closing cost Archives - Hanover Mortgages

Apache is functioning normally

June 2, 2023 by Brett Tams

Refinancing a mortgage can be a great financial move for homeowners to potentially lower monthly mortgage payments, tap home equity, or build equity more quickly by shortening the term of the loan.

Refinancing can save you money — but it can cost you money too. Before you start the refinancing process, you should know how it works, the benefits and drawbacks, and the steps you’ll need to take.

What Is Mortgage Refinancing and Why You Might Want to Refinance?

Refinancing a home mortgage is basically replacing your existing mortgage with a new one, typically with a different principal and interest rate.

There are many reasons why borrowers choose to refinance a mortgage, including:

To take advantage of lower market interest rates
To shorten the term of their loan
To withdraw a portion of their equity
To lower their monthly payments with a longer repayment term
To convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
To remove or add another person to the mortgage

Choosing the Right Type of Mortgage Refinances

There are three main types of mortgage refinances: rate-and-term, cash-out, and cash-in.

Rate-and-term refinance: This type of refinancing allows the borrower to change the interest rate, the term of the loan, or both without advancing any new money.
Cash-out refinance: A cash-out refinance takes advantage of the built-up equity in the home and gives the borrower cash in exchange for a larger mortgage.
Cash-in refinance: A cash-in refinance allows homeowners to pay a large sum towards their principal balance during the refinance process.

4 Benefits of Refinancing a Mortgage

Your decision to refinance your home mortgage ultimately depends on your goal. Do you want to lower your monthly payments? Are you hoping to shorten the length of your loan?

Here are some common reasons that people choose to refinance:

Changing the length of your loan. By refinancing from a 30-year mortgage into a 15-year mortgage, you could pay it off in half the time. This also results in paying less interest; however, your monthly payment may go up.
Switching to a different loan type. Some homeowners choose to refinance their mortgage to change their loan types. For example, refinancing from an adjustable-rate mortgage to a fixed-rate mortgage. The interest rate for an adjustable-rate mortgage can go up and down over time but the interest rate for a fixed-rate mortgage doesn’t change.
Tapping into your home equity. Want to do some home improvements, pay off debt, or even take a trip? You can do a cash-out refinance to borrow more than you owe on your current mortgage.

Getting a lower interest rate. Interest rates fluctuate for a variety of reasons. Refinancing could make financial sense if you can get a lower interest rate than when you originally took out your mortgage. If you can secure a lower interest rate, you could potentially save money and pay off your mortgage faster.

Calculate how refinancing might affect your monthly payments with Total Mortgage’s Refinance Calculator and see how much you can save.

How to Refinance a Mortgage: 4 Key Steps

Refinancing a mortgage is very similar to purchasing a home; however, it’s a little less complicated. But how exactly does refinancing your home work? Here is a simplified step-by-step guide:

Understand your reasons for refinancing. Before you refinance, you need a clear goal. What do you want out of your refinance and what type of loan will help you achieve that goal?
Apply for a refinance. Once you’ve selected your lender, you’re ready to complete your refinance application, lock your interest rate, and submit any necessary documents. Keep in mind that you don’t have to refinance with your current lender. Exploring other landers’ options could increase your chances of finding a better interest rate with more favorable loan terms.
Appraisal and underwriting. The underwriter will review the application and documents and offer conditional and/or final approval of the loan. The lender will also order a home appraisal to verify the current home value.
Close on the loan. The home closing is when you and your lender will go over the loan documents and finalize all details. You’ll need to sign documents and pay closing costs listed in the Loan Estimate and the Closing Disclosure.

The time it takes to refinance a mortgage depends on several factors, such as credit checks, appraisals, and the lender. Refinancing a mortgage can take anywhere from 15 days to 45 days or longer, with an average of 30 days to close.

Costs of Refinancing a Mortgage

Refinancing isn’t free — but depending on your circumstances, it can be worth it. Closing costs typically include origination fees, home appraisal, and recording. Depending on where you live and your lender, there could also be an attorney fee and title search, and insurance.

Closing costs are generally a percentage of your loan amount —about 2% to 5% — though these are just estimates and costs may vary depending on the state and county where you live as well as your lender.

Not every closing will cost you money at the closing table. You could also have a no-closing cost refinance.

This is a refinance where instead of paying upfront, closing costs are either rolled into the new loan or the lender may raise your interest rate. While this does mean that you need to come up with less money at closing, you could end up paying more over the long run.

Explore Total Mortgage’s Refinancing Options

Unsure if you should refinance? Refinancing a mortgage could potentially lower your monthly payments with more favorable terms. Another option is to use a mortgage refinance to tap your home’s valuable equity and use the cash as you please.

If you’re looking to refinance a mortgage, be sure to check out Total Mortgage’s list of branches across the US and find the one nearest to you. You can also apply online and get a free rate quote.

Source: totalmortgage.com

Apache is functioning normally

May 28, 2023 by Brett Tams

How Bankrate scored Third Federal Savings and Loan

To determine Third Federal Savings and Loan’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

Affordability: Third Federal’s mortgage rates are largely below Bankrate’s averages, and you can save on upfront closing costs with the bank’s low-cost options.
Availability: The bank serves borrowers in 25 states and Washington, D.C., and doesn’t offer government loans.
Borrower experience: Third Federal has a broad range of customer service hours and lots of online resources to help guide you through the mortgage process.

Affordability: 5/5

Affordability differs from lender to lender, so comparing costs is key. Third Federal Savings and Loan clearly displays mortgage rates on its website. These rates are generally competitive and updated regularly, and you can set up automatic rate alerts to get a notification when rates drop below a certain level. If you input some details about your desired loan, you can get even more information, such as the estimated payment and closing costs or how much you could save on the interest rate by paying for points.

The bank charges common closing costs that can include an origination fee, but also offers a lower-upfront cost option for virtually every type of loan that keeps these costs to just $295. These low-cost loans have a higher interest rate, however, so you’ll have a higher monthly payment and your borrowing costs could amount to much more over the life of your loan. Additionally, while there’s no fee to get a preapproval, you might be charged an application fee depending on the type of mortgage you’re seeking. Notably, the bank also offers a $750 closing cost credit to first-time homebuyers.

Availability: 4/5

This factor can make the overall mortgage application process smoother or more challenging. Third Federal Savings and Loan works with borrowers in 25 states, so you’ll need to confirm whether it services yours before you apply for a mortgage with the bank. Its loan offerings include conventional loans as well as construction loans and financing for investment properties. The bank doesn’t offer government-insured mortgages, however.

Borrower experience: 4.7/5

Know what to expect when you work with a specific lender. Third Federal Savings and Loan has 80 years of experience lending to borrowers in Ohio and elsewhere in the U.S. The bank has an A- rating from the Better Business Bureau. Its website makes it easy to check available rates, get preapproved, apply for a loan and sign the required paperwork. Before you apply, you can use the bank’s useful calculators to determine how much home you can afford and to estimate your monthly payment. Once you get your loan online, you can use the Third Federal app to manage it; however, you can’t apply for the loan itself directly through the app.

How to apply for a mortgage with Third Federal Savings and Loan

You can apply for a purchase loan or a refinance in person at one of the bank’s branches, on Third Federal’s website or by calling 1-800-THIRD-FED.

Here are some tips to prepare for the process:

Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Third Federal Savings and Loan

Third Federal Savings and Loan offers refinancing at competitive rates in line with Bankrate’s averages. You can apply to refinance your loan through the bank’s website, either to take equity out of your home, refinance your existing balance to a lower rate or shorter term (or both) or consolidate debt. The bank’s low-cost loans ($295 closing costs) are also available for refinances.

Methodology

Bankrate’s expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

Bankrate’s reporters and editors have decades of experience covering the mortgage industry. They’re skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here’s how we assess each of the categories:

Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender’s lowest advertised annual percentage rate (APR) based on Bankrate’s sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
Customer experience. Finally, we delve into what it’s like to deal with the lender as a consumer. We look at the lender’s application process and availability of customer service support. We also consider the results of J.D. Power’s 2022 Mortgage Origination Satisfaction Survey.

Bankrate’s editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

Bankrate’s methodology page spells out our rating process in greater detail.

Source: thesimpledollar.com

Apache is functioning normally

May 27, 2023 by Brett Tams

Conventional loans are the most popular kind of mortgage, but a government-backed mortgage like an FHA loan is easier to qualify for and may have a lower interest rate. FHA home loans have attractive qualities, but borrowers should know that mortgage insurance usually tags along for the life of the loan.

As of March 2023, new FHA borrowers will pay less for insurance. The Biden-Harris Administration announced it was reducing premiums by .30 percentage points, lowering annual homeowner costs by $800 on average. The administration hopes the cuts will help offset rising interest rates.

What Is an FHA Loan?

The Federal Housing Administration has been insuring mortgages originated by approved private lenders for single-family and multifamily properties, as well as residential care facilities, since 1934.

