Category Archives: Mortgages

FHA Mortgage Insurance Rates in 2017

If you’ve recently been on the market to purchase a home or secure a mortgage, you are probably very familiar with FHA Mortgage Insurance rates. It had recently been in the works that the FHA was going to be reducing FHA Mortgage Insurance rates in the near future, but the FHA has since backtracked. Here’s what you need to know, and how it will affect you as a homebuyer:

The FHA, a sector of the Department of Housing and Urban Development, is a government agency that insures loans on homes and protects lenders in the case of default by collecting fees owed to reimburse lenders when necessary. The FHA usually insures first-time home buyers that may not have the best credit. In the past, the avg. credit score was 679. There have also always been limits on the price of a loan the FHA will back.

In late January, the Trump administration stopped a rate cut that was proposed by Obama just a week before he left office. The Obama administration originally proposed the cut because the FHA could withstand the cut to premiums that would in turn save homebuyers extra money, which they argued would be the best thing to do since the FHA has improved vastly since its bailout in 2013. If implemented, the premium rates would drop a quarter of a percentage point, which would restore rates back to what they were before the housing crash.  The Trump administration suspended the cut with the concern that if the FHA was unable to cover the losses from reduced premiums, taxpayers could end up paying.

So what does this mean? While nothing has officially changed, it has been a HUGE headache for the industry. Approximately 40,000 people are estimated to be priced out of home ownership, while another 800,000 will have to pay more than anticipated. When it comes down to it, if you had originally planned on using the FHA-backed loan with lower insurance rates, all this news really means is that you will just still have to pay the same rate required since January 2015- unless of course, you have to adjust your home-buying plans altogether. While the cut hasn’t been totally eliminated, nobody is certain if this cut will get back on the table for approval anytime soon.

To keep up with all things mortgage, housing, and real estate, be sure to subscribe to our blog! Here at Alpha Mortgage, we’re proud to be North Carolina’s #1 mortgage company. Contact us today to make owning your dream home a reality.

 

 

Is the HECM For Purchase Program for you?

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You’re nearing retirement and looking for your forever home. You’re also looking to increase your well-being and security. You’ve heard about the Home Equity Conversion Mortgage (or HECM reverse mortgage) but wonder, “is it too good to be true?”. We’re here to tell you that the H4P isn’t too good to be true – it’s TRUE!

What is H4P?

The H4P mortgage allows homebuyers to receive funds from their lenders to finance approximately 50-60% of the purchase price of their new home. They are then freed from having to make regular payments after purchase, although they will be responsible for ongoing property taxes, homeowner’s insurance and home maintenance. Repayment is not necessary until the last surviving homeowner is no longer living in the home as their primary residence – either from selling or vacating the property or passing away.

So what’s the catch? You must be eligible for a federally insured H4P reverse mortgage. This includes being 62+ years old, be able to make a sizable down payment and finance the rest. Here are some further requirements needed to qualify for this safe program

  • A financial assessment to determine suitability.
  • Reside in the home for more than 6 months of each year.
  • Participate in a homeownership counseling session.
  • No minimum credit score required.
  • Federal debt including back taxes must be paid.
  • H4P is a first mortgage on title at time of closing.

Why H4P?

H4P provides you with the financial security you’re looking for in retirement. It provides flexibility, with NO monthly payments required. This will allow you to increase your reserve funds and liquidity. H4P also protects your heirs and is FHA insured, giving you peace of mind!
The amount of funds available will depend on your purchase price, age and interest rate. Use this calculator for an estimate of what you would qualify for and then give us a call! We’d love to inform, educate and pre-approve you as an H4P Buyer and start giving you the peace of mind you deserve.

The Importance Of Good Credit

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It’s no secret when we tell you that the better your credit score is, the easier your life can be. Your credit score is a three-digit number that represents how trustworthy you are from the perspective of someone that would lend you money for something like a loan or a mortgage. In fact, your credit is THE single most important determining factor from a lending perspective. Our economy runs on credit. So what is so important about those 3 numbers, and how does it impact your mortgage rates when you decide to buy a home? Here’s what you need to know:

