Mortgage Archives - Page 168 of 222

Staying Social While Distancing For many months, the COVID-19 (Corona-virus) pandemic appeared to be a problem that only existed in foreign lands. Now, this virus has arrived on the shores of the United States and has disrupted jobs, hospitals, and lives. People are being asked to practice social distancing measures to curtail the spread of the virus while some parts of the country are being asked to stay home entirely. The good news is that there are still ways for people to remain social while being safe.

Get Outside Safely

One of the first tips that people need to remember is that they are still allowed to go outside. Even in states that are telling people to shelter in place, people are still allowed to go outside and get some fresh air. This is a great way for people to not only stay in shape but many other people are doing the same thing. Therefore, this is an opportunity for everyone to get some vitamin D, run into a few neighbors, and socialize (while practicing safe social distancing measures, of course!).

Get The Family Involved In The Cooking Process

Next, given that many restaurants are going to be closed during this crisis, take this opportunity to get the entire family involved in the cooking process. Take a few minutes and bake some cookies with the kids. Ask them for ideas on what to cook for dinner. This is a great opportunity for children to learn about something new, given that they are going to be home from school for a while.

Use Video Chat Applications

Finally, remember that there are still ways for people to stay in contact with one another through video chat apps. These include FaceTime and Skype. Even though that trip to visit the grandparents was canceled, this is still a great way to stay in touch. Furthermore, this can be a way for families to check in with each other and make sure that everyone is doing alright.

Stay Social During The Pandemic

In the end, it is going to be a challenging few months; however, with the right strategies, the country is going to come out stronger on the other side. Put these tips to use and stay social during the pandemic!

How Do Mortgage Points Cut Your Interest Costs Those who are involved in the real estate industry likely know that mortgage rates are at an all-time low. At the same time, nobody wants to pay more for a house than they have to. Some of the most important factors that dictate how much someone is going to pay for a house include points and interest rates.

While interest rates are incredibly low, there is a way to make them lower. This comes in the form of points. This is additional money that is paid upfront to get a better deal over the life of the loan. Even though this sounds great in theory this might not be the best option for everyone. There are a few important points to keep in mind.

What Are Points?

Often, the lender is going to offer someone the option of paying points when the mortgage is created. This should be viewed as paying interest on the loan in advance. In exchange for paying interest upfront, the lender should offer to lock in a lower interest rate over the life of the loan. The more points someone purchases, the better the rate.

For example, paying one point of interest may reduce the interest rate on the loan by 0.25 percent. This is standard. Take, for example, a $200,000 home. One point on this loan would cost someone about $2,000. In exchange, the interest rate on the loan is going to drop by 0.25 percent. This might be worth it in the long run.

Discount Points

Other people might have heard about something called discount points. This is another term for mortgage points. The two terms can be used interchangeably. Typically, people can purchase as many discount points as they want, up to the limit of the lender.

An Overview Of Origination Points

Another type of points that people might have heard about is origination points or origination fees usually expressed by a percentage of the loan amount. These are points that are charged to the borrower to cover the of processing, or originating, the mortgage loan. These fees are included in the total closing costs disclosed when you apply for your home loan.

Origination points are almost always negotiable. The number of origination points that a lender is going to charge can vary from place to place. Therefore, always be sure to ask about origination points. There might be a way to get these points waived, saving the borrower a significant amount of money.

As always, your trusted mortgage financing professional is the best source of information for your personal mortgage situation.