More Millennials Are Buying Homes

In the second quarter of 2018, Millennials began buying homes in a big way. Despite the commonly-cited hurdles that include student debt, irregular and gig income and the high cost of living, today’s Millennials are finding their way to home ownership.

A report from the US Census Bureau shows that home ownership rates among people aged 35 and under jumped 3.4% between April and June of this year. The Ellie Mae Millennial Tracker shows the average age of millennial borrowers is 29.

What’s driving Millennials into the market? A larger percentage of them are reaching the point in their lives where it’s appropriate to buy a home. They are settling down, getting married and having families.

“Most Millennials are buying a house because there are major changes happening in their lives such as starting a family, getting a new job, or because they’ve decided that they want to build equity and stop renting,” said Ellie Mae Executive Vice President of Corporate Strategy Joe Tyrrell.

Resource Financial Services is here to help Millennials on the road to home ownership. We understand that buying your first home can be a little intimidating. And no matter how many times you ask for advice from parents, family members and friends who are experienced homebuyers, there will still be questions.

That’s why we believe meeting with one of our reputable and experienced mortgage bankers should be your first step. With our guidance and knowledge, you can find a home you can truly afford with a mortgage that works for your budget.

Five Simple Steps to Home Ownership:

One: Make the call. Pick up the phone and call a mortgage banker at Resource Financial Services for step-by-step guidance on the home-buying process. There is no charge for a phone call that can make all the difference in helping you understand your options and what you may be able to afford.

Two: Get pre-approved. Before looking at the first house, your mortgage banker can pre-approve you for a loan and explain the customary closing costs and financing fees. This will give you an accurate picture of how much home you can truly afford and help you narrow down homes based on that amount.

Three: Begin the house hunt. Your pre-approval will help you sort by price, identify neighborhoods and find your dream home faster. It will also give you an edge when you make an offer in a competitive seller’s market.

Four: Make the offer. Your real estate agent (and we highly recommend working with one) has extensive knowledge and experience on comparable home transactions and can offer the best strategy for the home you’re interested in. Your purchase agreement will note how much you’re willing to put down as a down payment. By the way it’s a myth that you need 20% as a down payment; the average down payment is only 10% and for first time homebuyers it’s even lower at 6%. Arrange to have the deposit held in escrow (not with the seller) so your money can be returned to you if the offer falls through.

Five: Close. Once an offer is accepted by both parties and signed, it becomes a binding contract. Your Resource Financial Services mortgage banker will help you understand the process and go over any documents you need to provide as well as any closing costs you owe so there are no surprises at closing.

Working closely with a reputable lender that offers competitive rates, a variety of products and the education is the best way to eliminate surprises and help you create a clear path to homeownership.

Resource Financial Services is here to make people’s dreams of home ownership a reality. That’s why our experienced mortgage specialists work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. We offer quicker closings, same-day pre-approval and guaranteed lower rates.

source: resourcefinancialservices.com

Interest Rates: APR vs. APY (and why it Matters)

When comparing interest rates that a bank offers on a mortgage, home equity line of credit, car loan, credit card, certificate of deposit, or savings account, it’s important to know exactly what rate you are looking at.

Even a 0.5% difference in interest rate could cost you hundreds or thousands of dollars when compounded over years.

This post will serve as a quick primer on interest rate terminology and calculations.






What is Annual Percentage Rate (APR)

Annual percentage yield, or APY, is the effective interest rate, with compounding factored in. For that reason, it is also referred to as the effective APR, or EAR.

Banking institutions have deposit products that compound over various periods – daily, weekly, monthly, annually, etc. They are required to express interest rates in the form of APY, or EAR, so that you can compare rates between institutions.

It is essentially the real rate you are are effectively receiving or paying, when compounding is factored in.

How to Calculate APR and APY
APR = Periodic rate x number of periods in a year

For example, a credit card with a 1% monthly interest rate would have a 12% APR (1% x 12 = 12%)

APY = (1 + nominal APR/n)^n – 1

    n = the  number of compounding periods per year.
    nominal APR is expressed in decimal format (i.e. 12% = 0.12)

For example, a credit card with a 12% APR, compounded monthly, would have an EAR equal to 12.68%. The equation would be (1 + .12/12)^12 – 1 = .1268 = 12.68%

If the credit line compounded daily, the EAR equation would be (1 + .12/365)^365 – 1 = .1274 = 12.74%

Why APY is Important

In any borrowing or investment scenario that involves compounding and/or fees, you want to know what the EAR (APY) is.

In a mortgage or loan scenario, you’ll want to know what the EAR is after closing or other fees are factored in.

In a credit card scenario, companies will often quote you a nominal APR (annual percentage rate). However, since your balance compounds monthly, you do not end up paying the nominal APR. Due to the compounding, your EAR will be higher.

Knowing EAR allows you to compare apples to apples and make precise calculations.

