Ramis Urribarri Mortgage lender

"Start by doing what's necessary; then do what's possible, and suddenly you are doing the impossible."⁣
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- Francis of Assisi⁣

Don’t Count on Refinancing to Lower Your Interest Rate.⁣
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Mortgage rates have started to edge up from historic lows, and they may keep rising off the historic lows, so it might not be the right time to refinance. But you may be able to save money by shortening your loan term.⁣
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For example, moving from a 30-year fixed-rate mortgage to a 15-year loan with a better rate, or through a cash-out refinancing, in which your new mortgage amount is greater than the existing one. This allows you to tap into your home equity to pay down other debts. Even though your monthly payment will rise, you could end up saving money by paying off higher-interest debt, such as your car loan, student loans, and/or credit cards.⁣
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Before doing any refinancing, you should crunch the numbers to make sure you aren't adding to your financial stress.

"A dream does not become reality through magic; it takes sweat, determination, and hard work." ⁣
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- Colin Powell

What Is the Minimum Down Payment on a House?⁣
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There is no universal minimum down payment, but the more you pay upfront, the lower your monthly mortgage payments, the lower the interest rate you will qualify for, and the less likely you will be to have to pay mortgage insurance or other fees.

How Much Money Do I Need To Put Down on a Mortgage?⁣
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When you buy a home, one of the biggest up-front expenses is the down payment. Not to be confused with closing costs, the down payment is the portion of the purchase price that you pay upfront at closing. Generally, if you put less money down on a home at closing, you’ll pay more in fees and interest over the loan’s lifetime (and vice versa). ⁣
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The down payment you make on your home impacts what kind of mortgage you qualify for, how much money you can get, and the loan's terms and conditions.

“You've got to get up every morning with determination if you're going to go to bed with satisfaction.”⁣
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-George Lorimer

5 Tips for Getting the Best Mortgage Loan⁣.
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• Check your credit: Finding out your credit score should be the first thing you do before considering your home buying options.⁣
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• Set a budget: Use a mortgage calculator to determine how much house you can afford and stick to it. ⁣
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• Understand your loan options: By learning about your loan options before you apply, you can make sure the lender you choose offers the best type of loan for you. ⁣
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• Shop around: When shopping for a mortgage, you don’t have to go with the first lender you talk to. You might get a better interest rate from one lender than you do from another.⁣
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• Prep your documents: Find out what documents you’ll need to apply for a mortgage and gather them before you meet with a lender. ⁣

“Concentrate all your thoughts upon the work in hand. The sun's rays do not burn until brought to a focus. “⁣
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-Alexander Graham Bell

Mortgage Points
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You can reduce the interest rate on your mortgage loan by paying an up-front fee, known as mortgage points, which subsequently reduce your monthly payment. One point equals 1 percent of the cost of your mortgage and purchasing one point typically lowers your interest rate by 0.125 percent. In this way, buying points is said to be “buying down the rate.” Points can also be tax-deductible if the purchase is for your primary residence. If you plan on living in your next home for at least a decade, then points might be a good option for you. ⁣
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Paying points will cost you more than just initially paying a higher interest rate on the loan if you plan to sell the property within only the next few years.

Debts Don’t Help.⁣
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If you’re submitting a mortgage application, the last thing any prospective lender is going to want to see is that you owe a load of cash on credit cards or you’ve got outstanding loans.⁣
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Before you apply for a mortgage, try to reduce any debts you have – this will help demonstrate that you manage your money responsibly, and will mean any mortgage application you make is more likely to succeed. It will also mean you will potentially be able to borrow more when it comes to a lender’s affordability calculations.⁣

“You are never too old to set another goal or to dream a new dream.” ⁣
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– C.S. Lewis

What Are the Benefits of Refinancing?⁣
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Even though you may be worried about lowering your credit score, there are many benefits to refinancing, including:⁣
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• Lower interest rates mean lower monthly payments. When you refinance with lower interest rates, you are able to reduce your monthly payments. ⁣
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• Helps improve your budget. When your biggest bill every month drops significantly, you are going to have a lot more wiggle room in your budget. I
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• Consolidate your debt. You may struggle to pay the minimum each month and don't see much difference in the loan amount from month to month. By consolidating your debt, you will have extra money in your pocket every month⁣.

“The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” ⁣
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– Winston Churchill

When Do You Need Private Mortgage Insurance?⁣
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PMI is needed when a home buyer puts down less than 20% on a mortgage loan. Because the bank is paying the seller the full amount for the house, your down payment is paying a portion of that total cost back to the bank initially. The less a buyer puts into the down payment, the more a lender has to lose. This is why PMI is required when a buyer can put down less than 1/5 of the home's value at the time that the bank makes their payment to the seller.

What is Private Mortgage Insurance?⁣
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Private Mortgage Insurance (PMI) insures your ability to pay a mortgage. It pays the bank should you default on your mortgage. PMI is often required when your mortgage down-payment is less than 20% of the home value. Because so many homeowners buy their first (and further) homes with less than 20% down payment, PMI has become a standard part of the mortgage process.⁣
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PMI protects the lender, not the homeowner. But it is paid as an insurance premium bill by the homeowner in order to protect a loan deemed higher risk - due to the low down payment.

“If you are working on something that you really care about, you don’t have to be pushed. The vision pulls you.” ⁣
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– Steve Jobs

Pay Attention To Property Taxes⁣.
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When you buy a home, you won't just have to pay principal and interest on a mortgage every month. You'll also be on the hook for property taxes. So be sure to find out the potential property tax bills of any homes you look at. But don't stop there -- look at each home's property tax history, which should be available as part of its listing. That way, you'll get a sense of how often taxes tend to go up in that neighborhood. ⁣
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Some towns reassess homes on a yearly basis, and if you move to a town that employs that practice, your taxes have the potential to increase annually. Granted, they could also go down if home values drop one year, but the opposite is more likely.