Tag Archives: Tara Mortgage Services

Tara Mortgage Featured Blog: Is Paying Off Your Mortgage Early Worth It?

DHREA 10/01/2019

(Every week we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

Paying off debt as soon as possible is always is a good thing –but does that rule also apply to mortgage debt? Is making an extra payment each month to pay off the mortgage early worth it?

In this week’s post, we’ll explore the pros and cons of paying off the mortgage early.

Not a homeowner yet? We can help! Get started the pre-qualification process now using our secure online application.

Pro: Save On Interest

Making an extra payment to the principal balance of your mortgage helps save you money by lowering the amount of interest you pay. Although you can make an additional payment towards your principle at any time, this method is most effective when you first get your loan. This is because the principle is higher at the beginning of the loan. Hence, you are paying more in interest. Making an extra payment will result in saving in interest over time.

Con: Miss Out On Other Investment Opportunities

If you have the extra cash to put toward making an extra payment, that means that you have the extra cash to invest. Instead of trying to save money on your mortgage, you could, instead, making your money work for you. Making additional contributions to your 401(k), especially when you’re 10 years or more away from retiring, can result in significant earnings –sometimes more than what you could save by paying off your mortgage early.

Pro: Peace Of Mind

Reducing monthly expenses brings peace of mind and considering that your mortgage payment is likely your biggest expense, you can start to imagine how good it would feel to eliminate it early. Also, when calculating the cost of living, inflation, and what the average, fixed, retirement income is, getting rid of a housing expense becomes even more attractive.

Con: Prepayment Penalty – Sometimes

Some mortgages carry a prepayment penalty, meaning that you’re limited as to how much you are allowed to pay off and when. Though this may seem unfair, it’s not all bad news. The types of loans that carry prepayment penalties often have lower interest rates or other perks that save you money.

When it comes down to it, deciding to pay off your home loan early is a personalized is not a one-size-fits-all decision. It depends on your ability to pay, the type of loan, how mature your loan is, whether your extra cash would be more useful in other investments, how close you are to retiring, as well as other factors.

Even if you don’t currently own a home, if you plan to pay off your mortgage early, then you’ll want to make sure you choose a home loan that allows for prepayment.

Call Tara Mortgage Services today for expert and personalized home loan guidance, and together we can find a mortgage option that works for you.

Come out this Saturday between 10am-12pm at the Hampton Inn in Bridgeville for “Alex Deacon Real Estate Workshop: Planning Your Next Buy & Hold“. Click below for full details about this workshop, to RSVP and guarantee your seat in the room, and grab directions to the event. See you Saturday!

Detailed Game plan from A-Z for your next Buy and Hold

Saturday, Jan 12, 2019, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

41 Members Attending

This is a great session for those who want to buy and hold. This will give you an idea of realistic expectations that you can count on for your current and your future investments. We will look at some of my current and past buy and hold properties and take a close look to see what mistakes and successes I had made and lets learn from those and com…

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

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#TaraMTG Tuesday (On a Wednesday): Increased Mortgage Rates — Should You Still Buy In 2019?

DHREA 02/01/2019

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services! We opted for Wednesday this week due to the holiday.)

Does the news of rising rates make you second guess buying your first home in 2019? It shouldn’t and here’s why:

Higher Rates But Not Frighteningly High

With headlines that read “Feds Hike Up Mortgage Rates — Highest Since 2014,” it’s no wonder that you doubt that it’s a great time to buy your first home. While it’s true that the mortgage rates are higher than 2014, historically, the increase tells a different and promising story. Homebuyers in 2017 took advantage of a prime environment that included higher employment rates and low mortgage rates.

However, we must keep in mind that although interest rates were low, they were, in fact, higher than they were in years prior!

As many of you can remember, 2008 marked the beginning of a horrific economy in the U.S. Unemployment inched closer and closer to 10 percent, and those that were employed didn’t have much job stability. Understandably, the Feds had to take measures to pull us out of recession by lowering rates –but the goal had always been to increase rates gradually as the economy recovered.

