Focus on the Principal

The amount that you have borrowed is called the principal, which doesn’t include the interest amount you pay each month. When you make a payment, part of it goes to the interest of the mortgage and part goes toward the principal. One way to pay your mortgage down quicker is to make some extra payments toward the principal alone. This will then help lower your interest and save you money over time.

Bi-Weekly Payments

Normally, homeowners will pay their mortgage in monthly payments. You can make an extra monthly payment a year by taking the cost of one payment and splitting it into 2, then making 2 bi-weekly payments over the next 2 months. The extra payment you make in those 2 months will go toward the principal and lower your interest amount. Another way of doing this is to just budget for an extra monthly payment to put toward the principal.

Use Your Savings

If you aren’t able to come up with an extra month’s funds, you could open a savings account and put any extra money you get into it. Round up your bill amounts and use the extra to put into savings to make a lump sum payment toward the principal.

Refinancing

Another method for paying your mortgage down faster is to refinance. With this option, you will be taking out a new loan with different terms. You can use the money to pay down your higher interest rate debts, which works to lower your monthly payments. You also get a lower interest rate and you could go with a shorter-term mortgage if you can afford higher monthly payments, cutting the term time in half. If your monthly mortgage repayments are lower and you can still afford to pay the old higher amount, put that extra toward the principal to further speed things up.

Recasting

You may have a situation where you obtain a lump sum of money, such as from a bonus at work, and are able to apply that to your mortgage using recasting. The money is put toward the principal of the mortgage and then the mortgage is recalculated with a new lower monthly payment and a shorter-term time. You could speed things up even quicker if you are able to continue to pay the original monthly payment amounts, using the extra for the principal.

Whether you are just looking for more information before you make your home purchase or you are looking for ways to pay off your current mortgage faster, give the Smyrna mortgage lender team at Accurate Mortgage Group a call today!

There are so many reasons homeowners choose to pay their mortgages off quicker, and a lot of options depending on your situation. Even paying off an extra $25 to $50 a month can go a long way in getting it paid off quicker. If you have questions about paying your mortgage off faster, give our Smyrna mortgage lender team a call today!

The post How to Pay Off Your Mortgage Faster appeared first on Accurate Mortgage Group.

Variable-Rate Mortgages

These are also referred to as adjustable-rate mortgages. With this option, you tend to get lower interest rates. However, the rates are only fixed for a set time. Once that time is up, the interest rates will change with the market. This means you could see your low rate suddenly shoot up, which also raises your monthly payments. It’s not the best choice if you are on a strict budget.

If changing monthly payments are something you are able to cover, then a variable-rate mortgage is a good choice because you can get a lower rate if interest rates drop. It’s also a good option if you know you will be moving before the set time period is up.

Variable-rate mortgages come in two options: open variable-rate mortgages and closed variable-rate mortgages.

Open Variable-Rate Mortgages

With this option, you can pay off your entire mortgage or make extra payments without being charged a penalty. You can also adjust the term time without being penalized. The payments with this option are generally fixed for the life of the mortgage. It’s a good choice for homebuyers who can make a 20% down payment, have cash flow that changes, or if they are going to be selling the home in a short period of time.

Closed Variable-Rate Mortgages

With this option, the payments are also fixed for the life of the mortgage. There are also limits on your prepayment options, so make sure you ask your lender or broker about making lump-sum payments, the amounts you can make them for and how often.

Fixed-Rate Mortgages

With a fixed-rate mortgage, you have more control over your budget. Rates can be a bit higher with this option, however, you have that reassurance that there won’t be any surprise rises in your monthly payments and interest rates. So, if interest rates were to rise sharply, you would still keep the lower rate you started the mortgage with. The downside is that, if rates drop, you are stuck with a higher interest rate.

Fixed-rate mortgages come in three options: open fixed-rate mortgages closed fixed-rate mortgages and convertible fixed-rate mortgages.

Open Fixed-Rate Mortgage

With the open mortgage option, you can pay off your mortgage in full or with prepayments and not incur a penalty for doing so. You are also able to change your mortgage term time to give you added flexibility, while not being penalized.

