Archives for February 2021

In the past, there were very few different ways that people could buy a home. The process was very specific. If you couldn’t meet the requirements, you simply had to wait to buy a home until you could meet the strict requirements for a mortgage.

But today, there are so many different mortgage programs available for different types of people. Everyone’s financial situation is different.

We have different levels of income, different long-term goals, different financial management styles. It doesn’t make sense for everyone to be boxed into one or two mortgage programs.

The all-in-one mortgage is the perfect example of a revolutionary mortgage program that will work very well for many would-be home buyers.

This unique program is much more flexible than most other mortgages. When you have conventional loans, once you make a monthly payment, that money is forever inaccessible.

You could go through the long and costly process of refinancing if you needed to access your equity for any reason. But with an all-in-one mortgage, the money you pay towards your home is always accessible.

So what exactly is an all-in-one mortgage and how can it benefit you? Keep reading to find out.

1. An All-In-One Mortgage Combines Accounts

The key benefit of an all-in-one mortgage is that it combines 3 important accounts into one; your mortgage, a HELOC, and your checking account.

Each deposit into your account, such as your paycheck or other deposit, pays down the principal and interest of your mortgage. It also functions as a HELOC, or home equity line of credit.

The equity you have in your home is the difference between your home’s value and your current loan balance. Traditionally, when you make mortgage payments, that increased equity is inaccessible unless you apply for a separate line of credit.

With an all-in-one mortgage, your line of credit is built. You can use your equity at any time.

2. Equity Is Accessible

An unfortunate reality of most traditional mortgage programs is that the money you use to pay down your mortgage is inaccessible. But since a line of credit is built-in to your mortgage, you always have access to your equity.

So if an emergency comes up and you need money, it’s available. Or if you’d like to perform upgrades in your home, you can do so right away.

You don’t have to apply for separate loans or lines of credit. You have control over your equity and your money. Using your equity is as easy as using your debit card.

3. Save on Interest 

All-in-one mortgages give you the ability to save on interest over the life of your loan. Your interest is calculated based on the total amount in your savings account.

So the more money you deposit into the account, the lower your interest payments will be. Over the course of your loan, this could save thousands of dollars.

4. Pay off Your Mortgage Faster

As with saving on interest, the deposits into your savings account can also shave years off the life of your loan. An all-in-one mortgage makes it much easier to pay down your loan quicker.

This comes with a caveat, however. Those looking to pay down their loan faster need to be financially disciplined since the equity in their home is always available for use.

But the flexibility regarding their mortgage, their interest savings, and their payoff times is huge.

5. Higher Rate of Return

Those with conventional mortgages may save money in traditional savings accounts. These accounts yield very small returns, often only 0.05% or so.

Rather than making virtually no interest, you can “save” your money in your all-in-one mortgage. Every dollar you deposit into this account saves on interest, which depending on your interest rate, can be between 3% and 7% yielding a much higher return on your deposits.

6. Every Dollar You Make Can Pay Down Your Mortgage

Because you’ll use this savings account as your main bank account, every dollar you receive will pay down your loan and save on interest. This can include your paychecks, gifts, money from a side hustle, or even a tax return.

You’ll be paying down your loan and growing your wealth on autopilot. 

7. Instant Liquidity When You Need It

Nobody loves emergencies. But when they happen, it’s important to have money ready to cover surprise expenses.

This could be your car breaking down, your home furnace going out, or a medical emergency. These need to be paid for quickly and using a credit card or other loan will come with a much higher interest rate.

Instead, you can access your equity, the money you’ve already earned to cover emergency expenses if needed. The equity is always instantly available.

8. Flexible Monthly Payments

There’s also flexibility regarding your monthly payments. If something happens and you don’t have enough money to cover your monthly payment, no minimum payment will be required.

The minimum interest payment that is due is just advanced from your current credit line. You won’t have to deal with the negative connotations of missing a mortgage payment.

9. Reversible Mortgage

A traditional mortgage process is irreversible. That is, if you make extra money or want to make additional mortgage payments, you can. But once you do, that money is no longer accessible. You’ve essentially locked it into your equity.

All-in-one mortgages are fully reversible. So go ahead and deposit extra money into your account, paying down your loan balance. You can so without hesitation since you can always reverse that decision and access those funds at any time.

10. Simplified Account Management

If you don’t have an all-in-one mortgage, you’ll have a lot of other accounts to deal with. You’ll have a separate mortgage account and monthly payments.

You’ll have your checking and savings accounts separate from your mortgage. Then, if you want to access your home’s equity, you’ll have to apply for a separate HELOC account.

An all-in-one mortgage makes it much easier to manage your accounts since they are combined into one.

Is an All-In-One Mortgage Right For You?

