Monday, September 29, 2014

Applying for a Mortgage - Porter Report

This weeks Porter Report is about the importance of having an over the phone or in person conversation with clients to really get to know them and their needs.

Friday, September 26, 2014

How to Use a Mortgage Calculator Effectively

It is now easier for any person to choose the right home loan and to manage it efficiently. You can get online quotes from all major lenders and use an online mortgage calculator to compare them. The calculator is a fairly simple tool which is very easy to use. The important thing for any borrower is to know how to use it effectively. Use some tips to help you with this.

Selecting a Loan

The mortgage calculator can help you make a number of very important decisions. You can determine what size of your income you can set aside for making the monthly payments and calculate the maximum amount that you can borrow. Alternatively, you can enter the amount that you need to borrow and check whether the repayment of the loan will be affordable to you.

This tool is invaluable for comparison shopping. You need to enter the parameters of the different loans and use the results to compare them. You should use a spreadsheet to make the comparison more efficient and easier as well. Check how different terms will affect the monthly installments and the amount that you can borrower. With a shorter term, you will be able to save on the loan. With a longer term, you will be able to borrow more or pay smaller installments.

You should definitely use the mortgage calculator for deciding between fixed interest and variable interest. Check what the monthly payment will be with the fixed term. Then you need to enter the minimum and maximum interest on the variable rate loan and compare the numbers to the first one that you have got. This will give you an idea of how affordable and cost-efficient each option will be.

Repayment Planning

With an effective plan for mortgage repayment, you can save money and gain more equity in your property more quickly. In order to come up with the precise numbers, you should enter different monthly payments which are higher than the original. This will give you an idea of how quickly you will repay your debt and how much you will save. With a more advanced tool, you will be able to determine the effect of additional annual payments and bulk payments. It is important for you to compare different repayment options in order to find out which is the most cost-efficient one of all.

Loan Management

There are other aspects to loan management in addition to devising a repayment plan. You can manage your loan effectively with the use of a calculator. You need to calculate when you will have 20% equity in your home so that you can request the termination of PMI right away. This move will save you a lot of money on insurance premiums.

You should definitely use the tool when you are contemplating whether to refinance or not. You can determine whether and how much you will save on the loan and how your monthly payments will change. You need to compare the parameters of the new deal compared to your current loan. You must not miss to add the closing cost of refinancing.

Find a reliable advanced mortgage calculator and use it efficiently to make the right decisions.

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Tuesday, September 23, 2014

Should You Get a Mortgage Now or Wait for a While?

The purchase of a house is perhaps the biggest investment that you will ever make in your life. If you have to finance it with a mortgage, things get even more serious. The major question is whether you are ready to borrow a large sum of money now or it will be best for you to postpone this move. Consider the set of factors that you should base your decision on.

Personal Considerations

Income is the primary factor to consider when deciding whether to get a mortgage or not. Experts say that the monthly installment on a home loan should not exceed 30% of the borrower's monthly income. That way, the risk of default is reduced to the possible minimum. Do the math and check whether your income is sufficient for meeting this criterion given the current interest rates.

Current debt is another major factor to base your decision on. If your debt exceeds 10% of your monthly income, it is best for you to repay some of your current loans before you get to apply for a mortgage. Generally, the higher this percentage is the less likely you are to qualify for home financing. In addition, debt reduces your disposable income and consequently your ability to repay a home loan.

Savings are very important when it comes to making a decision. The minimum down payment which you have to make even if you take out an FHA loan is 3.5% of the price of the property that you purchase. In general, the larger the down payment is the cheaper the borrowing is. The closing costs are typically around 3% of the property price and you will need to pay them out of your pocket too. You should do the math to figure out whether you have sufficient savings.

Credit score is also a major factor which you should consider. You will need a score of at least 680 in order to quality for a conventional mortgage loan and of at least 620 to qualify for an FHA loan. If you want to secure considerable interest reduction, you will need a score of 740 at least.

Employment stability is also important, even though it is often underestimated. If you have a secure job in a company, which is in good condition and has good performance history, you can have greater confidence when applying for a home loan.

The Market and Interest Rates

You should also look into the present and long term trends in the market in order to decide. At present, the interest rate on 30-year loans is rising slowly with the average rate being 0.06% per month. This is due to the steady recovery of the US economy after the recent economic downturn.
The trend of interest rate increase has resulted in a reduction of the mortgage applications by 1.8% on a monthly basis. At the same time, experts say that the increase is due to market movements and that it is not going to be considerable in the short run as the FED will keep interest rates down.


Now is a great time to take out a mortgage loan if you meet the criteria for income, existing debt, savings and credit score. You can also wait for a year or two to improve these factors given that interest rates will not rise dramatically.

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Saturday, September 20, 2014

New Intern Announcement - Porter Report

We're welcoming our newest intern. At only two weeks old, she's our youngest addition to the team and already showing great promise!

Wednesday, September 17, 2014

Unique Selling Proposition - Porter Report

Today's Porter Report is about what makes Solano Mortgage different from other lenders

Sunday, September 14, 2014