When Is a 15 Year Mortgage Better than a 30?

Posted on October 27, 2016 by Scott Li

When it comes to traditional mortgages, there are two major options – 15-year and 30-year. The vast majority of borrowers choose the 30-year option because it allows for lower monthly payments at the expense of more interest over time. However, there are definite benefits to 15-year mortgages, and learning more about them can help you make better financial decisions.

#1 – When You Want to Be Free of Payments More Quickly

The number one reason why you might opt for a 15-year mortgage has to do with the time it takes to achieve homeownership status. If you want to own your home outright in very little time, then a 15-year mortgage is undoubtedly the way to do it. In fact, with certain lenders, if you’re able to make the equivalent of one extra payment each year, you can own your home in about half of that time – roughly eight years. The sooner you own your home, the sooner you can start saving for retirement and living the life you’ve always wanted. read more

Mortgages Are Now Back on the Up and Up

Posted on October 20, 2016 by Scott Li

The post-crisis housing market is in the midst of some major changes, and many of them are very positive in nature. Millennials are beginning to buy their first homes, and according to recent news, banks are starting to offer mortgage loans to their patrons.

What Put the Banks Out of the Business?

During the housing crisis, the government was very quick to dole out new regulations that hit banks pretty hard. What’s more, if you think about it, there wasn’t much profit in mortgage loans for banks in the first place. They essentially backed out of offering mortgages for two reasons. First, the government was the only buyer for the mortgages that the banks originated and wanted to sell. Second, banks simply didn’t want the hassle of regulations and the possibility of penalties when it came to products that didn’t really make them much money from the start. read more

5 Reasons Why Owning a Home is Better than Renting

Posted on October 13, 2016 by Scott Li

The great debate continues: should you buy a home or should you continue to rent? There are benefits to both sides of this argument, of course, but in almost every case, the benefits of homeownership clearly outweigh the benefits of renting. Here are five perfect examples.

#1 – It’s Your House

Have you ever rented a home with drab carpet or poorly-painted walls? Most people certainly have. The only trouble is, when you rent, you don’t get to replace that carpet or repaint the walls without the landlord’s permission, and even then, it’s not an investment that you’ll get to enjoy for long. When you choose homeownership over renting, your home is yours from the moment you move in. You can change the things you don’t like, and you’ll be able to enjoy the benefits of doing so for many years to come. read more

How the Mortgage Industry Has Changed Over the Years

Posted on October 6, 2016 by Scott Li

The mortgage industry has seen its fair share of major changes since the Great Inflation that occurred back in the 1970s. In fact, that era essentially shaped the way our current mortgage system works. Though some of these changes have been a bit difficult, others have benefitted those who buy and sell homes or properties tremendously.

Before the Great Inflation

Before the Great Inflation that took hold in 1976, more than half of all of the mortgages in the country were originated by savings and loans. Mutual banks, commercial banks, and actual mortgage companies combined were responsible for the rest of the origination. There was no securitization, and the Federal Housing Administration only barely existed – it made for very little of the market. In these days, the success of the savings and loans depended heavily on interest rates. As long as they were stable, they could borrow deposits and lend in the form of mortgages, creating a solid business with steady income. read more

6 Easy to Use Tips That Will Ensure a Stress Free Mortgage Process

Posted on September 29, 2016 by Scott Li

How do I make my mortgage process stress free?

We get the question all the time. It’s a fair one. The mortgage process can be confusing and overwhelming—especially for first time buyers. At Rate Winner, we want to make your mortgage process smooth and stress free. That’s why we’ve created this post. In it, we’ll cover six easy to use tips that will help you. Let’s dive right in:

Shop for the Best Rate and Right Fit

Banks, mortgage companies, and credit unions all offer mortgages. A lower mortgage rate means a lower payment—something you should be highly interested in. Contact different lenders via phone, email, or in person. When you find a low rate and a lender your comfortable with (never neglect this) you’ll be ready to move on with the mortgage process. read more

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