And that’s what they’ve been doing, slowly increasing in relation to the strength of the economy.

You Can Still Afford to Buy a Home Despite the Increase

In a competitive housing market, you’re worried that you’ll be outbid. But in a higher mortgage rate market, does that mean you’re out altogether? No!

While the current rate increase and planned increases by the Feds change things, it does not substantially change your buying power as a potential homebuyer.

How much you qualify for is more a matter of your income, debts, credit score, and the amount you can put as downpayment –and less to do with mortgage rates.

The rates do, however, impact your monthly payment. So for those homebuyers with a set monthly mortgage payment window, rising rates may change the listing prices of the homes you’re looking at. On the bright side, an increase in rates sometimes means lower asking prices –again, ensuring that you can still buy your dream home at a reasonable cost and affordable monthly payment despite higher interest rates.

2019 Is A Great Time To Buy A Home

Don’t let the hype of higher rates scare you into thinking you missed out on buying your first home. When you look at current mortgage rates in a historical lens, you’ll see that it’s a sign of a strong economy and the modest increase does little to affect your buying power.

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

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#TaraMTG Tuesdays: What You Must Know About Rent-To-Own Homes!

DHREA 04/12/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

If you’ve browsed home sale listings, you’ve probably seen ads for “Rent-to-Own or “Lease-to-Own” homes. These agreements are similar to traditional rental contracts. However, they also give you an option to purchase the rental home.

Curious as to what renting-to-own involves or wondering if it’s a good option for you? Read on to understand the details of a rent-to-own contract and contact us for personalized mortgage advice.

The Anatomy of Rent-To-Own Contract

A rent-to-own contract usually has two parts to the agreement: a standard lease agreement as well as a separate document that outlines your option to buy. Both documents may be incorporated into one document or they exist as two separate ones.

Rent Agreement

In the rental part of the rent-to-own arrangement, it’ll state that the property will remain as the landlord property unless you choose to exercise the right to purchase the home. While this document will include language that mentions “purchasing,” this is still foundationally a rental agreement. It is not a purchase agreement. Just like any other standard lease agreement, it will include terms concerning the amount of rent to be paid, lease period, and outline the repair and maintenance responsibilities of the landlord.

Purchase Agreement

This difference is most notable in the rent that you’ll pay, as we mentioned above. You’ll still be required to make timely monthly payments, but the amount will be substantially higher than the rent of a similar property. This “extra” amount that you pay is usually put into an escrow account as part of your option to buy. It’s the landlord responsibility to set aside this additional portion of the rent aside to apply toward the principle or to refund it should you decide to purchase.

Your Rights and Obligations

Lease-to-own arrangements have unique features that differ from common lease agreements. This difference is most notable in the rent that you’ll pay, as we mentioned above. You’ll still be required to make timely monthly payments, but the amount will be substantially higher than the rent of a similar property. This “extra” amount that you pay is usually put into an escrow account as part of your option to buy. It’s the landlord responsibility to set aside this additional portion of the rent aside and apply toward the principle of the house or refund it to you upon purchase.

In a way, you’re building equity in the house during the rental period.

Maintenance is also different. Unlike a traditional lease agreement where the landlord is responsible for all repairs, in the rent-to-own contract, you’ll be responsible for the upkeep of the property. Most tenants and landlords consider it a fair agreement since, typically, the tenant will own the house eventually.

Other Details

Until your exercise your right to purchase, the property is legally owned by the landlord. Yes, even if you have made significant repairs and have invested several months of “equity,” you’ll still have to comply with the terms of the rental agreement. If any of the conditions are violated, the purchase option is voided. You’ll lose your option fee as well as the escrow percentage of the monthly rent payments.

