Three Benefits of Refinancing Your Mortgage

Many people refinance their mortgage due to a lot of reasons. But, before we get to the benefits of refinancing, let us see what the term actually means. Mortgage Refinance simply means clearing the existing mortgage and replacing it with a new one that is available at better terms. The various benefits of refinancing at the right time are listed below:

Lower Monthly payments: The major benefit due to which people refinance their mortgage is the substantially reduced amount of monthly payments. If the interest rate goes down below 2% than the rate at which you acquired the initial mortgage, it can reduce the amount of your monthly installments drastically. Therefore, it makes sense to refinance your mortgage in such a scenario.

Building equity faster: If you can afford to pay a higher amount as monthly installments due to some reason or if you can reduce the loan term at the same amount of monthly installments due to a fall in the mortgage refinance interest rates, you might want to switch from a 30 year loan to a 15 year loan as it will build your equity faster.

Changing loan type: Another benefit of approaching a mortgage refinance company is that you can change your loan type. If you feel that ARM type is offering you a better deal than your existing FRM or vice versa, you can refinance your loan and get it changed according to your needs and financial requirements.

Do you feel it is the right time to refinance? We can help you with it and tell you if it’ll be a good option for you or not. Call All Western Mortgage - AWM Lending on 702-850-2790 or visit http://www.awmlending.com/mortgage-refinance.php to know more. Our professional mortgage refinance experts will be happy to help you.

Factors That Can Affect Your Mortgage Application

There are uncountable numbers of factors that can affect your mortgage application in a negative manner and get your loan cancelled. When it comes to handing down mortgage loans, lenders have a few basic requirements. They want an applicant who is credit worthy and can pay back the loan on time. Therefore, you need to be such an applicant so that your loan doesn’t get declined.

Here are some factors, whose negative portrayal can damage your chances of getting approved when you apply for a mortgage:

Employment: An inconsistent employment history portrays that you are not stable in your career and raises questions on your ability to pay back the loan. Most lenders would require that you showcase that you have been with your current employer for more than two years. Also, once you apply for a loan, it is not advisable to change jobs/careers before its closing.

Credit: A good credit score plays the most important part in getting your mortgage approved. If you have a credit score of 720 or above, there is no chance in hell that any lender would deny you for a loan. Most lenders will also consider you if you have a credit score between 600 and 720, but anything below 600 can lead to outright rejection from most lenders.

Down payment: If you have saved up a hefty sum for your down payment along with fulfilling the above mentioned criteria, you will hardly face any problem in getting your loan sanctioned. The good news is that you no longer need to put 20% of the price of the home to qualify for a mortgage. But, if you pay anything less than 20%, you’ll have to pay additional premiums for a Private Mortgage Insurance (PMI) that will be folded into your monthly payments.

All Western Mortgage, one of the best online mortgage lenders in USA, offers home loans at extremely affordable rates and very flexible terms. You can fill an online mortgage application with us now at https://secure-1003.com/awmlending.com/login.php

Defining Mortgage Amortization

Mortgage amortization basically means the schedule in which you will pay off your entire home loan including interest, principal and any other fees that have been added to it. The process of amortization takes place over a predefined period of years. In the initial years, the majority portion of your monthly payments covers the interest part of the loan and as the loan nears maturity, more part of the payments cover its principal part.

When mortgage loans are granted to an individual, an amortization schedule is also provided to them to illustrate the payoff structure. If not, you can calculate your amortization schedule by using All Western Mortgage’s mortgage amortization calculator. You can check it out here.

However, an amortization schedule is not written in stone. There are factors that can tweak or change the amortization schedule. Some of those factors can also alter the overall paid amount.

Positively Changing The Amortization Schedule

When borrowers make additional payments toward the principal during the initial years of the loan, the can effectively reduce the term of their mortgage along with the total interest paid. This is one such way of positively changing your amortization schedule. However, one thing to keep in mind before making additional payments is that there should be no penalty levied by the lender in case of you making early payments.

