New to Applying for a Mortgage? Here’s What You Need to Know

Applying for your first home mortgage in Nashville might seem like an easy process simply because people buy and sell homes every day. However, buying a home is not like buying a new bike or even a new car, and applying for a home mortgage can be a time consuming process requiring a lot of patience. But, if you know what to expect up front, the home mortgage process will be much easier and a lot less stressful.

The following 3 tips will help you save time and money when researching and applying for a home mortgage to suit your specific needs.

Nashville Home Mortgage Tip #1: Interest Rates – before choosing a lender you will want to shop around to see what current Nashville mortgage rates are. Shopping for mortgage rates online is a time saver and you can frequently find lower rates as well. Your mortgage rate will affect how much money you have to pay back over the term of the loan, so the lower the better.

Nashville Home Mortgage Tip #2: Fixed or Variable Interest Rate – when it comes to your mortgage there are more options than just a loan you pay back over a set amount of time. You can choose different mortgage interest rates that work best for your current and future situation. So, before you apply for a mortgage do some research on variable and fixed interest rates to find what will work best for you.

Nashville Home Mortgage Tip #3: Down Payment – when first applying for a Nashville mortgage you might not know the specific amount of the down payment you will be required to pay. If you have questionable credit, many times a lender will require you to pay between 10% and 20% of the home’s value up front, but if you have good credit you can make a lower down payment AND get a great rate. This depends on the lender, so shop around.

When buying or selling Nashville homes, be sure you use a Nashville Realtor who is ranked in the top 10% of Realtors nationwide, be sure to use the Remarkable Homes Team! We have save our clients time, money and headaches!

If you found this post helpful, you might also like:
Nashville Mortgage Rates Drop Again
Nashville Area Mortgage Rates Jump Higher
Bank of America Finalizes Countrywide Purchase

New to Applying for a Mortgage? Here’s What You Need to Know

Applying for your first home mortgage in Nashville might seem like an easy process simply because people buy and sell homes every day. However, buying a home is not like buying a new bike or even a new car, and applying for a home mortgage can be a time consuming process requiring a lot of patience. But, if you know what to expect up front, the home mortgage process will be much easier and a lot less stressful.

The following 3 tips will help you save time and money when researching and applying for a home mortgage to suit your specific needs.

Nashville Home Mortgage Tip #1: Interest Rates – before choosing a lender you will want to shop around to see what current Nashville mortgage rates are. Shopping for mortgage rates online is a time saver and you can frequently find lower rates as well. Your mortgage rate will affect how much money you have to pay back over the term of the loan, so the lower the better.

Nashville Home Mortgage Tip #2: Fixed or Variable Interest Rate – when it comes to your mortgage there are more options than just a loan you pay back over a set amount of time. You can choose different mortgage interest rates that work best for your current and future situation. So, before you apply for a mortgage do some research on variable and fixed interest rates to find what will work best for you.

Nashville Home Mortgage Tip #3: Down Payment – when first applying for a Nashville mortgage you might not know the specific amount of the down payment you will be required to pay. If you have questionable credit, many times a lender will require you to pay between 10% and 20% of the home’s value up front, but if you have good credit you can make a lower down payment AND get a great rate. This depends on the lender, so shop around.

When buying or selling Nashville homes, be sure you use a Nashville Realtor who is ranked in the top 10% of Realtors nationwide, be sure to use the Remarkable Homes Team! We have save our clients time, money and headaches.

Private Mortgage Insurance Explained

Many a first-time homebuyer has grumbled about paying private mortgage insurance. This article discusses the subject of private mortgage insurance, also known as “PMI.”

Private Mortgage Insurance

Unless the owners are insane, every business in the United States carries some form of insurance to protect against losses. The various lending institutions that issue Nashville home loans, equity lines, and refinances to borrowers are no different. The insurance they carry is private mortgage insurance.

