Tag: mortgage

VA Loan: National Guard VA Loan qualifications 2022 update

Featured photo credit: https://www.nationalguard.com/careers/ground-forces

The VA loan is one of the most powerful home buying tools available to those who qualify. A few benefits of the VA home loan are an option for ZERO down payment, no Private Mortgage Insurance, and lenient credit qualifications.

There are specific criteria to qualify for the VA home loan, one of which is the Minimum Service Requirement. This is essentially a baseline for service qualifications.

The Minimum Service Requirements for The Army, Navy, Air Force, & The Marine Corps:

Served 90 consecutive days of active service during wartime.
Served 181 days of active service during peacetime.

Recently, the VA has revised their qualifications for those who serve and have served in the National Guard, which has opened the VA loan to thousands of National Guard members.

National Guard updated VA Loan qualifications are as follows:

If you’ve served for at least 90 days (minimum 30 consecutive days) of active duty under Title 32 orders, you meet the minimum service requirement.

Over recent years, thousands of National Guard members were activated under Title 32 Orders, meaning many of them are eligible for a VA Home Loan.

Have you served or are currently serving in the National Guard? Reach out to one of our branches today to learn about the VA home loan and find out if you are eligible today!

Get Your COE!

At Benchmark, we are dedicated to serving veteran clients and providing them with a world class home buying experience. We have changed the way VA lending is done. That is why Benchmark never quits.

Contact your local Benchmark branch. Contact us today for personalized information. Call me yourself or request a call from me. WeI would be honored to provide you with our famous excellent service for your new loan.

Benchmark brings you home.

15 Tips For An Easy Mortgage Process During The Holidays

by Holly Taylor

‘Twas a crisp, cold, clear night, when we hoped for a house. 
With my hot cocoa stirring, I looked at my spouse. 
We’d mapped out our assets and budget with care, 
In hopes that our offer would not catch a snare. 
The children were nestled all snug in their beds, 
While dreams of new bedrooms danced in their heads. 
My spouse in their slippers, and I in my cap, 
Had just settled down for a long winter’s nap. 
When from my cell phone there arose such a clatter, 
I sprang from my bed to see what was the matter. 
Seeing the name, I answered in a flash;
Our offer was accepted, with a loan, not of cash.
What a gift to receive, our hearts were aflutter — 
In the morning we'll celebrate with hot scones and butter. 
When what to my wondering eyes did appear, 
A little less worry and a little more cheer.
With the offer accepted, I hung up the phone.
Knowing that we were approved for the loan,
What should we do now? We were happy as larks!
The news was like light after uncertain dark,
I feel joy for the mortgage we have with Benchmark!

Your housing timeline may have you moving right in the middle of the holiday season. It can be a crazy time, but that’s no reason not to seize the day and make some holiday memories in a new home.

However, it’s also a season when personal budget planning often gets neglected to make room for extra joy and memories — sometimes with an expensive price tag.

Benchmark is here to help.

As you assess your financial situation, be mindful of your spending. Be aware of your normal budget, and pay careful attention to your holiday expenses.

At Benchmark, we are committed to delivering a smooth and easy mortgage process. Keep these lists handy as you start your home buying process this holiday season:

DO’s:

Keep an eye on your holiday budget — remember not to make big purchases that might affect your credit score.
Keep in mind that interest rates are sometimes lower during holiday months.
Let family and friends know that you have moved addresses so they know where to send your housewarming gifts!

DON’Ts:

Don’t make any large purchases that require credit checks or open new lines of credit. This can affect your credit score and change your loan status.
Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
Don’t rush putting an offer on a house just so you can close before the holiday season. Remember, this is a long-term decision.
Don’t use your entire down payment on holiday gifts. Save as much money as you can.
Don’t accept monetary gifts from relatives (e.g., accepting down payment assistance) without consulting your loan officer first.
Don’t open, transfer, or close any asset accounts without first discussing any plans with your loan officer.

This holiday season may look a little different. Maybe you forego large Christmas gifts and stick to a budget to keep your credit score on target and your mortgage process on track. But, your new home will likely be the best gift you receive this season — and we’d say that’s more than worth it.