The FHA backs a variety of loans that cater to the specific needs of a borrower, such as FHA reverse mortgages for people 62 and older and FHA Energy Efficient Mortgages for those looking to finance home improvements that will increase energy efficiency (and therefore lower housing costs).

But FHA loans are most popular among first-time homebuyers, in large part because of the relaxed credit requirements.

Recommended: Tips to Qualify for a Mortgage

FHA Loan Requirements

If you’re interested in an FHA home loan to buy a single-family home or an owner-occupied property with up to four units, here are the details on qualifying.

FHA Loan Credit Scores and Down Payments

Borrowers with FICO® credit scores of 580 or more may qualify for a down payment of 3.5% of the sales price or the appraised value, whichever is less.

Those with a poor credit score range of 500 to 579 are required to put 10% down.

The FHA allows your entire down payment to be a gift, from a family member, close friend, employer or labor union, charity, or government homebuyer program. The money will need to be documented with a mortgage gift letter.

FHA Loan DTI

Besides your credit score, lenders will look at your debt-to-income ratio, or monthly debt payments compared with your monthly gross income.

FHA loans allow a DTI ratio of up to 50% in some cases, vs. a typical 45% maximum for a conventional loan.

FHA Mortgage Insurance

FHA loans require an upfront mortgage insurance premium (MIP) of 1.75% of the base loan amount, which can be rolled into the loan. As of March 2023, monthly MIP for new homebuyers is 0.15% to .75% — most often 0.55%.

For a $300,000 mortgage balance, that’s upfront MIP of $5,250 and monthly MIP of $137.50 at the 0.55% rate.

That reality can be painful, but MIP becomes less expensive each year as the loan balance is paid off.

There’s no getting around mortgage insurance with an FHA home loan, no matter the down payment. And it’s usually only shed by refinancing to a conventional loan or selling the house.

FHA Loan Limits

In 2023, FHA loan limits in most of the country are as follows:

• Single unit: $472,030

• Duplex: $604,400

• Three-unit property: $730,525

• Four-unit property: $$907,900

The range in high-cost areas is $1,089,300 (for single unit) to $2,095,200 (four-unit property); for Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the range is $1,633,950 (for single unit) to $3,142,800 (for four-unit property).

FHA Interest Rates

FHA loans usually have lower rates than comparable conventional loans.

The annual percentage rate (APR) — the annual cost of a loan to a borrower, including fees — may look higher on paper than the APR for a conventional loan because FHA rate estimates include MIP, whereas conventional rate estimates assume 20% down and no private mortgage insurance.

The APR will be similar, though, for an FHA loan with 3.5% down and a 3% down conventional loan.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

FHA Income Requirements

There are none. High and low earners may apply for an FHA loan, but they must have at least two established credit accounts.

Recommended: How to Afford a Down Payment on Your First Home

Types of FHA Home Loans

Purchase

That’s the kind of loan that has been described.

FHA Simple Refinance

By refinancing, FHA loan borrowers can get out of an adjustable-rate mortgage or lower their interest rate.

They must qualify by credit score and income, and have an appraisal of the property. Closing costs and prepaids can usually be rolled into the new loan.

FHA Streamline Refinance

Homeowners who have an FHA loan also may lower their interest rate or opt for a fixed-rate FHA loan with an FHA Streamline Refinance. Living up to the name, this program does not require a home appraisal or verification of income or credit.

The new loan may carry an MIP discount, but you’ll pay the upfront MIP in addition to monthly premiums. An exception: The upfront MIP fee of 1.75% is refundable if you refinance into an FHA Streamline Refinance or FHA Cash-out Refinance within three years of closing on your FHA home loan.

Closing costs are involved with almost any refinance, and the FHA doesn’t allow lenders to roll them into a Streamline Refinance loan. If you see a no closing cost refinance for an FHA loan, that means that instead of closing costs, a lender will charge a higher interest rate on the new loan.

You’ll continue to pay MIP after refinancing unless you convert your FHA loan to a conventional mortgage.

FHA Cash-Out Refinance

You don’t need to have an FHA loan to apply for an FHA Cash-Out Refinance. Whatever kind of loan the current mortgage is, if the eligible borrower has 20% equity in the home, the refinanced loan, with cash back, becomes an FHA loan.

The good news: Homeowners with lower credit scores may be approved. The not-great news: They will have to pay mortgage insurance for 11 years.

Any cash-out refi can trigger mortgage insurance until a borrower is back below the 80% equity threshold.

FHA 203(k) Loan

In addition to its straightforward home loan program, the FHA offers FHA 203(k) loans, which help buyers of older residences finance both the home purchase and repairs with one mortgage.

An FHA 203(k) loan can be a 15- or 30-year fixed-rate or adjustable-rate mortgage.

Some homeowners take out an additional home improvement loan when the need arises.

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FHA vs Conventional Loans

Is an FHA loan right for you? If your credit score is between 500 and 620, an FHA home loan could be your only option. But if your credit score is 620 or above, you might look into a conventional loan with a low down payment.

You can also buy more house with a conventional conforming loan than with an FHA loan. Conforming loan limits in 2023 are $726,200 for a one-unit property and $1,089,300 in high-cost areas.

Borrowers who put less than 20% down on a conventional loan may have to pay private mortgage insurance (PMI) until they reach 20% loan-to-value. But borrowers with at least very good credit scores may be able to avoid PMI by using a piggyback mortgage; others, by opting for lender-paid mortgage insurance.

One perk of an FHA loan is that it’s an assumable mortgage. That can be a draw to a buyer in a market with rising rates.

The Takeaway

An FHA home loan can secure housing when it otherwise could be out of reach, and FHA loans are available for refinancing and special purposes. But mortgage insurance often endures for the life of an FHA loan. The Biden-Harris Administration recently reduced monthly MIP for new homebuyers to help offset higher interest rates.

Some mortgage hunters might be surprised to learn that they qualify for a conventional purchase loan with finite mortgage insurance instead. And some FHA loan holders who have gained equity may want to convert to a conventional loan through mortgage refinancing.

SoFi offers conventional fixed-rate mortgages with competitive interest rates and cancellable PMI, as well as refinancing. Check out SoFi’s low rate home mortgages.

Qualifying first-time homebuyers can put as little as 3% down, and others, 5%.

View your rate today.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Source: sofi.com

Apache is functioning normally

May 26, 2023 by Brett Tams

The home-buying process can seem daunting for first-time homebuyers. The good news is there are some mortgage lenders that offer home loan products designed to provide more ease with the process, which can be very appealing to many first-time future homeowners.

To help you get started, CNBC Select rounded up a list of the best mortgage lenders first-time homebuyers should consider. We evaluated home loan lenders based on the types of loans offered, customer support, credit score requirements and minimum down payment amount, among others (see our methodology below.)

Beyond just the lowest rates, it’s important to go with the lender that offers the best loan terms to suit your needs. There’s a learning curve when it comes to homeownership, but we’ve included an FAQs section below to help you get a better understanding of some aspects of the process.

The best mortgage lenders for first-time homebuyers

Best for loan variety

PNC Bank

Annual Percentage Rate (APR)

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans

Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan
Terms

10 – 30 years
Credit needed
Minimum down payment

0% if moving forward with a USDA loan

Pros

Offers a wide variety of loans to suit an array of customer needs
Available in all 50 states
Online and in-person service available

Cons

Doesn’t offer home renovation loans

Who’s this for? PNC Bank has a wide variety of home loan options, making it easy for first-time homebuyers to find a loan that suits their circumstances. This lender offers conventional loans, FHA loans, VA loans, jumbo loans and HELOCs. On top of that, PNC Bank offers USDA loans, which can be tougher to find among some lenders. PNC Bank also has some specialized loan options, like the Community Loan, which is meant for individuals with lower cash reserves and allows for a down payment as low as 3% and no PMI (private mortgage insurance).

It also offers a Medical Professional Loan for interns, residents, fellows or doctors who have completed their residency in the last five years. Eligible borrowers for this loan can borrow up to $1 million and won’t have to pay PMI, regardless of their down payment amount.

In addition to all these offerings, PNC Bank gives eligible borrowers the chance to qualify for a $5,000 grant to be used toward closing costs. Eligible borrowers must have an income at or below 80% of the median household income for the metropolitan statistical area (MSA), or their desired property must be located in a low- or moderate-income census tract as designated by the FFIEC, according to PNC’s website.

Best for educational offerings

Bank of America Mortgage

Annual Percentage Rate (APR)

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans

Conventional loans, FHA loans, VA loans, jumbo loans, doctor loans and the Affordable Loan Solution mortgage
Terms

15 – 30 years
Credit needed

Not disclosed
Minimum down payment

0% if moving forward with a VA loan; 3% if moving forward with the Affordable Loan Solution mortgage

Pros

Offers a wide variety of loans to suit an array of customer needs
Offers an Edu-Series for educating first-time homebuyers as well as other learning resources and materials
Online and in-person service available
Fixed-rate and adjustable-rate mortgages offered
Reduced cost of mortgage insurance

Cons

Doesn’t offer USDA loans

Who’s this for? Bank of America stands out for its first-time homebuyer educational resources. Aside from home loan calculators, which are typical for mortgage lenders to provide on their websites, Bank of America has an online “Edu-Series” for first-time home buyers. There are also guides on its website that break down key terms and a list of FAQs geared toward first-time home buyers.

