Home Mortgage Blog
When you are comparing mortgage options, it is important to understand the difference between the interest rate and APR. When you see a loan rate advertised, you’ll also see a corresponding APR (4.5%/4.762% APR). This Annual Percentage Rate is the total cost of your loan (interest and fees) expressed as a single number. The purpose is to give you one number for comparing multiple loans.
But it’s an imperfect science.The problem with using APR as designed is that the calculation applies to the entire length of the loan, and some people use mortgage loans for only a few years due to refinancing or sale. READ MORE
In the mortgage industry, we are often asked if a home inspection is required. In many cases, the answer is no. However, even when it is not required, a home inspection is certainly recommended.
You are making a large investment when you buy a home, and having a professional home inspector look at it could save you a lot of time and money in the long run.
As we head into another year at Marketplace Home Mortgage L.L.C., we have a lot to be thankful for. 2017 was a year of tremendous growth.
We opened new locations in Sioux Falls, SD, Clive, IA, and Portsmouth, NH. We also hired 130 new employees across the country.
Throughout the year we were honored to receive some awards and recognition. In August, Marketplace Home Mortgage was named Best Mortgage Company in the Twin Cities by voters in the 2017 Twin Cities Business Magazine Reader Poll. As the year progressed, we were also recognized as Number 27 on the list of the 50 Fastest Growing Companies in the Twin Cities by Twin Cities Business Magazine.
Mortgage interest rates are always changing, and if you bought your home when rates were higher, refinancing the existing mortgage could save you thousands of dollars over the course of your home loan. When you are preparing to refinance there are certain things you should avoid leading up to the transaction. Take a look at the list below and contact a Marketplace Home Mortgage Loan Officer to learn more about how you can get started.
On Tuesday, The Federal Housing Finance Agency (FHFA) announced an increase in maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.
The FHFA stated that loan limits will be raised to reflect the change in U.S. home prices. The press release distributed by the agency states:
“According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017. Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.” – Federal Housing Finance Agency
Winter can be a great time to become a homeowner. In many areas, the real estate market tends to slow down during the colder months. With fewer buyers to compete with, you could get a great deal. One of the downsides to buying in the winter is having to move in unfavorable weather conditions, but with the right strategies and preparations, you can make sure your move goes as smoothly as possible. READ MORE
Becoming a first-time homeowner can seem intimidating and many would-be buyers struggle with knowing when the time is right. When it is right, buying a home can be a smart and exciting investment in your future. Although every situation is different, there are a few indicators that can help you determine if you are ready. READ MORE
For many buyers, it can be tempting to think that the best deal comes at the lowest price. However, that is not always the case, especially when it comes to the housing market. If you really love a home, there are some factors that may be worth considering as you enter the bidding process.
Relative Prices – Our natural tendency to pay as little as possible is not as meaningful for an investment, such as a home, as it is for a consumable. In this case, what you pay now can affect your sales price later. There may be little difference in total earnings if you pay less and sell for less or pay more and sell for more.
Influencing Value – For appraisers, the last sale or “comp” in an area sets the value for similar homes. Whatever you pay helps to establish what your home and comparable properties are considered to be worth.
Setting the Trend – If you pay less for your home than was paid for the last similar home, you may be contributing to a downward price trend, which can be difficult to reverse. Conversely, helping to maintain a trend of price appreciation can end up paying you back many times over.
One Chance – No two homes are ever exactly the same. Even when structure matches, your land, your view, your address and your immediate neighbors will always be different. You truly may have only one chance at just the right house. Industry professionals have all seen buyers lose out on what they really wanted. We don’t want that to happen to you. Nor do we want you to pay more tomorrow for something less than what you could have had today as a result of increasing prices and rates.
Price vs. Payments – If you’re financing your purchase, you’ll probably never come close to paying the actual price. You’re making a comparatively small down payment and then paying interest on the loan until you refinance or sell. Yes, you will have a higher payment if you pay more for the home, but an extra $10,000 of mortgage money can add less than $50 per month on a low-rate, 30-year loan.
Every situation is different and you should work with an experienced Realtor and Loan Officer to determine what is the best option for you. Reach out, and we’ll be happy to help you weigh your options for the home you would really love to own today. We’ll peel back the layers of the housing market so you have a better handle on what’s going on behind the scenes.
Not connected with a Loan Officer yet? Find one at a branch near you.
Marketplace Home Mortgage, L.L.C. is proud to be recognized as one of the Twin Cities’ 50 Fastest-Growing Private Companies by Minneapolis-St Paul Business Journal. Landing at No. 27 with a growth rate approaching 72 percent, we have a great team to thank for such an exciting year of enhancement and expansion.
To qualify for consideration for the Fast 50 List, businesses had to be privately held, for-profit companies in the Twin Cities metro area. Growth rates and financial information were verified by accounting firm Abdo, Eick & Meyers.
Our president and CEO, Keith White, talked with Minneapolis St. Paul Business Journal about the challenges of growth, the importance of a strong team, and plans for the years ahead.