Tag Archives: Deacon Hoover

Tara Mortgage Services Featured Blog! Locked vs Floating Mortgage Rate: Which Is Better?

DHREA 19/11/2019

Mortgage rates have been relatively consistent, but don’t let that get you too comfortable. Rates are changing all the time…by how much, and whether it will be in your favor, we cannot say. We can make intelligent guesses, but we can’t predict with any certainty.  

However, that doesn’t mean that you are entirely powerless when it comes to taking charge of the mortgage rate you qualify for. 

You hold a lot of power, including the ability to qualify for a lower rate by improving your credit score, buying points, and exploring the rates of various home loan options. 

And here is another idea for getting a low mortgage rate in an uncertain market: get a floating mortgage rate. 

Bookmark this post for future reference and read on to understand the difference between a locked-in rate versus a floating rate. 

Locked and Floating Mortgage Rate Compared

Mortgage Rate Lock

“Locking” a mortgage rate means the interest rate won’t change from the time we offer it to you until the closing of your loan. When the rate rises—as they’re expected to—your rate won’t budge. Sounds great, right? It is! 

However, you should know that there are a few stipulations to a mortgage rate lock, such as:

  • Closing within the predetermined time frame
  • No changes to your mortgage application
  • Rate lock timeframes range from 30 to 60 days, though longer terms are sometimes available. 

Even with a locked rate, some circumstances can still cause a locked rate to adjust, namely:

  • You change the type of mortgage or the amount of your down payment. 
  • Your home appraisal is higher or lower than expected. 
  • Your credit score changes. 
  • There was trouble documenting your additional income such as bonuses or overtime

There is also a fee associated with locking in a rate, and the longer the rate lock term, the higher the fee. Plus, if the rate drops, you won’t be able to take advantage of the lower rate—unless you have a “float down” option.

What is a Float Down Option?

A “float down” option means that you’re able to reduce your interest rate if market conditions cause rates to drop during your lock term. This mortgage rate option is dependent on the daily market fluctuations. So if the interest rate goes up by the time you close on your mortgage, you’ll lose some buying power. 

But if the rate falls, you’ll gain some buying power. 

Choosing to float your mortgage rate is considered riskier because one can’t truly predict what rates will do from one day to the next. But the potential for savings is very attractive, which is why many mortgage applicants choose it. 

When Should You Choose to Float? 

When rates are decreasing steadily from week to week, it might be a good idea to float it. There’s a chance you’ll get a better rate when it’s time for the loan transaction to take place. 

On the other hand, if rates a less steady or are moving higher, then you’ll want to lock in your rates.  

How much can a rate impact your monthly mortgage payment? Let’s look at an example. A mortgage payment on a $200,000 home at a 4.5 percent interest rate would be $1,013. However, at a 4.75 percent interest rate, the payment would be $1,043. 

That $30 difference that adds up to nearly $400 over a year!

Need more personalized guidance about interest rates and which you should choose based on the current market? Call Tara Mortgage Services, your local mortgage experts!

(This blog was originally published at tara-mtg.net)

Network with over 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
743 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
237 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

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Tips for Ensuring a Smooth Move for Seniors!

DHREA 01/11/2019

Moving can be overwhelming for anyone, let alone some of our great seniors. Here’s some tips to make their move as easy as possible.

1. Communication and Choice

Seniors can be emotionally vested in the home they’re leaving, and it’s expected that there will be sadness and apprehension about the move. It can be a tough conversation to have with your aging parent, but give them time to grieve the change and talk about where they will be living and why they are moving, in order to help make the transition smoother. When seniors are asked to leave their longtime homes, a frequent cause of distress is their perceived loss of control, so give your loved one as much choice as possible as they plan and implement the move.

2. Plan Effectively

Before families begin the sorting and organizing process, it will help to have a visual of what they are getting into. What rooms need to be furnished? How many square feet is the new residence? Writing for AARP, Ann Goyer recommends plotting the floor plan of your loved one’s new home on graph paper, and suggests cutting out pieces to represent furniture.

3. Enlist Relatives

This will undoubtedly be a big job, so enlist help from your family. Encourage siblings or other close family members to take a few days off of work. Even children and younger members in the family can participate. Surrounding your senior parents with loved ones who are supportive and encouraging could help ease the emotional stress of moving as well.

4. Sort and Organize

Moving your elderly parents will involve downsizing. Go through the house item by item with your support team. You can categorize objects to make the process easier: items to be moved, keepsakes to be left with family, items to be sold or donated, and items to be thrown out. Don’t allow yourself to become a packing robot lacking feelings. Honor the emotional attachment to personal belongings and allow your senior parent to reminisce as you help sort out their possessions. Remember, these are not just things you’re moving; they’re memories. Also, be open to your own emotions, especially if this was your childhood home.

