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mortgage tagged posts

Smart Ways to Reduce and Avoid Debt

Between the mortgage, student loans and credit cards, paying off debt can feel impossible. However, there are some smart ways to reduce and avoid debt or even getting into debt at all. In this issue of my Monthly Item of Value get some helpful tips on paying down your debt.

First, you need to stop getting new debt right away. The last thing you want is to add anything else. Avoid buying things you really do not need.

Secondly, create a workable budget, one you can live with and will allow you to start paying down the debt you have accumulated.

There are a couple different ways to deal with your debt, the Rollover Formula and the Snowball Method. Get details about the two methods in the infographic below.

Try these smart ways to reduce down your debt. Don’t delay...

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Home mortgage rates

Home mortgage rates

Thanks to Mark Hines of Fidelity Bank for this episode of Tips from the Pros about mortgages.

As most of you know FHLB (Federal Home Loan Bank) grant program ran out of funds in early October. The date funds will be available again for us to use is January 14, 2019. Fidelity Bank Mortgage again has $1,000,000 to use for its borrowers/buyers. Currently Baltimore County SELP still has funds and certainly MMP or the Maryland Mortgage Program.

More buyers are electing to build a new home as the inventory of existing homes is low. Fidelity Bank offers a 1 time close construction loan as well as the HomeStyle and FHA 203k renovation loans.

We are seeing less seller help on contracts and usually multiple offers resulting in a big win for sellers.

As always feel free to u...

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Mortgage Rates

Thanks to Mark Hines of Fidelity Bank for this episode of Tips from the Pros about mortgages.

As expected the Feds raised interest rates 25 bps to 5.25% on Wednesday, noting that job growth has been “strong” and inflation has been close to their 2.0% target.  In addition, a larger majority of members (12 up from 8 last meeting) now expect an additional 25 bps hike by year-end and three more hikes in 2019.

The Prime rate is for short term lending like revolving charge accounts and HELOC’s (Home Equity Line Of Credit). This also affects the construction loans that rely on the prime rate as their benchmark.

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How to pay your mortgage off early

The way the economy bounces up and down, wouldn’t it be fantastic to have one less payment? Paying off your home would be ideal. By using one or more of these simple plans, you could have your house paid off a few months or a few years ahead of schedule.

A really easy plan is to round up. If your payment is $543 and you pay $550, you can end up with fewer payments in the long run. As you pay extra each month, you are paying more toward the principal which results in a few less payments at end of the loan.

Another way is to pay biweekly instead of monthly payments. This works really well if you get paid biweekly. You will end up paying one extra month’s payment each year. The same as when you round up, you are paying more toward the principal and therefore you pay it off faster...

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