reduced over a given period of time. Your payments for the first few years will cover the interest, while payments made later will be applied towards the principal.

A portion of your mortgage payments can be placed in an escrow account in order to go towards insurance, taxes, or other expenses. The next term you will hear a lot is taxes. Taxes are the amount of money that you have to pay to your state or government. When it comes to your home, these are known as property taxes. These taxes are used to build roads, schools, and other public projects. All homeowners must pay property taxes.

Insurance is another important term that you will hear in the real estate community. You will not be allowed to close on your mortgage if you don’t have insurance for your home. Home insurance covers your home against floods, fire, theft, or other problems. Unless you can afford to repair your home if it is damaged, it is usually a good idea to get insurance for your home. If your home is located within a zone that is known for having floods, federal laws may require you to have flood insurance.

If the down payment you put towards your home is less than 20% of the total value, you will often be charged additional premiums on your insurance by the lender. This is done to protect you in the event that you default on your loans and fail to make payments. Without this, many people would not be able to afford a house. In most cases once you have paid off about 78% of the home, the lender will stop charging you insurance premiums.

These are the basic terms you will need to know before your purchase a home. Understanding these things will allow you to avoid many of the pitfalls that exist in the real estate field. You want an interest rate that is low, and you should always try to get a fixed interest rate if possible. This will allow you to focus your income on making payments towards the principal, and this will help you pay off the loan faster. A mortgage is an important part of your financial picture, and you want to make sure you pick a home that you can afford. If you fail to make your payments, you may lose your house.

 

If your looking for to refinance your mortgage in Oklahoma, Contact the TOP Rated mortgage lender ZFG Mortgage Today.

1-877-205-7266

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