5. Clean and Repair

After the organizing and packing is complete, there is work that still needs to be done. Whether the house is going to be sold, rented or passed on to another relative — the general requirements are the same. The house should be cleaned, and they should consider making any required repairs now before any get worse. It’s better to take care of maintenance issues all at once rather than dealing with them later while the house is for sale (or after renters move in).

6. Plan the Moving Day

There are a few different strategies for moving your senior loved one into their new home. A full service mover is the easiest way to go, but also the most expensive. They will load everything, deliver to its destination and put things in place. We looked at quotes from movers and found the cost of moving the contents of a two bedroom home across the country exceeds $6,000.  Families can save some money on the move by using a self-service mover, which means their family will load the moving truck, but the cargo will be hauled by a professional mover.  Then there’s the do-it-yourself (DIY) option where you can rent a moving truck or trailer. But, even the DIY option of renting a U-Haul or Ryder is not cheap: a move from Atlanta to Los Angeles in a 26 foot truck could exceed $3,000 when you factor in gasoline.

Of course, each family’s circumstances are unique, so we’re hesitant to give blanket advice. However, I hope these tips help you better plan and execute your elder loved one’s next move!

Network with over 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
738 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
227 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

Read More

Control Mold!

DHREA 24/10/2019

Mold spores can be frustrating to homeowners, renters, and investment property buyers. From potential health issues to property damage, mold is often one of the most overlooked pain points for any property. Here is a list of tips and tricks to help reduce exposure and minimize growth inside your home and property. Some are common sense, some are things we all overlook. Whether you’re sensitive to mold spores and want to protect your health, or you simply want to protect your home or investment, check out the list I compiled below!

Exterior:

  • Avoid outdoor places where mold is likely to be in high concentration. These include shady areas, compost piles, kennels, and piles of leaves, grass, or straw.
  • Promptly repair and seal leaky pipes and roofs.
  • Have the yard mowed and raked regularly.
  • Keep rain gutters clean. Clear leaves and debris from drainage areas around your home and yard.
  • Store firewood away from the house.

Interior:

  • Cleaning your house regularly and properly can help reduce mold.
  • Clean with a commercial anti mold product. Choose a product containing a mixture of bleach and detergent or make your own anti mold cleaner. Mix 1 tablespoon chlorine bleach and 1 quart of water.
  • Clean carefully, especially in areas where mold is likely to grow, such as bathrooms, kitchens, and basements.
  • Empty refrigerator drip pans and thoroughly clean them with a commercial anti mold product.
  • Keep garbage cans and trash compactors clean and free of mildew.
  • Store things carefully. Don’t store newspaper, clothes, and other items in damp areas because they can become moldy. Store only completely clean and dry clothing and shoes. Even small amounts of grime can stimulate mold growth.
  • Throw away any moldy foods lurking in your refrigerator and cupboards.

Air Circulation:

  • Use a fan in the bathroom to remove damp air. If you don’t have a fan, open a window and consider having a fan installed. In bathrooms without windows, open a door when you’re finished, and consider using a dehumidifier.
  • Use a dehumidifier to dry out a damp basement, but be sure to empty the water from it and clean it regularly. Water left in dehumidifiers allows mold to grow.
  • Don’t use humidifiers or vaporizers. Putting extra moisture into the air encourages mold growth. If you choose to use these appliances, follow the manufacturer’s instructions about regular cleaning. Even special humidifiers designed to lessen mold growth require regular and thorough cleaning.
  • Ventilate closed rooms by opening doors and installing fans.

Miscellaneous:

  • Avoid sleeping in areas of the house that are below ground level.
  • Don’t put carpeting directly on concrete or damp floors. The carpet may become moldy.
  • When painting damp areas, choose mold-inhibiting paints. They can be found at most paint stores.
  • Remove all carpets and wallpaper with visible mold or mildew.
  • Don’t over-water plants. A few household plants probably will not cause problems if you’re mold-sensitive, but standing water promotes mold growth.
  • Keep windows sealed tightly. You may need to replace weather stripping on older windows.
  • Eliminate dark areas. Most mold needs darkness to grow. In the basement or in closets that tend to be damp, install a light on a timer. Add windows or skylights to dark rooms.

 

(Editor’s Note: These are merely suggestions and what has worked for others in the past. Results may vary.)

Network with over 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
738 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
224 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

Read More

Pittsburgh Landlord Group Meetup on Thursday, August 15th!

DHREA 07/08/2019

Join us for “Eviction Process Do’s and Dont’s” with our host Alex Deacon and guest speaker Attorney Matt Beam. We will be discussing the proper legal procedure and protocol for starting and finishing an eviction. Also we will dive into the appeal process which is now so much easier for tenants to initiate. Matt Beam has over 10 years experience in this field. Please RSVP since we only have seating for 20!