An all-in-one mortgage has its clear advantages; it’s flexible, it’s reversible, and it’s accessible. It’s perfect for those who are financially disciplined, as they have equity when they need it.

But you can also save thousands on interest and pay your mortgage off much faster than a conventional mortgage.

Want to know if this program is right for you? Contact Sean and the team at Ascend Mortgage today for advice on getting the perfect loan.

Most people prefer 30-year fixed-rate mortgages over any other options. Do these loans offer the best rates, though? 

As you start preparing to buy a house, you must work on is getting a home loan. You can get a loan through a mortgage lender or broker, but it’s always wise to compare your options. 

One option to compare is the interest rates that loans offer. If you want to know the best place to start with getting a loan, start looking into average mortgage rates. 

Learning more about the average interest rates provides you with the ideal starting point as you shop for a loan. Here is a guide to help you know how to find the average rates and how to shop for the best mortgage loan. 

The Economy Controls Mortgage Rates

Mortgage rates fluctuate daily, and they tend to have high and low points. The economy plays a significant role in the average mortgage interest rates, and you can view the changes over the years to see the differences in average rates. 

There are times when mortgage rates rise drastically, like in the 1980s. During this time, mortgage rates skyrocketed to around 20%. There are few times in history when rates reached these numbers, but it happens. 

As a result, people prefer fixed-rate loans. A fixed-rate loan might not provide as low a rate as an adjustable-rate mortgage, but it is a safe option. When you get a fixed rate, you will always have the same interest rate. 

Generally speaking, interest rates fluctuate daily, but the changes are minor. If you can find a loan with a low rate, you can lock yourself into this loan to ensure that you get this rate. 

Your Finances and Credit Affect Your Rates

Evaluating average interest rates is helpful when getting a mortgage, but your finances and credit affect your rate. Lenders perform various evaluations when processing loan applications, and they look for several things:

Your Financial State

Your financial state tells lenders if you are financially prepared to get a mortgage. It tells them how well you manage your money, and it helps them determine their risk level. 

Being in excellent financial shape can help you get the lowest interest rate on your mortgage. To have excellent financial health, you should owe little money and have money in the bank. 

Your Income

A person’s income also plays a role in this decision. Your income helps your lender determine if you can afford to repay a loan if they grant you one. 

Your Credit  

Your credit is a significant factor in this decision. People with excellent credit scores tend to receive the lowest interest rates that lenders offer. People with poor credit pay higher rates. 

Lenders base your interest rate and loan approval on these things, as these factors tell them if a person is creditworthy. These factors also reveal the risk level a lender takes when offering loans. 

Mortgage Programs Offer Different Rates 

Next, it’s important to know that interest rates vary by loan program. You can apply for any loan program you choose, but you might not get approved for all of them. 

Choosing the right mortgage program is a vital step when getting a loan, and each type might have a different average interest rate. A broker can review your situation to see which type you should pursue.

The loan program you pursue should align with your current financial state and credit. It should also align with the amount of money you have for your down payment. 

Some options include conventional loans, jumbo loans, and FHA loans. Each program has guidelines and criteria you must meet to be eligible to use the loan. 

For example, some loan programs require more money down than others. Some loan programs are for people with excellent credit, while others are for people with lower scores. 

You Can Browse Average Mortgage Rates Online

As you learn more about mortgages, you can begin browsing online for the average mortgage rates. As you do this, you might feel confused. Average rates vary by loan program, loan duration, and other factors. 

As a result, you might not know what a good rate is at this time. If you feel like this, talk to a broker. Brokers help people find the best mortgages, even people with poor credit. 

Working With a Broker Provides the Best Way to Get the Best Home Loan

A mortgage broker is like a bank in a sense, but brokers offer more services and products than banks. A bank might offer one loan type only. If you don’t qualify, they won’t be able to help you.

On the other hand, brokers work with many lenders. A broker’s goal is to find the best loan options for anyone that needs a mortgage. If you want the best interest rate and terms, talk to a broker.

When you initially meet with a broker, they will ask you for some information. The broker needs to know specific things about your finances and credit. Here are some things the broker must know:

• Your income amount
• Your job history
• Your credit score
• Your debts
• Your bank account balances

With this information, a broker begins searching for loan options that you qualify for based on these details. The broker compares the options from various lenders and passes these details on to you.

The result is that you will find the best loan available. Are you ready to find out if you qualify for a loan? Do you want to learn more about the average mortgage rates available? 

Learn More About Mortgage Rates and Options

Learning about the average mortgage rates can help you know what rate to aim for when getting a home loan. If you aren’t sure where to start with the loan process, call us. 

At Ascend Mortgage, we provide mortgage guidance and advice, and we can help you find the best loan available. If you’d like to get started by getting approved for a mortgage, contact us.