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From category archives: Mortgage

Mortgage

Should You Pay Off Your Mortgage or Invest?

Owning a home outright is a dream that many Americans share. Having a mortgage can be a huge burden, and paying it off may be the first item on your financial to-do list. But competing with the desire to own your home free and clear is your need to invest for retirement, your child's college education, or some other goal. Putting extra cash toward one of these goals may mean sacrificing another. So how do you choose? Evaluating the opportunity cost Deciding between prepaying your mortgage and investing your extra cash isn't easy, because each option has advantages and disadvantages. But you can start by weighing what you'll gain financially by choosing one option against what you'll give up. In economic terms, this is known as evaluating the opportunity cost. Here's an example. Let's assume that you have a $300,000 balance and 20 years remaining on your 30-year mortgage, and you're paying 6.25% interest. If you were to put an extra $400 toward your mortgage each month, you ...

Millennials Are Ready to Buy: Let’s help them Achieve Home Ownership!

By Dawn Laumann, First Bank Home Loan Consultant p: 314-749-4898 e: Dawn.Laumann@fbol.com Do you have a son, daughter, niece, or nephew that makes up the millennial generation (ages 18-34)? According to the U.S. Census Bureau, millennials make up the largest generation in our nation’s history; shockingly, even larger than baby boomers. As this group continues to secure gainful employment and decides it’s time to enter the home ownership stage of life, their buying power will be significant and impactful. Research suggests that millennials have chosen to live at home with parents longer than previous generations. Many factors have played into this scenario, including the post-recession employment rate, student-debt ratio, lower wages, and a reduced emphasis on reaching major adulthood milestones, like marriage and home ownership. However, as economic conditions continue to improve and change, most millennials are anticipating a bright future with homeownership just two to five years awa ...

Spring Selling is in the Air—Is Your House Ready?

Contributor: Dan Kraus, Home Loan Consultant Have you considered selling your home? If so, this is certainly a great time. Warmer temperatures during the spring bring more buyers out into the market to shop for a new home. According to the National Association of Realtors, homes are selling two weeks faster than they did even a year ago. Inventory is low and the local real estate market is hot, making conditions just right for a great home selling season. “In my experience, buyers are looking for value,” said Dan Kraus, a First Bank Home Loan Consultant. “The more items that are updated, the easier it is for a buyer to decide whether or not to write a contract.” Kraus said he truly believes buyers have a calculator in their heads and can add up all the things that need to be done. To help prepare your home for selling, we’re offering helpful tips to make your home more attractive to potential buyers: Half-Empty Closets: Home buyers in any market want to see ample sto ...

Keys to Home Buying: Pre-Approval Gives Competitive Edge in an Active Market

The real estate market is expected to experience extensive growth, especially within two specific buyer demographics, including millennials (ages 18-34) and baby boomers (ages 53 and 71). Also, there’s a lower-than-average inventory of homes on the market. In fact, research gathered earlier this year suggests inventory homes on the market pre-spring are down an average of 12 percent. How will such an active market scenario impact serious buyers during the home buying and selling season? Quite simply, highly-desirable luxury and family-ready, move-up homes will show and move at faster- than-normal timeframes. Homebuyers, take heed. Pre-Approvals are Key Mortgage pre-approval in this fast-moving market gives homebuyers a competitive advantage over their counterparts also in the market for a new home. Meaning, new and experienced home buyers alike can start house hunting with peace-of-mind, along with their specified budget. Truly, possessing mortgage pre-approval takes the guesswork out of house-hun ...

Get Ready Now to Buy a Home Later

As with the beginning of each year, nearly half of all Americans typically make at least one resolution. Some may include weight loss and getting in shape, while others may have made the resolution to get their finances in order and to start saving for a new home. Whatever your resolution this year, make a plan and stick with it. Although less than half of us carry our resolutions through year’s end, it’s estimated we’re 10 times more likely to achieve it if we explicitly declare, or even write down, our resolutions. We’d like to help you be a part of the elite few actually completing their resolutions when December rolls around. Although we aren’t in the fitness industry, we can certainly help flex your money’s muscles and get your finances in tip-top shape. How can we help? If your resolution is to purchase a new home soon, then setting up a solid budget and plan should be in order. Start by checking your credit score. Your credit history is an important factor ...

What Refinancing Means to A Homeowner

Typically, when interest rates drop significantly, there’s a lot of ‘buzz’ about refinancing and lowering your monthly payment. If you’re new to homeownership or a homeowner that’s been in their current mortgage for some time, you may have some questions regarding refinancing and what it means. For starters, refinancing is simply the process of financing something again. Often, this is a new loan at a lower interest rate. The decision to refinance your mortgage should be carefully considered based on your short and long-term goals. What’s more, you should always consult a qualified home loan consultant to discuss your options as well as any costs associated with refinancing your home. Why Would A Homeowner Refinance their Mortgage? Quite simply, a refinance is intended to save you money. The interest rate of your mortgage loan impacts your monthly payment, so a lower interest rate means a lower payment. Plus, it reduces the overall amount to finance your home over ...

Millennials Are Ready to Put Homebuying on their ‘To-Do’ List

If you’re between the ages of 18 – 34, then congratulations, you’re officially considered a millennial. What’s more, as of 2015, your age group now outnumbers the Baby Boomer generation, or those aged 51 – 69. According to research, as a millennial, the chances are higher you’ve attended college; are more adaptable to an increasingly complex world; strive to save more and earlier; and are managing your debt (including student loans) at a better rate than other generations. Well done, millennials! What’s more, the majority of you are planning and/or saving now to purchase a home of your own very soon. Good bye, rent! At First Bank Mortgage, we understand when millennials start the homebuying process, most of you will have already ‘done your homework’ online. You’re generally just looking for a home loan consultant to help you determine the best home loan product for you and get it closed – as quickly and efficiently as possible. We can do ...

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All First Bank blog information and content is strictly informational. It is not intended to be specific investment, tax, or legal advice. If you need detailed financial, investment, or tax advice, please contact a First Bank qualified professional. Please note, First Bank occasionally shares third-party content we find to be relevant and helpful to our audiences.