Risks and Benefits

Many consider a rent-to-own agreement because they lack funds for the down payment, or their poor credit has made them temporarily ineligible for a mortgage (remember that poor credit can be improved!). With a rent-to-own arrangement, a tenant will be able to gradually build equity in a property while still having the possibility to opt out. However, financially, this could make the situation worse. If you choose not to exercise the right to purchase the property or fail to come up with the funds for the purchase, you could lose all of the funds you accumulated on the escrow account.

If you have poor credit or zero funds to purchase a home, you have other options other than rent-to-own contracts. Call Tara Mortgage Services for a free consultation to learn about your options!

 

 

 

Connect with nearly 600 other Real Estate professionals! Join Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com today, and be the first to receive updates regarding Alex’s FREE monthly workshops!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
590 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 →

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

 

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#TaraMTG Tuesday! Most Popular Ways to Finance Home Improvements

DHREA 27/11/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Saving for making improvements to your home is often the least expensive route, but it’s not always possible. Thankfully, you have other options for financing! Our business is in home loans, so you might already guess, that’s the option we recommend, but you don’t have to take our word for it.

Read about all your home improvement financing options –from traditional home improvement loans to peer-to-peer loans to cash out refinancing –and decide which is best for you!

Traditional Home Improvement Loans

These loans are financed by banks, credit unions, and a few online lenders. You’ll get a lump sum to pay for all the labor and materials for your home improvements, such as replacing your HVAC system or putting in a new pool.

Though the name implies that it’s a home loan, it’s not –at least not in the typical sense of the term. It doesn’t consider your home equity nor does it require your home as collateral.

A home improvement loan is unsecured so you can expect a higher rate than you would with a secured loan.

Personal Line of Credit

This loan is also an unsecured loan and is collateral-free. You can use the lump sum however you wish. You can upgrade your home and set some money aside for a vacation too. Or maybe pay down some debt. They are funded reasonably fast and don’t require any equity in your home either.

However, a word of caution: the repayment period is usually shorter. This means that your monthly payment will likely be high. If you cannot afford to make high monthly payments, a personal line of credit may not be for you.

Peer-to-Peer Loan

These loans are funded by a group of investors rather than a bank or the government (we’ll talk about government loans below). They go by different names, and you may have even received a flyer in the mail from these non-traditional lenders.

On the upside, these loans are also funded quickly, and you can use the money however you want. The downside, however, is that these loans have some of the highest interest rates out there.

Home Equity Loans

Home equity loans and home equity lines of credit (HELOCs) have longer repayment periods with lower interest rates than the above-mentioned loans. That means your monthly payments will be small and more of the payment will go toward the principle.

Another big bonus is that the interest is tax deductible!

The biggest risk to this loan comes with defaulting. If you’re unable to repay the loan, you put your home at risk for foreclosure.

A home equity loan lets you borrow a lump sum, while a HELOC acts more like a line of credit.

With a HELOC, you have a “draw period” during which you can withdraw money. During this time, you only have to repay interest so your initial monthly payments will be quite low. When that draw period ends, your payments will then also include the principle. A HELOC typically has a variable interest rate, so your monthly payment could still be low even after the draw period ends, but it may also increase significantly.

If you prefer a fixed rate, then you’ll want to look at interest rates of a home equity loan or ask about our fixed-rate HELOCs.

Cash-Out Refinance

A cash-out refinance replaces your current mortgage with a new one, but this time you’ll borrow extra money to finance your home improvements. Borrowing more money means it will take longer to pay off your home, however, your new home loan may have a lower rate than your current one.

This option often requires you to have about 20% equity as well as meeting all the typical requirement of a home loan such as employment and good credit score.

FHA Title I Property Improvement Loans

If your equity isn’t high enough for a cash-out refi, consider an FHA Title I loan. This government-funded loan is for specific home improvements such as energy conservation. They cannot be used for “luxury improvements” such as swimming pools or outdoor patios. This loan caps at $25,000 with a 20-year repayment period. These loans are not widely available, so you’ll want to contact us to see if you qualify.