Bank of America also offers a variety of loan options, including a home loan for medical professionals. With this loan, doctors, dentists, residents and fellows can make down payment minimums that are tiered based on the size of the loan they’re applying for. They’ll put down at least 3% on mortgages up to $850,000, at least 5% on mortgages up to $1 million, at least 10% down on mortgages up to $1.5 million and at least 15% down on mortgages to $2 million. If you’re a medical professional, Bank of America will also exclude your student loan debt from your total debt when you’re applying for the loan. This could bring down your debt-to-income ratio for the purposes of applying for the loan and make it easier for you to qualify.

Even if you aren’t a qualifying medical professional, you can still potentially take advantage of tiered down payment terms through the Affordable Loan Solution mortgage option. With this loan, eligible borrowers can make a down payment as low as 3% on loan amounts up to $726,200, and as low as 5% on mortgages up to $1,089,300. Mortgage insurance would be required if making down payments lower than 20%, but according to Bank of America’s website, the mortgage insurance would come at a reduced cost compared to that of other conventional loans.

Best for lower credit scores

Rocket Mortgage

Annual Percentage Rate (APR)

Apply online for personalized rates
Types of loans

Conventional loans, FHA loans, VA loans and Jumbo loans
Terms

8 – 29 years, including 15-year and 30-year terms
Credit needed

Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met
Minimum down payment

3.5% if moving forward with an FHA loan

Pros

Can use the loan to buy or refinance a single-family home, second home or investment property, or condo
Can get pre-qualified in minutes
Rocket Mortgage app for easy access to your account

Cons

Runs a hard inquiry in order to provide a personalized interest rate, which means your credit score may take a small hit
Doesn’t offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Doesn’t manage accounts for jumbo loans after closing

Who’s this for? First-time homebuyers tend to be younger and may not have a long credit history, which can make it harder to qualify for a good mortgage rate. Rocket Mortgage stands here because it accepts applicants with credit scores as low as 580. The lender also has a program called the Fresh Start program that’s aimed at helping potential applicants boost their credit score before applying.

Rocket Mortgage offers conventional loans, FHA loans, VA loans and jumbo loans but not USDA loans, which means this lender may not be the most appealing for potential homebuyers who want to make a purchase with a 0% down payment. Rocket Mortgage doesn’t offer construction loans (if you want to build a brand new custom home) or HELOCs, but if you’re a homebuyer who only plans to purchase a single-family home, a second home, or a condo that’s already on the market, this shouldn’t be a drawback for you.

This lender offers flexible loan repayment terms that range from 8 – 29 years in addition to standard 15-year and 30-year terms.

Best for no lender fees

Ally Bank Mortgage

Annual Percentage Rate (APR)

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans

Conventional loans, HomeReady loan and Jumbo loans
Terms

15 – 30 years
Credit needed
Minimum down payment

3% if moving forward with a HomeReady loan

Pros

Ally HomeReady loan allows for a slightly smaller downpayment at 3%
Pre-approval in just three minutes
Available in all 50 U.S. states
Online support available
Doesn’t charge lender fees

Cons

Doesn’t offer FHA loans, USDA loans, VA loans or HELOCs

Who’s this for? Ally Bank doesn’t charge any application fee, origination fee, processing fee or underwriting fees. These are what’s collectively known as “lender fees” and they can cost you anywhere from a few hundred to a few thousand dollars, and eat into the money you put aside for buying your home. When you’re a first-time home buyer, going through the process as affordably as possible is often top-of-mind, so saving on these fees will let you keep more of your money for other things, like renovations or moving costs.

Keep in mind, though, that Ally Bank may still charge appraisal fees and recording fees and may charge for the title search and insurance. As long as you have all the necessary documents handy and submit complete and accurate information, you can get pre-approved for a loan in as little as three minutes online and submit your application in just 15 minutes.

Best for no PMI

CitiMortgage®

Annual Percentage Rate (APR)

Apply online for personalized rates
Types of loans

Conventional loans, FHA loans, VA loans and Jumbo loans
Terms

15 – 30 years
Credit needed
Minimum down payment

Terms apply.

Pros

Citi’s HomeRun Mortgage program allows for a downpayment as low as 3%
Citi’s Lender Assistance program gives eligible homebuyers a credit of up to $5,000 to use toward closing costs
Ability to choose between fixed-rate and adjustable-rate mortgages
New and existing Citi bank customers can qualify for closing cost discounts based on their account balance
HomeRun mortgage program allows for a downpayment of less than 20% without PMI
Provides homeownership education and counseling

Cons

No options for a 0% downpayment
Existing customers need high account balances to receive some of the highest interest rate discounts

Who’s this for? CitiMortgage gives homebuyers a chance to save big-time by waiving the PMI (private mortgage insurance) requirement on loans with down payments below 20%. This can be done by applying for a mortgage through Citi’s HomeRun program, which also allows for down payments as low as 3%.

PMI is typically a required monthly charge with other home loans if you make a down payment of 20% or less. But PMI can cost you tens of thousands of dollars extra over the entire life of the loan. The money you save from not paying PMI could potentially go towards saving for a second property, a home renovation, or any other financial goal you have. HomeRun mortgages also allow borrowers to lock in a fixed rate on their mortgage so they won’t have to worry about their rate increasing down the line.

FAQs

How do mortgages work?

A mortgage is a type of loan you can use to purchase a home. This agreement essentially says you can purchase a home without paying for it in full, upfront — you’ll just need to put some of the money down — usually between 3% and 20% of the home price — and pay smaller, fixed monthly payments over a certain number of years, plus interest and potentially other charges. Having a mortgage allows you to own the property even if you don’t have the hundreds of thousands of dollars in cash needed to purchase it outright.

What is a conventional loan?

A conventional loan is a home loan that’s funded by private lenders and sold to government enterprises such as Fannie Mae and Freddie Mac. It’s a very common loan type and some lenders may require a down payment as low as 3% or 5%.

What is an FHA loan?

A Federal Housing Administration loan, or FHA loan, is a loan program that has some slightly looser requirements. For example, this loan program may allow some borrowers to be approved for a loan with a lower credit score or be able to get away with having a higher debt-to-income ratio. You’ll typically only need to make a 3.5% down payment with this type of loan.

What is a USDA loan?

A USDA loan is offered through the United States Department of Agriculture and is aimed at borrowers who want to purchase a home in a qualifying rural area. USDA loans don’t require a minimum down payment, so borrowers can use this loan to purchase a home for almost no money upfront (you’ll still likely pay fees, though).

What is a VA loan?

VA mortgage loans are provided through the U.S. Department of Veterans Affairs and are meant for service members, veterans and their spouses. They typically require a 0% down payment and borrowers don’t have to pay private mortgage insurance.

What is a jumbo loan?

A jumbo loan is meant for home buyers who need to borrow more than $647,200 to purchase a home. Jumbo loans usually have stricter credit score and debt-to-income ratio requirements, and they also typically require a larger minimum down payment.

How is my mortgage rate decided?

Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. However, your specific mortgage rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.

Be sure to submit the necessary information for more personalized rate estimates from your desired lender.

What is the difference between a 15- and 30-year term?

A 15-year mortgage gives homeowners 15 years to pay it off in fixed, equal amounts plus interest, while a 30-year mortgage gives homeowners 30 years to pay it off. Monthly payments are generally lower with a 30-year mortgage since you’ll have a longer period of time to pay off the loan. However, you’ll wind up paying more in interest over the life of the loan since it is charged on a monthly basis. A 15-year mortgage, on the other hand, lets you save on interest but you’ll likely have to make a higher monthly payment.

How does private mortgage insurance (PMI) work?

Lenders charge private mortgage insurance (PMI) to protect themselves in the event that a borrower defaults on their loan. PMI is assessed to your account if you choose to make a down payment of less than 20%. You’ll be responsible for paying this in addition to your monthly mortgage payments.

However, you can usually have the PMI waived after you’ve made enough payments to build 20% equity in your home.

Bottom line

If you need to take out a mortgage to purchase your first home, you have options. Certain mortgage lenders stand out for first-time homebuyers by considering applicants with lower credit scores, offering lower down payments and providing useful educational resources.

Keep in mind that mortgage interest rates fluctuate often and the rate you receive will vary depending on your location, credit score and credit report. While lenders may post general interest rate ranges on their websites, the best way to get a more accurate estimate of your rate is to provide the necessary information to check your rate.

