It’s no secret over the past couple years the housing marketing has been red hot. With the Fed constantly raising rates, may prospective homebuyers worry whether their window to purchase a home has sailed. “Is it still a good time to buy a house?” The team at Greenway Mortgage says, “Yes!”
Of course, the right time to buy is when you’re ready. But, for many home buyers, interest rates are a top concern. What many don’t realize is that interest rates are always in flux and there’s no real way to predict their path. Trying to catch the perfect rate shouldn’t deter you if you find the perfect house.
Marry The House. Date the Rate
We often say, “Marry the house. Date the rate.” This ultimately means, don’t let interest rates deter you because you can always refinance when the time is right. If you find the perfect house, don’t wait! The rate may not be what you hoped for, but again there will be opportunities to refinance in the future.
Loan Solutions
Greenway Mortgage offers a variety of loan options to suit the needs of each and every client whether you’re looking to buy your first home, move up, refinance, or invest.
Some loan options include VA, USDA, FHA, Conventional, Down Payment Assistance, Reverse, Renovation, Construction Loans, Refinance, Jumbo, Doctor Loans, and more.
Information on these can be found by visiting our website here.
If you’re a first-time home buyer we’ve got all the information to get you up to speed with the home buying process. Download our free First-Time Home Buying Guide or check out our home buying resources here.
House Hunting
Houses are selling quickly, and sometimes competition is driving multiple offers. If you're looking for your dream home, you’ll want to get pre-approved first.
A pre-approval gives you a competitive edge, allows you to negotiate with power and let’s you know how much you can afford. Our online application is easy, and you'll have a pre-approval letter in hand in no time.
Bottom Line
Committing to a home you love doesn’t mean you have to commit to the financing available now forever. You can always change your financing to more favorable terms later should better rates become available. Think of it this way. If rates continue to get higher, you’ll be glad you married the house when you did!
When you’re ready to take the next step please reach out with any questions. We’re here and ready to get you pre-approved and into your dream home.
Working with a local mortgage lender in a hot housing market is key.
If you’ve ever mentioned the phrase “mortgage company” many people initially think of big national companies. But working with a local lender like Greenway Mortgage can come with several advantages over those bigger companies.
We’re here with you every step of the way. That means we can offer you better rates, personalized service, and advice whenever you need it. And most importantly, we’re here to help you make a smart home purchase that works for you.
Let’s take a deeper look at the 5 reasons to work with a mortgage lender.
Reason #1: We offer Competitive Pricing
Because we are a direct local lender, we sell our loans in sophisticated trades to the best-priced investors. You’ll receive the best price and service at the same time!
Reason #2: We’re Your Local Experts
Local people, local business, local service. Yes! That’s us! We live, work, and play within your community. Our team, from loan officers to underwriters, know and understand the unique aspects of the area and how that may affect parts of the home buying process.
Reason #3: Delivering What You Need
We offer a variety of loan options to suit the needs of each client whether they are looking to buy their first home, move up, refinance, or invest!
You can learn more about our Loan Programs by visiting our website here.
If you’re self-employed, we can help. If you need help improving your credit score, we are happy to steer you in the right direction with our local connections! Whatever you need, know that we are here to help.
Reason #4: Convenience
We’re not limited to banker hours. Our Loan Officers will make appointments at the time and place that is convenient for you!
Reason #5: Personalized Service and Lifelong Relationships
The Greenway Team is dedicated to keeping our clients 100% informed every step of the way. And our relationship doesn’t just end at the closing table.
Bottom Line:
When you chose Greenway Mortgage as your preferred lender, your home buying experience will be top-notch. You can expect to be treated as a person and not a number like some of these bigger mortgage companies. Most importantly, our loan officers know the area, local agents, and appraisers which puts our borrowers in a better position to resolve any conflicts that may arise during the process!
We’re excited to help you take the next step in your mortgage process and home-buying journey. When you’re ready to take the next step reach out to us or visit us online at GreenwayMortgage.com.