Want to know precisely how low your payment can be to fund your home improvement? Contact Tara Mortgage Services today! Use their digital home loan application and upload your docs securely in between shopping for floor tile and a new kitchen countertop!

 

Join nearly 600 other real estate professionals in Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com! Click below!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
589 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 →

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

 

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Tara Mortgage Tuesday: The Housing Market is Hot in the New Boomtowns

DHREA 20/11/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Boomtown -a town undergoing rapid growth thanks to recent prosperity.

It was not that long ago that we saw a migration of businesses moving operations overseas or across the border to Mexico due to the cost of running a business. Now, we’re seeing something similar with renters and homeowners.

Why Homebuyers Are Choosing New Boomtowns

The cost of living in cities like New York, Los Angeles, and Miami has risen astronomically. Anyone looking to buy their first home or upgrade to something bigger in these areas will find themselves in shock when they see how little their money can buy.

For example, in Los Angeles, it’s not unusual to find a tiny 650f sq ft apartment rent for $1500 a month –not including utilities. The cost of living in New Haven, CT is over 11% higher than the rest of the country.

How much does it cost a family of four to live comfortably in the Boston, MA area? Just about $9,500 a month!

Property taxes are one of the reasons that current homeowners are deciding to move out of higher-priced areas to these secondary boomtowns.

Republicans recently overhauled taxes in several states, which eliminated a lot of the tax benefits homeowners received. Without these benefits offsetting the higher-than-average mortgage, homeownership in these areas just doesn’t make sense.

 

Not Trading Down

On a positive note, homebuyers that are choosing these secondary boomtowns are not seeing it as a “trade down” from their ideal location. In fact, they see it as an improvement to their quality of life and even an opportunity to be part of the prosperity-building.

Secondary boomtowns such as Nashville, Sacramento, Tampa, and Austin have all the perks of big city life with family-oriented entertainment, trendy restaurants, art and culture, and career growth opportunities but with less traffic, competition, and cost.

Also, unlike higher-priced areas, most of these secondary boomtowns are dedicating more to residential development rather than commercial. The lower cost of living also gives homebuyers more options as to whether they want to buy in the city or in the suburbs right outside the city.

If you’re a current homeowner in a higher-priced area, it’s still a great time to sell and move! Despite the higher home prices and recent mortgage rate increase, these areas remain desirable and home sales have not slowed down by much.

Secondary boomtowns are experiencing rapid growth and we expect home prices are likely to follow. If you’ve been thinking about buying a home, now is the time! Contact Tara Mortgage Services today to get pre-approved fast and start your new year in a new home!

Join nearly 600 other real estate professionals in Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com! Click below!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
589 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 →

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

 

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#TaraMTG Tuesdays: Five Quick Ways to Estimate Your Home’s Value!

DHREA 13/11/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Home values change pretty quickly, which makes it tricky to get an accurate home value estimate without a professional. Whether you’re thinking about selling in the future or just curious, there are ways to find out the value of your home in a less official manner.

5 Methods for Calculating Your Home Value Without an Official Appraisal

Ask a Real Estate Agent

A real estate agent familiar with your neighborhood can give you a reasonable estimate of your home’s value. You may even consider getting several estimates from various agents for an even more accurate assessment.

Hire an Independent Appraiser

If you’re selling, buying or refinancing, an appraiser has likely come out to review your home. But did you know that you can hire one independently?

As an independent, they can calculate a fair value without any outside pressures. Although not typical, banks sometimes put pressure causing appraisers to have an overly critical eye. With this unbiased outside opinion, you can feel more confident about how much they say your house is worth.

Compare Recent Home Sales

One of the ways that appraisers determine the value of a home is to review sales of similar properties sold recently. These are called “comparables.” We recommend comparing the prices of properties that have sold within the past six months and within one mile of your home.

Use the Internet

The internet is a great place to see what homes are selling for in your neighborhood or what they have recently sold for. Some real estate sites even have online tools for assessing your property’s value by just inputting your address.

