Much is made of the 30 percent rule for debt-to-income ratio when getting a mortgage for a home in Philadelphia. It’s used to measure how much you can pay towards a mortgage every month without straining your budget. The post-war
There’s been a lot of changes in the mortgage market of late. Fannie Mae and Freddie Mac may go back to private ownership in 2020, mortgage rates are bouncing up and down, and banks are getting pickier about who gets
Home values increase over time regardless of housing bubbles and speculative activity. That means someone who bought their home in Philadelphia 30 or 40 years ago has quite a lot of appreciation in their home known as equity. Normally equity
All the hard work you’ve done to buy a home in Philadelphia is almost over. The seller has accepted your offer, the financing is in place, and you’re in the final stretch to close the sale. Before you can cross
It’s finally happened: the seller of your dream home in Philadelphia accepted your offer and the contract has been signed. It feels like the signing should be the end of the process, especially after all you’ve gone through to get
Buying a house in Philadelphia is competitive and you need the advantage of fast underwriting, it also means taking on a large amount of debt in the form of a mortgage. Getting approved to borrow that much money requires a lender to go through your finances and credit history with a fine-tooth comb, and that takes time. Pre-qualifying for the mortgage helps reduce the amount of time it takes for approval, but it still takes weeks, sometimes months, for the lender to approve the mortgage.
The time has come for you to buy a home and put down some roots in a Philadelphia neighborhood. You've identified how much you can afford and how much you want to spend along with having an idea of what type of house you like. Why not get pre-approved and move into your dream home sooner than later? Pre-approval for a mortgage lets you know how much house you can buy makes you more attractive to a seller and increases your chances of getting the home. Here's why it's a good idea to get pre-approved for a mortgage through a Philadelphia mortgage company.
Interest rates are stable until they're not. That is to say, the Federal Reserve, aka the Fed, controls monetary policies that are designed to help the economy in various ways. For many years, interest rates were kept low to encourage a wide variety of economic activities including home building and buying. Now the Fed is tinkering with rates in order to keep the economy from overheating and that means the interest rates for mortgages are fluctuating as a result.
Mortgages are financial instruments offered by lenders that help you buy property in Philadelphia. You repay the lender that money and interest at a rate that was offered at the time you obtained your loan. When it comes to the interest, much is made about the fact that an increase in the rate affects your monthly payment along with your ability to repay the loan. While this is true to an extent, a change in the interest rate doesn't have as much impact as you may think. It's true you will pay more in interest on the money you borrowed over time, but you may still be able to afford the house of your dreams.
Mortgage insurance is something that helps homebuyers get a loan that they might not have otherwise qualified for. It's designed to protect the lender in case you default on your mortgage, but it doesn't protect you from the consequences of non-payment. Typically you get this insurance if you put less than 20 percent down on your home. The good news is that it's not something that lasts the life of the loan and you can eventually refinance to eliminate it from your mortgage.