“Home for the holidays” takes on a whole new meaning!

At Benchmark, we are committed to helping you with your home loan needs and decisions for future success.

Benchmark brings you home.

Does it Make Sense to Refinance? 5 Things To Know

by Jason Haeger

If you are thinking about refinancing, you probably have a good reason. Maybe you are curious if you could save money by locking in a lower interest rate. Maybe you wonder if you could use some of the equity you have established in your home. Whatever your reason, here are 5 things to know before deciding if refinancing makes sense for you.

1. There are Good Reasons To Refinance

Not sure if Refinancing is a good idea? While refinancing may not be the best choice for everyone, there are a few good reasons to refinance.

A. A Shorter Mortgage Term

Maybe you are motivated to pay off your home sooner. If so, by refinancing to a shorter term mortgage (for example, a 15 year mortgage from a 30 year mortgage), you could set yourself up to be paid off in nearly half the time, depending on the maturity date of your existing mortgage.

Shorter term mortgages often come with smaller interest rates than their longer term counterparts. This can make the increased mortgage payment easily justifiable with the potential decrease of interest payments overall.

B. A Lower Interest Rate

Maybe you bought when interest rates were higher. While timing the market is a risky practice, at best, if the current average interest rates are significantly lower than the rate on your current mortgage, refinancing may look like an attractive option.

C. A Lower Monthly Payment

If your current mortgage is a few years old, refinancing into a new mortgage with the same term could reduce your monthly payment obligation. While this will likely increase the total interest you will have paid over time, the lower payment could free up cash for other expenses or goals.

D. Trade an Adjustable Rate for a Fixed Rate

If you opted for an adjustable rate mortgage due to a lower starting interest rate, you have likely noticed the periodic shifts, up or down, that your interest rate may have taken since originating your mortgage. If you are seeking a little more financial consistency, refinancing with a new fixed rate mortgage may be an appealing option.

E. Access The Equity In Your Home

Has your home increased in market value since you bought it? Do you think your equity could be used better than being tied up in your home? A Cash Out Refinance may be for you. Mind the risk!

F. Consolidate Debt

Do you have other debt with higher interest rates? Do you think it would be a good idea to roll that debt into your mortgage instead? A Cash Out Refinance may be an appropriate option for you. Just like above, we strongly recommend that you mind the risk!

G. Drop Private Mortgage Insurance (PMI)

Low down payment mortgages are a great way to take advantage of the right opportunity, but it comes with Private Mortgage Insurance. In order to get a new loan without PMI, you will have to have at least 20% equity in your home. If you have that, dropping the added monthly expense for the PMI could help pay your home off sooner (with a shorter term mortgage), or result in more available cashflow on a monthly basis.

2. Pay Attention To The Term

The Amortization date (or the time until the death of the loan) is an important aspect to consider if you think you may want to refinance your home. A longer term (like the common 30 year mortgage) will have lower monthly payments, but means you will be paying more interest overall, and paying for more years. A shorter term, like a 15 year mortgage, benefits from less overall interest cost due to fewer interest payments. Shorter terms also often come with lower interest rates than their 30 year counterparts, helping you save even more over the long run. However, a shorter term also means higher monthly payments, as the principle is spread over a shorter period of time.

Deciding which term is right for you will depend on your monthly cash flow, and your personal goals. Your loan officer can help you to determine the right loan for you.

3. Crunch The Numbers

The costs associated with Refinancing can be complicated, when all is taken into consideration. If your goal is simply to save money, it may or may not make financial sense to refinance. Your loan officer can help you consider all facets that may effect the overall cost or benefit of a refinance.

If you are refinancing for a different reason, do the math to be clear on where you stand. A mortgage is a big commitment, and it’s a good idea to thoroughly understand the new agreement before jumping in.

4. Know The Break-Even Point

Total Closing Costs / Monthly Savings = Break-Even Point

The “Break-Even Point” is calculated by a simple formula, dividing the total closing costs by the monthly savings. The calculator linked below can help give you an idea about what your break-even point might be. This is the point in the life of the new loan where the new mortgage effectively pays for its own closing costs.