Our methodology

To determine which mortgage lenders are the best for first-time homebuyers, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best mortgages, we focused on the following features:

Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender is able to cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list are able to offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances in which a particular lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.

After reviewing the above features, we sorted our recommendations by best for loan variety, educational offerings, lower redit scores, no lender fees and no PMI.

Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee the interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Source: cnbc.com

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May 25, 2023 by Brett Tams

Mortgage Q&A: “What is the easiest type of mortgage to get?”

Relative to other types of loans, it can be difficult to get approved for a mortgage.

After all, mortgage lenders typically require a tri-merge credit report, steady income and employment, and assets in the bank.

They don’t just take your word for it like they might on a credit card application.

All of those items must be documented to ensure you’re a creditworthy borrower capable of financing a piece of real estate.

Easiest Types of Mortgages to Get, Ranked

1. FHA loan (lowest combination of credit score and down payment)
2. Conforming loan (lower min. down payment but need 620 FICO)
3. VA loan (zero down and no min. FICO but must be active duty/veteran)
4. USDA loan (zero down, no min. FICO but must be rural location and there are income limits)
5. Jumbo loan (usually need 10%+ down payment, 680+ FICO, and asset reserves)

FHA loans are the easiest mortgage to get because of the 3.5% down payment and 580 minimum FICO score required.

Conforming loans are a close second, despite a lower 3% minimum down payment, due to the higher 620 minimum FICO score required.

Both USDA and VA loans don’t require a down payment and technically don’t have a minimum FICO requirement, but are more specialized products. Thus not as easy.

Jumbo loans are typically the hardest to get because they are larger (loan amounts) and aren’t backed by Fannie/Freddie or the government.

Tip: If you already have a mortgage, a streamline refinance can be even easier to qualify for.

The Answer Depends on What Your Issue(s) Might Be

Before we get down to the nitty gritty, I should note that there isn’t a universal answer to this question.

It depends what may make obtaining a home loan difficult to begin with.

Are your credit scores not all that good? Do you have limited income? No money in the bank? Or perhaps a combination of all these items?

The first thing you should do is self-evaluate. Take a look at your income (and employment history), your credit report (and scores), and your assets.

Would you lend yourself a mortgage? Funnily enough, even if you wouldn’t, there’s probably a lender that would!

Jokes aside, take the time to do this to see where you stand before you apply for a mortgage.

Easy street isn’t necessarily the best avenue to take when it comes to home loan financing.

Now let’s discuss particulars based on some common issues.

If You Lack a Down Payment for a Mortgage

If down payment funds are your problem, there are plenty of zero down home loan options out there.

The two most common are VA loans and USDA loans. However, these are reserved for military/veterans and those buying in rural areas, respectively.

Assuming either of those are YOU, the down payment is no longer a hurdle. They allow 100% financing.

Even if you don’t qualify for those loan types, there are credit unions that offer zero down mortgages.

And many state housing finance agencies that offer grants and down payment assistance.

Some private lenders also offer grants. Rocket Mortgage launched “Purchase Plus” in late December.

It offers up to $7,500 in closing cost credits for first-time home buyers to use toward their mortgage costs.

Purchase Plus is available in specific census tracts in Atlanta, Baltimore, Chicago, Detroit, Memphis and Philadelphia.

And Guaranteed Rate just launched a “Special Purpose Credit Program” in the same cities that provides up to $8,000 in assistance to underserved borrowers.

That’s a minimum of $5,000 in down payment and closing cost assistance, and up to an additional 1% of the sales price (or $3,000).

Many Types of Mortgages Only Require a 3-3.5% Down Payment

Even if you don’t qualify for zero down financing, conforming loans backed by Fannie Mae and Freddie Mac only require 3% down.

Conforming loans are the most common type of mortgage, offered by pretty much every bank and lender in the nation.

Fannie Mae’s offering is known as HomeReady Mortgage, while Freddie Mac’s is called Home Possible.

Both require a minimum FICO score of 620, which is pretty low and what some would consider easy to qualify for.

Additionally, they allow for boarder income so roommates/renters can contribute to your income to help qualify for the loan.

If you don’t have a 620 FICO score, there’s the FHA loan, which requires a minimum score of 580 with 3.5% down payment. Or as low as 500 if you can muster 10% down somehow.

If Your Credit Scores Are Low…

If you’ve got decent income and assets, but your credit scores are a problem, you still might be in luck.

For example, there is no minimum credit score requirement for VA loans, per the VA.

But individual lenders will still impose their own limits, which may be 580 or higher. Still, that’s very accommodating.

The USDA home loan program also doesn’t impose a minimum credit score, but most lenders want a 640 FICO or higher.

As mentioned above, Fannie Mae and Freddie Mac require a minimum 620 FICO. However, it’s possible to get approved with a lower score if you have a co-borrower with higher scores.

And the FHA only requires the 580 FICO for max financing (3.5% down).

So you’ve got several very liberal options to choose from that approve those with pretty low credit scores.

If Your Income Is Limited…

If income is your problem, you may still not have any issues as most home loan types are also pretty flexible in this department too.

With regard to your debt-to-income ratio (DTI), a conforming loan backed by Fannie Mae will allow a DTI ratio as high as 50%.

The FHA can go even higher, to a staggering 56.9%. The VA doesn’t have a maximum DTI, and can also go quite high depending on the circumstances.

USDA loans are generally stricter and want a DTI of 41% or lower, but may allow up to 46%.

Even if income is an issue for you, there’s the possibility to use a co-borrower or boarder income to help you qualify.

[What Mortgage Has the Best Rate?]

If You Are Recently Employed…

While income is one thing, employment history is another. Mortgage lenders are happy you’re making what you’re making.

But they want to know that you’ll be making that money consistently into the future. Mortgages can last 30 years, remember?

This means they typically want to see a two-year employment history to consider the income stable.

But once again, there are exceptions to the rule and it’s often possible to qualify with less than two years employment. Or even one year.

Across all loan types, a letter of explanation and supporting documentation may allow for limited employment history.

For example, a recent graduate may qualify for a mortgage if employment is likely to continue. Same goes for a medical school graduate (see physician mortgages for more on that).

Ultimately, there are lots of ways around the typical two-year requirement if you can demonstrate employment stability.

It also helps if you have good credit and/or money in the bank to offset such a risk.

Jumbo Loans Are Probably the Hardest Mortgages to Qualify For

While I’ve hopefully highlighted the fact that most mortgages are actually pretty easy to qualify for, there’s one category that isn’t.

I’m talking about jumbo loans, which exceed the conforming loan limit. These loans are offered by jumbo lenders, and are often backed by the companies themselves.

But here’s the thing – the 2023 conforming loan limit is $726,200. And the high-cost loan limits (for expensive areas of the country) are a whopping $1,089,300!

In other words, most folks don’t need a jumbo loan anyway.

If you do, expect higher down payment requirements, higher minimum FICOs, and larger reserve requirements.

After all, you’re asking to borrow a lot of money, so you better be good for it.

This might entail a minimum down payment of 10-20%, FICO scores of 680 and up, lower DTI ratios, and several months of reserves in the bank.

If You Have to Ask What Is the Easiest Type of Mortgage to Get…

Those who read the sections above should realize it’s fairly easy to qualify for a mortgage.

Credit score requirements are super low across all loan types. And DTI ratios are also very forgiving in most cases.

The same goes for employment history and asset/reserve requirements.

And the fact that you can often employ gift funds or a co-borrower to help qualify is the icing on the cake.

But if you have to ask the question, you may want to reassess your decision to rent vs. buy.

There’s a reason all these minimum requirements are in place. And there’s a reason why it takes around a month to get a mortgage.

It’s a big deal and the decision shouldn’t be taken lightly. Additionally, those who are adequately prepared should qualify for the lowest mortgage rates with the best terms.

So instead of focusing on easy, focus instead on how to qualify for the best rate.

Read More: 21 Things That Can Push Your Mortgage Rate Higher

Source: thetruthaboutmortgage.com

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May 18, 2023 by Brett Tams

5 Home Buying Tricks That Can Save Veterans $53,000

If you ask any twenty Veterans whether they want to own their own homes someday, chances are all of them will say yes.

But data from the past five years reveals that 94% of Veterans have bypassed this benefit, only one of them has used a benefit that makes home buying unbelievably easier.

VA mortgage rates are at historical lows. Now is the time to lock in your rate. Even a modest jump in interest rates can have big consequences when applied to loans as large as a home mortgage. For example, consider the cost of waiting too long and having VA interest rates rise by a mere one percent. The difference between a 30-year, fixed-rate mortgage of $250,000 at 4% APR and one at 5% APR is nearly $150 per month and more than $53,000 over the life of the loan!

Click here to check your VA loan eligibility >>

Good News: There’s Still Time to Lock in a Low Rate

The Veteran’s home loan program began in 1944 as a “thank you” to servicemembers returning from World War II. Since then, millions of current and former military personnel have purchased homes with no down payment and easier qualifying terms.