Private mortgage insurance protects a lending institution from losses if you default on your home loan and your home goes into foreclosure. Essentially, the lending institution is going to be covered for any shortages between the cost of liquidating the home and the amount of the loan. This is of particular importance to a lender when the housing market pulls back from high valuations. In such a pull back, it is not uncommon to see the total mortgage balance exceed the value of the home. Obviously, this makes lenders uncomfortable.

PMI – Premiums

Most homeowners understand the need for private mortgage insurance. The grumbling starts, however, when they find out who has to pay for the insurance. Yep, you the homeowner are on the hook. As the homeowner, you are paying for insurance that will protect the lender if you default. While this may not seem fair, keep in mind the lender is giving you a rather sizable chunk of money. If you are still grumbling, there is a way to avoid paying mortgage insurance.

The 20% Down Rule

If you accept a home loan, the 20% figure will become an extremely important figure. Why? 20% is a magic figure in the world of Nashville home loans and mortgages. If you make a down payment of 20%, you are not required to obtain or pay for private mortgage insurance. With PMI premiums running $1,000 or more a year, it makes sense to make a 20% down payment if at all possible.

What if you can’t scrape together 20% of the home value for the down payment? Well, you’re stuck paying PMI, but not forever. Once your equity in the home reaches 20% of the valuation, you can cancel the PMI. Keep a close on your equity as lending institutions are under no duty to tell you when the magical 20% figure is reached. Oddly, they almost never seem to remember!

PMI

Private mortgage insurance is expensive, but you can avoid it with a sizeable down payment. If you do not have that much money on hand, try to keep in mind your home in Nashville is an investment and the home loan gives you the ability to buy it.

If you enjoyed this post, you might also enjoy:
National Foreclosures Rise in 2nd Quarter
Foreclosure Opportunity in the Green Hills Area
Mortgage Rates Edge Upward

Private Mortgage Insurance Explained

Many a first-time homebuyer has grumbled about paying private mortgage insurance. This article discusses the subject of private mortgage insurance, also known as “PMI.”

Private Mortgage Insurance

Unless the owners are insane, every business in the United States carries some form of insurance to protect against losses. The various lending institutions that issue Nashville home loans, equity lines, and refinances to borrowers are no different. The insurance they carry is private mortgage insurance.

Private mortgage insurance protects a lending institution from losses if you default on your home loan and your home goes into foreclosure. Essentially, the lending institution is going to be covered for any shortages between the cost of liquidating the home and the amount of the loan. This is of particular importance to a lender when the housing market pulls back from high valuations. In such a pull back, it is not uncommon to see the total mortgage balance exceed the value of the home. Obviously, this makes lenders uncomfortable.

PMI – Premiums

Most homeowners understand the need for private mortgage insurance. The grumbling starts, however, when they find out who has to pay for the insurance. Yep, you the homeowner are on the hook. As the homeowner, you are paying for insurance that will protect the lender if you default. While this may not seem fair, keep in mind the lender is giving you a rather sizable chunk of money. If you are still grumbling, there is a way to avoid paying mortgage insurance.

The 20% Down Rule

If you accept a home loan, the 20% figure will become an extremely important figure. Why? 20% is a magic figure in the world of Nashville home loans and mortgages. If you make a down payment of 20%, you are not required to obtain or pay for private mortgage insurance. With PMI premiums running $1,000 or more a year, it makes sense to make a 20% down payment if at all possible.

What if you can’t scrape together 20% of the home value for the down payment? Well, you’re stuck paying PMI, but not forever. Once your equity in the home reaches 20% of the valuation, you can cancel the PMI. Keep a close on your equity as lending institutions are under no duty to tell you when the magical 20% figure is reached. Oddly, they almost never seem to remember!

PMI

Private mortgage insurance is expensive, but you can avoid it with a sizeable down payment. If you do not have that much money on hand, try to keep in mind your home in Nashville is an investment and the home loan gives you the ability to buy it.