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You’re almost there! You’ve been saving so long for a down payment on a new house and even set a budget for your monthly mortgage payment. But there’s one more thing you’ll need to consider: closing costs.
Surprisingly, many home buyers get caught off guard by closing costs, which can certainly be an unpleasant surprise if you’re unaware.
According to a 2021 Realtor.com survey of 3,000 adults, 44% said they weren’t aware of all the costs associated with buying a home.
What Are Closing Costs and What Do They Cover?
Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments, and homeowners’ insurance.
In short, closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. They cover things like:
- Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services
- Tax service fees
- Survey fees
- Attorney fees
- Underwriting Fees & Processing Fees
- Escrow
- Home inspection
- Property tax
- Private Mortgage Insurance (PMI)
Be sure to ask your Greenway Loan Officer for a detailed list.
How Much Should You Budget for Closing Costs?
Closing costs are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.
Example:
- You’ve found a home for $500,000.
- Your closing costs (based on the 2%-5% Freddie Mac estimate) could be between $10,000 and $25,000.
Keep in mind that if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
How Can You Best Prepare Yourself for Closing Day?
When starting the mortgage process, it’s important to understand all costs involved from the down payment to closing costs. Working with a team of trusted professionals will ensure a smooth journey.
The Loan Officers at Greenway Mortgage can help connect you with a local Real Estate Agent. Together, we can help answer any questions you might have.
Learn More About Financing Your Closing Costs in this video here with Erin The Expert.
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Bottom Line:
In today’s real estate market, making sure you budget correctly is key. Gather all the knowledge you need to be confident going into the home buying process ahead of time so there are no surprises. Most importantly, lean on us, the team at Greenway Mortgage for any guidance. We are here to help.
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Should You Use a Cash-Out Refinance to Consolidate High-Interest Debt?
Many homeowners refinance to pay off debt that has built up over time, such as credit cards and auto loans. If you find yourself struggling with high-interest debt, you’re not alone. According to Experian, the average American household has $92,727 in personal debt.
For homeowners, the good news is that you can use a cash-out refinance to pay off debt. With a cash-out refinance homeowners get a mortgage for more than they owe on the home. In turn, they can take the difference in cash and pay off high-interest debt with it, which helps them to save more money over the long term.
Mortgage interest rates can be an amazing bargain compared to consumer and installment rates. Total interest, total term, and cash flow savings can be significant with the right plan.
Consolidating multiple debts into one home loan is not for everyone. For instance, using your equity to have the equivalent of a 30-year car loan is rarely a great idea. But it may work if you have the discipline to take advantage of a low rate to speed up—rather than slow down—payment terms. Consolidation can make debts disappear with less total interest expense than they would otherwise.
Homeowners’ Equity is On the Rise
Now could be a great time to cash-out home equity and pay off debts. According to CoreLogic, equity levels rose by nearly 30% between 2020 and 2021. Plus, believe it or not, mortgage rates are still low. Qualified homeowners may be able to significantly lower their debt payments and increase their monthly cash flow by using a cash-out refinance.
Homeowners looking to refinance to pay off debt must make sure they have enough equity. For instance, if 80% of the home’s value is owed after you refi, you’ll have to buy mortgage insurance. This is something you’ll want to avoid.
How to Calculate Your Loan to Value (LTV)
How is an LTV calculated? Simply divide your current mortgage balance by the approximate value of your home to get your loan to value ratio.
How to Qualify for A Cash-Out Refinance
Lenders usually check to see that you have a credit score of 620 or higher and enough equity in your home that you can keep 20% equity after the refinance.
Reason to Use a Cash-Out Refinance to Consolidate Debt
One of the main reasons homeowners consider using a cash-out refinance to consolidate debt is that you can typically get a lower rate on a mortgage loan than you can with personal loans. Some other benefits can include:
- Paying off high-interest debt faster
- Frees up extra cash for other expenses
- Consolidating debt makes it easier to manage monthly payments
- Mortgage Interest may be tax-deductible (always consult a tax or financial planning professional to discuss your specific situation)
Bottom Line:
If you have high-interest debt hanging around and eating away at your monthly budget, a cash-out refinance may be the solution you’re looking for. This will allow you to reduce your monthly payments but also frees up extra money for living expenses, savings, and beyond.