Negative Changes to the Amortization Schedule

If for whatever reason, you fail to make payments on time or pay less than the due amount, the length of the loan along with the total amount payable can increase.

Whenever you make changes to your amortization schedule, you can calculate the new schedule using All Western Mortgage’s loan amortization calculator. Try it here.

Calculating the Savings On Your Monthly Payments If You Refinance Your Mortgage

If you are planning to refinance your mortgage for the alluring savings that it is offering, you need to first ensure that everything is exactly as it seems. 

Taking a refinance offer on its face value of substantially lower monthly mortgage payments might seem attractive, but there are various other factors attached to it that can’t be ignored. It’s true that once you refinance at the right mortgage refinance rates, the mortgage payments will get lower, but will they be worth paying for the cost of refinance? That’s what you need to figure out before you take the leap.

In order to figure out your net potential savings, first add up all the costs of refinancing the loan. The costs will include appraisals, credit check, closing costs, origination fees etc. You’ll also have to check whether there is a penalty for paying your current mortgage earlier. If there is, include that in the costs as well.

Once you have effectively calculated the cost of the loan then find out at what interest rate you can qualify for a refinance. That will give you an estimate of what you’ll be paying up monthly and how much you’ll save.

Now calculate how much time it will take for the monthly savings, at the new mortgage refinance interest rates, to cover the cost of refinance.

Once you’re absolutely sure that the savings will make up for the cost of refinance easily, only then go ahead with it.

For the lowest mortgage refinance rates and best terms, contact All Western Mortgage (the best mortgage refinance company) on 702-850-2790 or visit http://www.awmlending.com/mortgage-refinance.php

VA Loan For Disabled Veterans

Did you know that as a differently abled veteran, you are eligible for special considerations and benefits while applying for VA loans? These special benefits, on VA loans for differently abled veterans, can save you a lot of more money. Let us enlighten you about these, so you can utilize VA home loans up to their full potential.

1. The Funding Fee Gets Waived Off: 

If you are currently receiving disability benefits and haven’t closed on your home loan yet, you don’t have to pay your funding fee as it gets waived off. However, if you have closed on your VA loan before receiving disability benefits, then also there is no need to worry as you get a refund for the funding fee.

2. Grants for Specially Adapted Housing: 

Apart from getting the funding fee waived off and getting the home loan with 100% finance, a disabled veteran can also get the Specially Adapted Housing Grant (SAH) and the Special Housing Adaptation Grant (SHA) to install necessary accessibility modifications in his/her home.

3. Tax Credits and Exemptions: 

After using your veteran loans’ benefits to buy a house, you also become eligible for some extremely useful tax credits and exemptions. The Disabled Veterans Property Tax Exemption can substantially reduce the amount that you pay in taxes. But, the amount varies by state, so check with your local VA office to know more about your state-specific benefit. Or you can also call All Western Mortgage on 702-850-2790 for this information.

For more info about the benefits of VA loans, feel free to call All Western Mortgage on 702-850-2790 or visit http://www.awmlending.com/loans-VA.php

Is Mortgage Refinance a Right Option For You?

Marketers put a lot of effort in convincing you to refinance your mortgage. You’ll hear/read a lot of words like, “Interest Rates at an all time low!” and “Refinance now to save big!” etc.

But whether is it a right time for you to refinance or not depends completely on the circumstances surrounding you. Like anything else, you are the only authority that needs to determine if refinancing is right for you depending upon the specifics of your mortgage loan.

Here are some guidelines to aid you in the decision making process:

The Break-Even Analysis: Approaching a mortgage refinance company makes sense only when you can lower the interest rate enough to easily pay for the closing costs before you sell your home. In simpler terms, calculate how long do you plan on staying in this particular home and then calculate how much you’ll save each month to compensate for the closing costs of refinance. Refinancing only makes sense when you stay in the house long enough to compensate for the closing costs of refinance with the monthly savings.