  • Your credit report = Your financial report card. You want all A’s – Like we mentioned before, your credit score is a representation of how well you can handle your money, and can make or break a lender’s decision to approve you for a loan or mortgage, and impact your interest rates majorly. Your credit report is made up of how much money you’ve borrowed, your history of paying it back, and how much open credit is available to you. Here is what appears on your credit report: debts and a history of how they’ve been paid, public record information (tax liens, bankruptcies), bills referred to collection agencies, and inquiries made about your creditworthiness.
  • Credit score: Credit scores range from 300-850 points and are based on debt, amount of time you’ve used credit, debt totals, how often you apply for new credit, and types of credit you currently use based on information received from your credit report.
  • The higher your credit score, the lower your interest rates will be, and vice versa- The better your credit score is, the more banks and lenders can trust you, resulting in much lower interest rates for loans and mortgages. Don’t think interest rates are that big of a deal? Consider this- for a long-term credit loan such as a mortgage, interest alone can add thousands of dollars to your original buying price. Ouch.
  • Banks aren’t the only ones who look at your credit – so do landlords, employers, insurance companies, utility companies, phone companies, and more!

Having good credit is essential for having a healthy financial presence. So now that you understand how vital it is, check out these tips for improving your credit before shopping for a mortgage!

Credit Checklist Preparing for a Mortgage:

  • Start early – A year to a year and a half before you will be buying a home, do a deep analysis of your credit report. This will give you time to make minor changes to your score that can save you big bucks in the end when you start shopping for mortgage rates.
  • ALWAYS pay your bills on time- This is a given! It is also important and make an effort to pay more than the minimum balance if possible.
  • Have a mix of credit (auto, credit cards, student loans, etc.) – Lenders like to see a long and versatile credit history.
  • Keep a low balance – on any given credit card try not to use more than 30% of your limit.
  • Start saving now– It is ideal to try and aim to put a 20% down payment on your home, which requires a decent amount of cash upfront. Start bulking up your savings account now!
  • Don’t forget about closing costs!
  • Whatever you do- do not do these 5 things that will destroy your credit while looking for a mortgage!

When it is time to find a mortgage for your dream home, be sure to contact us so we can help make your dream rate a reality!

 

 

 

 

Reverse Mortgages

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It’s no surprise to anyone when we say that the aging process is a difficult thing to handle financially. There are a growing number of seniors planning to retire soon that are struggling to figure out how they will continue to pay their mortgage, maintain their standard of living, and pay medical bills, make home improvements, etc. for many reasons. For many seniors, their home is their largest and most lucrative cash asset- and could be the golden answer in helping to solve their financial worries post-retirement. Enter reverse mortgages. With the Federal Reserve keeping interest rates at an all-time low, reverse mortgages are presenting themselves to be extremely appealing for home-owners aged 62 and older that are looking to tap into their home equity. This is why on March 1st, 2016, Alpha Mortgage started offering North Carolinian’s and Virginian’s reverse mortgages within their scope of services.

So what is a Reverse Mortgage?

According to the HUD, “A reverse mortgage is a special type of home loan for homeowners 62-years or older that lets you convert a portion of the equity in your home into cash. Unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.” Borrowers are still responsible for property taxes, homeowner’s insurance, and property maintenance, but a reverse mortgage requires no monthly mortgage payments, and borrowers do not have to pay back their loan balance until they die, sell, or move.

Reverse mortgages are extremely complicated, but are great for seniors that are cash broke/ property rich, or cash rich/ property rich. The interest and fees on the reverse mortgage are added to your loan balance each month. Over time, your home equity will decrease as your loan balance grows. It’s the reverse of a traditional mortgage. The rising loan balance can eventually grow to exceed the value of the home, however, as the borrower (or the borrower’s estate) you do not have to repay any additional loan balance over the value of your home. Wade Pfau of The American College and McLean Asset Management, highlights what consumers need to know about repaying a reverse mortgage with tips such as “Prior to death, selling, or moiving, repayments can be made voluntarily at any point to help reduce future interest due and to allow for a larger line of credit to grow for subsequent use. There is no penalty for early repayment.” Read more of his tips here.

 Why would I get a reverse mortgage?

Reverse mortgages can be used strategically for many reasons. One of the biggest reasons that people take out a reverse mortgage is to stay in their current home without having to worry about their current mortgage payment.

Many people also open a line of credit with access to the cash over time to supplement social security, 401k, unexpected costs, or unexpected medical costs. People also use reverse mortgages to pay off existing mortgages, purchase a new home that better suits their needs with age, or as retirement income plans.

Sounds Great- Am I eligible?