Cruise Your Neighborhood for Open Houses

Take a Sunday afternoon to check out your local open houses and see what they are going for. You can also ask the real estate agent questions about what other homes have sold for in the neighborhood or their opinion of the demand for housing in that area. They can also give you insight into the recent upgrades that the current homeowner did to help raise the value of the home.

If nothing else, you’ll get ideas for ways you can upgrade your home either for reselling or just for personal satisfaction.

Combine several of these methods, and you’ll get a pretty good idea of what others are willing to pay for your home. Thinking about selling? Besides knowing how much you can get for your home, it’s also important to know how much you can afford for your next one.

Contact Tara Mortgage Services today for a no-obligation home loan pre-qualification!

 

 

Join nearly 600 other real estate professionals in Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com! Click the box below!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
585 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 →

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

 

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Homeowners…Should You Relocate For A New Job?

DHREA 06/11/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

When you’re a renter, relocating for a new job isn’t too difficult. You give your current job your two-week notice, your landlord a 30-day notice, put down your deposit on your new place and within a month you have a whole new life.

But things aren’t as easy when you’re a homeowner. Indeed, one of the biggest perks of owning a home is that you can set down roots, so it makes it more difficult to move to a different location and settle down again.

As exciting and welcoming as the new career may seem, as a homeowner, you might start to wonder whether it’s the right choice or whether it’s worth it.

Our office often hears from others in situations just like this –weighing their options for selling their home and relocating for a new job. Here are some things to think about before you decide for or against relocating for work.

Is Relocating for the Job a Good Idea in the First Place?

New city, new career, new home. It all sounds pretty fantastic but remember that there more to life than just work.

  • How would relocating effect your spouse or partner?
  • What changes can you expect for schooling for your children? What about daycare?
  • Does living in a new place move you further away or closer to loved ones –how does that make you feel?
  • If you’re unable to find a home right away, will your new employer provide temporary housing?
  • Will they help with the cost of relocating?
  • How does the move affect your cost of living? Does it fit in your budget?

The decision to relocate your life shouldn’t be made hastily. Try to separate yourself from the romanticism of it and consider all the ramifications that this change would have on your life, as well as the lives of your family.

Should You Sell Your Home if You Relocate?

If relocating makes sense and you’ve decided to take a new position, it’s time to decide what to do about your existing home.

One option is to buy a second home and keep your first home as an investment property. There are specific location requirements when it comes to having two mortgages, one for your primary residence and the other for your investment property. However, since you are relocating, meeting location requirements will unlikely be an issue and applying for a loan for your new home begins the same as the first time around.

What may end up being a problem is the actual management of the property. Managing a rental property in a different location can be difficult. While it comes at a cost, you may want to use a property management company to take care of it for you.

The other option and the one we most often recommend is to sell your first home. Read on to see how to get started.

Tips for Buying A Home and Relocating Quickly

Buying a home comes with a sense of urgency, but when combined with a work relocation, the anticipation doubles. Here’s how you can prepare and make a move quickly and easily.

  • Get pre-qualified as soon as possible.
  • Look for a mortgage professional with a history of closing on-time. You’re on a tight timeline so closing on time should be your lender’s priority too.
  • Respond quickly to requests for documentation such as tax returns, bank statements, and W2′s.Take advantage of electronic submission whenever possible.
  • Travel light. Go through your household and personal items with a critical eye and donate as much as you can to charity.
  • Make a spreadsheet of who to notify about the move such as your bank, credit card companies, utilities. This will help to minimize disruption to service.

Are you relocating or do you know someone who’s relocating?

Contact Tara Mortgage Services today to get your pre-approval started!