Closed Fixed-Rate Mortgage

With the closed mortgage option, you can get interest rates that are a bit lower than you would get with the open mortgage. However, there can be limits regarding prepayments.

Convertible Fixed-Rate Mortgage

With the convertible mortgage option, you can switch from an open-term mortgage to a closed-term mortgage during a specified time frame and not incur penalties. This is good for those wanting to keep their options open, however, there are limits to prepayment options.

If you aren’t sure which type of mortgage is best for you, give our Smyrna mortgage lender team a call today! We’ll find the best options for you.

The post Fixed-Rate Vs. Variable-Rate Mortgages appeared first on Accurate Mortgage Group.

Beginning your journey toward buying a home can be stressful, especially when it comes down to applying for a mortgage. Having been a Smyrna mortgage lender for several years, our team at Accurate Mortgage Group has worked with many applicants who have found themselves intimidated at the thought of preparing for their first meeting. After all, they needed to be prepared to share intimate financial details with us in order to be approved for their mortgage.

The great news is, this process doesn’t need to be worrisome. Coming prepared to your Smyrna mortgage lender will make the first meeting go a lot smoother.

Here’s a description of what you should expect, what you should bring with you and what questions you should ask.

What to Expect

During your first meeting with your Smyrna mortgage lender, you will go over all of your finances. It’s a bit like an interview with the aim of finding out what you can realistically afford. Sometimes, this is done in one session, or it can be done in a few sessions, especially if you don’t have all of the documentation needed. Sessions can be done over the phone or face to face and last anywhere between one to three hours. The whole point of this meeting is for your lender to get to know you in order to find the best mortgage option for your situation.

Bring the Right Documents

As a rule of thumb, we advise that you bring anything related to your finances. You may have more than you need but this is better than not having the documents needed, which will delay the mortgage process. Your lender will give you a good idea ahead of time as to which documents will be most important for your particular situation.

Almost everyone, however, will be ask to provide proof of your identity, proof of your income, assets, debts, taxes, property details of the home you are looking to buy, and any other financial obligations that you have. Usually, you will need at least two month’s worth of pay slips and bank statements.

In some instances, you will need some extra documentation. For example, if you own your own business or are self-employed, there are certain tax assessments forms that you will need to provide us with. If you aren’t sure what documentation you will need for special circumstances, it’s best to just give us a call ahead of time to ask, if this hasn’t already been explained prior to your meeting. We are always happy to answer any questions you may have!

Get Your Finances in Order

One of the best tips we can give as a Smyrna mortgage lender is for you to take the time to sit down and review your finances, budget and credit score prior to applying for a mortgage. Budgets are very important at this stage because they will show you how much money you will have after taking care of the necessities each month. The amount you will be repaying with a mortgage each month will depend on how much you borrow and for how long.

As for your credit score, review it and make sure there are no discrepancies that could impact the mortgage process negatively. If there are errors, have these fixed before applying for a mortgage. Lastly, don’t make any major financial changes or purchases during the loan process. This could be the difference between getting your loan or getting rejected.

Questions to Ask

No question is a stupid question! This is a big financial commitment and you want to make sure you clearly understand everything involved. If you aren’t sure about something, ask. Our Smyrna mortgage team is there to help you. Make sure you ask about any costs that will occur, such as appraisal fees, inspection reports and penalties for making a pre-payment. You might want to sit down beforehand and write down a list of questions that you want to ask so that you don’t forget during the first meeting.

Your first meeting with a Smyrna mortgage lender doesn’t have to be stressful. If you’re looking for a mortgage, give our team at Accurate Mortgage Group a call today!

The post Tips for Your First Meeting With a Mortgage Lender appeared first on Accurate Mortgage Group.

It is also important to work with the right mortgage lender. The right mortgage professional can offer you great deals and help the process go by quicker. So, to help you get started, your local lender with Accurate Mortgage Group has listed some useful tips for choosing the right mortgage professional.

Tip #1: They Put You First

When you attend your first meeting with a mortgage lender, try to determine whether they have your best interest in mind. Are they willing to go above and beyond to ensure you get the right loan that is catered to your specific needs or are they just trying to make a sale? The right mortgage lender will put you first and do everything they can to get you the best deal out there.