To be eligible to receive a reverse mortgage, you must be at least 62 years of age or older, the property must be either 1-4 unit primary residences, condominiums, or manufactured homes that meet FHA’s requirements, homeowners must own the property as their primary residence and should have substantial equity in the home, borrowers must not owe any back debt to the government, borrowers are required to maintain the property in good condition to protect the value of the home, pay their taxes annually, and pay for their home owner’s insurance in accordance to HUD guidelines.

So there you have it! Reverse mortgages are great options for seniors who are interested in tapping into their home’s equity. As we mentioned earlier, reverse mortgages are excellent solutions for seniors, but can also be complicated, and aren’t for everyone. To educate yourself further about reverse mortgages, please visit our website devoted entirely to reverse mortgages here. If you’re ready to take out a reverse mortgage today, contact us, and let Alpha Mortgage ease in your retirement process.

“Know Before You Owe” – The Impacts of TRID on the HomeBuying Process

In our last blog , we described how The “Know before you Owe” mortgage initiative will promote the transparency of information associated with mortgage and lending procedures – thus helping borrowers better understand and prepare for their home financing decisions. TRID also referred to as the “TILA-RESPA” rule  (an acronym formed by combining the Truth in Lending Act or “TILA” and the Real Estate Settlement Procedures Act or “Respa”) aims to simplify the disclosure and loan-closing process for consumers and better prepare buyers for their mortgage transaction.

We’ve compiled a review of how TRID Impacts lenders and borrowers below – Enjoy!

1. New Loan Disclosure Forms & Closing Disclosure Forms

Lenders must now provide borrowers with new disclosure forms that explain the loan estimate and loan closing process in more detail. This new Loan Disclosure form combines the Good Faith Estimate Form and the Truth in Lending Disclosure form have been combined into a new, simpler Loan Estimate form.

TRID also mandates that mortgage firms can not charge credit report check fees until the borrower has received the loan estimate form and has indicated intent to proceed with said firm. These new regulations should make it easier for consumers to shop for and understand the interest rates associated with different loan packages from different firms. 

TRID also gives rise to a new Closing Disclosure form that combines the final Truth-In-Lending statement and the HUD-1 settlement statement while providing details on the entire real estate transaction – including loan term, fees, and closing service costs.  

The accuracy and delivery of the new forms will be critical to ensuring the mortgage process is not derailed or delayed, and that borrowers have a smooth home purchase process.

2. Lenders must now provide Borrowers with the Loan Estimate & Closing Disclosure Forms in 3 Days

Three business days after the consumer provides a lender with their name, income, Social Security number, property address, property value estimate and mortgage loan amount sought, the send that consumer his/her Loan Estimate & Closing Disclosure Forms.

3. Longer Approval & Closing Times

In order to comply with the regulations imposed by TRID, lenders will be extra careful while both evaluating clients & filling out necessary paperwork – thus translating to longer approval & closing times and pretty much eliminating the the possibility of closing ahead of schedule.

 

Unfortunately, this extended loan closing timeline resulting from TRID will impact the home buyer’s move-in logistics and timeframe. Nevertheless, the increased transparency regulations will undoubtedly help more home buyers understand their loan options.

 

 

TRID For The Borrower- What It Means

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There are officially t-minus two days until ‘TRID Day’, and whether you are a potential borrower or an existing lender, there are no reasons to panic. On October 3rd, 2015, the TRID (also known as the ‘Know Before You Owe Rule’) Rule  will be implemented by the Consumer Financial Protection Bureau (CFPB) as a way to better inform and protect borrowers during the lending process. TRID (short for TILA-RESPA Integrated Disclosure) is the merging of the Truth In Lending Act and Real Estate Settlement Procedures Act that aims to make the mortgage process more streamlined and highly functioning for regulators, borrowers, and lenders. Its goal is to create a more informed and therefore better protected consumer through regulated time constraints and clear, comprehensible documents for the consumer-which is why the act has attained the nickname ‘Know Before You Owe’.

The change comes in a time where transparency in every industry is essential for consumer trust and transaction, and when the Real Estate Industry has a need to shift priorities from stimulating the economy towards borrower comprehension in the lending process (seeing as it is one, if not THE biggest financial decisions they will make in their lives). The idea is that more time and more consumer-friendly documents will create breeding grounds for an all around more informed borrower.

