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When interest rates rise, ask about an Assumable Mortgage.

 

What is an assumable mortgage?

An assumable mortgage is a loan that a buyer can take over from the seller of a home, often with little or no change in the loan’s terms, including the interest rate. After obtaining a lender’s approval, a qualified buyer agrees to make future payments as if they took out the original loan on the home.

What types of loans are assumable?

  • All government loans, such as FHA and VA loans
  • All conventional adjustable rate mortgage (ARM) loans
  • Some non-conforming ARM loans1

Advantages of an assumable mortgage:

  • If the seller’s interest rate is lower than the rate a buyer can obtain based on current market rates or credit history, the buyer may enjoy significant savings.
  • Fewer closing costs are associated with an assumable mortgage.
  • Because not all mortgages are assumable, a seller may also benefit by marketing this advantage when competing with other homes on the market.

Considerations of an assumable mortgage:

  • A buyer will be required to qualify for the terms of the existing loan in order to assume the mortgage.
  • If the sale price of the home is more than the mortgage amount remaining on the home, a buyer will need to pay for the difference at closing out-of-pocket.
  • Certain conditions will need to be met based on the existing loan type.

If you have questions about an assumable mortgage, please contact a mortgage consultant near you!

 

 

 

1. Ask your local mortgage consultant to discuss assumable non-conforming loan programs for which you may be eligible.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (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, Florida, 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/)

©2018 Prosperity Home Mortgage, LLC. All Rights Reserved.


Venturing out to search for your first home is one of the most exciting times of your life! Unfortunately, it is also one of the most daunting. Between a lexicon of new terms and an onslaught of online information, the process of shopping for a home is understandably overwhelming for first-timers. First, take a deep breath. Then follow these steps and you’ll be on the path to finding your first home in no time:

1. Start searching for a real estate professional. You’ll need a well-informed, trusted guide throughout this process so start looking for a real estate agent to work with. Ask friends and family members for recommendations then do your research online to evaluate any individuals and conduct in-person interviews as well. Be sure to speak with at least three agents before choosing someone to work with.

2. Figure out what you can afford. Before you start looking at neighborhoods and homes, determine what you can comfortably afford... the key word being “comfortable.” There are many unexpected expenses that arise when you’re a homeowner, so don’t stretch yourself too thin. Determine how much you can afford for a down payment, then use an online mortgage calculator to see what your monthly payments might be for various-priced homes. Once you’ve arrived at your budget, stick with it.

3. Pick your neighborhoods. Choose your location before you start looking at homes, as where you live will ultimately be more important - both in terms of your day-to-day happiness and your investment - than the home itself. You may have to compromise a bit on location depending on the home you can afford. Your real estate agent can help advise you here.

4. Choose your musts. When thinking about the home you’d like to buy, take an honest look at needs vs. wants. Sure, there are a lot of things we’d love to have in our dream home, but figure out what are the nice-to-haves vs. the must-haves. Use a house hunting checklist to rate the features and condition of homes you view.

5. Search online. Once you’ve got your price range, your neighborhoods, and your must-haves down, start your search online to narrow down your options. Your real estate agent may also know of some homes that fit the bill right off the bat. This will mean fewer homes to visit in person and hopefully, lead to a quicker selection.

Above all, be open minded, flexible and patient in the home-search process. Your opinions and priorities may change as you learn more, and despite the best planning, curve balls happen. The journey will be well worth it, however, once you’re happily settled as a new homeowner.

 

When you’re ready to discuss your home financing options, contact a local mortgage consultant who can answer any questions you have about the mortgage process.

 

 

 

 

Reprinted with permission from RISMedia. ©2018. All rights reserved.

This list is only to be used as a guide and is not all-inclusive.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (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, Florida, 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/)

©2018 Prosperity Home Mortgage, LLC. All Rights Reserved.


When home buyers begin house hunting, they often find that the home buying journey can be a lengthy process. Finding a place with the right combination of must-haves and nice-to-haves can be complex and time consuming.  How much square footage is needed?  Should the property be close to parks, shopping, or services?  Will the commute to work be acceptable?

These types of questions are important, but they can be overshadowed by the possibility of rising mortgage rates as buyers apply for a home loan.  While interest rates should not be the only concern when obtaining home financing, the rate does have an impact on the loan amount for which a buyer can be approved.  Quite simply, a lower interest rate can mean more buying power.