Calculators

Why is this useful? If your goal is to save money, you may want to stay in your current mortgage if you plan to sell your home before the break-even point. Selling before you’ve reached the break-even point will end up costing you more overall.

5. Know The Risk

As mentioned earlier, a mortgage is a big commitment. There is always risk present when taking out a loan, especially when defaulting means losing your home. This is especially important to consider before taking a Cash Out Refinance to consolidate debt, especially debt that is not secured.

If you miss payments on a credit card, or student loan, you will have collectors giving you a hard time. If you the same debt is rolled into a mortgage, it becomes guaranteed by your home. Defaulting on a mortgage could result in losing your home. While consolidating high-interest debt into a low-interest mortgage can be a good long-term strategy, it may not be for everyone.

Be Smart: Talk To Your Benchmark Loan Officer Today

At Benchmark, we do more than sell a low interest rate. We look closely to help you determine the right loan for you. Even if you don’t feel ready, talking to us now can help you set a course for success.

Find your Benchmark branch, and contact them today for more information.Give us a call or contact us today. At Benchmark, we’ve got your back.Give me a call, send me an email, or request a call today. Along with my Benchmark community of mortgage pro’s, I’ve got your back.

The EU Referendum, Brexit, and US Mortgage Rates

by Jason Haeger

“The sudden stop in employment growth rules out any chance of a rate hike from the Fed at next week’s FOMC meeting, particularly now that the UK vote on whether to leave the European Union appears to be going down to the wire,” said Capital Economics Chief Economist Paul Ashworth. (source: Housingwire.com)

Britain’s exit from the EU increases the value of the dollar, which will push U.S. mortgage rates still lower. “This would create another mini refinance mortgage boom at financial institutions as homeowners rush to lock in near-historic low interest rates,” says Steve Rick, chief economist for CUNA Mutual Group. (source: Bankrate.com)

Fed Not Expected To Raise Rates

As Paul Ashworth indicated in his quote in HousingWire, The Federal Open Market Committee (who determines monetary policy of the Federal Reserve) is not likely to raise interest rates in their next meeting in July.

Futures dropped in the wake of the UK’s vote to leave the EU today, June 24th. This lack of confidence puts more pressure on the FOMC to, once again, postpone a rate hike.

US Dollar Strengthens as Pound is Pummeled

The pound fell to near 1985 levels, making it the lowest value in three decades. According to the Federal Reserve of St. Louis, 1GBP is now down to 1.37USD. (source: WashingtonPost)

When our currency is worth more, it has more purchasing power, which is cause for suspecting that this could make the cost of housing cheaper still.

Is a refinance boom coming? That remains to be seen, but with the relatively high supply in the housing market coupled with a stronger dollar, we may begin to see the supply begin to normalize as homeowners cash out on their accumulated equity.

The Takeaway

No matter your opinion of the EU Referendum result, mortgages are still, historically speaking, ridiculously cheap.

Mortgage prices tend to follow Treasury yields, which have been trending down all year, too. Last week, the interest on 10-year Treasuries dropped to its lowest in four years on worries that Britain would vote to leave the European Union. When the political and economic outlook is uncertain, the world’s money tends to flow into safe investments like U.S. bonds, including mortgages. – Loraine Woellert, Senior managing editor for Redfin research (source: Forbes.com)

Notes:

FOMC(Federal Open Market Committee): http://www.federalreserve.gov/monetarypolicy/fomc.htm

Seeking the American Dream of Home Ownership

by I Am Benchmark

Are you living the American Dream?

Most of us have a pretty good idea about what the American Dream is. In case you don’t, we looked it up:

[quote]“The American Dream is a national ethos of the United States, a set of ideals in which freedom includes the opportunity for prosperity and success, and an upward social mobility for the family and children, achieved through hard work in a society with few barriers.” – source: Wikipedia.com[/quote]

If we carry this definition further, we find that many Americans see homeownership as an important part of that dream. Let’s look at some recent statistics.