So what specifically is changing under the TILA Act, you ask? Not too much. Here are the biggest two changes in the process:

1) Loan Estimate– As Rayce Robinson explains, what was originally the Good Faith Estimate has now changed to become the “Loan Estimate” or LE. The LE is created at the beginning of the lending process following the application submission of the borrower to their preferred lender and provides potential borrowers with a clear and accurate disclosure of any estimated fees during the lending process. The LE breaks things down for the buyer as well as makes it easier for buyers to compare estimates between firms.

2) Closing Disclosure– The Closing Disclosure, or CD, replaces the HUD-1. The CD is a detailed and accurate disclosure of every fee needed to close. The main difference with the CD is that lenders are required to provide borrowers with the document 3 days prior to closing to give them adequate time to compare the document to the LE as well as ask any questions they may have. Since last minute changes tend to occur when buying a home, after the borrower signs off on the CD, the lender need not add additional 3 days for changes unless they fall under three exceptions. 1) The last minute change caused APR to become inaccurate, 2) Borrower wants to change loan program, or 3) a pre-payment penalty was added to the loan.

The idea is to integrate the 3 days, not add them- something that will require planning, focus, and organization from all parties involved in the lending process.

TRID is going to be a refreshing change for the consumer in the Mortgage industry, and the biggest takeaway a potential borrower can get from the change is that there will be more transparency in a more simplistic fashion. It is important to find a lender who is trained, has tested, and integrated TRID methods into their practice- and at Alpha Mortgage, our loan officers are trained, tested, integrated and PREPARED to provide you with the best experience possible. Contact us today!

*Note: If you are looking to secure Home Equity Lines of Credit (HELOCs), a reverse mortgage, or a mortgage secured by a mobile home or dwelling not attached to real property, it is important to recognize that TRID won’t apply to you. *

How Much Does It Cost To Refinance My Mortgage

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You’ve done your research on the best time to refinance your mortgage,and you are ready to start the process before the Federal Reserve decides to start raising interest rates again. It seems like everything else is in place: you plan on staying in your home for a long time, lending conditions have eased, and current mortgage rates are extremely low. Refinancing or “resetting” a mortgage is a great option for homebuyers that want to take advantage of market conditions like lower interest rates over time, take the opportunity to reduce the term of their original mortgage, or acquire cash from the home’s equity value to use on other purchases through cash-out refinance transactions. Homeowners can also benefit from refinancing by reaping the rewards of an improved credit standing in most situations.

But how much does refinancing your mortgage actually cost? One thing that most homeowners forget to consider when considering a refinance is that there are fees associated with the process. These fees vary based on location and company, which is why it is essential to shop around before you refinance your mortgage. Below are some fees to keep in mind and to discuss with your lender before making a refinance decision:

  • Administrative Fees: Just like when applying for your original mortgage, there are administrative fees that cover generating the information and data necessary to obtain refinancing contracts. Administrative fees to expect include paperwork fees, appraisal fees, application fees, loan origination fees, points fee, inspection fee, survey fee, title search/insurance fee, and others similar.
  • Closing Fees: Once you have been approved for your refinance, closing fees come into effect under names like paperwork fees, attorney review/closing fees, or closing costs. These can get pricey, so it is important to take them into consideration before applying.
  • Other Fees: It is crucial to understand the terms and conditions of your refinance like the back of your hand. Discuss with your loan officer things like prepayment penalties (fees that can cost anywhere from 1-6 month’s interest payments) that charge you for paying off your existing mortgage early, and other penalty fees that could impact you financially.

Most mortgage-related fees are paid upfront at closing, however some lenders offer “no-cost” refinancing, which includes these fees in your loan balance or interest price during the term of your refinance. Once you take into consideration all of the fees that will be associated with your refinance, calculate the break-even point of your new mortgage through online resources. If the refinance still makes sense financially, sign the papers! If you’re feeling overwhelmed, don’t fret. The Home Ownership and Equity Protection Act (HOEPA) protects those who refinance from high fees and interest rates.

Alpha Mortgage is proud to serve North and South Carolina with the best mortgage rates and informed loan officers. Need more information about refinancing your mortgage? Contact us today.

Should I choose a 15-Year Mortgage or a 30-Year Mortgage

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So you’ve found your dream house, and have decided to start the lending process so that you can own the keys and start making it a home. Congratulations! Once you’re sure that you can afford the home, and have found an informed and transparent loan officer, the next thing as a buyer that you need to consider is whether you should choose to secure 15 year fixed mortgage, or a 30 year fixed mortgage. When determining which loan option is best for you, it is important to weigh out the differences in affordability, your degree of job security, as well as your saving habits.