Questions?
Talking about your options with a member of our dedicated loan team can help you make the best decision for your specific scenario. Speak with one of our expert Loan Officers to explore what a good consolidation plan could mean for you.
For More Information Check Out These Blogs:
More than ever, we have realized that our homes are so much more than the houses we live in. Over the past couple of years, they’ve become our workplaces, schools for our children, and a safe place where we’ve weathered the most challenging moments of a worldwide pandemic. From rural counties to bustling cities, owning a home offers an opportunity to lay down roots, start a family and embark on new beginnings.
As National Homeownership Month kicks off this June, homeowners certainly have many reasons to celebrate. Read on to learn about the non-financial and financial benefits it has to offer.
In an annual Gallup poll, Americans chose real estate as the best long-term investment. It’s not the first time it’s topped the list, either! Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment. Even when inflation is rising, like today, many Americans agree real estate is a strong investment. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that gains value over time.
How Did Homeownership Month Start?
National Homeownership Month started as a week-long celebration of homeownership during the Clinton administration in 1995. In 2002, President George W. Bush proclaimed June as the National Homeownership Month. Today, the mortgage industry continues the message of helping people realize the dream of responsible homeownership.
What Are the Non-Financial Benefits of Homeownership?
Owning a home brings you and your family happiness, satisfaction, and pride.
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Pride of Ownership: A place to call your own. You’ll be able to customize it according to your likes and personality without anyone telling you how.
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Civic Participation: Homeownership creates stability, and a sense of community, and increases civic engagement.
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Provides Stability and creates a positive environment for families.
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Provides a Safe Place: Owning gives you a sense of security and privacy. Two things that have become very valuable in our lives.
What Are the Financial Benefits of Homeownership?
Buying a home is also an investment in your and your family’s financial future.
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Forced Savings: Your monthly mortgage payment is a form of ‘forced savings’ which builds your net worth with every payment!
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Home Equity: Homeownership builds equity every month. You can use that equity to start a business, pay off debt, send your kids to college and so much more.
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Appreciation: Home prices increase annually which helps to create a safety net.
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Net worth: A homeowner's net worth is 44x greater than renters! This gives you the financial freedom to invest.
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Stability: Rent prices may increase each year. However, a fixed mortgage payment allows you to save for future projects and guard against inflation.
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Tax Benefits: Speak with your CPA to discuss the possible tax benefits homeownership can bring you.
Bottom Line
Homeownership is and will always be part of the American Dream. There are many financial and non-financial benefits to take advantage of when owning a home. Greenway Mortgage is proud to be a part of the industry that makes homeownership a reality for so many Americans!
If owning a home is part of your dream, reach out to us to get your journey started. And if you’re a current homeowner, take the time this June to celebrate the ways homeownership has added value to your life.
Happy Homeownership Month from your friends at Greenway Mortgage!
Home Buyer Resources
To encourage and educate homeowners and aspiring home buyers, Greenway offers free information and resources.
You can visit us online to learn more.
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FREE First-Time Home Buyer eBOOK – Includes handy resources & checklists
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First-Time Home Buyer RESOURCES – Check out our first-time buyer programs!
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Home Buying Comparison Chart - Take this chart with you during your home search!
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Buying Your First Home – Learn everything you need to know
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Refinancing Your Mortgage - Get a free loan quote
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Refinance Mortgage Calculator - Find out if it's time for you to refinance with our easy to use calculator
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Renovation Mortgage Programs - Put your home improvement plan into action
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Construction Loans - Can't find your dream home? Build it with a Construction Loan
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Construction Loan Guide - Learn everything you need to know about construction loans and the process
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Mortgage Calculators – We have an entire library of easy-to-use calculators!
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Mortgage Terms – Get up to speed on some mortgage terminology
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When Can You Cancel Your Private Mortgage Insurance? - Find out by using our easy calculator
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Ready to get started? Apply Now using our online application.
