Americas Best Cities for Young Professionals

Yong couple on their front steps.For recent college graduates looking to relocate, Forbes’ 2011 list of the 15 Best Cities for Young Professionals can offer a look at some promising cities for employment and growth.

Forbes compiled its list by taking the 100 largest Metropolitan Statical Areas and analyzed several factors including unemployment rates, cost of living data and median salaries for 24-34 year old college graduates.

Topping the list this year Des Moines, IA. According to Forbes, “The Iowa state capital has a higher concentration of big businesses (1 for every 568 residents) than any other city we assessed, which equals more job opportunities.”
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Pros and Cons of Living in a Tourist Town

City skyline - information on where to relocate.Are you considering relocating to a popular travel destination? Before making the big move, take a few moments to understand the pros and cons of living in a tourist town.

Pros:

The biggest benefit to living in a tourist town, is the fact that you’re living in a popular place. For whatever reason, be it proximity to natural attractions, a crowd-drawing industry (ie Hollywood, CA or Branson, MO) or a rich history, your hometown will have something good to offer. There will also most likely be a thriving economy. After all, more tourists = more money circulating in the local economy. When tourists flock to a destination, it’s not just the hospitality and tourism industries that get a boost. Gas stations, drug stores, gift shops and restaurants also can benefit from a tourist influx.

To summarize, the pros of living in a tourist town can include… [Read more...]

4 Questions to Ask When Pricing your Home for Sale

Real estate agent and client reviewing documents.Once you’ve made the decision to put your home on the market, the next thing to determine is the price. Ask yourself the following questions and discuss them with your real estate agent before listing a price.

1. What do I think my home is worth?

While your answer to this question may not reflect the actual worth of the home, it can be a good starting point. Take stock of any improvements and upgrades you’ve put into the home (new water heater, custom tile flooring) and also acknowledge anything that has suffered or been damaged (neighborhood has declined, bathroom sinks cracked).

2. Is there anything I can do to increase my home’s value?
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Can I take out a mortgage if I am receiving social security or a pension?

Couple meeting with financial professional.We often receive great questions from our clients and think the answers could be useful to other mortgage shoppers.

Question: Can I take out a mortgage if I am receiving social security or a pension?

Answer from American Financial Resources: Your social security or pension income can likely be used to qualify for a home loan. It will need to be documented just as any other source of income such as that of a W-2 employee must be. If you are eligible for a mortgage loan based on other criteria such as your credit portfolio, debt to income ratio, and loan to value ratio the fact that your income is from social security or a pension may not affect your approval for the home loan. Call and speak with a AFR Mortgage consultant for more information.

(guidelines are subject to change over time)

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What is a Non-Conforming Jumbo Loan?

Beach properties.As part of our Mortgage Profile Series, today we would like to tell you a little about jumbo financing. These mortgage products are designed for loans that exceed an area’s conforming loan limits and are typically utilized by those who are buying or refinancing a high-value residential property.

Loan: Jumbo Mortgage
Defining Characteristic: Can be used for loan amounts that exceed today’s conforming loan limits.
Good for: Borrowers who need flexibility to refinance or purchase a high-value home
Not so good for: Traditional borrowers who do not need higher financing.

As of 2010, the most common conforming limit on a home loan is $417,000in the United States. In Alaska, Hawaii, Guam and the US Virgin Islands, the limit is $625,500. Limits can and do vary in high-cost markets sprinkled throughout the Country.

Unfortunately, greater flexibility can come with added risk and higher cost. Expect to see higher interest rates for jumbo loans, as they are often considered more risky for lenders than conforming home loan products. Why the higher risk? First, there is often not a great deal of demand on the secondary market for non-conforming loans. As a result, many of jumbo lenders are stuck with these loans in their portfolio (for better or worse). Second, if a jumbo loan goes into default, it may be harder to sell a luxury, high value residence for full price, especially in hard economic times.

Be sure to check out our mortgage education center to find more tips and information on the home buying process.

American Financial Resources is a direct mortgage mortgage lender who provides competitive mortgage rates and mortgage advice to customers. Call today for a free rate quote and home loan consultation - 800-316-9508.

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7 Reasons to Own Your Own Home

  1. Loan officer reviewing documents.Pride in owning your own home. This is still a big piece of the American Dream – to own a home of your own. Many homeowners take a great deal of satisfaction and pride in owning the house that they live in, maintain, and possibly raise a family in.
  1. Increase in property values. Historically the value of real estate has gone up over the long term. While there is no guarantee that any given home will go up in value, most home owners purchase a property hoping that in time it will be worth more than they paid, adding to their overall net worth.
  1. Building equity. Monthly rent payments go entirely to the owners of the property, while monthly mortgage payments go in part to paying off the balance of the loan, increasing the home owners’ equity position in the home.

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Time to Look at a 15 Year Home Loan?

Woman relaxing on her couch at home.Today, we’d like to tell you about an often overlooked mortgage option for home buyers – the 15 year loan. While the 30 year fixed rate loan is the most popular financing product, it isn’t necessarily the best option for everyone.

Loan: 15 Year Mortgage
Defining Characteristic: Loan period is half the length of the standard 30 year mortgage; higher payments allow owner to pay off the loan sooner

Good for: Financially stable borrowers who wants to pay off a loan sooner and can afford higher payments. Also good for creditworthy homeowners looking to refinance.

Not so good for: Those who want lower payments.

The growing popularity of the 15 year fixed rate home loan is due to a shift in homeowner psychology, experts say. Years ago, the idea was to take out the biggest loan possible and consider a home as part of an entire investment portfolio. Now, [Read more...]

I am relocating for a new job – can I get a mortgage for a new home before I start work?

We often receive great questions from our clients and think the answers could be useful to other mortgage shoppers.

Mortgage professional reviewing documents.Question: I am relocating for a new job – can I get a mortgage for a new home before I start work?

Answer from American Financial Resources: In many cases, yes, you can get approved for a mortgage and even close on your new home before starting a new job when relocating. An offer letter can often be used to document your income. If you will be changing industries, receiving some or all of your compensation as commission or bonus income, or will be self employed things can get a little more complicated. Talk to a mortgage representative about your scenario to see what you are likely to qualify to borrow.

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Does an Adjustable Rate Home Loan Make Sense for You?

Woman in her yard with her greyhound.To better educate borrowers on the many types of mortgage programs that are available today, we will be running a Mortgage Program Series on our blog.

While the 30 year fixed rate mortgage has long been the most popular financing solution in the U.S., there are many types of loan products out there. They won’t all be for everyone, but some may suit your needs better than the traditional 30 year home loan. Today, we’re going to talk about adjustable rate mortgages or ARMs loan for short.

Loan: Adjustable Rate Mortgage (ARM)
Defining Characteristic: Offers low introductory interest rate but rate will adjust throughout the remainder of the loan.
Good For: Those who will pay off or sell the home before the fixed rate period ends or those who can afford higher payments if necessary.
Not So Good For: Those who need the security of knowing how much their payments will be.

The defining characteristic of an ARM loan is [Read more...]

Considering Investing in Real Estate?

Investors are drawn to real estate for a variety of reasons; some of these include:

  • Home with a for rent sign in the front yard.An investment in real estate means owning a piece of real property, rather than some fraction of a stock or bond.
  • Historically the cost of real estate has tended to increase over the long term, though there is no guarantee, and property values can go down.
  • With a 30 year fixed rate loan the monthly cost of the home loan will remain constant throughout the loan term, but the rental prices the can be charged generally increase over time.
  • An investor can increase the value of his or her property by working on it, building “sweat equity.”

[Read more...]