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When purchasing a home, did you know the mortgage interest rate you obtain can directly impact the loan amount for which you may qualify?

That's right!  In fact, the higher the loan amount, the more an interest rate may affect your buying power.

While your interest rate should not be the only consideration when buying a home, a lower rate can result in a higher purchase price and loan amount for which you may be approved.

 

Here’s how a lower interest rate can mean more buying power for you:

 

 

Example 1:

 

 

 

 

 

In this scenario — for a similar monthly principal & interest payment —
the lower interest rate yields a difference in buying power of $25,000!

 

 

Example 2:

 

 

 

 

 

In this scenario — for a similar monthly principal & interest payment —
the lower interest rate yields a difference in buying power of $50,000!

 


If you are planning to purchase a home, be sure to understand the costs in addition to your principal and interest mortgage payment such as property taxes, insurance, maintenance, repairs, and utilities.  Calcluate your monthly payments here:

 

Questions?  We're happy to help!  A local mortgage consultant can discuss how homeownership fits into your overall financial goal and help you make a sound financial decision.

 

 

 

Mortgage amounts are based on 30-year fixed rate conforming and jumbo conventional loans with a 20% down payment. Interest rates and annual percentage rates (APRs) are based on current market conditions, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables.

Examples are provided for educational and illustrative purposes only.  The payment amounts do not include homeowners insurance or property taxes, which must be paid in addition to your loan payment. Your actual payment may be higher. This is an illustration and does not reflect your actual loan information, cost or the exact interest rate for which you may qualify. Please contact us for current interest rates. Your loan’s interest rate will depend upon the specific characteristics of the loan transaction and your credit profile up to the time of closing. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. If the down payment is less than 20%, mortgage insurance may be required and could increase the monthly payment and APR. Speak with your mortgage consultant for more information regarding the content contained on this page.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


The VA Home Loan Advantage

May 26
1:23
PM
Category | PA Preferred News

At Pennsylvania Preferred Mortgage, we proudly salute the commitment and sacrifice of servicemembers, veterans, and military families who have supported and defended our nation.  That is why on Veterans Day 2014, our company began extending incentive offers—in addition to the beneficial features of a VA home loan—to help lower the cost of purchasing a home for veterans in need of housing within the communities we serve.

Since its inception on November 11, 2014, the program has been a tremendous success thanks to the many outstanding clients who have chosen to work with us to obtain home financing.

We are pleased to share that through the VA Home Loan Advantage, our company has funded over 2,700 VA home loans and has provided over $3.9 million in waived origination fees and appraisal credits since the program began!

“With many veterans and military families in need of affordable housing, we recognized an opportunity to give back to our military service men and women. Not only can we offer veterans all the benefits of a VA home loan, but also we can provide them with additional incentives to help lower the cost of purchasing a home or even refinancing their existing home,” said Tim Wilson, CEO of Prosperity Home Mortgage, parent company of Pennsylvania Preferred Mortgage. “It’s just one of the many ways that our company gives back to the communities in which we live and work.”

Ron Wivagg, National Sales Support Manager for Pennsylvania Preferred Mortgage, expanded on Wilson’s thoughts.

“Pennsylvania Preferred Mortgage has built a strong reputation among active military, veterans and their families for providing outstanding service and support. We are delighted to give back to this exceptional community of people, and we are eager to continue to deliver an extraordinary home financing experience to them,” said Wivagg.

Veterans, active duty servicemembers, or eligible military families who finance their home with a Veterans Affairs (VA) loan through Pennsylvania Preferred Mortgage may be qualified to receive discounts and complimentary services.  Incentive offers include:

  • No loan origination fee (up to $1,085 value) through Pennsylvania Preferred Mortgage
  • Complimentary appraisal (up to $450 value)1

 

Want to learn more about the VA Home Loan Advantage?  Contact a mortgage consultant near you!

 

 

 

 

1. Borrowers are eligible for a lender credit toward closing costs on the Closing Disclosure on a new purchase, secured by a first mortgage or deed of trust (New Loan), subject to qualification, approval and closing with Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. Loan must close within 90 days from the date of loan application. Discount may not exceed $450.00 for appraisal. Credit coupon must be presented at time of application and all eligibility requirements met no later than 2 days prior to the New Loan closing date. This discount is void where prohibited and is non-transferable, subject to the terms herein, and valid on all complete applications received on or before 06/30/2017.

All Incentive offers valid on complete VA home loan applications received between 04/01/2017 and 06/30/2017. Loan must close within 90 days from the date of loan application. Only one discount permitted per New Loan.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


So you’ve decided to buy a home, but you need to close—FAST.  Good news!  Pennsylvania Preferred Mortgage now offers the new Preferred EXPRESS program for eligible home buyers to close on a home more quickly.  Preferred EXPRESS is a program that offers expedited loan processing and underwriting on certain mortgage products, which can provide a faster loan closing.1  When you need mortgage financing solutions for a fast-paced real estate market, Preferred EXPRESS can help!

Here are some advantages of the program:

Faster Financing Process – Qualified home buyers may receive a full commitment letter within 7 business days after a purchase contract has been ratified.2

More Competitive Purchase Offer – For qualified buyers, an accelerated home financing process may help a purchase offer look more attractive to sellers in a multi-offer situation.