The main difference between a 15 and 30-year loan is that fifteen-year loans typically have higher monthly payments with less interest, and thirty-year loans usually have lower monthly payments in which you end up spending more interest over time. The first step in determining which term to choose is using a mortgage calculator and crunching the numbers to figure out your specific individual options and the difference in monthly payments and total amount spent. Then, ask yourself what you can honestly afford. If you can comfortably make the 15-year fixed mortgage rates, do so. If not, the 30-year option is probably best for you. Remember that making extra payments when possible is always an option (although according to the FDIC, 97.3% of people do not consistently pay extra on their mortgages).

It is also essential to evaluate your job security and emergency funds when determining which loan to choose. Are you in a position/job with a paycheck steady enough to make those payments every month? It is important to remember that once you sign the loan, you will be required to make the same payment each month, and if you choose to go with a higher monthly payment (15-year loan) it is a good idea to have an emergency fund in place just in case something happens. If you don’t have adequate savings in place, or lack an emergency fund, it is a safe bet to go with a 30-year option.

Financial saving habits are also important to consider when determining whether to go with a 15-year or 30-year loan. Before choosing which term you want to have your loan on, evaluate your spending habits. According to USA Today, many people may lack the discipline needed to save long-term, especially in amounts that would offset what they would save by switching (from a 30-year) to a 15-year mortgage. A lot of times people need that extra money for something else, so they choose to keep their money in a 30-year mortgage with lower individual monthly payments. It is important to realize that you can always pay more of your mortgage off monthly, however, many people lack the discipline to send in the extra money every month when it isn’t required by the bank. If you are confident in your financial personal discipline, and do not tap into your savings (or will need to in order to afford a shorter term), a 15-year loan might be a good option to consider.

Be sure to consider your age and professional plan for the next 15-30 years when deciding whether you want to choose a 15 or 30 year loan. Are you planning on retiring? Do you plan on having children? What about other expenses that you will have (car, student loans, etc.)? Once again, it is important to answer these questions as honestly as possible, and to go over your options with your loan officer, who will be able to give his/her honest opinion based on individual circumstances and plans and which term will be best in your scenario.

Remember – in the end, your individual financial situation, goals, and comfort levels will determine which mortgage term you should choose, and what may be right for someone else doesn’t necessarily mean it will be right for you. However, a good rule of thumb remains: if you’re comfortable making higher payments (and have an adequate emergency fund), can meet other important financial milestones such as retirement and large expenses like cars and student loans, and have strong personal discipline when it comes to finances, a 15-year mortgage is a great option to own your home in half the time you would otherwise. If any of these conditions make you uncomfortable, it is better to go with the 30-year fixed loan and add in extra payments if you can. Let Alpha Mortgage help you make the right decision when it comes to choosing your loan term.

Mortgage Market Update

Housing news dominates the headlines this week. The Commerce Department reported on Tuesday that sales of newly constructed homes rebounded in April, up from the dip in March, as the spring buying season got underway. New Home Sales rose by 6.8% to an annual rate of 517,000, which was above the 510,000 expected. Since April 2014, sales are up a whopping 26%. The median price for a newly constructed home in April was $297,300, up 8.3% from a year ago. The report comes after a contrast in Existing Homes, which makes up a bulk of the market, which fell 3.3% in April.
Data from the Case Shiller 20-city Index on a year over year basis revealed that home prices rose by 5% from March 2014 to March 2015. Home prices have now risen year-over-year for 35 consecutive months following the housing bubble bust in 2007 and 2008. The 5% gain was above the 4.6% expected, while matching the February annual gain. From February to March, prices were up 0.9%. “The pattern of consistent gains is national and seen across all 20 cities covered by the S&P/Case-Shiller Home Price Indices,” said David Blitzer, managing director and chairman of the index committee.
The last positive report today showed that May Consumer Confidence rose from April. The Index rose to 95.4 in May, above the 94 expected and up from April’s reading of 94.3. The report read that business conditions remained “good” last month, while the employment component said that those stating jobs are plentiful rose to 20.7% from 19%. The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch.

Can I Afford A House?