So you think you know Nashville?

As of the latest information statistics from the 2003 census update, Middle Tennessee has a total population of 1,435,528.

Did you know that Wal-Mart is Tennessee’s largest private employer? They gainfully employ 32,000 people in Tennessee. Fed-Ex is second on the list with 30,000 employees; Vanderbilt is third with 16,279; Kroger Limited is fourth with 15,500; and Eastman Chemical Corp. is fifth with 11,100 employees.

Did you know that there are 36 hospitals in Middle Tennessee? Our incredibly plentiful health care system is anchored by Baptist Hospital, Saint Thomas Hospital, Centennial Hospital, and Vanderbilt University Medical Center.

Did you know that Nashville has 71 secular and non-secular private schools? Several of these institutions have nationally ranked academic and athletic programs; including, Montgomery Bell Academy. For the 2004-2005 academic year, MBA has 12 National Merit Scholar semifinalists (twice as many as any other Nashville area school) and 100% of the student body is college-bound.

There are also 36 higher education institutions in Middle Tennessee including Vanderbilt University, Fisk University, Belmont University, and Lipscomb University. This ranks Nashville and Middle Tennessee as the 7th most prolific center for higher education in the United States.

Last year, Middle Tennesseans gave $17.9 billion, yes Billion dollars to charity.

And finally, the July 2005 median home prices by County:
Cheatham – $136,000; Davidson – $157,400; Dickson – $110,000; Maury – $140,000; Robertson – $139,900; Rutherford – $143,200; Sumner – $170,000; Williamson – $315,482; Wilson – $172,050

Don’t you think that your Realtor should know all these things are more? We agree. The Remarkable Homes Team knows Middle Tennessee like the back of our hands! We love our home and are very excited to help your family move to this amazing area of the country.

We know Middle Tennessee and Nashville Real Estate! Call us today 615-945-7123!!

If you liked this post, you may also enjoy:
Nashville Housing Inventory Declines
Nashville Mortgage Rates Remain Low
April Home Sales Data – Nashville, TN

So you think you know Nashville?

As of the latest information statistics from the 2003 census update, Middle Tennessee has a total population of 1,435,528.

Did you know that Wal-Mart is Tennessee’s largest private employer? They gainfully employ 32,000 people in Tennessee. Fed-Ex is second on the list with 30,000 employees; Vanderbilt is third with 16,279; Kroger Limited is fourth with 15,500; and Eastman Chemical Corporation is fifth with 11,100 employees.

Did you know that there are 36 hospitals in Middle Tennessee? Our incredibly plentiful health care system is anchored by Baptist Hospital, Saint Thomas Hospital, Centennial Hospital, and Vanderbilt University Medical Center.

Did you know that Nashville has 71 secular and non-secular private schools? Several of these institutions have nationally ranked academic and athletic programs; including, Montgomery Bell Academy. For the 2004-2005 academic year, MBA has 12 National Merit Scholar semifinalists (twice as many as any other Nashville area school) and 100% of the student body is college-bound.

There are also 36 higher education institutions in Middle Tennessee including Vanderbilt University, Fisk University, Belmont University, and Lipscomb University. This ranks Nashville and Middle Tennessee as the 7th most prolific center for higher education in the United States.

Last year, Middle Tennesseans gave $17.9 billion, yes Billion dollars to charity.

And finally, the July 2005 median home prices by County:
Cheatham – $136,000; Davidson – $157,400; Dickson – $110,000; Maury – $140,000; Robertson – $139,900; Rutherford – $143,200; Sumner – $170,000; Williamson – $315,482; Wilson – $172,050

Don’t you think that your Realtor should know all these things are more? We agree. The Remarkable Homes Team knows Middle Tennessee like the back of our hands! We love our home and are very excited to help your family move to this amazing area of the country.

We know Middle Tennessee and Nashville Real Estate! Call us today 615-945-7123!!

Speak Your Mind

*