5 ways veterans can save on a home loan

If you are a Veteran who is considering purchasing a home, there’s some good news. Premier Mortgage Resources (PMR) can provide the guidance you deserve! And with federally back VA Loans, fulfilling your dream of owning a home is not as challenging as you think.

The Veterans Administration provides insurance to lenders for added protection our Veterans and their families deserve.

Because the mortgage is guaranteed, lenders have added flexibility and can offer lower terms to applicants. The low interest rates compete and beat comparable conventional mortgage loan programs.

In addition to these savings, VA loans may also offer reduced closing costs and no repayment penalties.

Applicants of VA loans can also enjoy other housing-related benefits, including programs geared toward helping veterans with building, repairing or retaining their homes.

Click here to learn more about these loans.

Here are five ways VA loans will save you money.

Eliminate Private Mortgage Insurance

Unlike other loan programs that require a down payment, VA loans do not require private mortgage insurance. This can mean hundreds of dollars of savings every month.

Save Money Simply by Using a VA loan

Veterans who opt for a VA loan save money immediately. These low-risk loans allow lenders to pass on direct savings to applicants. Lower interest rates mean lower costs today and beyond.

Pay Early

There are no penalties for paying a VA loan off earlier than your loan documentation specified. This is unique when compared to other loan programs.

Get Ahead of the Game

VA loans make it easier to qualify for a loan, giving veterans the upper hand in competing in this market. A VA loan guarantees a portion of the mortgage, which means lenders may offer favorable terms.

Save that Down Payment for Something Else

With a VA loan, you can bypass the need for a down payment. Most borrowers are required to put down a substantial down payment – sometimes 20 percent – toward the purchase of a home. With a VA loan, that burden is lifted and allows you financial flexibility to pursue more dreams as a newly minted homeowner.

If you would like more information, make sure to contact us today!

5 down payment assistance programs in Idaho

A mortgage within reach. That concept is indeed possible through one of the many down-payment assistance programs in Idaho.

Families or individuals in need of a leg up can look at these programs for guidance and financial assistance.

Funds for these programs are awarded to qualified organizations in your area and are made available to those who’ve completed a homeownership education program. Both the education and financial assistance bring future homeowners within reach of their dreams.

Here are five down-payment assistance programs in Idaho that offer a range of benefits.

FHA programs

Did you know that more than 80,000 Idaho families have used federally insured loans to purchase their home in just the last decade? You, too, can take advantage of these effective FHA loans.

In order to qualify for an FHA loan, here are some to the factors to keep in mind:

  • As a borrower, you must meet certain FHA credit criteria.
  • As a borrower, you are eligible to finance nearly 97 percent of your home, but you must also account for upfront mortgage insurance premiums and other annual fees.
  • The property must be one-to-four unit structures.

FHA loans are not just for first-time homebuyers. The programs also branch out to other areas that will improve your family’s quality of life. For instance, some families may qualify for a rehabilitation and repair loan, or FHA’s energy-efficient mortgage. In addition, empty nesters may decide on a reverse mortgage.

FHA loans have worked for some 80,000 residents – are you next?

Blaine County Housing Authority

The Blaine County Housing Authority, a public organization, is committed to families with ties to the county.

Future homeowners will find a wealth of resources on the organization’s website. It’s the authority’s goal to provide various methods and resources that lead to affordable housing.

While you’ll find a number of helpful resources, such as listings, counseling, mortgage guides and calculators, members of the public may also apply for its Community Housing program.

If you want to apply, here are some things to keep in mind:

  • Applicants must be a full-time employee working within the county. Retirees are also eligible.
  • Applicants must meet certain income levels.
  • Take a “Finally Home!” class, which is an introductory guide to the steps you must take before purchasing a home.
  • Complete the applications.
  • Keep your information up to date.

So, if you live in the county and you’re thinking about taking that next big step toward homeownership, be sure to take advantage of the many resources made available on bcoha.org.

City of Boise

The city of Boise offers families of low to moderate income an incredible opportunity to purchase an affordable home with its homeownership loan programs.

The city will assist families with up to 25 percent of the purchase price to purchase a home, including manufactured homes, as long as it’s within the city limits.

In order to qualify, applicants must meet income guidelines, as determined by the U.S. Department of Housing and Urban Development.

In addition to the loan program, the city of Boise also helps future homeowners with grants, which can lighten the burdens of paying the costs associated with buying a home.

Idaho Housing and Finance Association

Idaho Housing and Finance Association offers an array of programs to future homeowners.

Whether you’re thinking of obtaining a conventional, rural development, FHA or VA loan, the association works with families looking for a unique loan to fit their needs.

In addition to a wide menu of options, Idaho Housing also offers down payment assistance to qualified buyers.

