Essential Mortgage Facts

Many people are blindsided by their mortgage loans’ terminology.  This is the reason millions of people were in debt after the severe housing bust a few years ago.  Yet still, buyers are not aware of everything they should know about financing a home, including the terms used in documentation.

A recent study by Zillow surveyed homeowners about their knowledge on mortgages.  The results revealed that many of these homebuyers did not know the answer to the most simple mortgage questions.  To make sure you know your basics, and do not fall into the rut that the majority of homeowners are in, here are some extremely important facts that you should know about your own mortgage:

Mortgage rates are always rapidly changing: A common misconception is that these mortgage rates are consistently stable – this couldn’t be any farther from the truth.  Just like bonds, stocks, and other financial investments that rise and fall throughout time, mortgage rates are included within a similar market force.  This results in daily change, from afternoon to evening.

APR measures mortgage costs: Along with interest, you must upfront origination fees, closing costs, and other mortgage points you have encountered in order to get an accurate estimate in the cost of your loan.  The APR gives you a better idea about which comparisons to make between lenders.  Remember, APR means “annual percentage rate.”  Costs of a mortgage loan is usually more complicated than people anticipate.

Refinancing is a possibility even if you’re in a financial crisis: Generally, during crises, homeowners find themselves owing more money on their mortgages than their homes were originally worth.  This often leads to finding it very difficult to take advantage of interest rates and refinancing their homes.  Fortunately, through the Home Affordable Refinance Program, many people have successfully found ways to refinance their mortgages and profit financially even when times are rough.  Of course, this varies on the situation, but always know that refinancing is an option.

Different lenders charge various rates and fees: This means you should do some lender shopping before letting someone handle your mortgage loans.  It’s important to note that there is no federal regulation that requires lenders to offer the same rates on mortgages, you should be aware of price tags and chargers, especially if they seem out of the ballpark.

Keep in mind that low-down-payment loans are available: Most people struggle when it comes to putting twenty percent toward a down payment, but certain loan programs are there to help you get financing with little to no money down.  If you ever find yourself in a tight-budget situation when it comes to down-payments, know that low-down-payment loans are there to help you.

Most importantly, for any homebuyer to be knowledgeable about their own mortgage, you must keep your eyes open and your ears peeled.  Being aware is vital, and knowing these five facts will help you understand many of the simple things that homebuyers don’t usually pay attention to.

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Essential Mortgage Facts

Check out Joe Raquiza’s newest blog post!

Many people are blindsided by their mortgage loans’ terminology.  This is the reason millions of people were in debt after the severe housing bust a few years ago.  Yet still, buyers are not aware of everything they should know about financing a home, including the terms used in documentation.

A recent study by Zillow surveyed homeowners about their knowledge on mortgages.  The results revealed that many of these homebuyers did not know the answer to the most simple mortgage questions.  To make sure you know your basics, and do not fall into the rut that the majority of homeowners are in, here are some extremely important facts that you should know about your own mortgage:

Mortgage rates are always rapidly changing: A common misconception is that these mortgage rates are consistently stable – this couldn’t be any farther from the truth.  Just like bonds, stocks, and other financial investments that rise and fall throughout time, mortgage rates are included within a similar market force.  This results in daily change, from afternoon to evening.

APR measures mortgage costs: Along with interest, you must upfront origination fees, closing costs, and other mortgage points you have encountered in order to get an accurate estimate in the cost of your loan.  The APR gives you a better idea about which comparisons to make between lenders.  Remember, APR means “annual percentage rate.”  Costs of a mortgage loan is usually more complicated than people anticipate.

Refinancing is a possibility even if you’re in a financial crisis: Generally, during crises, homeowners find themselves owing more money on their mortgages than their homes were originally worth.  This often leads to finding it very difficult to take advantage of interest rates and refinancing their homes.  Fortunately, through the Home Affordable Refinance Program, many people have successfully found ways to refinance their mortgages and profit financially even when times are rough.  Of course, this varies on the situation, but always know that refinancing is an option.

Different lenders charge various rates and fees: This means you should do some lender shopping before letting someone handle your mortgage loans.  It’s important to note that there is no federal regulation that requires lenders to offer the same rates on mortgages, you should be aware of price tags and chargers, especially if they seem out of the ballpark.

Keep in mind that low-down-payment loans are available: Most people struggle when it comes to putting twenty percent toward a down payment, but certain loan programs are there to help you get financing with little to no money down.  If you ever find yourself in a tight-budget situation when it comes to down-payments, know that low-down-payment loans are there to help you.

Most importantly, for any homebuyer to be knowledgeable about their own mortgage, you must keep your eyes open and your ears peeled.  Being aware is vital, and knowing these five facts will help you understand many of the simple things that homebuyers don’t usually pay attention to.

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Getting Involved in Your Community

Joe Raquiza’s latest blog post!

Getting involved in your local community is beneficial both to yourself and the community you’re serving.  It offers a sense of connection, solidarity and strength as you participate in an event that directly involves your neighborhood.  Here are seven way that you can get involved in your community, taken from an article that I found online:

Look for local events: Pay attention to local news announcements.  Whether it’s a music and arts festival, a local dance performance or a special presentation, keep your eyes open.

Volunteer your time: There are all sorts of ways for you to volunteer your time.  You could, for example, volunteer as a dog walker for your local animal shelter, volunteer to read to the elderly at a retirement home, the opportunities are endless.  Simply reach out to an organization you like and ask them what you can do.  

Donate your resources: If you’re too busy to volunteer, then you can still donate.  You don’t have to donate money, you can donate clothes, food, bed linens, books, cleaning supplies and household goods, among other things.  Your local Goodwill, homeless shelter, food bank, library or animal shelter will all appreciate the donations.

Shop locally: Buy from local vendors whenever you can.  This is a small way to contribute to local businesses and stimulate the economy.  

Join a class or group: By joining a class or group, you get a chance to meet like-minded people you may never otherwise meet.  Most towns have plenty of groups for runners, bikers and other outdoor activities.  Not only is it a great way to meet people, but also to stay in shape!

Support your local sports teams: I can tell you from experience that this is particularly rewarding.  You might not know how many sports teams are around.  Whether it’s Little League, high school and college sports teams or a Minor League team, chances are it’s a lot cheaper and intimate than going to a Mariners or Seahawks game.  Players play because they love the game, and seeing fans supporting them in the stands makes a huge difference.

Organize your own event: Even if you don’t feel qualified enough to host a music and arts festival, you can still team up with some friends and organize a fun event.  Maybe a special kids’ event or a car wash to raise funds.  

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