Found 28 blog entries tagged as Mortgages.

There are many reasons why a mortgage loan for your Santa Cruz real estate could be declined. It doesn’t have to be the end of your real estate dreams. Here are a few things to consider if you’ve been turned down for a mortgage:

Loan-To-Value Ratio
The loan-to-value ratio (LTV) is the percentage of the appraised value of the [city] real estate that you are trying to finance. For example, if you are trying to finance a home that costs $100,000, and want to borrow $75,000, your LTV is seventy-five percent.

Lenders don’t like a high LTV. The higher the ratio, the harder it is to qualify for a mortgage. To reduce the percentage, you can save up a bigger down payment. Some lenders may approve the loan if you buy mortgage insurance, which protects the…

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As the federal reserve continues to taper quantitative easing measures, financial experts project mortgage Santa Cruz interest rates will climb in the next two years. Could this be the much awaited ray of light at the end of the proverbial tunnel for builders and investors or will it drive hesitant home buyers to dig in and shelter in place?

Homeowners who are vacillating between refinancing for a lower interest rate and staying the course may find the time has come to make a decision.

Shrinking unemployment numbers and rising retail sales figures signal that the economy is improving. Even if no one is ready to label the US economy as recovered, Fed Chairman Janet Yellon's decision to follow through on tapering plans reinforces other market…

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When you visit your lender to get a mortgage for your Santa Cruz home, they will tell you the maximum amount that you are allowed to borrow. But how do they reach this total and what factors do they take into consideration?
How do they determine that one borrower can take on a bigger mortgage than the next?
This decision is made by mortgage companies by considering a wide range of factors, including your credit information, your salary and much more.

Here are some of the common ways that lenders determine how much you can borrow:

1. Percentage of Gross Monthly Income

Many lenders follow the rule that your monthly mortgage payment should never exceed 28% off your gross monthly income.

This will ensure that you are not stretched too far with your…

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When you are in the market for a new home, you may be faced with numerous options for financing your home. One of the choices you will have to make is whether to apply for a fixed or adjustable rate mortgage.
In some cases, an adjustable rate mortgage (ARM) may be your best option, but keep in mind, they are not the answer for everyone. Adjustable rate mortgages can be risky for some borrowers and it's important to understand both the pros and cons.

When To Consider An Adjustable Rate Mortgage
Perhaps one of the best things about ARMs is they typically have a lower starting interest rate than fixed rate mortgages. For some borrowers, this means it is easier for them to qualify for a loan. 

ARMs are beneficial for borrowers who:

• Anticipate an…

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Before taking out a mortgage to buy a Santa Cruz Home, it’s time to take a realistic survey of your finances so that you can determine your price range and what size of home you can comfortably afford. Buying a home that suits your finances will mean that your mortgage payments will be easily within your budget and won’t cause you financial stress.

Many people, when offered a large mortgage by the bank, are tempted to buy homes that are outside of their price range. It’s easy to see why a larger property or a more luxurious home might be appealing, but by stretching too far beyond your means you are courting with disaster.

If your monthly mortgage rate just barely fits within your budget, without room for savings, retirement contributions, or to…

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When you first bought your Santa Cruz home a few years ago, perhaps you started off with a 30 year mortgage. Now, you are considering refinancing and changing it to a 20 year or even a 15 year mortgage. Shortening your mortgage term and refinancing can be a smart financial move, but before you make this decision there are a number of factors that you should consider.

Switching to a shorter mortgage will mean that your monthly payments will be higher, but you will be 100% paid off much sooner and you will save thousands of dollars in interest rates. Here are a few of the factors to consider before making this decision:

Has Your Situation Improved?
Perhaps you have moved to a higher paying position, allowing you to earn a higher income and pay off more…

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One of the challenges you will face when deciding how much money to put down on your new home is whether to put down a larger down payment or to take a bit of money from your down payment and use it to pay "discount points" to lower your interest rate. There are pros and cons to doing both and each borrowers’ situation will be different so it's important to understand which option is best for your individual need.

Some factors you should consider include:

• Cost of borrowing - generally speaking, to lower your interest rate will mean you pay a premium. Most lenders will charge as much as one percent (one point) on the face amount of your loan to decrease your mortgage interest rate. Before you agree to pay discount points, you need to calculate the…

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If you are considering applying for a refinance, it is important to understand the mechanics of your mortgage loan. Before you sit down to speak with your loan officer, you should consider preparing a list of questions you feel may need to be answered.

Typically, your Santa Cruz loan officer will be available to assist through the entire mortgage process. Here are some questions that you may need to get answers to before completing your application:

1. What Type Of Loan Is Best For Me?
Your Santa Cruz loan officer can discuss the various loan programs available to help you refinance. Some borrowers will benefit greatly from adjustable rate mortgages while others prefer fixed rate. However, other borrowers may find a fixed rate is the best option.…

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Owning a Santa Cruz home can be a sign of independence and success. It allows you to build up equity and the mortgage interest and property taxes are tax-deductible. Can you afford it, though?

Reputable lenders look at a list of criteria to decide how much they’ll loan you. This list includes:
       • Credit score
       • Existing assets including cash
       • Car leases or loans
       • Credit card balances
       • Debt consolidation loans
       • Home equity loans
       • Installment loans
       • Student loans
       • Other monthly debts
       • Size/source of your down payment

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a Santa Cruz home is within your…

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Here’s a tricky question that has been on the mind of many Santa Cruz home owners – should you use any spare cash that you have to pay off the mortgage on your home as quickly as possible or would it be a better plan to invest your money? This is one of the most hotly debated questions in the world of personal finance and either option has been defended with plenty of reasons from experts. 

The truth is that there are a lot of considerations to take in mind when you are thinking of whether you should invest or pay off your mortgage. On the one hand, paying off your home as soon as possible will mean that you save thousands of dollars on interest over the length of the loan and that you will have the satisfaction and security of finally fully owning…

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