Tip #2: Works Well With Others

Getting approved for a Smyrna home loan does not occur overnight. This means you will be in constant contact with your mortgage lender until your loan has been approved and signed for. Therefore, it is important that the lender you choose works well with others. If you do not get along with each other, that could make for a really long and uncomfortable application process.

Tip #3: Answers All Your Questions Honestly

There are some lenders out there who will be hesitant to tell you the truth. Do not work with those lenders. Instead, find someone who is upfront and honest about any additional fees they may require and be sure and choose someone who will answer any questions you may have.

Tip #4: Shop Around

You do not have to work with the first Smyrna mortgage lender that you speak to. Shop around and schedule multiple meetings with different lenders. Take the time and compare their different products and rate structures so you can confidently choose the best option for your goals as a homeowner.

Contact Us

If you would like to discuss these tips for choosing the right mortgage lender in more detail or if you are ready to begin your mortgage application, please contact Accurate Mortgage Group at 615-833-0456.

The post Tips for Choosing the Right Mortgage Lender appeared first on Accurate Mortgage Group.

To help convince you even more, your local lender with Accurate Mortgage Group has listed the top five reasons you should stop renting and purchase your own home.

Benefit #1: Tax Deductions

When you choose to rent a home, every time you make a payment, you never see that money again. But, if you were to be the sole proprietor on a home, you could benefit from major tax deductions. Homeowners are able to deduct up to $750,000 from their income taxes, on mortgage interest. This alone could save you thousands of dollars from renting.

Benefit #2: Long-Term Investment

Every time you make a payment toward your Smyrna home loan, you are increasing your equity (your home’s value). Your home equity acts as a long-term investment because you can access that amount of money, once you own at least 20% of the home, and use it however you want. You could tap into your equity to pay for additional real estate, make renovations on your current home, use the money to pay for higher education or even to go on a dream vacation.

Benefit #3: More Privacy

By owning your own home, you will have more privacy. You will not have to answer to anyone or have to get permission to make certain changes on your home. If you choose to rent, most landlords provide their tenants with a list of contractors they can call if there is ever a maintenance issue. However, if you own your home, you are able to work with any company of your choosing.

Benefit #4: Creative Freedom

Another benefit to homeownership is the creative freedom that comes with it. You have the right to decorate, fix or alter any part of the house as you’d like without having to pay a decoration fee. You can paint the interior walls whatever color you want or even tear down a wall to create a more open floorplan.

Benefit #5: Community Involvement

Studies show that those who are homeowners are more likely to get involved in the community than someone who rents. Community involvement is an excellent way to help improve the area surrounding your home. It’s also a great way to meet new people and learn new skills.

Contact Us

For more information on reasons to buy your own home or to get started on your application for a Smyrna home loan, please contact the Accurate Mor

The post Top 5 Reasons to Stop Renting and Become a Homeowner appeared first on Accurate Mortgage Group.

So, to help you get started in the home buying process, your local Smyrna mortgage lender with Accurate Mortgage Group has listed the most current market update for the Smyrna area.

Smyrna Residential Market Update

According to the market statistics available on realtor.com, the median listing price for all property types has been consistently getting more expensive since 2015. By December 2015, the median price listed was $199,900 and increased 12.6% to $225,000 by December 2016. One year later the median price of homes on the market was $256,000, which is approximately a 14% increase in price since the year prior. The current median listing price for December 2018 is $289,900, which is a 13% increase since 2017 and is about a 45% increase over the past three years.

Smyrna loan officers are expecting the listing prices of homes to continue getting more expensive in the near future. This means it will financially be in your best interest to lock in a rate now with your lender to avoid paying more down the road.

Get Started Today

The Smyrna region is an excellent place to settle down and purchase a home. If you would like to receive more information on the current market update or if you would like to begin your application to become a homeowner, please contact the Accurate Mortgage Group team at 615-833-0456.  

The post Smyrna Residential Market Update appeared first on Accurate Mortgage Group.