Why You Should Consider a Home Refinance

October 16, 2020 by Cindy Steelman

Selling an existing property to purchase a new one isn’t as simple as most homeowners assume. Depending on your financial situation, you might’ve already considered refinancing but remain on the fence. Along with the ever-changing mortgage market, however, a refinance on your home might make the most sense.

What is a Refinance?

To refinance your mortgage is to replace your existing loan with a new one. The new mortgage will then relieve the remaining balance on your previous one and readjust your terms. Often, you won’t turn to your current lender for a refinance.

If you’re looking to resolve any of the below circumstances, considering a refinance may work in your favor.

You Need to Consolidate High-Interest Debt. A mortgage refinance won’t always indicate issues with the property itself. Sometimes, the inability to satisfy credit card, personal loan, or payday loan debts make refinancing an appropriate solution. Through a refinance, you can combine the high-interest debt into your mortgage and repay them at a lower rate. However, if you’re only dealing with small amounts of lower-interest debt and prefer to use credit cards regularly, a refinance may not be for you.
You Want to Renovate Your Home. If you’ve outgrown your current space but can’t afford to purchase a new home, a refinance can instead support a much-needed renovation. Upgrade an outdated bathroom or kitchen by tapping into your home equity. If you’ve owned your property for several years and the market is trending upward, there is a good chance it might already be worth more than your mortgage anyway. In the long run, a renovation can further increase your home’s value, should you decide to sell it later.
You Want to Get Rid of Your PMI. If private mortgage insurance (PMI) is overwhelming your finances, a refinance can transition you into a loan without it. However, the ability to do so will depend on your loan-to-value ratio, which should be 80% or lower. Keep in mind that you’re less likely to eliminate your PMI if you’ve only inhabited your current home for a short period.
You Want to Lower Your Interest Rate. If interest rates are dropping, you can align with current numbers by applying for a rate and term refinance. With it, you can pay off your previous mortgage without having to secure a new loan or pull any equity from your property. Apply for this type of refinancing if you’ve been inhabiting your home for over a year.

Mortgage Refinancing with Steelman Mortgages

Lots can change over the lifetime of your mortgage. At some point, refinancing may seem like the only viable next step. Always consider your reasons for refinancing before you pursue an application with a new lender.

If you’re looking to adjust your mortgage terms, make lower monthly payments, consolidate debts, or undergo a home renovation, seek assistance from Steelman Mortgages. The best mortgage company in Roseville, we can provide you with a free home refinance analysis to determine what type of loan product best suits your needs. Contact us today at (916) 847-7263!

3 Reasons a Reverse Mortgage Is Great for Seniors

October 13, 2020 by Cindy Steelman

Reverse Mortgage In Roseville Sacramento And Throughout California

Saving for retirement can be quite a challenge, especially when you’re already a senior. If your monthly income consists of Social Security, there’s a big chance that you’re struggling to make ends meet. Although it’s a much-appreciated benefit, it’s hasn’t kept up with the rate of inflation. As healthcare costs continue to skyrocket, it’s become tough to survive as a senior American.

However, as a senior, you probably own a home, which can be a valuable income source. You can sell it and use the money to support yourself and your living expenses. Although you’ll need a place to live, getting a reverse mortgage in Roseville can take care of that.

What’s a Reverse Mortgage?

A reverse mortgage is a type of loan except that you won’t have to make any payments as a homeowner. Instead, the lender pays you every month, and you choose how to receive the payments. However, you pay interest on the money you receive, which mixes in with the loan balance, so you don’t need to pay anything right away. The entire loan balance becomes payable when you move, sell your home, or pass away.

To qualify for a reverse mortgage, you need to be at least 62 years old, reside in the home as your primary residence, and keep up with your homeownership expenses. That means you have to continue paying property taxes, maintaining your property, and keeping homeowners’ insurance.

