Are Conventional Loans Better?

Inlanta Mortgage Conventional Loans

What is a Conventional Mortgage Loan?

A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. In contrast, an FHA mortgage loan is insured by the Federal Housing Authority and VA mortgage loans are backed by the Department of Veterans Affairs. Conventional loans can be either fixed or an adjustable rate.

Typical Requirements of Conventional Mortgage Loans

While Inlanta offers conventional loans with low down payment options (as low as 3%), most home buyers opt to put down a larger down payment. For consumers with a substantial down payment, equaling or exceeding 20% of the purchase price of a home, private mortgage insurance (PMI) is not typically required.

Conventional loans have higher credit requirements than most other loan programs. Borrowers with lower credit scores will typically face higher interest rates. In addition, borrowers with recent foreclosures or bankruptcies may not immediately qualify for a conventional mortgage loan.

Are Conventional Loans Better?

To determine which type of loan best suits your needs, you must take some time to consider the pros and cons of each. Conventional loans are usually more appropriate for individuals with higher credit scores and at least a 20% down payment As mentioned above, private mortgage insurance is not required when a 20% down payment is made. If a 20% down payment is not feasible, mortgage insurance would be required until the 20% equity in the home is attained.

Government loans typically have lower minimum credit scores and lower down payment requirements but require mortgage insurance premiums. A big difference with conventional and government loans is that mortgage insurance premiums are required for the life of a government loan. The only way to eliminate FHA mortgage insurance premiums is to refinance. Mortgage insurance on conventional loans can be generally canceled on after the required LTV has been attained and the your account is in good standing.

So…Conventional or Government?

So are conventional mortgage loans better than government loans? It really depends on your situation. Our best advice is to contact a licensed mortgage loan officer for a consultation. Inlanta Mortgage loan officers will assess your financial situation and provide a recommendation that is most appropriate for your unique situation. Each loan officer can explain the pros and cons of conventional financing and provide you with additional financing options including VA, USDA, and FHA mortgage loans.

Ready to take that next step? Locate a loan officer near you or apply online now.

Our Mission Statement

Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships.

About Inlanta Mortgage – Celebrating 20 Years

Celebrating its 20th Anniversary, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage was named a Top Mortgage Lender in 2012 by Scotsman Guide and has been listed on Mortgage Technology’s Top 25 Tech Savvy Lenders List for the last four years. Inlanta has also been named to the Milwaukee Business Journal’s “Top 25 Largest Milwaukee-Area Mortgage Banking Companies” and Mortgage Executive Magazine’s “Top 100 Mortgage Companies in America” in 2011 and 2012. In addition, Inlanta was named a “Fastest Growing Firm” by Milwaukee Business Journal in 2013 and a “Platinum Million Dollar Lender” by the USDA Rural Development Program.

 

Mortgage Rates Hit New All-Time Lows

Mortgage Rates Break Records

30-Year Fixed Rate Mortgages

According to Freddie Mac’s Primary Mortgage Market Survey (PMMS) average 30-year fixed rate mortgages hit a new all-time record low for the week ending September 27, 2012. The average 30-year fixed rate mortgage is 3.40 percent – a substantial drop form last week’s average of 3.49 percent.  Last year at this time the 30-year FRM averaged 4.01 percent.

 

15-Year Fixed Rate Mortgages

Average 15-year fixed rate mortgages dropped significantly to 2.73 percent from last week when the average was 2.77 percent. Last year at this time, the 15-year FRM averaged 3.28 percent.

 

5-Year Adjustable Rate Mortgages

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) decreased to 2.71 percent – down from last week when it averaged 2.76 percent. A year ago, the 5-year ARM averaged 3.02 percent.

 

1-Year Adjustable Rate Mortgages

The average one-year Treasury-indexed ARM fell slightly to 2.60 percent from 2.61 last week. Last year at this time, the 1-year ARM averaged 2.83 percent.

 

Contact a licensed mortgage loan professional to take advantage of these new record low mortgage rates. Find a loan officer near you.

 

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac:

 

“Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market. For instance, the S&P/Case-Shiller® 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Moreover, 16 of the cities saw positive growth, led by Phoenix’s 16.6 percent gain. Additionally, new home sales in July and August had the strongest two-month pace since March and April 2010.”