These offerings can significantly reduce the amount of on-hand cash families need to move into the home of their dreams. Borrowers may qualify for the “Good Credit Rewards,” or the HOME Down Payment Closing Cost (DPCC) Assistance program.

Be sure to review the many other programs, resources and tools made available by Idaho Housing.

Premier Mortgage Resources

Ready to dive into homeownership with an FHA or VA loan? Here are some options.

FHA home loans are insured by the Federal Housing Administration (FHA), allowing banks to issue loans without much risk. That works in your favor because these loans feature lower requirements when compared to conventional loans. For instance, applicants can provide a smaller down payment. The requirements for credit scores and income are also set at a lower threshold.

VA loans through Premier Mortgage Resources work in a similar manner. Like FHA loans, they are also federally backed and are open to Veterans and their families.

The loans feature additional services that will help Veterans from defaulting on their loan.

To learn more about any of these programs, please visit Premier Mortgage Resources.

Breaking down what goes into an APR

An annual percentage rate (APR) is more than just an interest rate, it also includes other annual costs associated with a loan and shows home buyers the “true” cost of a loan, which prevents lenders from advertising a low rate and hiding fees.

If you’re comparing lenders, and one has a vastly higher APR for the same interest rate, that could mean they are charging you more for the loan.

Most loans will have fees associated with points, processing, underwriting, document preparation, interest and escrow fees. However, there are other fees that aren’t usually included in an APR, such as title or abstract fees, borrower attorney fees, home-inspection fees, recording fees and appraisal fees. Also, it should be noted that although taxes are considered part of closing costs, they aren’t a lender fee so they don’t count toward the APR.

A good way to figure out if you’re paying too much in fees is to ask multiple lenders to provide you with a good-faith estimate of their costs on the same type of loan program, at the same interest rate. If you delete the fees that are independent of the loan, such as homeowner’s insurance, title fees, escrow fees, attorney fees, etc., and add up all the loan fees, you’ll be able to compare apples to apples.

Ultimately, to get the best deal on a home loan, you’ll want to take a look at multiple factors. You’ll want to consider the interest rate and compare lenders’ APRs. Look for any details included, or more importantly, not included in the estimates they provide. You’ll also want to check online reviews to make sure you are going to get a good customer service experience.

At Premier Mortgage Resources (PMR), we are determined to provide the best mortgage programs available and offer the best customer experience. Our philosophy is centered on operational excellence. This means providing the right program for each of our customers, and providing timely and accurate service levels.

We have hard-working, knowledgeable loan officers who are ready to answer all of your questions about our loan programs, fees, APR and interest rates. We operate in a transparent system with underwriters who make themselves available to help loan officers work through even the most complex transactions.

If you would like more information about qualifying for a mortgage, contact PMR today. Our loan officers can help you determine which loan program might be best for your particular set of circumstances.

The difference between a fixed-rate mortgage and an adjustable-rate mortgage

Whether or not you need a fixed-rate mortgage or an adjustable-rate mortgage (ARM) greatly depends on your financial and personal circumstances. When choosing a mortgage, you should consider a wide range of factors, such as the monthly amount of mortgage payment can you afford, what kind of interest rate you qualify for, how long you plan to own the property and whether or not interest rates may fall or rise in the near future. All of these factors can help you determine what kind of loan is right for you.

Fixed-rate mortgages and adjustable-rate mortgages differ in many ways. With a fixed-rate mortgage, the interest rate does not change throughout the life of the loan, which means if interest rates rise, the borrower is protected from sudden, and potentially significant, increases in monthly mortgage payments. Having a fixed-rate means that the borrower can rely on a set monthly payment, which makes budgeting easier for homeowners.

Most mortgage companies offer a variety of fixed-rate mortgage terms, the most common of which are 30, 20 and 15 years. Most of the payments made during the first few years go toward interest. Fixed mortgages are great when interest rates are low. However, when interest rates are high, qualifying for a loan is more difficult because monthly payments are less affordable.

Adjustable-rate mortgages (ARMs) will typically start at a lower interest rate than fixed-rate mortgages. However, the interest rate may go up or down. This initial rate may stay the same for months, one year, or a few years, but when the introductory period is over, the interest rate and monthly payment are likely to go up. The interest rate you pay will be based on a measure of interest rates called an index. Your payment goes up when this index of interest rates increases; likewise, they go down when interest rates decline. Some ARMs set a limit on how high or low your interest rate can go.

The initial low rate and low mortgage payments often enable the borrower to qualify for a larger loan. Plus, if the borrower plans to sell the home after a few years, they will have spent less on an ARM than they would have on a traditional fixed-mortgage loan.

If you would like more information about qualifying for a fixed-rate mortgage or an adjustable-rate mortgage, contact PMR today. Our loan officers can help you determine which one might be best for your particular set of circumstances.