Here are three reasons you’ll benefit from a reverse mortgage:

Your Credit Score Won’t Matter. Many borrowers who are in dire need of money struggle with low credit scores. Financial institutions and lenders generally prefer people with solid credit scores, which makes borrowing affordably a challenge. Luckily, if you need the money and don’t have the ideal credit score, a reverse mortgage is a great solution. It doesn’t take your credit score into consideration, which is a massive relief for many borrowers. All you need is to have equity in your home, and you’re probably going to get that approval.
You Can Use It for Anything. If you need additional support in paying for your necessities like food, electricity, and heat, a reverse mortgage makes that possible. However, if you have other expenses that don’t have anything to do with your home, like taking care of a pet, you can use your reverse mortgage for that, too! There aren’t any limits to what you can use a reverse mortgage for, especially if you have a wide variety of expenses. You can use it to upgrade your appliances, support your hobbies, or even travel.
You Don’t Need to Repay It Right Away. Unlike home equity loans, which are similar, you won’t have to pay back your reverse mortgage right away. Home equity loans require you to pay immediately, but with a reverse mortgage, you pay it only when you move, sell your property, or pass away. In the latter case, your heirs can take care of that for you, leaving you stress-free. These are incredible benefits that are difficult to find in any other kind of loan. Without the pressure to repay your loan, you can focus on sustaining yourself and taking care of your home.

Steelman Mortgages is Your Reverse Mortgage Broker in Roseville

Getting a mortgage in Roseville is complicated when you have a low credit score, but a reverse mortgage changes the game. It’s a great way to help you stay in your home during your retirement, helping you live comfortably and safely. With these three reasons, you’ll want to consider a reverse mortgage.

Are you looking for a mortgage broker in Roseville to consult about getting a reverse mortgage? If so, you’ve come to the right place! Steelman Mortgages provides home buyers and homeowners with personalized mortgage services that make the process smooth, simple, and enjoyable. We offer jumbo loans, FHA loans, first time home buyer loans, reverse mortgages, and many more! Call us today at (916) 847-7263, to see how we can help you!

3 Important Mortgage Tips for First-Time Home Buyers

October 6, 2020 by Cindy Steelman

When buying a house for the first time, you need to secure the best mortgage deal. Doing so will grant you the immediate funding you need and start your new life as a homeowner. But what should you know before you go around looking at different mortgage deals?

This article will orient you on the basics of mortgage acquisition and what you need to know so that you can pay it off easily. The main goal here is for you to buy a home successfully and reap the benefits of saving and investing in your housing dreams. Consider this article as an investment in your family’s future.

Compare mortgage interest rates

As a first time buyer, it’s natural to feel like you should jump at any offer that you see. However, you need to be smart and decisive about your mortgage. Doing so will help you find the best one that you can afford and enable your family to adjust and live comfortably under a new roof.

You need to compare different mortgage interest rates and the allowable loaning capacity to maximize your resources and finance a livable future. Remember, your new home is an investment, and you need to be able to pay other things as well, like moving-in expenses, daily living costs, and other financial obligations.

Consult with a professional mortgage lending company that can offer you the best loans and interest rates suitable for your budget and current income. They can also provide numerous options for payment and other terms to help you conveniently pay your mortgage.

Take advantage of your mortgage lending company’s professional connections and expertise in the property acquisition process. In doing so, you can easily find the best mortgage for your housing needs.

Maintain a good credit score

You need to maintain a good credit score because it will define how much mortgage lenders are willing to offer you in terms of interest rate and loaning capacity. You will also need to maintain your good credit score to find other financial opportunities, like in your relationship with your local bank.

As such, be sure to check your credit score and look for possible mistakes. Practice good financial behavior, like paying your credit card bills on time, to maintain your good credit score. You can also speak with your mortgage lending company to find the best mortgage deals to maximize your credit score.

Secure a down payment

You can build a good relationship with your mortgage lender when you can secure a down payment. Most mortgage lenders prefer having a down payment since it is an indicator that you can pay and are committed to meeting the mortgage requirements. You can also find more budget-friendly mortgage deals with reasonable interest rates.

Consult with a professional mortgage lending company about down payments and how much is a suitable amount for your house purchase. You can also look into your current savings and how much you need to impress the right lender. Doing so will help you maximize your resources and pay your mortgage easily because it gives you a proper head start.

Buying your First Home with Steelman Mortgages

Your top priority as a first-time homebuyer is securing a viable mortgage that you can work with for a considerable length of time. Doing so will allow you to fund your housing dreams easily. Consider the previously mentioned tips to fulfill your house purchasing dreams today!

Steelman Mortgages is your professional mortgage lending company in Roseville committed to guiding first-time home buyers like you and other aspiring homeowners. We have different mortgage solutions that are suitable for your convenience and home financing dreams. Contact us today at (916) 794-9783 for your mortgage needs.