Existing home sales in May of this year were 9.2% higher than the same time last year. Home sales in the Midwest and Northeast saw gains of at least 10%.

If the growth of home sales alone isn’t enough to convince you that owning a home is “living the American Dream,” there’s more. Studies have shown that purchasing a home is making an investment that will appreciate over time. What does that mean? Let’s look at an example. If you already own your home, you are enjoying an average of 7.9% gain in the value of your home just in the last year!

In addition to the financial benefit, owning your home is a slice of freedom. No paying rent to a landlord. No sharing an apartment complex floor with 30 other people. It’s yours.

As the housing market continues to show signs of strength, now could be the best time to invest in your piece of the American Dream. Whether you are looking for a home that is worth $100K or $1M, at Benchmark, we are here to welcome you into the rising trend of homeownership. You will receive more than just another set of keys…you will be given the keys to your HOME.

Fact Sources: NAR’s Existing Home Sales Report 6/22/15

Do’s & Dont’s for the Mortgage Process around CHRISTMAS

by bmadmin

The holiday season is always a crazy time, but that’s no reason not to take advantage of the great housing market, and make some new holiday memories in a new home. Benchmark is committed to a smooth and easy mortgage process, keep these simple do’s and don’ts handy as you start your home buying process this holiday season.

DO’s:

· Keep an eye on your holiday budget; remember not to make big purchases that might affect your credit score.
· Be sure and take into consideration your own personal schedule as the holidays tend to get hectic quickly.
· Use your neighborhoods Christmas decorations to gauge the atmosphere of the community.
· Call your Benchmark mortgage professional l to start your home search today! Nothing is better than a Christmas spent in a new home!
· Remember it is the holiday season for your loan officer and realtor. While they will gladly assist with any questions you might have, be mindful of their time.
· Let Santa and the Elves know that you have moved addresses!

DON’TS:

· Don’t make any large purchases (things that require credit checks or opening new lines of credit). This can affect your credit score and change your loan status.
· Don’t wait until the last minute to complete and send the required documents to your loan officer. Doing it in a timely manner will ensure a smooth loan process.
· Don’t rush putting an offer on a house just because you can close before the holiday season. Remember, this is a long-term decision.
· Don’t use your entire down payment on holiday gifts. Save the money you can.
· Don’t accept monetary gifts from relatives without consulting your loan officer first. (Monetary would be like down payment assistance)

What is a Mortgage Payment?

by bmadmin

One of the best long-term decisions that a person can make is purchasing a new home. While the value of a home may go up and down over a short period of time, home values have always increased over the long-term and have proven to be a great way to build personal equity. To purchase a home, most people will have to take out a mortgage to finance the majority of the purchase price. When getting a new mortgage, many people can be confused as to what their mortgage payment is and what it covers.

If you are wondering what your mortgage payment is, the first thing to understand is what impacts your mortgage payment.

The three factors that impact your mortgage payment is the amount of money that you are going to borrow, the interest rate that you are charged, and the amortization rate that you receive. The amount of money that you will borrow depends on the purchase price and the down payment you put forth. The interest rate that you receive is typically assigned by the bank or mortgage lender. Most borrowers choose a 30 year amortization, but there are plenty of other options to pay your mortgage off sooner than that. The longer your amortization is, the lower your payments will be, but the longer it will take to pay off the loan.

For those that are asking what a mortgage payment is, here’s what the typical mortgage payment covers:

First, it will cover your principle and interest payments. Interest is the amount of money that goes to the bank each month for providing you the loan. The principle payment is that amount of money that goes to the bank to pay down the loan balance. Each month, a little bit more money goes towards principle and a little less goes towards interest. Reduction of principle is what allows you to build equity over time.

Depending on your loan agreement, your monthly mortgage payment may also cover your tax and insurance payments. Many lenders require you to pay into real estate tax and insurance escrows every month. Then, when your tax or insurance payments are due, they mortgage lender will send the money due to the taxing authority and insurance companies. This will ensure that you don’t miss a payment and stay covered.

Feel free to reach out if you have any specific questions about what a mortgage is and what’s covered by your monthly mortgage payment.