Eviction Process Do’s and Dont’s

Thursday, Aug 15, 2019, 6:30 PM

552 Washington Ave
552 Washington Ave Carnegie, PA

11 Members Attending

Join us with our guest speaker Attorney Matt Beam. We will be discussing the proper legal procedure and protocol for starting and finishing an eviction. Also we will dive into the appeal process which is now so much easier for tenants to initiate. Matt Beam has over 10 years experience in this field. Please RSVP since we only have seating for 20.

Check out this Meetup →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

Read More

Tara Mortgage Services featured blog: 3 Numbers That Matter The Most on Home Loan Applications

DHREA 27/06/2019
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(Each week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

There are three numbers that matter the most when it comes to a home loan application. They are your credit score, your debt-to-income ratio, and your loan-to-value ratio. These specific numbers matter because they affect your ability to qualify for a home loan as well as your interest rate for the loan.

This article will give you a quick overview of those numbers and how they affect your mortgage.

Need more specific information? We’re here to help! Use our contact form and a mortgage professional will be in touch soon.

Your Credit Score

You’re likely familiar with this number. A credit score, also sometimes called your FICO score, is a three-digit number between 300-850. This number scores your borrowing history. It’s independently calculated by each of the three main credit bureaus (Experian, Equifax, and TransUnion) using your payment history, your current debt, your credit limit usage, along with other factors.

When you apply for a mortgage, we request your credit score from one or all of the bureaus using a” soft” or “hard” credit check. A “soft” check does not affect your credit score and is done early in the application process, such as during pre-approval. A “hard” check will have a minor impact (lowering by about 5 points) on your score, so it’s done when you’re ready to apply.

Your credit score helps to estimate your ability and the likelihood of you paying back your home loan. The various mortgage programs have a minimum credit score with government loans having the lowest score requirements.

Your score matters because it affects the interest rate you can get. The higher your credit score, the better the interest rates will also be.

Your Loan-to-Value Ratio (LTV)

Your LTV is a way to measure the amount of equity in your home. You can think of it as the percent you still owe towards the principal to fully own your home. The way it works is that the higher your LTV ratio is, the more you’re borrowing.

Here’s how to calculate your LVT yourself: First, subtract the down payment amount from the value of the property. Divide that number by the value of the property. For example, if the home has a value of $200,000 and you put $20,000 down, then your LVT is 90%.

You can also calculate your LTV by subtracting the down payment percent from 100%. For example, if you’re down payment is 20%, then your initial LTV is 80%. Why this number matters There’s often a maximum LTV when you’re buying a home (you can also think of this as the minimum down payment).

The exact LTV max depends on factors such as the property type, loan amount, and whether you’re a first-time homebuyer. If your LTV is higher than the limit, that means that either you’ll have to increase your down payment or look for a lower-priced property. Another thing to keep in mind with regards to your minimum down payment is that if put less than 20% down, you’ll be required to pay mortgage insurance.

Your Debt-to-Income Ratio (DTI)

Your DTI helps determine how much you can afford to pay every month given your current monthly payments. We calculate this number by adding up your existing monthly debt plus what your mortgage payment will be once you have your new home and then dividing that number by your gross monthly income. Why it matters The DTI help to set a limit to make sure that you can comfortably afford your mortgage now and in the future.

This number is critical in qualifying for a home loan. A high DTI is the most common reason mortgage applications are declined. DTI limits vary by lender and our firm is proud to offer more flexible limits than most competitors. Want to talk more numbers? GIve us a call! We can talk you through your numbers and help you determine the best course of action for getting a home loan at a rate you can afford. Schedule a conversation with Tara Mortgage Services today!

Network with nearly 700 Real Estate Investors! Join Alex Deacon’s Real Estate Networking Group on MeetUp.com, and be one of the first to receive updates on upcoming events!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
688 Members

Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …

Check out this Meetup Group →

Join Alex Deacon’s fast-growing Pittsburgh Landlord Group on MeetUp.com! Connect with other Landlords for monthly seminars with Q & A! Click below!

Pittsburgh Landlord Group

Carnegie, PA
160 Members

This is a great venue for Real estate investors, real estate agents and property managers to expand your knowledge and to help others in the field of being a landlord. We will…

Check out this Meetup Group →

Visit our affiliates!

MACE Property Management: www.PittsburghPropertyManagement.com

Tara Mortgage Services, LLC: www.Tara-MTG.net

HDH Settlement Services, LLC: www.HDHTitle.com

Burkhead Insurance Services: Burkhead.Insure

Bin There Dump That: www.PittsburghDumpsterRental.com

Red Tree Mortgage: https://www.redtreemtg.com/

Read More
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