Posts Tagged ‘Chattanooga Mortgage’

How to Pay Off Your Chattanooga Mortgage Early

Saturday, February 27th, 2010

Few things sound better than paying off a thirty-year Chattanooga real estate mortgage early.  Not only will you be free of mortgage payments, you could also save thousands of dollars in interest payments over the life of the loan.  Here are four ideas to help you pay off your mortgage early:

  1. Apply any windfall monies you receive to your mortgage balance.  Be sure to indicate that this is an extra payment and should be applied exclusively to your principle.
  2. Make bi-weekly mortgage payments.  Making exactly one-half payment every two weeks will add up to a total of twenty-six half payments per year.  Or, thirteen whole payments each year instead of twelve.  That’s the secret to paying off a Chattanooga real estate mortgage early with bi-weekly payments.  The interest rate itself isn’t reduced, but the amount of money you pay in interest on the principal is.
  3. Overpay a fixed amount every month.  By sending in an extra fixed amount as an additional principal payment every month, you’ll reduce the length of time it takes you to pay off your mortgage. By sending in a fixed amount every month, you can easily automate this process.
  4. Use a prepayment calculator to figure out other ways to pay your mortgage off early.  The free prepayment calculators available on the internet can also help you determine how quickly you can become mortgage free.

Before implementing any of these methods to pay off your Chattanooga real estate mortgage early, contact your mortgage lender to find out if you’ll be incurring any additional fees.  It’s also a good idea to ask your mortgage lender if there are any specific instructions you need to follow to be sure your payments are processed correctly.

Thinking about buying a home that you can pay off quickly?  Call me now at 423-488-1882 or email me at travis@travisclosehomes.com for more information.

Keyword/Tag: Chattanooga Mortgage

LINKS:

Bi-weekly mortgage payments:

http://financialplan.about.com/od/realestatemortgages/qt/Bi-Weekly-Mortgage.htm

Overpay a fixed amount:

http://www.fivecentnickel.com/2009/06/03/how-to-pay-off-your-mortgage-early/

prepayment calculator:

http://www.calculators4mortgages.com/mortgage-calculator/early-payoff-pre-pay

Tags:
Posted in Chattanooga Mortgage | Comments Off

First Steps to Getting a Mortgage for Your Chattanooga Home

Tuesday, December 1st, 2009

You’ve reached that time in your life where you’re ready to buy Chattanooga real estate.  Even though the mortgage approval process can be intimidating, you can get yourself ready to apply for a loan.  These are the first steps to buying your home:

 

Make a List

First, make a list of your finances.  Include all your income, and factor in your normal monthly debts.  Miscellaneous bills, like your daily coffee or weekly magazine, should be listed too.  Write down everything that you spend each month.

 

Calculate what 28% of your income is.  Most loan officers recommend not spending more than 28% on your housing costs.  You may not want to take on a mortgage loan for the maximum amount offered without consulting your list to see what money is actually available for you to spend.

 

Decrease Your Debt

Once you’ve have detailed your finances, it’s time to make a budget.  A good budget can help you eliminate wasteful spending which will allow you to pay off more of your debts.  When planning your budget, don’t forget to include some personal money. 

 

Start with the small debts first.  Pick the credit card with the highest interest rate and smallest balance and work from there.  After one debt is paid off, use the extra money that you’re saving from the first card, and pay off the next.  This way, you should be able to pay your balances down quickly.

 

It only takes a couple of months of good payment practices to begin to see your credit score go up. With a good credit score, you can get a better interest rate.  This will save you thousands of dollars in mortgage payments over the life of the loan.

 

Save For the Down Payment

You’re ready to start saving for the down payment on your Chattanooga real estate.  It has to be paid up-front at the loan closing, but sometimes the seller will pay the closing costs.

 

If you’d like more tips on how to buy Chattanooga real estate, subscribe to this blog.  It’s free and easy.  Just enter your email address in the subscription section, and you’ll automatically receive tips like this in your email inbox a couple of times a week.

 

Keyword/Tag: Chattanooga Mortgage

 

LINKS:

Decrease your debt:

http://www.wisebread.com/six-steps-to-eliminating-your-debt-painlessly

 

Make a budget:

http://www.mrcheapstuff.com/deals/2009/06/how-to-create-a-budget-the-painless-way/

 

Credit score:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm

Tags:
Posted in Chattanooga Mortgage, Chattanooga Real Estate | Comments Off

5 Things to Think About Before Refinancing Your Chattanooga Home

Tuesday, July 28th, 2009

If you’re thinking about refinancing your Chattanooga home, you might want to think about a few other things first.

 

1.  Are the mortgage rates higher or lower than when you first financed your house?  If current mortgage rates are lower, refinancing might be a good idea.  If they’re higher, however, you should reconsider.

