30-Year Mortgage

Are you thinking about buying a home or shopping already? A 30-year fixed mortgage can help you buy the home you want. With a 30-year fixed-rate mortgage you’ll have monthly payments you can afford. The payments will stay the same throughout the course of your mortgage.

How Can it Be Easy to Get a 30-Year Fixed Mortgage?

If it was so easy to get a mortgage, why hasn’t everyone done it? First, not everyone wants to own their own home. Second, a lot of people have out-of-date ideas about what they need to do in order to qualify for a 30-year home loan.

Years ago, people had to give a lot of information to a mortgage loan officer who worked at a bank. The process moved slowly. You’d frequently get a call that you had to provide more documentation of your income or other factors influencing your loan.

Today the process can be a lot faster and easier. An experienced mortgage loan broker can help guide you through the process. Fannie Mae, the Federal National Mortgage Association, provides the Day 1 Certainty™ program. Day 1 Certainty™ uses technology to get your financial information online. You could get your loan pre-approved as quickly as the same day. If you need to submit additional information to qualify, you’ll receive that information as quickly as possible.

Do We Have to Put 20% Down On a Home to Get a 30-Year Mortgage?

You don’t need to save a 20% down payment to buy a home. You have many options for lower down payments. You can even find some 30-year fixed mortgages with zero down payments. USDA and VA loans can have zero down payments. FHA loan down payments ranges from 3.5% to 10%. You may also be able to qualify for conventional mortgage programs with 3% down, and you may also be able to receive gift funds to make your down payment.

Don’t be intimidated by the home buying and mortgage process. Not only can it be easier than you think, but you could also be surprised at the mortgage you could qualify for. This is the biggest reason to work with an experienced home mortgage professional. They can guide you through the process and show you how to get the mortgage you need.

Sources

https://www.investopedia.com/articles/personal-finance/042015/comparison-30year-vs-15year-mortgage.asp

Have you ever thought of buying a duplex or triplex, and renting part of it out? This strategy has been around as long as there have been multi-family dwellings, and it can be just as effective today as ever.

You have several options for financing the purchase of a multi-family home, including FHA, VA, and conventional mortgages. Some companies even offer different types of flexible financing that may allow you to buy a property in the neighborhood you want to live in. If you’re a veteran, this option could be a smart way to build your family’s future security. As of 2020, there are no more VA county loan limits, so you can buy a higher-priced property as long as your income and the rental unit income can qualify for the loan.

How can a multi-unit property double your buying power or more?

If you buy a duplex, triplex, or four-plex and plan to live in one of the units while renting the others out, the income from the rental units can help you to qualify for a California home mortgage, including a 30-year FHA loan, 30-year VA home loan, or another type of mortgage product.

Let’s say you have a monthly income of approximately $8,000 and very few bills other than a car payment. Using conservative mortgage payment calculator estimates, you’ll be able to qualify for a 30-year fixed-rate home loan of approximately $390,000 at 4.5% interest. Add in $2,500 a month in rental income, and you will be able to qualify for a financially conservative mortgage payment of $2,940 a month, equaling a 30-year fixed-rate mortgage of approximately $527,700 at 4.5%. Each $1,000 in monthly rent can help you qualify for about $60,000 more in total loan amount at an estimated 4.5% interest rate.

You can find some duplex, triplex, and other multi-unit property gems that could be an ideal match for your lifestyle. While there can be drawbacks to living in the same property as your tenant, you can educate yourself and set boundaries for a smooth, trouble-free lifestyle. Why not consider a duplex, triplex, or larger multi-unit property to double your homebuying power or more?

Sources

https://www.thesimpledollar.com/loans/home/should-you-buy-a-duplex-rent-out-one-unit-and-live-in-the-other/

https://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

Average mortgage rates might not determine the 30-year fixed rate or 15-year fixed-rate home loan you will get, but they can let help you decide how to plan for buying a home or help you get the best home you can buy. In October 2019, Freddie Mac, the Federal Home Loan Mortgage Corporation, announced that the average 30-year fixed-rate mortgage for the past 12 months was 3.65%. What does this mean? 3.65% is a low mortgage interest rate. In 1970, the New York Times reported that the average 30-year fixed-rate mortgage was 8.5%. Mortgage rates even went up to 18.63% in 1981. In recent years, the lowest level was 3.31% in 2012.

Most experts are predicting that home mortgage rates, whether for 30-year fixed-rate or 15-year fixed-rate home loans, are going to be similar or lower in 2020. What does this mean? You can plan to buy a home in 2020, and you’ll be likely to get a low-interest rate. Fannie Mae, the “sister” agency to Freddie Mac, predicts that 2020’s average 30-year fixed-rate mortgage interest will be about 3.4%.

What is influencing mortgage rates?

When U.S. Treasury certificates yield low-interest rates, mortgage interest rates tend to also stay low. The number of loans also influences future mortgage rates. Refinances in 2019 increased 133% between 2018 and 2019. The trend is expected to continue into 2020 supporting ongoing lower mortgage interest rates. After ongoing housing price increases starting in 2013, housing price increases are beginning to slow, but they’re not stopping. Finally, new housing construction is continuing. Ongoing new construction supports mortgage availability.

As a result, most experts are predicting that 30-year fixed-rate and 15-year fixed-rate home mortgages will be at similar low-interest rates throughout at least the first two quarters of 2020. Yet another reason why you should work with a qualified mortgage broker to help you get the best possible 30-year fixed rate or 15-year fixed-rate home loan.

Sources

https://www.forbes.com/sites/alyyale/2019/10/04/will-mortgage-rates-stay-low-through-2019-heres-what-experts-predict/#6170156e279c

https://www.nytimes.com/1981/04/28/business/mortgage-rate-at-8.5-in-1970.html