When renovating your home, you want your money and time to be well spent. Successful renovations come from careful planning and financial strategizing. Whatever your home improvement project may be, you want it to be beneficial in the long run. If you are amongst those looking to take on new home renovation projects there are several things that need consideration.

Your debt-to-income ratio (DTI) compares how much you owe every month to the total amount you earn every month. Lenders may consider your debt-to-income ratio along with credit scores and credit reports when determining your eligibility for a loan. Here is what you need to know about your debt-to-income ratio and what you can do to improve your chances of qualifying for a mortgage.

Subprime mortgages are typically issued to borrowers with low credit ratings. Low credit scores may be an indication that the borrower is at high risk for delinquency or defaulting on their loan. A subprime mortgage may get you a loan when you otherwise would not be able to obtain one. However, the risk is not just to the lender. The borrower has great risk as well, and the 2008 housing market crash proved that. Here’s what you need to know.

Amortization is the process of spreading out a loan and interest into a series fixed payments over a set period of time. The loan is completely paid off at the end of the repayment schedule. But what does it mean in regards to your home loan and how does it work?

Even with low inventory, the housing market is doing better than ever. We expect it to stay that way into 2021. However, record low interest rates may not stay so low. Interest rates and housing prices appear to be as low as they are going to get for the foreseeable future. If you are considering purchasing a new home or even refinancing your loan, the time is now.

At this point you have probably heard of a conventional loan or perhaps even had one recommended to you. The conventional loan is the most popular mortgage option. In the first quarter of 2018, 74% of all new home sales were financed using a conventional loan. But what is it and how does a conventional loan compare to other loan options?

Interest rates are currently averaging below 3% and continuing to fall. However, recently announced adverse market fees for Fannie Mae and Freddie Mac loans will soon take effect. The adverse market fees will decrease the benefits of such low rates. These fees will apply to refinancing but not new home purchases.

In real estate escrow is a financial agreement in which a third party holds payment during a transaction. This payment may include money, documents, and other assets. The third party or escrow provider is neutral. It is neither the buyer nor the seller. This third party holds and regulates payment in order to make the transaction more secure.

For the average homeowner, paying off your home loan takes time. It’s a commitment. For those with a 30 year fixed rate mortgage it’s a 30 year commitment. However, there is a way to quicken the process. Accelerated mortgage payments can speed up repayment and save you a lot of cash.

Mortgage forbearance in its simplest explanation is a temporary reduction or pause on monthly mortgage loan payments. Traditionally, mortgage forbearance has been an option for relief during financial hardships. These hardships may include temporary unemployment and illness or injury. It may also be an option when your home is damaged due to a natural disaster, etc. Detailed documentation of these financial hardships is typically required for forbearance on mortgages not covered under the CARES Act.

Seeing those big price tags on homes can be daunting when deciding whether mortgage vs rent is right for you. When you consider the long term impact on your wallet, the answer is clear. Buying a home is a better investment than renting.

Many people are excited by historically low mortgage rates and are in the market to buy a home. In fact, last month existing home sales increased by 24.7%. There is no doubt that people are trying to strike while the iron is hot. However, not everyone is doing their due diligence before trying to buy their dream home. According to a Realtor.com survey, only 52% of potential buyers got pre-approved for a mortgage before starting their home search.

There are many ways to enhance your credit and improve your credit score. If you are even considering buying a home, do not wait until your credit is perfect to speak to a mortgage professional. Let us use the tools at our disposal and our knowledge of the industry to help put you on the right path to getting a home.

The real estate market has been heating up. There are plenty of people looking to buy homes. Some people are looking for a new home to make life more bearable during the pandemic. They are looking for houses with bigger backyards or rooms that they can turn into a home office. Some people are trying to take advantage of historically low mortgage rates and buy their new dream home, whatever that might be.

Mortgage rates are at historic lows and people are rushing to take advantage. Many people are looking to buy a new home, whereas others are looking to refinance their current home. Wherever you fit it, there might not be a better time than right now to lock in low interest rates for the duration of your loan. In spite of this incredible opportunity to get a new mortgage, many people are still sitting on the sidelines.

It is important to keep in mind that appraisals are different from home inspections. Inspections look at the major features of your house, such as the structure, foundation, roof, plumbing, etc. They let you know if anything is wrong with the property. However, they do not tell you the fair market value for your home. That is what an appraisal is for!

The real estate world is changing. Some of these changes are a response to the pandemic. Some of these changes are due to government policies. But some of these changes are trends that have been developing for a few years. One such trend is that iBuying is on the rise. According to MarketWatch, the number of people using iBuyers to buy or sell a home “represents a small but growing share of the real estate market.” As iBuying becomes more popular, it is important for you to learn about it. Like most technological innovations, it is not perfect. The truth is that iBuying presents some real risks if you’re looking to buy or sell a home.

Some parts of the economy are reeling from the pandemic. However, the real estate market is not one of them. Mortgage applications are up as more and more people are looking to buy a home. Lots of people are rushing to take advantage of historically low mortgage rates and buy their dream home. Even still, some people are not rushing to fill out a mortgage application. One of the biggest reasons that people are hesitant is because they cannot put 20% down to buy a home.

At the beginning of the pandemic, many people started to predict that Covid-19 would be the death of the American city. Local and national publications kept suggesting that the coronavirus would cause people to leave the cities for the suburbs. These publications suggested that a collapsing economy and fear of outbreaks would send people packing in droves.

Concerns about Covid-19 have led to a lot of economic uncertainty since March. However, the mortgage market has been a bright spot. For most people, commercial and residential properties are the biggest assets they own. This means it is always important to keep up to date on what is happening with mortgage rates and other related factors. Here are some of the things that the team at People’s Choice Mortgage are keeping an eye on.