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When it comes to purchasing a new home, there are always many questions and factors to consider before putting down an offer. “Why is the owner selling? Do I like the location and surrounding area? Does the home have all of the amenities I am looking for?” The first, however, should be “Can I afford this home?” What would seem to many to be a simple ‘yes or no’ is actually one of the more complex questions when it comes to home-buying-101.

The question, ‘Can I afford this home,’ seems for the most part straightforward. You either can or you can’t. But what goes into determining the answer is where the complexity sets in. Below we have compiled a list of 5 important things to keep in mind when determining if you can afford a home or mortgage that you are interested in purchasing.

  1. Income Factors
    • Income before taxes is one of the most important factors in determining if you can afford a home and mortgage payment. But “income” doesn’t only refer how much you make per year before taxes. Income should also be evaluated by job security (the probability that you will keep your job), opportunity for raises and bonuses, confidence in keeping steady commission if your job operates off of this, chances that salary will stay the same or increase, and other considerations such as if you are planning on having kids soon.
  2. Monthly Spending
    • Monthly spending or your typical monthly budget is another factor that should be evaluated when determining if you can afford a house. Living expenses such as bills/utilities, transportation, health, fitness, home, kids, travel, personal care, pets, shopping, taxes and other expenses should be calculated, multiplied by 12, and then subtracted out of your income to get a clear picture of how much money you have left to work with. It is extremely important to be honest with yourself when calculating your monthly budget.
  3. Down Payment & Closing Costs
    • Monthly mortgage payments are not the only thing that you have to worry about paying when you plan to purchase a home. Once you decide on a home and have calculated your monthly spending and compared it to your yearly income, the next things that should be considered are down payments and closing cost. According to Mortgage 101, ‘Traditionally mortgage down payments range from 10 to 25 percent of the total purchase price of the property.” However, there are now more options that can potentially lower your down payment that our loan officers can help you decipher and apply for. Just as a rule of thumb, it is best to prepare to pay within that percentage for a down payment. Along with a down payment, closing costs should also be considered when determining if you can afford a home. Closing costs vary individually based on location and property values, but typically will include the costs to transfer property deeds, titles, land transfers, legal fees, loan fees, etc. On top of this remember that typically the closing itself will usually cost you 2-3% of the home price.
  4. Taxes/ Insurance
    • Once you purchase a home, taxes and insurance must be paid in order to protect both you and the lender. The main tax that a homeowner will pay is a yearly “Property Tax.” What a property tax does is quantifies the value of your property and home and gives the tax money you pay to the government. Normally, people set up Escrow Accounts that take money from your accounts monthly to go towards your end-of-year property taxes and insurance bills, and then accumulates that money until it is due (so you don’t have to come up with the lump sum all at once, which can be overwhelming). If you own your property outright, some people do choose to pay their yearly property tax at outright without an Escrow Account.
    • Homeowners insurance varies based on many factors including location, and risk factors, but is also something that you are required to pay. This can also be deposited monthly into an Escrow account. The main thing to remember with homeowners insurance is the more risk your property has, the more money you will pay on a policy. Basic homeowner policies usually include (but are not limited to) Dwelling Protection, Personal Property Protection, Natural Disasters, Other Structure Protection and Injury Liability. Another insurance you will likely have to pay is a mortgage insurance to ensure you will pay your monthly dues. Sometimes Private Mortgage Insurance (PMI) is required if you as a buyer are putting less than 20% down on a house and better protects the lender.
  5. Monthly Mortgage Payment
    • Monthly mortgage payments will be what you pay every month that goes towards the principal (money you borrowed) and interest on that money. They also sometimes include some of the home’s insurance and taxes. Mortgage payments vary depending on the home, location, money put down on the property and individual’s credit score. To see an estimated monthly mortgage payment you can click here, but until you meet with a lender, this will just be a projection.

Along with income factors, monthly spending, down payments and closing costs, taxes and insurance, and monthly mortgage payments, there will usually always be random “other” costs included when purchasing a home including homeowners dues, home maintenance, home inspection, etc. When predicting if you are going to be able to afford a house, it is always best to over-price your projected spendings. Don’t forget that according to CNN, Total debt payments (credit cards, student loans, car payments, etc.) should be less than 36% of gross income because that has been shown to be a level of debt that most borrowers can pay back comfortably.

Buying a house is a difficult process, but here at Alpha Mortgage, we are ready to assist you in any way possible. Contact us today!