Click here to check your VA loan eligibility >>

Veterans who use this loan program have access to 5 advantages that make Veteran loans hands down the best loan product out there.

No Down Payment. Most loan programs require at least 3% down and as much as 20%. But a VA loan requires no down payment whatsoever. This saves Veterans years of scrimping and saving prior to buying a home.
No Mortgage Insurance. Most home buyers pay hundreds of dollars per month in mortgage insurance if they make a down payment of less than 20%. Veterans who use a VA home loan do not pay PMI so they buy more house with less money.
Less-than-Perfect Credit OK. The non-Veteran home buyer often needs stellar credit to buy a home. This isn’t the case for Veterans. Credit score minimums are much easier to reach.

Tip: Many Veterans assume they are not eligible for their home buying benefit. But the minimum service requirement is between 90 days and 2 years for most Veterans. Check your eligibility >>

Select your state to see your new rate.

Lower Rates. Veteran home loan interest rates are about 0.25% lower than rates for conventional loans, according to a recent lender survey. Veteran home buyers will likely end up paying less in interest compared to the average home buyer.
Closing Cost Reduction. Veteran home loans come with limits on how much you can be charged in loan fees. These loans come with built-in protections for Veterans.

Here’s How to Find Out if you Qualify

Veterans eager to get the process started should send their request to a VA lender.

More Details on Veteran Loans and Qualification>>

mva-table

Sources:

Veteran Population Statistics

EllieMae Origination Insight Report

Home Loan Guaranty Report

Trump Says Fed Keeping Rates Low

Source: militaryvaloan.com

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May 17, 2023 by Brett Tams

Our rating

BMO Harris Premier Account

Minimum balance/deposit: $0
Monthly fee: $25, but can be waived
Waiver options: Yes, based on eligible balance
ATM fees: Reimbursed up to $25 per month
Credit card bonus: Up to $75 per quarter
Loan benefits: $500 off closing costs and 0.50% off APR

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If you’ve built up a bit of a nest egg and you’re ready to upgrade your banking experience, you have plenty of options. One that should definitely be on your radar is the BMO Harris Premier™ Account, a premium bank account that gets even more rewarding as your balance grows.

Let’s be clear: The BMO Harris Premier Account isn’t the best fit for every banking customer. Before you apply for one, make sure you understand what you’re getting into.

What Is the BMO Harris Premier Account?

The BMO Harris Premier Account is a high-end checking account from BMO Harris Bank. It has a $25 monthly maintenance fee that BMO waives when you meet a minimum balance requirement.

There’s no minimum balance to qualify for this account, but higher balance tiers — starting at $25,000 and ascending from there — qualify for additional perks and benefits, like credit card spending bonuses and discounts to BMO mortgage closing costs. The balance requirement is cumulative across all eligible BMO accounts, including savings, money market, and CDs.

Even if you have less than $25,000 with BMO, the Premier Account is quite generous. Benefits include up to $25 in non-BMO ATM surcharge rebates and a $10 monthly credit when you spend a minimum amount on a linked BMO credit card.

Note that the BMO Harris Premier Account is not the same as BMO Harris Premier Banking Services. Premier Banking Services is a private banking service that requires at least $250,000 in combined eligible deposits with BMO. Premier Banking Services clients also qualify for Premier Banking Accounts, but they’re also entitled to a wider range of benefits, including financial planning and wealth management.

What Sets BMO Harris Premier Apart?

The BMO Harris Premier Account has a few notable features that many competing accounts lack:

Quarterly credit card spending bonuses. When you spend at least $3,500 in purchases on an eligible BMO credit card during a calendar quarter, you qualify for a spending bonus of at least $10. At higher relationship levels, the bonus ranges as high as $75 for the same amount of spending.
Closing cost credits and interest rate discounts on BMO home loans. As a BMO Harris Premier account holder, you’re entitled to two valuable benefits when you get a mortgage loan through BMO: a $500 discount on your closing costs and a 0.50% interest rate discount when you set up automatic payments.
Generous ATM fee reimbursements. As at most banks, BMO Harris customers pay no fees at the bank’s own ATMs. But BMO Harris Premier goes farther and reimburses up ATM fees charged by other banks up to $25 per month. That’s enough to offset this account’s monthly maintenance fee (if you haven’t done that already).

Key Features of BMO Harris Premier

The BMO Harris Premier Account has all the features you’d expect from a traditional checking account, including multiple ways to waive the monthly maintenance fee and potentially valuable perks for heavy users.

Account Opening Bonus

Open a new BMO Harris Premier Account by July 14, 2023, and get a $350 cash bonus when you receive a total of at least $7,500 in qualifying direct deposits within the first 90 days your account is open.

Monthly Maintenance Fee & Waiver Options

The BMO Harris Premier Account has a $25 monthly maintenance fee. BMO waives this fee in any statement cycle where you meet one of the following criteria:

An average daily balance of at least $10,000 in your Premier Account
A monthly combined balance of at least $25,000 across all eligible BMO accounts, including savings and investment accounts
Participation in BMO’s employee benefits program, which is limited to certain BMO employees and thus isn’t a common waiver option for the general public

ATM Network & Fees

BMO is part of the Allpoint ATM network, which has tens of thousands of ATMs around the United States. As a Premier Account customer, you pay no ATM withdrawal fees at Allpoint ATMs.

BMO also reimburses third-party ATM surcharges up to $25 per month. So unless you make a lot of cash withdrawals each month, you don’t have to worry about ATM fees with BMO Premier.

Interest on Balances

All BMO Harris Premier Account balances earn 0.01% APY. Balances held in linked savings and money market accounts earn at higher rates, depending on your relationship level.

Credit Card Spending Bonus

As a Premier Account holder, you get a $10 bonus credited to your account in any quarter where you spend at least $3,500 in eligible purchases on a linked BMO credit card. You need to qualify for the credit card separately — having a Premier Account doesn’t entitle you to one automatically.

Mortgage Lending Benefits

The BMO Harris Premier Account comes with two benefits for mortgage borrowers who set up autopay out of the account:

A $500 credit to the loan’s closing costs
A 0.50% interest rate discount

The interest rate discount can add up to many thousands of dollars over the life of the loan, so it’s a big incentive to pay your mortgage out of your Premier Account.

Relationship Tiers & Balance Requirements

The BMO Harris Premier Account has three higher relationship tiers based on your total combined balance in eligible BMO accounts. Each tier offers benefits on top of the ones you get just by being a BMO Premier customer:

Premier Gold: Requires $25,000 to $99,999.99 in combined eligible balances. Additional benefits include up to $30 in domestic and international wire transfer fee rebates, a $25 quarterly credit card spending bonus with $3,500 in qualifying purchases, and a 0.75% bump to the base yield (currently 1.00% APY) on a linked BMO money market account.
Premier Platinum: Requires $100,000 to $249,999.99 in combined eligible balances. Additional benefits include up to $60 in wire transfer rebates, a $50 quarterly credit card spending bonus with $3,500 in qualifying purchases, and a 1.50% bump to the money market base rate.
Premier Platinum Elite: Requires $250,000 or more in combined eligible balances. Additional benefits include up to $90 in wire transfer rebates, a $75 quarterly credit card spending bonus with $3,500 in qualifying purchases, and a 2.25% bump to the money market base rate.

Advantages

The BMO Harris Premier Account has several notable advantages that can collectively offset the monthly fee (if it’s not waived already). The advantages grow along with your balance.

Above-average account opening bonus. BMO Harris Premier’s account opening bonus is worth gunning for. You do need to receive at least $7,500 in direct deposits during the first 90 days your account is open, but that should be doable for many users.
At least $25 in ATM surcharge fee reimbursement per month. If you regularly withdraw cash from ATMs, regardless of who owns them, you could qualify for a monthly ATM fee reimbursement big enough to offset this account’s maintenance fee.
At least $10 in quarterly credit card spending bonuses. Meet spending requirements set by BMO and you can earn at least $10 in quarterly bonuses. You earn even more at higher relationship levels, up to $75 per quarter.
Lending benefits for all relationship levels. All BMO Harris Premier account holders enjoy two mortgage lending benefits: $500 off closing costs and a 0.50% interest rate autopay discount.
Additional benefits at higher relationship tiers. BMO Harris Premier’s benefits grow as your balance increases. North of $25,000 in combined balances across all eligible BMO accounts, you qualify for potentially valuable perks not available to entry-level account holders.

Disadvantages

The BMO Harris Premier Account has some important downsides, starting with a monthly maintenance fee that requires a five-figure balance to waive.

Has a $25 monthly maintenance fee. BMO Harris Premier has a $25 monthly maintenance fee that requires a hefty minimum balance (at least $10,000 in the account or $25,000 across all eligible BMO accounts) to waive. This is fine if you have a lot of extra cash, but it doesn’t work for many people.
Very low yield on balances. This account has a microscopic yield: just 0.01% on all balances. If you want to earn substantial interest on your checking balances, look to a legit interest checking account instead.
Lending benefits remain the same as your balance grows. All Premier Checking customers get the same lending benefits on BMO home loans: $500 off closing costs and a 0.50% interest rate discount with autopay. These are nice for entry-level users, but other banks offer more generous benefits for higher-asset borrowers.