 

2.  Why are you refinancing?  If you’re trying to get a better mortgage rate, it might be a good idea.  However, if you’re refinancing to pay off credit cards or go on vacation, not only should your probably not refinance, you probably shouldn’t be going on vacation, either.

 

3.  Do you currently have a fixed rate or an adjustable rate mortgage?  Since mortgage interest rates are still rising, it might be a good idea to refinance to a fixed rate if your mortgage interest is adjustable.  However, if you have a low fixed rate mortgage on your Chattanooga home, it probably would be better to stay with it.

 

4. How much longer do you plan to stay?  If you plan to stay in your Chattanooga home for five years or longer, refinancing might be a good idea.  However, if you plan on a shorter amount of time, due to the cost of refinancing, you may end up losing money.

 

5.  Do you have the money for refinancing?  Refinancing a house costs time and money.  The fees for refinancing can be a hefty $3,000 or more, which means you may not save any money for two or three years after refinancing your home.

 

If you need help refinancing your home or financing a new home, I can help.  Call me today at 423-488-1882 or email me at travis@travisclosehomes.com  for more information.

 

Keyword:  Chattanooga home

 

Links:

Refinancing your Chattanooga home

http://finance.yahoo.com/how-to-guide/loans/12821

 

Current mortgage rates:  Link to the page on your website where you have current mortgage rate information or link to http://www.mortgage101.com/articles/dailyratesurvey.asp

 

Fees for refinancing

http://www.smartmoney.com/personal-finance/real-estate/4-costly-fees-to-watch-out-for-when-refinancing/

 

Tags:
Posted in Chattanooga, Chattanooga Mortgage, Chattanooga Real Estate | Comments Off

Stimulus Isn’t Just for New Chattanooga Real Estate Buyers

Wednesday, April 8th, 2009

All the talk is about how the President’s stimulus plan helps out new and first time home buyers.  The good news is that it also helps homeowners.  You can get stimulus plan benefits from your existing Chattanooga real estate too.  Add a little green living to your environment and you’ll be pocketing some change at the end of the year from your income tax return.

Under the stimulus plan, both eco friendly new home purchases and eco friendly improvements on existing homes are tax deductible. Now’s the time to make your home more energy efficient and get a break at the end of the year for your efforts.

Going green saves money, makes your living environment healthier, and improves the world we live in. To reap the benefits from the stimulus plan, you can make major home improvements such as adding solar power or moderate priced home improvements such as adding low flow water fixtures.

You need to make your home improvements soon to get the stimulus plan benefit.  The plan only allows for the tax benefits through the year 2010.  Why wait?  Use this as motivation to get your projects started (and completed) now.

Here are a few additional eco friendly home improvements to consider for your Chattanooga real estate:

·         Re-cover your roof: The color of your roof can make a big difference in how well your attic retains or refracts heat and cold.

·         Install an energy efficient Energy Star furnace: Make sure it has a high SEER rating (seasonal energy efficient ratio).

With a little work and a reasonable investment, your Chattanooga real estate will not only pay you back in dividends for years to come, it could get you a great tax break.

If you need more ideas for how to make your home energy efficient and get tax credits, give me a call at 423-488-1882 or email me at travis@travisclosehomes.com .

KEYWORDS: Chattanooga real estate

Links:

Stimulus plan: http://www.reversemortgageadviser.com/blog/reverse-mortgages/economic-stimulus-plan-mortgage/

Eco friendly improvements: http://www.toolbarn.com/articles/tips-to-be-green.html

Energy Star:  http://www.energystar.gov/index.cfm?c=home_improvement.hm_improvement_index

Travis Close

ABR, e-PRO, GREEN

Prudential RealtyCenter.com

1315 Taft Highway

Signal Mountain, TN 37377

423-886-2601

423-488-1882

Tags: , , ,
Posted in Chattanooga Mortgage, Chattanooga Real Estate | No Comments »

How Will Loan Modification Affect Your Chattanooga Home Mortgage?

Thursday, March 26th, 2009

Perhaps you are upside down in your Chattanooga home mortgage, if so, you may qualify for a loan modification that will reduce your monthly payments.  Even if you have an adjustable rate mortgage, you may still get approval to modify your loan.

Most lenders would rather work out a loan modification instead of starting the foreclosure process.  This is because there is considerable expense involved in foreclosing on a Chattanooga home.

What types of loan modifications are available to you?  Most lenders have many programs that will help you avoid foreclosure, such as:

·         Forbearance.  Your current loan payment is suspended for a pre-determined amount of time to allow you to catch up on past due amounts.