Going from 30-year loan to 15-year mortgage: Another way in which refinance can help is if you plan on not lowering your monthly payments, but increasing them. If you have a 30-year mortgage and you feel that you can afford higher payments easily. 

  You might want to save on the interest and reduce your loan term. With a 30-year mortgage, you pay double in interest than what you pay in a 15-year term. So if you can afford the higher monthly payments and plan on living this home for another couple of decades, it makes sense to reduce the loan term to 15 years.

So, if you feel refinance is the right option for you, check All Western Mortgage’s mortgage refinance interest rates here. For any other query feel free to give us a call at 702-850-2790.

Property Requirements for VA Loans

If you are planning to apply for a VA mortgage, the department of Veteran Affairs has some minimum property requirements that need to be met first. Home hunters applying for VA loans won’t be approved if their chosen property doesn’t meet the basic minimum requirements set by the department of veteran affairs.

According to the rules set by VA, the property must be first evaluated by a VA appraiser and must be free from hazards and defects. Any issue that could affect the health of the future owners must be addressed before the loan gets passed.

Here are some minimum property requirements that need to be met before veteran loans can be approved:

Foundation: Foundation problems are a deciding factor for considering minimum property requirements. Any home with foundation problems automatically gets rejected for a loan by the VA.

Dampness: Excessive dampness in the home is another issue that poses a potential structural hazard and won’t pass the guidelines of VA.

Drainage: VA rules explicitly state that in order to get approved for a VA backed mortgage, a home must be properly graded in a manner that it has, “positive, rapid drainage away from the perimeter walls of the dwelling, and prevents pooling of water on the site.”

These factors directly affect the health and safety of the future occupants of the home along with the future value of the property. Any issue related to these factors might need to be addressed immediately if you want to get approved for a VA loan.

For more info about VA loans or for applying for VA loans, call All Western Mortgage on 702-850-2790 today or visit http://www.awmlending.com/loans-VA.php

The Mortgage Refinance Strategy

You’ve decided to refinance your mortgage. But before you begin, it is important to consider that why you want to refinance in the first place because the reason behind refinancing will guide your process from the beginning.

The most common reason why people approach a mortgage refinance company is to lower their monthly payments. If you refinance with another full 30-year term then you can really knock the teeth of your monthly payment. But, that will mean that it will take even longer to pay off the loan and become the actual owner of the home. Not to forget the extra interest that you’ll be paying. 

Before you refinance, you’ll have to take into account how much interest you have paid and how much more you’ll have to pay if you refinance.

Loans, especially home loans, are loaded with heavy interest. So, the longer you’ve been paying them off, the more you’re reducing your principal balance. By not extending your loan term or by reducing it and getting a lower interest rate, you can significantly lower the amount of your interest during the life of the loan.

Therefore, the strategy behind refinancing must be to avail those mortgage refinance interest rates that strike a balance between affordable monthly payments and reducing the overall borrowing cost.

The other most common reasons for refinancing are reducing the loan term on a lower interest rate to build equity faster. For example, if you recently received a substantial pay hike and don’t want to drag the loan for another 20 years, you can consider refinance.

To know more about refinance and to find out whether it will be in your best interest to refinance now or not, call All Western Mortgage at 702-850-2790 or click here.

3 Signs You are a Perfect Candidate for VA Loans

The VA Loans offer a tirade of benefits, like zero down payment, limits on closing costs and no private mortgage insurance (PMI). The VA backed loans are part of a benefits program, which has helped millions of army veterans and military persons buy their dream home since World War II.

But, these veteran loans are not the right option for every military personnel. Here are a few boxes that you need to check to know if you are the right candidate for a VA loan.