Faster Closing – A quicker home financing process can help expedite the home’s closing date.

Variety of Home Loan Options – Preferred EXPRESS may be used in conjunction with conventional and government home financing products.1

“As a mortgage company, we’re committed to finding new ways to make the home financing process more efficient,” said Ron Wivagg, National Sales Support Manager for Pennsylvania Preferred Mortgage.  “The impact of Preferred EXPRESS is significant.  The program allows for an expedited closing date to help buyers win multi-contract scenarios, and it also helps reduce the stress of the home buying process so our clients can focus on other matters related to buying a home, such as planning their move and setting up services at their new home.”

The Preferred EXPRESS program offers a 7 day loan commitment, which includes the property appraisal. It shortens the loan process and helps reduce stress by minimizing last minute conditions.  The program is offered to qualified conventional, FHA and VA loan borrowers who are W-2 wage earners (no self-employed customers), but buyers should be prepared to provide certain documentation upfront. At their loan application, borrowers who are eligible for the program and wish to participate should be prepared to submit:

  • 30 days paystubs,
  • 2 years W-2s (or tax returns for commission-based income),
  • 2 months banks statements and
  • signed disclosures.

To learn more Preferred EXPRESS, contact your local mortgage consultant.

 

 

 

1. FHA Credit Advantage loans and loans requiring manual underwriting do not qualify for Preferred EXPRESS. Self-employed borrowers do not qualify for Preferred EXPRESS.

2. Preferred EXPRESS is not a loan approval. A Commitment Letter is based on information and documentation provided by you and a review of a borrower’s  credit report. The interest rate and type of mortgage used to approve a borrower for a specified loan amount is subject to change, which may also change the terms of approval. The interest rate cannot be locked until the borrower’s offer to purchase a property has been accepted. If the interest rate used for credit approval has changed, the borrower may need to re-qualify. Information provided by the borrower is subject to review and validation, and all other loan conditions must be met. After the borrower has chosen a home and the purchase offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment.  Additional documentation may be required.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


Between down payments and closing costs, buying a home is a big financial commitment that may seem out of reach for those who ultimately choose to rent instead. However, in today’s market environment of rising rents, the difference in cost between renting and owning is actually narrowing, making this a favorable time to buy a home in most U.S. cities.

According to a recent national index from Florida Atlantic University and Florida International University faculty, the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, 15 of the 23 cities covered are solidly in buy territory, while another five are only marginally in rent territory.

Want to know if buying is a better than renting for you? Ask yourself the following questions:

How stable is my employment situation? Lenders will take the length of time you’ve spent at your current job into consideration, so if you’ve jumped around a lot or just started a new position, that may work against you.

Are you ready to settle down for awhile? Buying a home is an excellent long-term investment, not usually a quick flip. So if you’re still testing out different cities or interested in seeing the world, renting may be a better option.

What shape is your credit in? Your credit score weighs heavily in securing a favorable mortgage loan. If yours is not in the best shape, it may be better to rent while you work at building a better credit profile.

What’s your true financial picture? While your salary may seem more than sufficient to make your projected mortgage payments, keep in mind that homeownership involves many different costs, from property taxes to repairs. So run the numbers carefully before deciding to buy.

The best way to decide whether to rent or buy is to consult a real estate professional in your area. If you’d like more information about home financing, please contact a mortgage consultant near you.

 

 

 

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.


House-to-Home Renovation Loans Offer Options for Agents and Home Buyers

If you’ve been house hunting—or if you’re an agent with a listing that needs work—you’ve probably been there: A home has great bones or offers a lot of space for the money, but some aspects of its condition are likely to frighten most buyers away.  With a unique financing option available for homes in need of renovation, however, the property might actually be more desirable than you think.

Our House-to-Home renovation program is designed to make mortgage financing for properties in disrepair more accessible by combining the estimated costs of repairs and the home's purchase price into a single loan.  Renovation financing can help home buyers turn a house they like into a home they love, and our loan options may help real estate agents present possibilities in a property, leading to a sale.

The House-to-Home renovation program offers a number of advantages:

  • The program offers a 30-year mortgage with a fixed interest rate that will remain the same for the life of the loan.
  • Purchase and rate-term refinancing options are available.
  • Unsafe homes can be made habitable, which can help improve the neighborhood.
  • Buyers may be able to get more house for the money and cover improvement costs.
  • The square footage of homes can be increased at a lower cost.
  • Agents can offer a greater inventory and close more sales.

 

There are two types of renovation loans: The FHA 203(k) loan programs for properties that won't need structural repairs, and a conventional loan program for properties that do need structural work.  Most types of home improvements are covered with the exception of "luxury" features such as swimming pools or landscaping.

If you choose to purchase, refinance, or market a home that may be eligible for 203k financing, having knowledgeable mortgage professionals to assist you is important.  Whether you are a first-time home buyer or an experienced real estate professional, our renovation specialists can help you find the right renovation loan program for your needs.

 

 

 

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC dba Pennsylvania Preferred Mortgage. All Rights Reserved.

 

 


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