More Americans Confident They Can Get Mortgages

by bmadmin

The housing slowdown may have been accompanied by an inability for potential homeowners to obtain mortgages, but the latest Fannie Mae National Housing Survey shows movement on the mortgage consumption-front.

For the month of November, 51% of survey respondents said it would now be easier to obtain a mortgage. This larger vote of confidence suggests tighter lending standards may be easing enough to grant more credit access.

Overall confidence in housing is up somewhat, with 14% of those interviewed believing home prices will go up in the next 12 months, a four-percentage point hike from the previous month. Twenty-three percent of survey respondents believe it’s a good time to sell a home, up 5-percentage points from October.

This is the highest rating of confidence since the survey’s inception more than a year earlier, the GSE said. In addition, 67% of the survey respondents said they would buy if they had to move in the near future.

The Fannie Mae November survey, which is the result of 1,001 interviews with Americans, concluded that consumer attitudes towards the economy and housing market are improving.

Doug Duncan, senior vice president and chief economist of Fannie Mae, noted that 11 of the national housing survey indicators evaluated by Fannie Mae are “at or near their two-and-a-half-year highs.”

About 44% of Americans believe the economy is now on the right track, and only 50% say it’s on the wrong track, which is 25-percentage point decline over the past year. The small gap between those two indicators suggests more improvement in overall economic confidence.

The number of survey respondents who foresee an increase in mortgage rates jumped 4 percentage points to 41%.

Respondents expecting home prices to fall over the next year rose by 4 percentage points to 14% over the previous month, while the number who expect home prices to go up over the next 12 months edged up to 37%.

Americans also seem more confident in their own financial situations, but remain worried the fiscal cliff will put them in worse shape next year. 18%, up 5 percentage points, felt that their personal financial situation would get worse over the next 12 months.

56% of respondents expect their household expenses to remain the same when compared to a year earlier.

Originally posted at HousingWire.com.

Picking Up Pennies Pays Off His Mortgage

by bmadmin

A Massachusetts man delivered 62,000 pennies as his final mortgage payment.

Thomas Daigle told The Milford Daily News he wanted to ensure his last payment was “memorable.”

“It was something I wanted to do,” he said. “I always follow through.”

“I was just praying I didn’t die first.”

Thomas moved into his Milford, Massachusetts home in 1977 after receiving a mortgage from Milford Federal Savings and Loan Association.

Shortly after, he began collecting pennies in an old milk crate and eventually had to move his collection into two military grade metal boxes.

When he delivered the two boxes of pennies to Milford Federal on April 24th they weighed nearly 800 pounds.

Luckily he gave the bank a month to prepare for his “memorable” delivery and they were 100% supportive of his idea.

The life-long optician says his wife Sandra laughed whenever he picked up a penny and said it was going to the mortgage.

On average, Thomas collected 2.5 pennies every day.

That’s pretty impressive!

What is The Boot Campaign?

by bmadmin

“If I am not for myself, who will be for me? If I am not for others, what am I? And if not now, when?” Rabbi Hillel

It’s not often that an opportunity comes along with the ability to distinctly affect the lives of both the receiver, and the giver. So when it does happen, immediate action has to be taken.

Benchmark is proud to announce a new partnership with a grassroots initiative called The Boot Campaign. In their first month alone, this dynamic campaign successfully raised over 125 thousand dollars with the sale of combat boots exactly like those worn by our troops as they stand for our freedom every day. The money they raise is used to assist returning veterans and active troops that are dealing with emotional, mental and physical challenges. The Boot Campaign’s goal is to eventually see 1.3 million civilians in boots, one for every active duty service member.

This tremendous charity offers all Americans a way to show tangible appreciation for our active military, raise awareness of the challenges they face upon return and support their transition back into their homes.

With this exciting new partnership, Benchmark has committed to support The Boot Campaign in several ways, not only within the corporate walls of the home office, but also in the field allowing virtually anyone associated with Benchmark the same opportunity to show their deepest appreciation for the sacrifices our soldiers have made for us.

Benchmark and The Boot Campaign: When they come back, we give back.