Tag Archives: mortgage

3 Ways to Help You Handle Mortgage Efficiently

Mortgage loan agreement and a keyGetting a mortgage is a big, long-term financial responsibility. In fact, it is something that many people refrain from doing. But don’t let your fears of mortgage or lack of knowledge about it get in the way of fulfilling your dream of becoming a homeowner. There are effective ways to handle a mortgage more efficiently.

Consider these tips if you have or you are planning to get a mortgage in Utah:

Make additional payments when you can

Just because your current mortgage plan says 30 years doesn’t mean you need to wait three decades to pay it off. If you have extra money and you can make additional or advanced payments, do so. In fact, it is highly advisable. One, it can help ensure that you make your mortgage payments even during rainy days. You can also refinance it so you can pay off your debt faster.

Create a budget and stick to it

Mortgage payments eat up a huge chunk of your monthly household budget, so make sure you plan your expenses accordingly. Otherwise, you’ll find it hard to make the payments. It is highly advisable that you separate your budget for mortgage payments and repairs because they are often the biggest.

Look for ways to cut costs

There are many ways to cut costs in your household budget. Other than putting some luxurious expenses on hold for a certain period, you can make medium-sized investments, such as switching to solar power, to lower your utility bills. These types of investments also make your home worth so much more if you choose to sell it eventually.

Some people rent out their extra space to earn money that they can use to cover other expenses. Whatever you choose to do, what’s important is that you look for ways to cut costs so you can allocate the funds to other important things.

Your mortgage is a crucial part of your financial status, so make sure you handle it efficiently. Consider these tips to increase your chances of becoming debt-free.

What You Need to Know Before Applying for a VA Mortgage

Veterans Affairs LoanAs a member of the military, the National Guard, a reservist, or a veteran, you could qualify for a Veterans Affairs mortgage.

The Veterans Affairs loan

This type of loan is made through a private VA lender, such as Primary Residential Mortgage, Inc., which means it is not a direct loan from the U.S. Department of Veterans Affairs. As long as the lender adheres to the guidelines, however, Veterans Affairs partially guarantees the loan.


Apart from active or retired military personnel, members of the National Guard, veterans, and reservists, the spouse of a member of the military who perished during active duty may also qualify for this type of loan.

Those who are still active may qualify with a minimum of six months in the service. Members of the National Guard and reservists should wait for six years before they can apply. If they are called to active duty, however, they need only render 181 days of service to be eligible for this type of loan.

Why choose a VA loan

The first reason you should try a VA loan is you can apply for one without a down payment and you’re not even required to get mortgage insurance. You can still put a down payment if you are able.

The kind of down payment you give determines the one-time funding fee. For example, you will pay a fee of 2.15% of the amount you are borrowing if you’re in the armed forces, it’s your first VA loan and you won’t be giving a down payment. But shouldering a 10% down payment means your one-time funding fee goes down to 1.25% of the total loan amount.

One more advantage of a VA loan is that the U.S. Department of Veterans Affairs does not require a particular minimum for credit scores. However, your lender is likely to ask for a minimum score of 620.

Preparation Ideas for Starting Your Own Business

BusinesspersonThere are two types of people: those who like to work and get paid a salary, and those who prefer making their own money with their own business.

While there is nothing wrong with earning a decent living as an employee, it helps to find out whether you have what it takes to be a businessperson. It also opens up lots of opportunities for growth. One small business idea right now might turn into a huge company in a few years.

Here are some pieces of advice on how to work on your dream business.

Think of a business you know and like

A business you like will fill you with pride and inspire you to work harder and ensure its success. If you like something, you are less likely to resent learning more about it. On the other hand, if you choose something you neither understand nor truly like, chances are good that you will think of giving up every time you hit a hurdle.

Find ways to fund it

Most businesses require capital, so you need to find ways to fund yours. Savings are a good start, but you should also consider other possible sources. Can you borrow from your family, for instance? An expert from American Loans may agree that you may need to take out a mortgage on your Salt Lake City property. Of course, when you borrow money, think ahead; you should be able to afford the monthly payments.

Write a business plan

By writing a business plan, you can get an idea how much you need and how much you are likely to make; this will help you in computing the amount for your loan payments. Most loan providers and banks require a business plan that’s properly written before they approve your application.