 

 

Don’t miss Alex Deacon’s final Real Estate Workshop of 2018!!! We’ve opened up the room for extra seating due to our growing attendance. Click below to connect with Alex on MeetUp.com, network with nearly 600 other Real Estate Professionals, and RSVP to the November workshop!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
580 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 …

Next Meetup

Virtual Bus Tour of Current and past rehabs

Saturday, Nov 10, 2018, 10:00 AM
34 Attending

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

 

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Avoid These Mistakes That Delay Closing Your Home Loan

DHREA 30/10/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Our goal is to get your home loan to close as quickly as possible –we know that when it comes to making an offer on your dream home, time is crucial. Did you know that you also play an essential role in making your loan close fast?

Here are the most common causes that delay home loan approval and closing:

#1: Missing Financial Details

We don’t need to know your entire financial history, but we will need to see every detail from the past two years. Don’t worry; we’ll let you know precisely what you need to provide, making sure that everything moves as quickly as possible.

#2: Leaving Out Documentation

The documentation needed for your loan may vary (and we’ll let you know what your loan calls for) but keep in mind that we’ll need the following:

  • Tax returns and W-2s from the past two years (or year-to-date financial statements for the self-employed)
  • Last month’s pay stubs
  • Two months of bank account statements
  • Copy of any transactions that exceed $1,000 Home insurance quote
  • Financial details of any other homes, businesses, or vehicles that you own
  • If anything significant pops up when we check your credit, we’ll need documentation for this as well.

#3: Mistaking Pre-Qualified For Approval

Pre-qualified requires minimal information from you. It’s a great way to get an idea of how much you can afford to buy, but it doesn’t mean that your loan is approved. Applying for a loan, getting approved for the loan, getting the underwriting approved are the additional steps that need to happen before your loan is approved and can take the step toward closing. Don’t let this discourage you! We take care of all the heavy lifting and make sure that it moves along quickly. All we need from you is to get the ball rolling by applying for a mortgage.

#4: Not Sharing Details Of The Offer With Us

When you buy a home, the purchase contract will layout certain financial milestones that we need to know about, such as by when your loan approval should be secured and how many days you have to close. If we miss any of these dates, not only will it delay your loan but it could cause you to lose the home!

#5 Making Big Changes to Your Finances or Career

Changing jobs, opening a new line of credit, making big purchases, or loaning your friend 3k to start up their business changes your financial portfolio. This means that adjustments must be made and you may not qualify for as much as you originally were quoted. The application process, essentially, needs to start over –delaying your home loan and delaying closing even more.

There are many more factors that could delay your home loan, things that are out of your control. Rest assured that we will be with you, ready for any surprises, minimizing any unnecessary delays.

Contact Tara Mortgage Services today to partner with a home loan specialist that has your best interest in mind!

 

 

ALEX DEACON’s NOVEMBER REAL ESTATE WORKSHOP HAS BEEN ANNOUNCED! CLICK BELOW FOR DETAILS, TO RSVP, AND TO CONNECT WITH NEARLY 600 REAL ESTATE PROFESSIONALS!

Virtual Bus Tour of Current and past rehabs

Saturday, Nov 10, 2018, 10:00 AM

Hampton Inn Bridgeville
150 Old Pond Rd Bridgeville, pa

20 Members Attending

We have done a few actual bus tours in the past but with the strong turnout I dont like to have to turn down folks due to the high volume of requests. Our next workshop in November we will do a virtual tour of some current and past projects and show you where to spend your money wisely and where you can and cant cut corners in order to stay profita…

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

 

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#TaraMTG Tuesdays: Unpacking and Understanding The Mortgage Payment

DHREA 23/10/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

As a first-time homebuyer, you likely have questions about your mortgage payments and how it’s calculated. How much can you expect to pay? How are taxes paid? What’s the purpose of mortgage insurance?

This post will unpack your mortgage payment so you know what you’re paying for each month.

How the payments are broken down depending on the type of loan, but generally, you can expect your mortgage payment to include 4 items. These items are lumped into a single monthly payment and can be remembered with the acronym P-I-T-I.

P is for Principal

The principle is the total amount that you borrow to buy the home. For example, if your loan is for $240k, your principal is also $240k. The amount you pay toward the principal doesn’t usually change, unless you refinance, and depends on the amount of your initial down payment and the total life of the loan.