·         Forgiveness.  Sometimes a lender will forgive or cancel part or all of the past due amount.  You can then start making your regularly scheduled payments as agreed.  When the lender writes off part of your mortgage debt, it may have a negative impact on your credit score.

·         Refinancing.  You may have the option to refinance your mortgage loan, including the past due and late fees, into the new principal of the loan.  This will help you avoid more damage to your credit score.  Depending on the equity in your home, you may receive money back when the loan closes.

Loan modification programs may help save your home from foreclosure and protect your credit rating.  One program, HOPE for Homeowner’s, doesn’t have credit score requirement.  It does mandate that:

·         The home is the primary place of residence and the homeowner can’t own any other property.

·         There was no fraud in the loan documentation and the homeowner can’t have been convicted of fraud in the past ten years.

·         The mortgage payments must exceed 31 percent of homeowner’s gross income.  There must be documentation that the homeowner can’t afford to pay the mortgage any longer.

If the lender is willing to reduce the payoff amount on your Chattanooga home, this program may be ideal for your situation. 

If you’d like more tips like this one, please subscribe to this blog.  You’ll automatically receive free real estate and home maintenance tips in your inbox about twice a week.

KEYWORD:  Chattanooga home

LINKS:

Adjustable rate mortgage: http://www.federalreserve.gov/pubs/arms/arms_english.htm

Foreclosure: http://www.investordictionary.com/definition/foreclosure.aspx

Credit score: http://www.equifax.com/home/

 

Travis Close

ABR, GREEN, e-PRO

Prudential RealtyCenter.com

1315 Taft Highway

Signal Mountain, TN 37377

423-886-2601

423-488-1882

Tags: ,
Posted in Chattanooga Mortgage, Chattanooga Real Estate | No Comments »

Can You Stop Foreclosure On Your Chattanooga Condo?

Tuesday, March 17th, 2009

If you’re looking at hard times, and have fallen behind on your Chattanooga condo mortgage payments, you may already think it’s too late to save your home from foreclosure.  But rest assured, you can take steps to keep your home and stop the process. 

·        One of the most important things to do is keep the lines of communication open with your lender.  Most lenders would much rather avoid foreclosing on your Chattanooga condo.  If you call your lender as soon as you miss a payment, you may be able to qualify for a forbearance, which could cancel the payment that you are unable to make.  You are unlikely to receive forbearance more than once, so make sure that you will be able to start making payments at the time the forbearance runs out.

·        Of course, the simplest way to avoid foreclosure is to pay the total amount owed, including all the attorney’s fees.  But, you probably wouldn’t be worried about foreclosure if you were able to do that.

·        If you are not able to make payments to get caught up, you still have one final option to keep your home.  In some cases, filing bankruptcy can stop the foreclosure process.  If your condo doesn’t have a lot of equity built up that could be used to pay off your debts, the courts may allow you to keep your home.  The past due and current mortgage payments are included in a payment plan designed to get you out of debt in three to five years.  The decision to file for bankruptcy protection should not be made without consulting with a lawyer

 

If the foreclosure process can’t be stopped, you still have the opportunity to keep your home.  You have until the actual day of the Trustee’s Sale of your Chattanooga condo to pay up what you’re behind, or make arrangements to be caught up on your loan. 

After the sale, you enter a redemption period, during which you can get your home back if you’re able to satisfy the terms of your lender.  You will likely have at least 180 days before the redemption period expires.

Do you have other real estate related questions?  I’m happy to answer them for you.  Call me today at 423-488-1882 or email me at travis@travisclosehomes.com .

KEYWORD: Chattanooga condo

LINKS:

Foreclosure: http://en.wikipedia.org/wiki/Foreclosure

Forbearance: http://www.fiscsolutions.com/forbearance.php

Bankruptcy: http://www.uscourts.gov/bankruptcycourts.html

 

Travis Close

Prudential RealtyCenter.com

1315 Taft Highway

Signal Mountain, TN 37377

Office: 423-886-2601

Cell: 423-488-1882

 

Tags: , , , , ,
Posted in Chattanooga Real Estate, Foreclosure, Hixson Real Estate, Signal Mountain Foreclosure | No Comments »

What Are The Closing Costs of Chattanooga Real Estate?

Tuesday, March 17th, 2009

You’ve found the perfect Chattanooga real estate and the mortgage loan with the best interest rate you can find.  What’s next in the home buying experience?  Signing the contracts and paying the closing costs.  But what exactly are closing costs?  Here is a list of the most common closing costs:

 

·         Titling Fees- These include the title search and title insurance, and the associated attorney fees.  These costs are usually paid by the seller but can be assigned to the buyer.

 

·         Recording Fees- The government charges a fee to record the change in ownership of the [city] real estate.  This can be paid by either the seller or the buyer.