How BMO Harris Premier Stacks Up

Before you open a BMO Harris Premier Account, compare it against other full-service checking accounts. One popular competitor is Chase Total Checking, which has some overlapping features but is different enough to warrant closer inspection.

	BMO Harris Premier	Chase Total Checking
Monthly Maintenance Fee	$25, but can be waived	$12, but can be waived
Waiver Requirements	Yes, based on BMO balance	Yes, based on direct deposit or balance
ATM Fee Reimbursement	Up to $25 per month	None
Credit Card Benefits	Up to $75 in quarterly spending bonuses	None
Mortgage Benefits	Closing cost and interest rate discounts	None
Interest on Balances	0.01% APY	None

Final Word

As its name implies, the BMO Harris Premier™ Account is somewhat exclusive. It has a hefty monthly fee that requires a balance of at least $10,000 to waive, so it’s not appropriate for folks just starting out on their financial journeys.

But if you can clear the waiver requirement, BMO Harris Premier is a very good bank account. It has generous benefits like up to $75 in quarterly credit card spending bonuses, up to $25 in monthly ATM fee reimbursements, and valuable loan perks like closing cost and interest rate discounts.

BMO Harris Premier offers strong incentives to do more with BMO too. Its relationship tiers offer progressively more attractive benefits, with the best reserved for people who have at least $250,000 across all BMO deposit and investment accounts. If you don’t have that kind of money yet, it’s at least something to aspire to.

The Verdict

Our rating

BMO Harris Premier Account

Minimum balance/deposit: $0
Monthly fee: $25, but can be waived
Waiver options: Yes, based on eligible balance
ATM fees: Reimbursed up to $25 per month
Credit card bonus: Up to $75 per quarter
Loan benefits: $500 off closing costs and 0.50% off APR

Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

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May 14, 2023 by Brett Tams

The VA Streamline Refinance (IRRRL Program) 2023

The VA streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan. VA refinance rates are at historic lows. If you are interested in reducing your interest rate and monthly payment, it’s worthwhile to check current VA streamline rates.

The VA streamline is one of the only refinance programs available in 2023 that allow you to qualify without income or bank account verification. It’s available to those with less than perfect credit. It is one of today’s quickest and easiest refinance options.

Check today’s VA streamline refinance rates by completing this quick online form.

What is a VA Streamline Refinance Loan?

The VA streamline helps veterans lower their mortgage rate and payments. When rates are low like they are now, veterans can refinance into a new loan based on today’s rates, and often reduce their monthly payment quickly and easily.

This loan type, also called the Interest Rate Reduction Refinancing Loan (IRRRL) eliminates many of the roadblocks that hold up applicants on other types of refinances. The VA Streamline is much easier because:

No paystubs or W2s are required
No bank statements are required
No home appraisal is required
There is no loan-to-value limitation because no appraisal or value is required.
Underwater homes are eligible
The required funding fee is lower than for VA purchase loans
Closing costs can be wrapped into the new loan, meaning little or no out-of-pocket expenses

Get a VA streamline rate quote here, no obligation.

Why is this loan so easy to obtain? Homeowners with a VA loan are more likely to make payments on time if their payments are lower. It benefits everyone when veterans have affordable mortgage payments.

Current VA Refinance Rates

VA streamline refinance rates are at historic lows. Many Veterans who have purchased or refinanced a VA home loan in the past few years should check today’s VA rates to make sure they have the absolute lowest rate and monthly payment possible.

Click here for a free VA streamline rate quote.

Eligibility

If you’re interested in a VA Streamline (IRRRL) you must currently have a VA loan. Your mortgage professional will pull a Prior Loan Validation from VA’s website to prove current VA loan status. There are some additional requirements.

On-Time Payments

In addition, you are required to have made on-time payments over the past year, with no more than one payment that was 30+ days late in the past 12 months. If you did have a late payment, say, 8 months ago, you may want to wait 4 months before applying.

The VA Streamline Refinance Must Improve Veteran’s Situation

The VA streamline has to put the borrower in a better financial situation. VA lenders may only approve streamline refinances that help the veteran.

The new payments on the VA streamline must be lower than your current payments. There are a few exceptions, like when you:

Refinance an adjustable rate mortgage (ARM) to a fixed rate mortgage.
Refinance into a shorter term
Finance energy efficient improvements into the VA streamline

In all cases except for an ARM refinancing into a fixed rate, the interest rate must decrease.

Check VA streamline refinance rates here.

To prove the benefit of the refinance, your lender will provide you with a form stating the interest rate and payment of your current loan compared to the rate and payment of the new loan. The form will also state how long it will take the refinance to pay for itself. For instance, if the refinance will cost you $3000 in closing costs, but you are saving $300 per month, you will make back the cost of the refinance in 10 months. Be sure to review this form to make sure you are receiving an adequate benefit from the refinance. Talk to one of our VA experts to determine your refinance payback time frame.

Occupancy

You must certify that you previously occupied the home that you are refinancing with a VA streamline. Those applying for a VA streamline are more likely to qualify if they currently live in the home.

There are still instances where you may still qualify if you don’t live in the home. For example, if you lived in the home, then relocated and rented it out, you still may be able to apply for a VA streamline. Speak with your lender for more information.

VA Streamline Funding Fee

The VA funding fee is required on most purchase and refinance VA loans to defray the costs of the VA home loan program. In most cases, the VA Streamline funding fee is 0.50% of the new loan amount. This fee can be financed into the loan so that the veteran does not have to pay it at closing of the loan.

Check today’s VA rates.

The fee is waived for veterans who are disabled due to service-related injuries. The VA makes this determination and provides it to the lender.

The 0.50% fee is much less than the 2.15% or 3.3% usually required for purchase or VA cash out refinance loans.

Subsequent Use

The VA streamline is not viewed as a subsequent use of your VA home loan benefit. You will not incur the 3.3% subsequent use fee because you used the VA streamline refinance program.

Entitlement

This loan does not use any of your VA home loan entitlement, nor do you have to prove remaining entitlement to obtain a VA streamline. Your remaining VA entitlement after purchase of the home, if any remains, does not change when you obtain a VA streamline.

Loan Terms and VA Streamlines

As discussed previously, your VA loan term may decrease, for instance, from 30 years to 15 years. In this case, it’s OK that your payment increases.

You can also refinance a 15 year loan into a longer term loan. However, keep in mind that the most your loan term can increase is 10 years. So if you currently have a 15 year term, the longest loan you can refinance into will be 25 years.

Apply for a VA Streamline

Complete a short online form to get a free rate quote and see how much you can save.

Can I refinance my Home if it’s Underwater?

Yes. The VA streamline does not require an appraisal, therefore no value is established for the property. The basis for the loan is the existing VA loan, not the current value of the property.

Do lenders impose additional rules for VA streamlines?

Yes. Often, lenders will impose “overlays,” which are additional guidelines on top of VA’s requirements. Each lender has the right to establish their own standards for lending on VA loans.

For instance, the VA does not require an appraisal or credit report. But almost all lenders require a credit report, and many require an appraisal for a VA streamline. If you are worried about the value of your home or the cost of the appraisal, find a lender who will complete the loan without an appraisal.

Do I need my COE for a streamline?

No. Your Certificate of Eligibility (COE) is needed for your VA home purchase, but not for a streamline. Since you already have a VA loan, most lenders will simply request a prior loan validation directly from VA’s website in lieu of a COE. If you have questions about your COE, contact us.

Get a free VA streamline rate quote here.

Can I add or remove anyone from the mortgage with a VA Streamline?

In some cases, parties can be added or removed. The general rule of thumb is that the veteran who was eligible for the original loan must remain on the loan. The exception is when a spouse and veteran are on the existing loan, and the veteran passes away. In this case, the spouse may be able to refinance with a VA streamline without the eligible veteran.

What if the VA streamline raises my payment?

The payment is allowed to rise as a result of the VA streamline in some cases. In the very rare case that the new payment goes up 20% or more because of these features, the lender may ask for full income documentation. Usually the payment does not rise that dramatically because of the below factors:

ARM to Fixed Rate

Because fixed rate mortgage generally have higher interest rates than adjustable rate mortgages (ARMs), your payment may go up. But, often it is a good trade off to know that your payment won’t change over the life of the loan like it can with an ARM.

Check VA rates today.

In some cases, your rate and payment may even go down if your ARM interest rate is higher than today’s low fixed rates.

Shorter Term

The VA streamline allows you to refinance from a 30 year loan into a shorter term, such as a 15 year term. In this case, it’s OK for your payment to rise as long as your interest rate goes down. Since shorter term loans pay off faster, payments are bigger than loans with longer terms.