Be willing to make sacrifices

As you are only starting, your business will require most of your time and resources. If you’re unwilling to give those, you are already at a disadvantage. Some entrepreneurs endure sleepless nights and time away from their loved ones before they become successful. Be willing to make some sacrifices now, and when your business finds its footing and you already have a process, you’ll be able to relax more.

A business is a challenging but rewarding experience. Give it your best shot by focusing on your preparation.

Qualifying for a Mortgage: The Role of Your Net and Gross Income

Mortgage Broker Doing Mortgage QualificationWhen it comes to determining the size of mortgage you can afford, you have to consider your net income. This doesn’t mean, however, that lenders are not concerned with your gross income. It is best to educate yourself and understand the differences between these figures to learn more about mortgage affordability and know how lenders evaluate qualification of borrowers.

Income With or Without Deductions

Gross income is your income before any deductions like social security and taxes. Net income, on the other hand, is your take-home pay or your income after deductions. Salt Lake City mortgage companies note that the former is used when determining your debt-to-income ratio, while the latter is for deciding how much money you can spend on mortgage payments and housing expenses.

Mortgage Eligibility

It is important to know that home loan eligibility is based on your gross income, but the monthly mortgage payments are from your take-home pay. Lenders use the gross income in determining whether you can afford a home loan, as it is the figure that borrowers readily know. This income is also stable, while the net income could change every month because of certain deductions.

Why DTI Matters

Lenders also determine your eligibility using debt-to-income (DTI) ratio. This should not go beyond 36% of your monthly gross income. Note that a low DTI shows a good balance between earnings and debt. A high DTI, on the other hand, demonstrates that you have too much debt for the income you earn. Lenders prefer to see low figures, as this means that you are likely to handle payments better.

The Amount to Borrow

If you can qualify for a large loan, this does not mean that you should borrow the maximum amount you qualify for. You can only do this if you can honestly and comfortably afford the monthly payments and interests. Taking out an extremely large loan or buying a house more than what you can afford can make you house poor.

Get to know your net income and gross income to learn more about mortgage affordability and eligibility. It is also important to play it safe when choosing the size of the loan. Talk to a reliable to learn more about your options.

Salt Lake City — The Most Ideal Mortgage Place

mortgage rate in Salt Lake CityKnow the real estate market and overall economic status in Utah, especially in its capital city, for you to get the finest mortgage loan plan.

As of March 2014, the cost-to-wage ratio in Salt Lake City, Utah was 3.88 with value-to-lease link recording 21.22 based on average sales worth. In this same period, rental-to-credit expenses ratio was 0.79, which depended on the adjusted lease regarding 100% credit-to-price fixed rate 30-year mortgage for the usual home fee.

2013 Economic Look

After giving up its hold as the top business state from 2010 to 2012, Utah is still known for its excellent commercial atmosphere.

For one, it grew by 2% annually since 2009 with a gross profit of $130 billion, earning the fourth highest economic expansion rate in the United States. The state actually has the edge when it comes to workforce, taxation, and laws. Moreover, Salt Lake City is likely to gain an 8.8% employment hike in the above-standard income category in the next few years.

In addition, mortgage rates in the capital city plunged within September to November, recording 4.42% from 4.95% for 30-year fixed, with 15-year fixed listed at 3.54% from 4.07%. It is said that the best mortgage rates are in Salt Lake City, as Utah has a 3.85% rate compared to the national average of 3.88% as of July 2015.

Realty State as of 2013

Single-family units sold at Salt Lake County rose by 5% at 11,686 houses as 30% of total sales were in Salt Lake City. Also, the county has gained back 80% of their top record of 14,878 units in 2006. In line with this, home cost rose by 26% at South Salt Lake, with Utah’s capital coming out as the other city with above 20% rise in house value.

Furthermore, the number of foreclosed properties and underwater loans went down in the capital city and all over Utah. In contrast, one out of five loans in the state in 2011 was considered underwater. With these types of credit going down to 8%, real estate demand, house transfer, and extra home funding became possible.

Now you know why Salt Lake City wants to be known as the mortgage capital in the US.