When interest rates change, we still want our clients to be able enjoy an exciting path toward homeownership, not one filled with anxiety about rising rates.  That’s why current home buyers may be interested to learn about the Prosperity Buyer Advantage: Lock, Shop & Home loan program, which provides an opportunity to counter the worry of rising interest rates.

The Prosperity Buyer Advantage1 allows buyers to get much of the home financing process out of the way and obtain a Commitment Letter, which can help set their purchase offer apart from other offers a seller may be considering.  Participating in the Prosperity Buyer Advantage costs nothing additional and can help prevent last-minute issues with home financing, so buyers can enjoy an on-time loan closing.

What’s more, Lock, Shop & Home allows buyers to lock in an interest rate for up to 90 days at TODAY’S rate instead of waiting to lock in a rate only after they have found a home to purchase.  Here are a few highlights:

  • No property address is needed at the time of application and rate lock.
  • Lock an interest rate up to 90 days.2
  • Conforming and high balance loan amounts are available.
  • May be used with conventional or government fixed rate loan programs.3

 

Want to learn more about the Prosperity Buyer Advantage: Lock, Shop & Home loan program and see if it's the right fit for you? Contact a mortgage consultant near you!

 

 

 

 

1. Prosperity Buyer Advantage is not a loan approval. Ask your mortgage consultant for details about Prosperity Buyer Advantage. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment.  Additional documentation may be required.

2. Additional fees may apply.

3. Lock, Shop & Home program is not available for bond, jumbo, or renovation loan programs.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (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, Florida, 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/)

©2018 Prosperity Home Mortgage, LLC. All Rights Reserved.


If you are considering the possibility of purchasing a home this year, you may have heard that renting is a smarter choice than buying for a number of reasons. For many people, however, that is not always true.  Deciding whether renting or buying is right for you depends on your individual options and circumstances.  To help you learn more, here are a few myths that explore renting versus owning a home:
 
Myth No. 1: You can’t afford a down payment.

Many would-be homebuyers opt for renting believing that they won’t be able to save enough for a 20 percent down payment. But in reality, not all loan programs require a 20 percent down payment. Different loan programs require home buyers to put down different amounts as low as 10 percent, 5 percent, or even 3 percent.  In fact, some programs require no money down, and in some areas, down payment assistance programs are also available.
 
Myth No. 2: Renting is cheaper.

This statement depends on your rent and the home values in your area.  But even if your monthly mortgage payment ends up being a little higher than what you might have paid in rent, that money is going toward your own long-term financial investment. When you pay rent, you are making your landlord’s mortgage payment rather than your own.  Talk to a mortgage consultant to determine a monthly payment with which you are comfortable, and compare it to the cost of renting to determine which is right for you.  Or, use our Rent vs. Buy calculator to get started!
 
Myth No. 3: You won’t recoup your money.

Real estate is often considered to be a safe long-term investment because home values have historically risen over time. Yes, the housing market may go through cycles, but if you plan to be a homeowner for a long time, your home can build equity and prove to be a wise investment.
 
Myth No. 4: Renting is less of a hassle.

While you may have less vested in a rental property, the work you put into turning a house into your home can be a richly rewarding experience. Not only can you create a home that suits your preferences without the concern of a landlord’s limitations, improvements you make to the property can also help build upon your initial investment.
 

 

If you’d like more homeowner information, 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. (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/)

©2018 Prosperity Home Mortgage, LLC. All Rights Reserved.


FHFA Announces Higher Loan Limits for 2018

As the result of a higher average U.S. home price in 2017, the Federal Housing Finance Agency (FHFA) has announced new, higher maximum conforming loan limits for 2018.

In most areas of the country, the 2018 maximum loan amount for one-unit properties will be $453,100, an increase from $424,100 in 2017.  In high-cost areas, the new maximum high balance loan limit will be $679,650, up from $636,150.

As in the past, loan limits may vary by county. Click here for a list and map of the 2018 maximum loan limits for all counties and county-equivalent areas in the U.S.

New Conforming Loan Limit Sample:

2018 Conforming Loan Limit

Sales Price High

Down Payment Amount

$453,100

$467,113

3%

$453,100

$566,375

20%

 

New High Balance Loan Limit Sample:

2018 High Balance Loan Limit

Sales Price High

Down Payment Amount

$679,650

$715,421

5%

$679,650

$849,562

20%

 

Contact your mortgage consultant directly if you have questions on local limits or other home financing options.

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (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. All Rights Reserved.


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