Energy Efficient Improvements

As an added benefit, the streamline refinance program allows home owners to finance up to $6000 in energy efficient improvements for their home. These improvements will save home owners money over time and are a great option for those who are interested in upgrading and adding value to their home. Some examples of energy-efficient items are programmable thermostats, insulation, solar heating, and caulking/weather stripping.

In some cases, the veteran may receive cash at closing of a VA streamline for reimbursement of energy-efficient items. Check with your lender for details.

What if I have a Second mortgage?

Second mortgages on VA loans are fairly rare, since VA loans do not require a down payment, and therefore not enough equity exists to obtain a second mortgage.

In the case that there is a second, the new VA loan from a streamline can’t pay it off. A VA cash out loan would be required. Any additional loans on the property need to be “subordinated,” or put underneath on title, behind the new VA loan.

Can I get cash at closing with a VA streamline?

No. VA streamlines are meant only to pay off the existing loan and closing costs. The only exception is when a veteran prepays for energy-efficient improvements and needs to be reimbursed for actual costs.

Should I apply for a VA streamline with my current lender?

Although your original lender or current mortgage servicer might be able to do your VA streamline, it is not required. Any VA-approved lender can do your streamline, and it’s best to check with a few lenders to compare interest rates and fees.

Get a personalized rate quote here.

Is VA streamline the same as HARP 2.0?

No. HARP 2.0 is a refinance for loans owned by Fannie Mae or Freddie Mac. Fannie/Freddie do not own VA loans, so a HARP loan can’t refinance a VA loan.

Can I refinance my VA loan with a new conventional loan?

Yes, if you have enough equity and meet other qualification standards for conventional loans. If you have 20%+ equity in your home, it would be possible to open a new conventional mortgage without a funding fee or mortgage insurance, to refinance the current VA loan. This type of loan would require an appraisal and full income, asset, and credit underwriting.

Check today’s VA streamline rates.

What are the closing costs on a VA streamline?

Closing costs vary greatly from lender to lender. Borrowers should shop around to find the best interest rate and closing cost combination for them. There are certain closing costs the veteran can and cannot pay on a VA loan. For an in-depth look at closing costs, see our closing cost page. Generally, rules for VA streamline closing costs are the same as for purchase closing costs, except that the veteran may not finance more than two discount points (2%) into the new loan. Discount points are points paid to reduce the interest rate. For a closing cost quote based on your specific situation, contact a licenced VA lender.

Can the lender pay my closing costs instead of including them into the new loan?

In some, cases, the lender can give you a higher interest rate and pay your closing costs, and sometimes even your funding fee. The closing costs aren’t added to the loan amount; the lender pays them for you by using the excess profit from the loan. Usually this works best when rates are very low, or if you currently have a high interest rate. In these cases, you lower your rate substantially, despite the rate hike given to you to pay for fees.

Check today’s rates.

For instance, if market rates are 4.0%, your lender might give you a 4.25% rate and pay all your closing costs. You still end up with a great rate, and don’t add much principle to the loan balance. This isn’t always an option, though, and often closing costs need to be wrapped into the new loan or paid in cash.

Can I skip a payment by getting a VA streamline?

No payments can be skipped. Sometimes, depending on the closing date of the new loan, it appears that a payment has been missed because the previous or subsequent month’s interest was wrapped into the new loan. However, the VA does not condone this practice as a method to “skip” a payment. The VA lender should not coach the borrower to structure a refinance in this way.

How do I know if market rates are lower than my current rate?

The amount of money that you can save with a VA streamline refinance varies with the current VA interest rates that change based upon the normal market fluctuations. You should look at the current VA rates displayed on our site and match them against the rate you got when you initially got your VA loan. If the rate is lower than what you are currently paying, there’s a strong chance that you can save money with a VA streamline refinance loan.

Check today’s rates and see how much you can save.

Can I use a VA streamline to refinance another type of loan?

No. VA streamlines or for VA to VA refinances only. If you have a conventional, FHA, USDA, or other type of loan, you could possibly use a VA cash out refinance. You would need an appraisal, and income, asset, and credit documentation.

I’m Ready to Apply for a VA Streamline. What’s my Next Step?

Call (866) 240-3742 or simply complete our online form for a free, no obligation VA streamline rate quote. Rates are low and it’s a great time to lower your home payment.

Click here to see today’s VA streamline rates.

Source of information on this page: VA Handbook

Source: militaryvaloan.com

Apache is functioning normally

May 13, 2023 by Brett Tams

read this before becoming landlords This is a guest post by Hank Coleman who writes about personal finance, investing, and retirement on his blog, Money Q&A. Hank shares his story about how he and his wife decided to become landlords.

I will tell you that I don’t know the first thing about this topic, so I would encourage anyone that is considering it, to read this first before becoming a landlord. I know there are pros and cons into becoming a landlord, so weigh all your options before diving in. Enter Hank…..

Many corporations in America require their employees to move every so often in order to give them with career progression, new opportunities, and challenges as they move up the ranks.

My employer is no different and recently told me of an impending move.

Like many Americans, I’m faced with a daunting choice.

Do I try and sell my home or become a reluctant landlord?

The anxiety of losing large sums of money or equity is one of the greatest fears for most homeowners with an impending move. I wanted to share with you some of my family’s thought process as to how we came to our decision to become landlords for the first time instead of selling.

It wasn’t an easy decision, and everyone’s situation is different. You have to look at it almost like a business and weigh the cost and benefits of your decision before taking the leap.

The Drawback Of Selling Our Home

There are several drawbacks to selling our home. Even though my wife and I live in an area of the country that has not seen the dramatic nosedive in real estate values, we have not seen any appreciation in our home’s value either. We could sell our house for pretty much the exact same price that we purchased it for four years earlier. The real problem with that scenario is that it is dramatically still a buyer’s market when it comes to buying and selling a home.

The buyers call all the shots, and they can make a lot of demands. Most sellers can expect to pay most if not all of the closing costs for both parties. They can also see demands for fixing up the home or even large price reductions. Trying to negotiate with a buyer will not do much good either because there are so many houses still currently on the market. A buyer can literally go down the street in most cases and find a more accommodating seller who needs to close in a hurry.

The Benefits Of Being A Landlord

Now, you may be thinking to yourself that you don’t want to be a landlord. I really don’t want to be one either and have to deal with finding tenants, evicting them when they don’t pay, checking credit reports, fixing broken toilets, showing my house to potential renters, and all of that other garbage. That’s why I hired a property management company to do all of that for me. But, I do want to increase my family’s net worth over the long-term, and owning real estate even if it is just adding one house every few years or so is one way to continue to build wealth.

There are other financial benefits of being a landlord too that many people may not immediately associate with the job. Like any homeowner, landlords enjoy many tax breaks.

In fact, there are more tax breaks for rental real estate owners than regular homeowners. Landlords are eligible to deduct their costs of operating their new rental business from their taxes.

You can deduct the cost of things like your property manager’s fee, maintenance costs, insurance, mortgage interest, home warranties, and a host of other expenses that start eating into your profit.

Renting Our Home At A Loss

Even renting out your home at a loss may be a better option than selling it outright. Of course, most of these calculations depend on your individual situation, your mortgage, how much down payment you used, and a host of other factors. For my wife and I, the comparables for renting a home like ours was $1,300 per month in rent. Currently, our mortgage, PMI, insurance, and property taxes cost $1,350 per month.

Additionally, we chose to use a property management company to help us rent our home, and they charge 10% of the monthly rent ($130 in our case). So, right off the bat, we have a negative cash flow of $180 that we are paying out of pocket every month. But, I’m very happy doing so, and I will tell you why.

Using a closing cost calculator, I can estimate that it will cost me about $14,000 or more in real estate brokerage commissions and fees to sell my $200,000 home. If I am losing $180 per month or $2,160 per year, it would take me about six and a half years to equal that $14,000 upfront cost. It is the difference between dying a thousand cuts or getting my head chopped off in one fell swoop. I’ll wait the market out. Eventually, home values in America will start to rebound…eventually.

pros cons becoming a landlord Just like home values, rents will not stay low forever either. In fact, rents in American a rising year after year. There is nothing holding me back from raising the rent on my home in a few years and generating positive cash flow later. Almost anything is better in my book than losing $14,000 upfront and watching almost every penny of my equity disappear by selling.

According to the US Labor Department, rents across America have been rising 2.4% year over year, and that data is not even adjusted for inflation. At that rate alone, I could raise the rent on my to $1,500 over the next six years just to keep up with the times.

Eventually, your home could become a mini pension fund during retirement. At our current rate of repayment, my wife and I will have our home paid off thanks to the help of our renters at about the same time that we will be retiring to play golf and live on the beach. Even if I still charged $1,300 per month at that same house 26 years from now, the $1,170 after paying the property manager will be pure profit every month straight into our pockets.