I is for Interest

Interest is the fee you pay for borrowing the funds to buy the home. Also known as the mortgage rate, it varies depending on market conditions at the time you locked in your home loan. Your rate is also determined by your credit history, among other factors.

There are two mortgage rate options for homebuyers – a fixed-rate mortgage and an adjustable-rate mortgage. With a fixed rate, your interest rate will remain the same for the life of the loan, even if market rates go up over the years.

With an adjustable rate, your interest rate is fixed for a set amount of time (usually five years), then changes to whatever the current market rate. With an adjustable rate, your mortgage payment may increase or decrease at each adjustment interim.

T is for Taxes

Taxes are based on the value of your property. Your property is assessed every year to determine how much you will pay in property taxes. You can choose to include the property tax in your mortgage payment, dividing your annual bill into 12 payments. It’ll be held in escrow until taxes are due, after which they are paid on your behalf.

I is for Insurance

Insurance protects the loan in the event of a disaster or an accident. Similar to property taxes, your insurance payments can be collected, held in escrow, and paid to the insurance company directly every year. Usually, your insurance payment won’t change over the years, unless you add additional coverage.

Knowledge is power, and we believe that every homebuyer should know where their monthly mortgage payment goes. Whether you’re ready to buy or you’re looking to refinance into a lower rate, a helpful home loan specialist is available to you through the phone, on the web, or in person.

Contact Tara Mortgage Services today to learn more!

 

 

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Carnegie, PA
573 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 …

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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

 

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#TaraMTG Tuesdays: Is A Reverse Mortgage Better Than A Traditional Mortgage?

DHREA 16/10/2018

(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)

 

Reverse mortgage versus a traditional mortgage…is one better than the other? The answer is that it depends on the situation. They have many similarities, but there are a few key differences that make reverse mortgages a better choice than a traditional mortgage. Or vice versa.

This article breaks down the basics of these two types of home loans to give you a general idea of when to choose one over the other. Because every situation is unique, we encourage you to call Tara Mortgage Services for personalized and honest home loan assistance.

Similarities Between Reverse Mortgages and Traditional Mortgages

One similarity that these home loans share is that they both allow you to borrow money based on your home equity. Both loans are also available with a few different options such as a fixed or adjustable rate or may government insured. An example of a traditional home loan that is insured by the government is an FHA loan while an example of a government-insured reverse mortgage is a HECM.

Differences Between Reverse Mortgages and Traditional Mortgages

The most notable difference is that there are no monthly payments required on a reverse mortgage. You pay as little or as much as you want when you want. This payment option is possible with a reverse mortgage because it works mainly by borrowing money against a home that you already own. With a traditional loan, you borrow money from a lender and promise to pay it back, plus interest, over several years.

A reverse mortgage is most often used to get cash out of your home. Although you can get cash out when you refinance with a traditional loan, most often people will refinance to a conventional loan to lower their monthly payments or get a lower interest rate.

When it comes to paying back the loan, with a traditional mortgage you pay it back every month for several years, as we mentioned above. However, with a reverse mortgage, you can choose to make monthly payments, pay off the loan through the sale of your home, or at your passing.

Which Loan is Right for You?

If you’re over the age of 62 and are looking at you home loan options, a reverse mortgage may seem pretty attractive. In many cases it is a better choice, but not always. Investments, lifestyle, immediate financial needs, and what you plan to in your trust for your beneficiaries are all items to consider before deciding on one option over the other.

If you are investigating these options for a parent of retirement age rather than for yourself, please forward this information to your parents. We’ve earned a reputation of trust and steadfastness –you can confidently recommend Tara Mortgage Services to your family and friends.

 

 

We’re coming off of our most successful workshops! Connect with almost 600 other real estate professionals. Join Alex Deacon’s Real Estate group today!!!

Alex Deacon Real Estate Networking Workshops

Carnegie, PA
572 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 →

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

 

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