Found 28 blog entries tagged as Mortgages.

It used to be that you spent 50 years at a company and 50 years in your Santa Cruz home, and when you retired, your home mortgage was (happily) paid off. Times have changed. Certainly, few people spend their entire careers at one company, and now many retirees are shrugging off the conventional wisdom of paying off their homes at retirement. 

Here are some points to consider if you are pondering using your savings to dispose of that mortgage on your Santa Cruz home:

• Home Value: If you are one of the unhappy folks who are underwater (that is, the value of your home is less than what you owe on the mortgage), then paying off the mortgage will secure your credit from any possible foreclosure issues should you have cash flow problems later. But paying…

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You’ve found the Santa Cruz home you want to buy, and now you’re ready to finalize your mortgage. But the multitude of closing costs associated with the mortgage is confusing. To help you navigate the mortgage world, here are descriptions of many of the charges you may incur when obtaining a mortgage to purchase your home:

Title Costs
• Recording fees for the deed: This pays the county clerk to record the deed and mortgage and change the property tax billing.
• Other state and local fees: This can include mortgage taxes levied by the state as well as other local fees.
• Pro-rated taxes: Taxes for schools and municipalities.
• Title search costs: Usually your attorney or title company will arrange for the title search to make sure there are no obstacles to…

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Before you start shopping for your new Santa Cruz home, take the steps required to get pre-approved for a home loan. Being pre-approved gives you a few advantages when you are shopping for a home:

• You know how much you can afford to pay for a home. This saves you time and reduces your frustration because you can look at only those homes that are within your price range.

• It makes you a more attractive buyer to sellers because they know you can get a loan to purchase their Santa Cruz home.

In order to get pre-approved for a loan, you need to:

• Find a lender. Shop around because terms and rates vary. Getting pre-approved does not obligate you to that particular lender.

• Provide your financial information. Be prepared to supply your…

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As home buying picks up pace with spring in full bloom, here are a few tips every Santa Cruz home buyer should keep in mind:

1. Plan to stay in the property more than 5 years.  Typically, home values appreciate 7% per year; that number has been 2% to 5% recently, so it will take longer to break even and begin making a profit or building equity in your home.

2. Do the math.  First, figure out what price range you can afford.  Then, calculate how much income is left after paying the mortgage, taxes and insurance.  Use an online affordability calculator to make this easier.

3. Explore the neighborhood.  At various times of the day and night, visit the neighborhood of a Santa Cruz home you are interested in.  Find out if it’s an area in which you’ll…

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Mortgage lenders are primarily concerned with your ability to repay your Santa Cruz real estate mortgage.  They will consider your credit score, debt-to-income ratio and how much you have for a down payment before telling you what you can afford to spend on Santa Cruz real estate.

Credit Score

One of the first things your lender will review is your credit score.  Credit scores range from a low of 350 to a high of 850.  In this case, the higher, the better.  The lower your credit score, the higher your interest rate and points will be, and the lower the amount of home you’ll be able to afford. If your score is too low, you may not qualify for a mortgage. If your score is low, you may need to take some time to improve your credit score before buying…

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When considering whether you should purchase a new Santa Cruz home, you want to take into consideration the five-year rule. That’s the minimum number of years many experts believe you need to own a home in order to break even on it when you sell it.  Some experts are now suggesting seven years, but in this article I’ll be talking about the five-year rule.

What happens if you own your Santa Cruz home for less than five years? Often, you’ll lose money because:

1. You pay thousands of dollars in closing costs each time you buy property. That money does not build equity or increase the value of your home in any way.

2. In the first five years of your home loan, a much higher percentage of your monthly mortgage payment goes toward interest than toward…

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The mortgage application process can be confusing -- so you only want to have to go through it once when buying Santa Cruz real estate.  Keep these tips in mind as you complete the application process to make sure you get the answer you want: Approved!

• Make Sure Your Credit is Clear: If there are any lingering issues on your credit report, get them resolved prior to application and get your credit in high standing for the best loan rates. 

• Lower Your Debt: If you meet the income requirements, but have substantial debts elsewhere – car payments, student loans, credit card debt – your application may be denied.  Budget, save up and pay off as much as you can. 

• Have the Required Income: With the tightening of regulations, any wiggle room you…

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Second mortgages on Santa Cruz homes are used by people who need to access the equity on their homes. Here’s some information to help you decide if a second mortgage is right for you.

What is a Second Mortgage?

A second mortgage is taking out a second loan on top of the existing mortgage on your home. The collateral for the second mortgage is your home. The loan process is similar to getting a primary mortgage, including the need to pay for appraisals and closing costs.

The maximum amount of the second mortgage is determined by the equity in your home. The equity is the difference between what you owe on the home and the current fair market value of your home.

Why Get a Second Mortgage?

People take out second mortgages on their Santa Cruz…

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