What Mortgage is Right?

The three basic things to consider:
What's the best rate you can get?
How much is the monthly payment?
How does the payment and payoff fit in with your financial plans?

15- year fixed: you usually get a lower rate than a 30 year mortgage, but a larger payment because of the shorter term.

30-year fixed: This is the old reliable. The interest rate is a little higher, but with a lower payment. It allows you to lock your loan at today's low rate forever.

Adjustable Rate: May have a fixed rate for one, three, five, or seven years, then converts to an adjusted rate. The rates usually are lower then the 15 or 30 year fixed rate. This option is good if you know you are going to sell the property prior to the rate adjusting. The rate after adjustment usually rises 2% per year. This can be a tough loan if the market goes sour and you can't sell or refinance. So it is the riskiest loan.
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FSBO- For Sale By Owner

Do you really save being a FSBO-
This weekend I was presented with this question from a neighbor and have two different stands on the issue-
First most people that are trying to sell in this market and don't need to should wait. The competition with the REO, Auctions, and Short Sales are horrendous . But if you need to sell definitely use a professional to assist you. Real Estate Professionals are trained to deal with all market types and have greater success in selling a listing then the FSBO. The buyers in today's market are more likely using an agent, so they can get the best deal. So you need your home to be seen by those who are looking, and they look by using the MLS. The MLS is a listing service provided by a real estate agent. This creates a sale quicker then any venue. Making every penny they charge worth it.

On the other hand with the Internet at our finger tips you as a FSBO can get many interested buyers- but you must team up with a Loan Officer to ensure the buyers are qualified. Nothing is more disappointing then thinking you have sold your house and the buyer can't qualify for a dollar. Making it not worth doing it yourself.

So in closure you as a FSBO will need some type of professional to assist you - either a Real Estate Agent or a Loan Officer-see what services would be most beneficial for you. Call me for a free consultation for FSBO services.
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WHY FHA?

Why choose FHA Loans over the traditional Conventional Loan-
  • NO CREDIT SCORE REQUIRED
  • 3% DOWN PAYMENT
  • NON-OCCUPYING CO-BORROWER CAN BE USED TO PURCHASE
  • NOT REQUIRE THAT COLLECTIONS BE PAID OFF FOR LOAN APPROVAL
  • CAN GET LOAN 2 YEARS AFTER BANKRUPTCY DISCHARGE
  • NON-TAXABLE INCOME CAN BE ENHANCED 25% (EX: SOCIAL SECURITY)
  • DOWN PAYMENT CAN BE GIFT FUNDS OR GOVERNMENT PROGRAM
  • SELLER CAN PAY UP TO 9% CONTRIBUTION

FHA is the loan program for everyone looking to purchase a primary residence under $400,000.

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New Fannie Mae Guidelines

Effective August 1, 2008- the new guideline for loan qualification for Fannie Mae and Foreclosure is a 5 year wait period.
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