I have so many interesting questions to share with you. I hope you find this information to be a true resource. Let's get started...
- We are purchasing an investment property. We have several properties but only 3 mortgages. Am I going to have an issue with financing? Freddie Mac will allow for up to 4 financed properties including your primary residence. Fannie Mae will allow for up to 10, but the rates are not as competitive as Freddie.
- We are interested in purchasing a home using an FHA loan. The home we currently own has an FHA mortgage. We plan on keeping it and renting it. So, how does this work? You are only allowed to have one FHA loan at a time, unless there are extenuating circumstances. Has your family outgrown your existing home? Do you need to move for work, greater than 50 miles from your current home? As with any rule, there are exceptions, but would need to be a valid reason for FHA.
- How do we know when to lock our interest rate? All these different financial statistics are so confusing. My biggest rule of thumb is this...if you are happy with the payment, lock. Some people are rate driven, others are payment driven. If you are rate driven .125% means everything, when we convert that same .125% into payment it means very little, depending. Per $1,000, the rate difference equates to approximately $2.83 in payment. Currently, rates are at historic lows. Please also keep in mind, if you determine you would like to wait for a lower rate, you are gambling that the rates will decrease and not increase, which is possibility also.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients.
Jennifer Keenan, Senior Mortgage Consultant
NMLS# 101837, Tidewater Home Funding (757) 366-8690