AAA Mortgage

read moreWith a fixed-rate loan, your monthly payment doesn't change for the life of your loan. The longer you pay, the more of your payment goes toward principal. Your property taxes increase, or rarely, decrease, and so might the homeowner's insurance in your monthly payment. But generally monthly payments on your fixed-rate loan will increase very little. Your first few years of payments on a fixed-rate loan are applied primarily toward interest. This proportion gradually reverses as the loan ages. You might choose a fixed-rate loan to lock in a low rate.

read moreEver heard the pearl of wisdom that says you should only refinance if the new interest rate will be at least two points below your existing rate? That may have been accurate a while back, but since refinancing has been costing less in recent years, it is a good time to think about a new loan! Refinancing has a number of advantages that can make it worth the up-front cost many times over. When you refinance, you might have the ability to reduce the interest rate and monthly mortgage payment, sometimes significantly.

read moreThe number of refinance options available to borrowers can be overwhelming. Contact us at 816-272-5550 and we will match you with the refinance loan program that is ideal for you. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process. Are achieving better payments and a better rate your main reasons for refinancing? If so, your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance.

read moreHere's a simple trick to significantly reduce the length of your mortgage and save you thousands in interest: Make extra payments that are applied to the loan principal. People pay extra in a few different ways. For many people, Perhaps the easiest way to keep track is to make one additional mortgage payment every year. If you can't afford to pay an additional whole payment all at once, you can divide that payment by 12 and pay that additional amount monthly. Finally, you can pay a half payment every other week.

read moreLenders use a ratio called "debt to income" to determine your maximum monthly payment after your other monthly debts have been paid. In these ratios, the first number is the percentage of your gross monthly income that can go toward housing. This ratio is figured on your total payment, including homeowners' insurance, HOA dues, Private Mortgage Insurance - everything. The second number in the ratio is the maximum percentage of your gross monthly income that can be applied to housing costs and recurring debt.

read moreTighten your belt and save. Scrutinize the budget to discover ways you can cut expenses to go toward your down payment. There are bank programs through which a portion of your take-home pay is automatically placed into a savings account each pay period. You could look into some big expenses in your spending history that you can do without, or trim, at least temporarily. For example, you might decide to move into less expensive housing, or stay local for your annual vacation. Work more and sell things you don't need.

read moreWhen you are offered a "rate lock" from the lender, it means that you are guaranteed to get a set interest rate for a determined period while you work on your application process. This protects you from going through your whole application process and discovering at the end that your interest rate has gotten higher. Rate lock periods can be various lengths of time, anywhere from fifteen to sixty days, with the longer period typically costing more. There are more ways to get a lower rate, in addition to opting for a shorter rate lock period.

read moreWhat's better than getting a bunch of new furnishings to adorn your future home? Not much. But buying big ticket items before closing could be trouble. Keep in mind that until your keys are in hand, your lender is watching your finances very closely. Here are some things to stay clear of before closing to be sure the transaction goes well. Don't buy luxury items. You may be itching to order that new couch for the soon-to-be-yours living room, but it's best to stay away from making large purchases like furniture, appliances, electronic equipment, or vacations until closing.