 

·         Survey Fee- This can be required by the lender.  It is a fee for the survey of the land or lot, and its structures, to determine that it matches the property description.

 

·         Mortgage Application Fees- Are occasionally included in closing costs, but usually are paid prior to closing by the buyer.

 

·         Appraisal and Inspection Fees- Are required by the lender to ensure that the value of the property is equal to that of the loan, and to make sure there aren’t any underlying problems that detract from the property value.  These fees are usually paid by the buyer.

 

·         Points- Equal to one percent of the principal of the loan.  These discount points are paid by the buyer to the lender to reduce the final interest rate of the loan.

 

·         Brokerage Commission- The seller pays the real estate agent this fee for listing and showing the property, and handling the contract negotiations.  The commission is usually a percentage of the sale price of the property, and determined in advance by the seller and the real estate agent.

 

·         Underwriting Fees- The buyer pays underwriting fees to the lender to pay for the costs of determining if the buyer qualifies for the mortgage loan.

 

·         Property Tax- County taxes are usually required to be paid for six months in advance at the time of closing.  The buyer is responsible for these fees. 

 

If you’re thinking of buying Chattanooga real estate, give me a call.  I’m an expert in this area and know where to find the great buys.  Call me today at Chattanooga or email me at travis@travisclosehomes.com .

 

 

KEYWORD: Chattanooga real estate

LINKS:

Survey: http://www.mortgageinvestment.com/borrow-money/real-estate-survey.htm

Discount points: http://www.answers.com/topic/discount-points

Underwriting: http://www.bankrate.com/brm/green/mtg/basics5-1a.asp?caret=30

 

Travis Close

Prudential RealtyCenter.com

1315 Taft Highway

Signal Mountain, TN 37377

Office : 423-886-2601

Cell: 423-488-1882

Tags: , , , ,
Posted in Chattanooga Mortgage, Chattanooga Real Estate, Closing Costs, Hixson Real Estate, Signal Mountain Real Estate | No Comments »

What To Do When Your Chattanooga home Loan is Declined

Monday, March 16th, 2009

There are many reasons why a mortgage loan for your Chattanooga real estate could be declined.  It doesn’t have to be the end of your real estate dreams.  Here are a few things to consider if you’ve been turned down for a mortgage:

 

Loan-To-Value Ratio

The loan-to-value ratio (LTV) is the percentage of the appraised value of the Chattanooga real estate that you are trying to finance.  For example, if you are trying to finance a home that costs $100,000, and want to borrow $75,000, your LTV is seventy-five percent.

 

Lenders don’t like a high LTV.  The higher the ratio, the harder it is to qualify for a mortgage.  To reduce the percentage, you can save up a bigger down payment.  Some lenders may approve the loan if you buy mortgage insurance, which protects the lender in the case of default, but makes your mortgage payment higher.

 

Credit To Debt Ratio

Lenders will be less likely to approve your mortgage loan if you have a high credit to debt ratio.  The ratio is figured by dividing the amount of credit available to you, on a credit card or auto loan, and dividing it by how much you are currently using.

 

High debt loads will scare away most lenders.  Try to keep your debt to under fifty percent of what is available to you.  Lenders will appreciate it, and you will be more likely to be approved for a mortgage.

 

No Credit or Bad Credit

Few things can derail your mortgage loan approval like credit issues.  Having no credit record can be as bad for your approval chances as bad credit.  With no record of timely loan payments from anywhere, a lender is unable to determine your likelihood to repay the mortgage.  Some lenders will consider other records of payment, like utility bills and rent reports from your landlord. 

 

If you have frequent late charges or collections, you’ll need to work on getting those paid on time, every time.  There aren’t many lenders who’ll approve someone with bad credit, especially in today’s market.

 

Talk to your loan office to determine which problem applies to you, and learn the steps to fix it.  Then, you can finance the Chattanooga real estate of your dreams.

 

If you’re ready to buy a home or condo, I can help.  Together, we’ll determine how much you can afford, and I’ll negotiate to get the best price and terms for you.  Give me a call now at [phone] to get started!

 

 

KEYWORD: Chattanooga real estate

 

LINKS:

Loan-to-value ratio: http://www.ehow.com/how_8128_calculate-loan-value.html

Appraised value:  http://www.answers.com/topic/appraised-value-1

Mortgage insurance: http://www.themoneyalert.com/mortgageinsurance.html

My website: www.travisclosehomes.com

 

Travis Close

ABR, e-PRO, EcoBroker

Prudential RealtyCenter.com

1315 Taft Highway

Signal Mountain, TN 37377

Office: 423-886-2601

Cell: 423-488-1882

Tags: , ,
Posted in Chattanooga Real Estate, Signal Mountain Real Estate | No Comments »