Original Source: Freddie Mac Interest rates listed above are national averages as reported by Freddie Mac. Individual interest rates are dependent upon credit approval and may include points. Average mortgage points are also reported in Freddie Mac’s Primary Mortgage Market Survey. Other mortgage financing fees may apply. Contact your lender for detailed information.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Fixed Mortgage Rates Climb

Fixed Mortgage Rates Move Higher for Second Consecutive Week

Fixed Mortgage Rates Move Higher for Second Consecutive Week

30-Year Fixed Rate Mortgages

Average 30-year fixed rate mortgages increased following stronger than expected employment reports for the week ending August 9, 2012. According to Freddie Mac’s Primary Mortgage Market Survey (PMMS) the 30-year fixed-rate mortgage (FRM) averaged 3.59 percent – up from last week when it averaged 3.55 percent. Last year at this time the 30-year FRM averaged 4.32 percent.

15-Year Fixed Rate Mortgages

The 15-year fixed rate mortgages also increased. The 15-year fixed rate  mortgage averaged 2.84 percent for the week – up slightly from 2.83 percent. Last year at this time, the 15-year FRM averaged 3.50 percent.

5-Year Adjustable Rate Mortgages

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 2.77 percent – up slightly from last week when it averaged 2.75 percent.  A year ago, the 5-year ARM averaged 3.13 percent.

1-Year Adjustable Rate Mortgages

The one-year Treasury-indexed ARM averaged 2.65 percent, down from last week when it averaged 2.70  percent. Last year at  this time, the 1-year ARM averaged 2.89 percent.

Contact a licensed mortgage loan professional to take advantage of these historically low mortgage rates. Find an Inlanta Mortgage professional near you

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac:

“Fixed mortgage rates inched up again this week following stronger-than-expected employment reports. The economy added 163,000 jobs in July, well above the market consensus forecast of 100,000, and the largest increase since February. In addition, the number of announced corporate layoffs fell 45 percent in July compared to last July and was the third time this year that announced layoffs were less than the same month in 2011 according to The Challenger Report. This suggests further net gains in employment are likely in the near future.” 

Original Source: Freddie Mac Interest rates listed above are national averages as reported by Freddie Mac. Individual interest rates are dependent upon credit approval and may include points. Average mortgage points are also reported in Freddie Mac’s Primary Mortgage Market Survey. Other mortgage financing fees may apply. Contact your lender for detailed information.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products,  as well as a full suite of jumbo and portfolio programs. The company is  fully delegated HUD-FHA including FHA 203K, VA, and USDA approved.  Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Mortgage Applications Skyrocket

Mortgage Applications Skyrocket!

Purchase applications increased by 13 percent and refinance applications jumped by 19 percent!

According to a survey released yesterday by the Mortgage Bankers Association – applications for mortgages in the U.S. jumped 18 percent last week. This is the highest level since May of 2009. Of the applications, purchase applications increased 13 percent from the previous week and refinance applications increased by 19 percent. Refinance applications comprise 79 percent of the total mortgage market.

“Mortgage application volume increased sharply last week. The increase was accentuated due to the comparison to the week including Memorial Day, but the level of refinance and total market activity is the highest since the spring of 2009,” said Michael Fratantoni, MBA’s vice president of research and economics.  “Refinance volume increased as borrowers were able to lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months.”

Inlanta Mortgage offers a variety of mortgage loan financing options for both purchase and refinance. Click here more details on FHA, USDA, VA and conventional loan programs or to learn more about your refinancing options.

For more information on average weekly mortgage rates according to Freddie Mac’s Primary Mortgae Market Survey (PMMS) – click here. Last week according to Freddie Mac’s PMMS the 30-year fixed-rate mortgage averaged 3.67 percent – the lowest level of all time.. Take advantage of these rock bottom rates and contact a licensed mortgage loan professional near you and apply today!

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Mortgage Loans – The Basics

Basic Mortgage Loan Questions Answered

If you rent your home and always have… a mortgage may seem a bit scary.  Let’s try and clarify some of the basic terms and concepts related to mortgages, and give you something to think about as we approach 2012. With mortgage rates at record lows and home prices still down – this might just be the year some of you leap from renting to bona fide homeowner status.