A few more homes providing passive income like that would allow me to completely replace my pre-retirement income. While becoming a landlord is not a dream occupation that everyone aspires to, it is not something to be completely dismissed before you even consider it. There are great opportunities to choose something other than simply selling your home, taking a big financial hit, and moving on.

Pros Cons Becoming a Landlord

Everyone’s situation is different. Some people thrive being their own landlord, finding tenants, and are handy with a hammer. Some people want to get out of a house or an area at all costs and do not mind eating the closing costs in order to do so. Everyone has to make their own choices in the best interest of their family, but I wanted to let everyone know that they should not feel backed into a corner.

There are other options out there rather than simply succumbing to a realization that you have to lose money in order to move to a new home or a new city. All it may take in your situation is a little bit of cost benefit analysis on which course of action is right for you and your family’s well-being.

Hank Coleman is currently an officer in the US Army and also spends his free time as a finance writer who has written extensively for many financial websites and publications in addition to his own blog, Money Q&A. Hank has a Master’s Degree in Finance, a Graduate Certificate in Personal Financial Planning, and is currently studying and constantly putting off taking the Certified Financial Planner exam. His dream is to one day retire from the Army, open his own financial planning firm, and try to be just like his CFP® Idol, Jeff Rose.

Source: goodfinancialcents.com

Apache is functioning normally

May 12, 2023 by Brett Tams

Today we’ll check out “Supreme Lending,” a mortgage banker out of Dallas, Texas that is all about speed.

In fact, their goal is to close and fund every loan that comes in their door in 20 days or less, using the latest technology and more efficient loan processing.

This is especially important because they specialize in home purchase lending, which is often more time-sensitive than a standard mortgage refinance.

They also believe they can offer lower rates and fees than other lenders thanks to their advanced processing software and automated underwriting systems.

Additionally, their “Give Back Program” provides up to $800 in reduced closing costs to veterans, first responders, and cancer survivors, and possible discounted real estate agent fees as well.

Supreme Lending Fast Facts

A direct-to-consumer retail mortgage banker that offers home purchase and refinance loans
Founded in 1999, headquartered in Dallas, Texas (a dba of Everett Financial)
Funded $16 billion in home loans last year
About a third of their overall volume comes from home state of Texas
Licensed to do business nationwide including the District of Columbia
Has 300 physical branches and 1,800+ employees across the country

Supreme Lending is a direct-to-consumer retail mortgage banker based in Dallas, TX that was founded all the way back in 1999 by Scott Everett.

The company is actually a dba of Everett Financial, which gets its namesake from, you guessed it, their founder.

They are a home purchase-heavy lender, meaning they probably have good relationships with real estate agents and home builders too.

Nearly 75% of their overall volume consisted of purchase loans, with the remainder made up of mortgage refinance loans.

And while they’re licensed to do business nationwide, roughly a third of overall volume comes from their home state of Texas.

Supreme is also quite active in the states of California, Colorado, Florida, and Georgia.

How to Apply at Supreme Lending

You can apply online, call/email them, or meet a loan officer face-to-face
They offer a digital mortgage application powered by Ice Mortgage Technology
Allows you to complete most loan tasks electronically such as linking bank accounts or eSigning disclosures
Aim to close loans in 20 days or less by starting the closing process sooner than other lenders

To apply with Supreme Lending, you can either call them, visit a local branch, or head right to the online application on their website.

Whichever route you choose, their digital mortgage application powered by Ice Mortgage Technology (formerly Ellie Mae) allows borrowers to complete most tasks electronically.

This includes the ability to link bank accounts using your login credentials, scan/upload documents, eSign disclosures, and track loan status 24/7.

You’ll also have a dedicated, human lending team that is available to assist whenever you have questions or concerns along the way.

Supreme says it aims to close loans in 20 days or less, and is able to speed up the process by using the latest technology while starting the closing process sooner than other lenders.

Loan Programs Offered by Supreme Lending

Home purchase loans
Home renovation loans: HomeStyle and FHA 203k
Refinance loans: rate and term, cash out, and streamline
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA/VA/USDA loans
First-time home buyer programs
Down payment assistance
Educator Mortgage Program
Fixed-rate mortgages: 10 to 30-year terms available
Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs

One area where Supreme Lending really shines is their loan programs. They offer just about anything you could ask for, including purchase, renovation, and refinance loans.

You can get a first-time home buyer loan like Fannie Mae HomeReady or Freddie Mac Home Possible, or an FHA, VA, or USDA loan.

They also offer jumbo home loans, including ones with just a 10% down payment requirement, along with conventional loan offerings.

Those in the market to buy a home can take advantage of their “Lock & Look” program that allows borrower to pre-lock their mortgage rate before they find a property.

Lastly, they offer a so-called “Educator Mortgage Program,” which similar to their perks for veterans, first responders, and survivors, offers up to $1,600 in closing cost credits for teachers, librarians, secretaries, nurses, counselors, and more.

They lend on all major residential property types, including condos, second homes, and investment properties.

You can get both a fixed-rate or adjustable-rate mortgage in a variety of different loan terms.

Supreme Lending Mortgage Rates

One slight drawback to Supreme Lending is their lack of transparency regarding mortgage rates and lender fees.

They don’t appear on their website, so you’ll need to get in touch with a loan officer first to discuss loan pricing before you proceed to an application (assuming pricing matters to you).

Be sure to ask about both mortgage rates and lender fees, such as a loan origination fee, processing and underwriting fees, and so on.

Collectively, these will make up the mortgage APR, which is a more effective tool to compare loan offers than the interest rate alone.

As always, be sure to gather multiple mortgage quotes to ensure you don’t miss out on a better deal elsewhere.

Given their strong customer satisfaction numbers and the fact they’re a mortgage banker as opposed to a large bank, my guess is their pricing is pretty competitive.

Supreme Lending Reviews

Over at Zillow, Supreme Lending has a really impressive 4.97-star rating out of 5 from over 7,000 customer reviews.

The sheer number of reviews combined with the super high score shows they’ve consistently made customer satisfaction a top priority.

A lot of the reviews also indicated that rates and/or fees were lower than expected, which is a good sign in terms of loan pricing.

At LendingTree, they’ve got a similarly high 4.8-star rating from about 500 reviews, along with a 94% recommend rating.

You can also look up specific branch locations near you and find their ratings via Google if you want to see how a certain location performs.

While they aren’t an accredited business with the Better Business Bureau, they do hold a coveted ‘A+’ rating based on customer complaint history.

Supreme Lending Pros and Cons

The Good

You can apply online via a digital mortgage application
Also have hundreds of physical locations nationwide
Aim to close loans super-fast (in 20 days or less)
Tons of different loan programs to choose from
Excellent customer reviews across multiple ratings websites
Free mortgage calculators and mortgage glossary online

The Maybe Not

Do not publicize mortgage rates or lender fees
May transfer your mortgage to a third-party loan servicer after closing

(photo: Tom Woodward)

Source: thetruthaboutmortgage.com

What Is Mortgage Refinancing and Why You Might Want to Refinance?

Choosing the Right Type of Mortgage Refinances

4 Benefits of Refinancing a Mortgage

How to Refinance a Mortgage: 4 Key Steps

Costs of Refinancing a Mortgage

Explore Total Mortgage’s Refinancing Options

How Bankrate scored Third Federal Savings and Loan

Affordability: 5/5

Availability: 4/5

Borrower experience: 4.7/5

How to apply for a mortgage with Third Federal Savings and Loan

Refinancing with Third Federal Savings and Loan

Methodology

What Is an FHA Loan?

FHA Loan Requirements

FHA Loan Credit Scores and Down Payments

FHA Loan DTI

FHA Mortgage Insurance

FHA Loan Limits

FHA Interest Rates

First-time homebuyers canprequalify for a SoFi mortgage loan,with as little as 3% down.

FHA Income Requirements

Types of FHA Home Loans

Purchase

FHA Simple Refinance

FHA Streamline Refinance

FHA Cash-Out Refinance

FHA 203(k) Loan

FHA vs Conventional Loans

The Takeaway

The best mortgage lenders for first-time homebuyers

Best for loan variety

PNC Bank

Annual Percentage Rate (APR)

Types of loans

Terms

Credit needed

Minimum down payment

Pros

Cons

Best for educational offerings

Bank of America Mortgage

Annual Percentage Rate (APR)

Types of loans

Terms

Credit needed

Minimum down payment

Pros

Cons

Best for lower credit scores

Rocket Mortgage

Annual Percentage Rate (APR)

Types of loans

Terms

Credit needed

Minimum down payment

Pros

Cons

Best for no lender fees

Ally Bank Mortgage

Annual Percentage Rate (APR)

Types of loans

Terms

Credit needed

Minimum down payment

Pros

Cons

Best for no PMI

CitiMortgage®

Annual Percentage Rate (APR)

Types of loans

Terms

Credit needed

Minimum down payment

Pros

Cons

FAQs

How do mortgages work?

What is a conventional loan?

What is an FHA loan?

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.