Tag Archives: Home Loan

house model with keys and ballpen on contract paper

3 Important Things You Should Know About ARMs

house model with keys and ballpen on contract paperThe adjustable-rate mortgage (ARM) is one of the core mortgage plans offered by a lender for people who wish to have their own house in Phoenix. VIP Mortgage notes that the first few years of home loan payments would significantly be smaller if compared with a traditional fixed-rate home loan.

However, this will soon be subject to change based on the housing market’s evaluation of its interest rates. An ARM is an excellent choice for home buyers, but how would you know if it’s going to work for you?

If You’re Only Going to Keep the House for a Short Time

If you’re planning to keep the house only for a few years and then get another one, then you’d probably want to consider getting an ARM for your home loan.

Since the initial few years of home loan payments would be smaller, it would save you more money if you choose to have an ARM instead. It is advisable for people who are considering selling the property after a few years.

If You Have Enough Funds to Pay It Off Sooner

If you have sufficient funds to pay off the ARM, better go with it instead of getting a fixed-rate loan. You’ll be able to save a lot of money and allocate it to other essential expenses. To pay it off much sooner than expected, you need to know how to budget your finances.

If You Bought the House As an Investment

A real estate property is a significant investment. So, buying a house and then either selling it or renting it out is an excellent way to keep your finances going.

To ensure you get your money back as fast as you can, you might also want to choose an ARM and then pay it off in less than ten years.

Applying for an ARM is an excellent option for people who want to clear off their mortgage much sooner. Talk to your mortgage lender and see if you’re eligible for it. Looking for several financial options will increase the odds of you owning your own house in the future.

Harp Home Loan Changes You Need to Know

loan word seen on a laptop screenSince its introduction back in 2009, the government-insured Home Affordable Refinance Program (HARP) has assisted homeowners by the millions. The HARP home loan has allowed mortgage payers to save hundreds of dollars each month. These savings enabled families to funnel funds into other areas of their financial responsibilities, such as education and recreation.

Now, almost a decade in existence, the HARP loan is seeing noteworthy updates. These updates are designed to make the program more accessible to a broader market and to expand HARP loan beneficiaries.

HARP 2.0

The newest iteration of the HARP loan allows for a more lenient approval of applications. It is made possible through these updates:

  • HARP loans are no longer limited to a loan-to-value ratio of 125%. It means you can now apply for this loan regardless of how far your property has depreciated.
  • HARP loan application no longer requires homeowners to be appraised or for their loan to be underwritten. Essentially, the program has a more streamlined application process.
  • For those who decide to refinance into shorter loan terms, risk-based fees will either be modified or eliminated.
  • Paperwork and other requirements may be waived by lenders such as Primary Residential Mortgage, Inc., especially in instances where applicants hold a minimum of 12 months of reserved mortgage payments.

Refinancing via HARP does not require borrowers to work with the same lender from which they had acquired their original loan. It opens up more options for the borrower.

HARP 2.0 Stats

Since these updates’ first introduction, 400,000 homeowners have decided to refinance their homes via the HARP loan program. It puts the number of HARP beneficiaries to 1.5 million since its inception. These numbers are a testament to the program’s value and credibility.

If you are currently looking for ways to make the most of your property and to adjust your mortgage plan, HARP loan could be worth your while. You may want to consult with an expert to know for sure.