How does a mortgage work?

A mortgage loan is secured using your new home as collateral. Over a period of time, typically 15 to 30 years, you make regular mortgage payments to reduce your overall mortgage loan debt in a process call amortization. Payments are applied to:

Principal

  • the principal is the sum of money you borrow to purchase your home
  • home buyers are often required to give their mortgage lender a cash down payment to reduce the amount of the principal (not all loan programs require down payments)
  • Click here for more information on Inlanta Mortgage’s loan programs or check back next week for our blog post detailing the loan programs Inlanta Mortgage offers.

Interest

  • interest is the amount your mortgage lender charges to use their money
  • in the early years of your mortgage, payments are mostly interest

Taxes

  • property taxes are levied by your community and based upon the value of your home (which you will still have to pay once your mortgage is paid off)
  • part of your mortgage payment is usually deposited in escrow or a trust account to pay these taxes (not required in all cases, but FHA loan programs require escrow)

Homeowner’s Insurance

  • home owner’s insurance protects the property you are buying
  • part of your mortgage payment is usually deposited in escrow or a trust account to pay your home owner’s insurance premiums  (not required in all cases, but FHA loan programs require escrow)

Private Mortgage Insurance (PMI)

  • if you put less than 20% down on your home purchase, most lenders will charge you private mortgage insurance (PMI) – which is designed to protect the lender from you defaulting on your mortgage.
  • PMI is not in anyway connected to homeowner’s insurance (PMI protects the lender, homeowner’s insurance protects your property)

Mortgage Payment = Principal + Interest + Taxes + Insurance
Check out our mortgage loan calculators to estimate how much your payments would be based upon term of loan, interest rate, loan amount, tax, and insurance or contact a licensed mortgage loan professional to discuss your unique situation.

What types of mortgages are there?

Fixed Rate Mortgages

  • fixed rate loans have the same interest rate for the life of the mortgage loan.
  • fixed rate loans are typically 15 or 30 year mortgage loans (but not always)

Adjustable Rate Mortgages (ARMs)

What does a lender need to know to qualify you for a mortgage loan?

Are there different mortgage loan programs?

There are a variety of loan program available to suit your specific needs.  Our next few blog posts will detail some of loan programs that Inlanta Mortgage is proud to offer including:

Are you ready to begin a loan application today? Apply here or Click here to find a licensed Inlanta Mortgage loan professional near you.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, WI. NMLS #1016

 

 

The Home Buying Process – Series Intro

Buying a House Should Feel Like This

With rock bottom home prices and the lowest mortgage rates in history, how do you really know if it’s the right time for you to buy a house? It seems no matter where you go these days, you can’t escape the phrase “Now’s the time to buy!”

Buying a house is the biggest financial decision most people will undertake in their lifetimes. Many people wonder “Where should I begin?” To address this question, we are beginning a series of blog posts that will explain the home buying process.

Some of the issues we will address in this blog series include:

1. Selecting a Licensed Mortgage Loan Originator
2. Get Pre-Approved! Why Do You Need a Pre-Approval Anyway?
3. What Documentation Will Your Lender Require?
4. Selecting a Mortgage Loan Program – The Basics
5. Selecting a Mortgage Loan Program – VA, USDA, FHA
6. Finding a Real Estate Agent
7. What Not To Do When Trying to Purchase A Home
8. Making An Offer They Can’t Refuse
9. Processing – What Happens Now?
10. Underwriting and the Clear to Close

Check back often for new posts on this valuable and informative blog series. New posts should be available by Wednesday of each week.

Also keep a look out for future posts in our Understanding Your Credit series with guest blogger Sam Parker from Heartland Credit Restoration. And remember – if you find our blog helpful – share it with your friends!

If you would rather get answers now – Inlanta Mortgage’s team of qualified loan professionals can answer questions about the home buying process anytime you want. Click here to find a licensed mortgage loan officer near you.

Perhaps you are already familiar with the home buying process. Submit a secure mortgage loan application online here.

Click here if you would prefer to hear from some satisfied Inlanta Mortgage customers.

Inlanta Mortgage is based in Brookfield, Wisconsin and is licensed in fourteen states.  Inlanta NMLS # 1016