APR vs. APY Discussion:

Do you ever feel like you were misled by a bank or credit card company when only being presented with APR vs. APY?

source: 20somethingfinance.com

Process of Applying Home Equity Loan

Finding the best home equity loan offers perhaps the most important step you will take in the complete process of applying for a home equity loan. It's very important to choose the best lender when applying for a home equity loan. In this way, homeowners can wisely compare loans and lenders before accepting any offer. There are multiple companies which offers home equity loan, so that means the market competition strikes the interest rate to better standards. You just have to shop around for you to obtain and get the best deal.

A lot of homeowners prefer to take a home equity loan, because the process is faster and cheaper instead of refinancing your home. One of the most important factors if you're considering a home equity loan is the effective interest rate on the loan.

Get the best mortgage loan capital to help you save money. There are several banks and company lenders that offer home equity loans and other forms of loans and the best way to find the best rates is to have time and do some research. Shop around at different banks and lending companies. Do not be afraid to negotiate a better deal. The terms of the condition will ultimately depend on your credit score.

Consumers Guide to Home Equity Installment Loans

Loans are needed primarily throughout difficult economical times. Financial resources are undoubtedly difficult to earn where there might be crisis situations wherever we'd like money right away. Financial loans is usually the possible opportunities that we can take. You will find different types of loans that you can obtain. Installment loans include the most frequent loans out there. This is the type of home loan that's given over a period of day which has a specific diary for repayments. It might continue for several months to possibly 20 or perhaps 3 decades.

You'll find good things about buying installment loans. Ideally, this particular loan carries a fitted interest rate. So regardless of what period or perhaps what calendar month you have with regards to paying for your loan, you don't have to bother about having to pay greater numbers as a result of growing interest rates. You will be paying of the same percentage every month which can be recalled.

Installment loans furthermore build payments simpler. Because you already know the plan dates and the figure to give, you can actually finances for it in putting away a sufficient amount of dollars for your payment. This enables you to plan ahead your current expenditures and even your salary in order to fork out the loan for the contracted date ranges.

An additional advantage is that you could simply obtain installment loans on the net. This is often good for those who do not have time for you to sign up for loans individually. They're able to quickly post the plans on the web which is more quickly than a particular application. This also helps to make the task quicker because most of the web based creditors desire only a few aiding docs. Installment loans online also have swifter turn-around period. Most of these financial institutions approve forms within 24 hours. Hence, you will get the cash immediately. This works best for people that require bucks at the earliest opportunity. Additionally, there are installment loans poor credit that are offered on line. Using a bad credit record has stopped being a interruption to having a mortgage. It is simple to search installment loans low credit score on the internet for your economical demands.

Installment loans provide the borrower independence. Consumers may determine the duration of compensation. They're able to decide to pay back the borrowed funds coming from a couple of months to a several years. The more the reimbursement duration, smaller the regular pay back amount will probably be. This could be easier to allow for some individuals who may have cheaper once a month cash flow. Still, smaller loan repayment period can even be ideal in having to pay your debt the soonest time possible.

These are simply many of the features of gaining installment loans. Regardless how beneficial installment loans tend to be, these are always obligations and must be paid without delay. They need to be used in the right way so the cash don't go down the drain.

It will likely be futile eighteen, you are credit and not make the best usage of it since you are having to pay interest charges. It won't be better to get an installment loans for a shopping. It'll simply trigger more fiscal difficulties on your end anytime you can spend money on that loan.

Article Source:
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ABC's of Getting a Home Mortgage Loan With The Current Economic Situation

With the current economic situation, a home equity loan is a good way for homeowners to access the cash potential of your home. Equity loan describes the money you borrow money from a seller who is willing to get the value of your home and suggest to the owners in the United States. It is a type of loan that makes the home equity as collateral for borrowing money. Lenders use their houses as collateral to convert monetary values for the various expenses such as house renovation, house remodeling, consolidation loans, etc. ....

 
The mortgage loans generally carry a lower interest rate loan you can get. The reason for this is that the risk for the lender is lower due to the type of guarantees that the loan is secured by. A home equity loan is seemingly an easy source of cash for the owners. Interest rates on home equity may not always be as low as your first mortgage, but they fall as much as that charged on your credit card or personal loan. If you choose a home equity loan, you must have a good idea of ??how much money to borrow. You will want enough to cover all costs of remodeling.

Choosing the right mortgage loan is an unpleasant task that every borrower has to do to ensure satisfaction and financial security. Be cautious and aware of the loan application of these costs if you can not pay the loan amount at the right time, you may lose your house that you did as collateral. Interest rates and monthly payments will remain fixed for the duration of the loan.

If you choose an adjustable rate mortgage, your monthly payment and interest rate will go up or down depending on the interest rate market. If interest rates rise, so your monthly payment. If you fall, your monthly loan payment will also be reduced.

Fixed rate home equity loans are perfect for those who are trying to borrow a large amount of money to finance home improvements at reasonable prices and usually takes place within 15 years. Choosing a fixed rate mortgage loan capital and get your money once, will not be tempted to borrow from the account again and gives the owner a certain budget of income and not worry about possibility of further payment.

Fixed rates give a guarantee to borrowers and stability. It is a good option when rates are low, fixed rates are a risk-free option.