1. Eligibility: You need to meet certain requirements to be eligible for a VA loan. In most of the cases you are eligible if you meet any of the following conditions:

• A minimum of 90 consecutive days active duty during wartime
• A minimum of 181 consecutive days active duty during peacetime
• A minimum of 6 year service in the National Guard or Reserves

2. You Don’t Have Money for Down Payment: The best benefit of VA loans is that you don’t have to put any money down to buy a home. VA backed mortgages offer 100% financing as compared to conventional or FHA loans where you have to put up at least 5% or 3.5% of the purchase price as down payment respectively. Not to mention the burden of that pesky PMI. You also don’t have to worry about that with VA loans.

3. You’re Buying Your Primary Residence: You can’t use VA loans for buying a vacation home or an investment property where you won’t be living. However, you can buy absolutely any type of apartment or a condo with VA loans if you are planning to live in it.

  

Want to know more about VA loans or need help in securing one? Call All Western Mortgage on 702-850-2790 or click here.

Ways to Determine Your Home Affordability

Buying your first home is as exciting a process as it gets. But, it’s not just about finding the features or the neighborhood that you want. For majority of the people, the price of a home is a major deciding factor. Basically, there are two ways to determine whether you can afford a particular home on your current salary or not.

1.      The monthly housing cost as a percentage of your gross income

The rule of thumb says that your monthly housing costs must not exceed 28% of your total gross income. For example, if your annual salary is $50,000, your monthly take home income will be $4,167. If we follow the above mentioned rule, you can afford to spend $1,167 per month on housing costs. The housing costs, here, will include payment of mortgage installments (principal + interest), real estate taxes and homeowners’ insurance.

This is the most straightforward method of calculating your affordability. However, majority of the times there are various other factors involved in addition to just housing costs when you calculate your affordability.  Such factors can be student debts, car payments, credit card debts etc. This is where the next method of calculating home affordability comes in.

2.       Debt to income ratio

The debt to income ratio method evaluates your home affordability by considering other debt repayments in addition to the housing costs. The preferred ratio says that your entire debt payments must not exceed 36% of your income.

This method paints a more accurate picture of your home affordability. For example, On a yearly salary of $50,000, or on a monthly salary of $4,167, you have the following debt obligations:

·         Student Loan of $200

·         Car payment of $400

·         Credit card payments of $100

Now, if your housing costs amount to an additional $1000, the total comes out to be $1,700 and ideally your entire debt can’t exceed $1,501. This means affording a home that costs above $800 will be a problem for you.

Now that the basics are clear to you, you can check out All Western Mortgage’s home affordability calculator to figure out how much home you can afford. You can check out our mortgage amortization calculator here. 

Why Approach a Mortgage Loan Company if You can Pay Cash?

Not many people have hundreds of thousands of dollars just lying around to buy a home with cash, but even if they do have access to such amount of cash, they prefer to approach a mortgage loan company and get their homes financed. Don’t believe us? Here is a fun fact – Facebook founder and CEO Mark Zuckerberg also has a mortgage loan of $5.95 million on his Palo Alto, California estate.

You might be wondering that why would a billionaire like Zuckerberg will go to a mortgage lending company to take a mortgage when he can just pay cash for his house. Well, apart from financial flexibility, here are a couple of reasons why taking a mortgage makes more sense than paying cash for your home.

     Inexpensive Financing: Mortgage rates are at an all time low currently. As of 30^th August 2016, you can easily get a fixed rate mortgage at an interest rate of less than 3.5%.

     Financial Flexibility: If you are planning to buy a home with cash then it is safe to assume that you have done extremely well for yourself and can easily pay $300,000 for a house. However, doesn’t it make more sense to keep that money with you to do as you please instead of tying it down in the house? If you take a mortgage, you can do whatever you do with the money while still making the mortgage payments.

    Tax Deductions: This is common knowledge that mortgage payments are tax deductible. With a mortgage loan, you’ll be able to deduct your interest payments from your taxes.

For best rates on home mortgage loans, contact All Western Mortgage today. All Western Mortgage is a pool of best online mortgage lenders that has been helping people buy their dream homes since 1981. Call us on 702-850-2790 or visit http://www.awmlending.com/