Are you aware of the difference between an Interest rate and an APR and why it’s important to know what the APR is when you’re buying a home? The difference between APR and interest rate is this: the APR (annual percentage rate) is not just the interest rate but rather is a marker that illustrates the total
At Indigo Mortgage, we get Colorado borrowers who call and say they have received emails or ads with mortgage interest rates to purchase or refi their home as low as 1.75%. They ask if we can offer them that kind of low interest rate. Our response is that we can offer any interest rate they
If you have a real estate contract or a lease to own contract, how do you refinance that property? Let’s distinguish the differences of a real estate contract or REC and a lease to own contract. On a REC, the borrower’s name goes on the title to the property along with the seller; that title
If you’re planning to purchase a home or apply for a new mortgage or refi soon, there are some things you really should not do. At Indigo Mortgage, we call them “The 10 Commandments of Lending”. Presented with some levity, these are things that may cause problems during a mortgage application: • Thou shalt not
In the last several weeks, we’ve received a number of phone calls from home buyers who’d heard Indigo Mortgage on the radio and wanted a second mortgage proposal. They’d all applied online with that national lender who’s name rhymes with “pocket”, thinking they’d get a good deal. Each of these borrowers said they questioned if
Many times, we get potential borrowers who say they are shopping their mortgage around. That’s great, that’s what we’ve advised since we opened in 2003. Most often when they tell me they’re getting several offers on their home loan, one of them involves a national online lender. You know the companies—their names make you think
Good news for Colorado homebuyers! The private corporations chartered by Congress to provide stability and affordability to the mortgage market, Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) have raised the maximum loan limit from $548,000 to $625,000. This means a borrower can now take a mortgage up
We know that borrowers are bombarded daily with ads for mortgage loans from that national lender whose name rhymes with “Pocket” and big internet lenders saying they can manage their home’s purchase and mortgage. But can big internet lenders really service local borrowers like a local lender can? We say this because a local lender
In early October 2021, we are beginning to see mortgage interest rates rise from the historical lows of the last year. However, many online lenders are still offering those low rates from a few weeks ago, BUT these lenders are not being forthcoming in what it’s costing to now get that low interest rate. They
When we meet with potential home buyers, we always review not only what will be needed at closing for their down payment, but also what their share of the closing costs will be. These home buyers have often already met with another lender but that lender didn’t say anything about closing costs that the buyer
Every day, we talk with borrowers who are shopping their mortgage around and who say, “I don’t want my credit report pulled again, it will drop my credit score.” That’s actually not the case. The rules for credit reporting agencies state that if the same type of entity (such as multiple mortgage companies) are pulling
In today’s competitive mortgage market, when a lender pulls a credit report on a borrower, the credit bureaus (Experion, Equifax and Transunion) are selling that borrower’s information to other internet lenders. Some unscrupulous lenders then try to solicit borrowers already in a mortgage application with another lender, offering what seems to be a better deal.
A recent change is affecting mortgages on investment properties and second homes. Fannie Mae and Freddie Mac, companies chartered by Congress to purchase mortgages from financial institutions and repackage them for investors, has made it more difficult and more expensive for lenders to offer mortgages on these types of properties. Fannie Mae and Freddie Mac
In a recent blog, we talked about mortgage servicers and what they do after your home loan closes. Let’s look at the law that governs those servicers which is called RESPA. RESPA, an abbreviation for Real Estate Settlement Procedures Act, is a federal consumer protection law. It makes sure that servicers cannot change or modify
What happens after the closing process for your home’s mortgage? Mortgage companies seldom talk about the process after your loan closes or what borrowers need to know after they sign the home loan. Today, most mortgages are not serviced by the company that funds the mortgage. Mortgages are usually sold on the secondary market to
In April 2021, the Veterans Administration has announced an expansion to the VA home loan eligibility for those with National Guard service. This broadens the eligibility for certain members serving in the National Guard. Learn more about the qualifications here. Now, certain National Guard members will have access to the Veterans Administration home loan program
Some mortgage lenders today are treating the process of getting a mortgage, the biggest financial transaction of most people’s lives, as if as easy as buying a pair of shoes on the internet. Everyone has seen the television ads – “just click this button and get a mortgage”. Just because they make it look easy,
At the end of the first quarter of 2021, the real estate market is very competitive and since mortgage rates are still at historic lows, many people are making offers on homes. Since there aren’t many homes on the market, they are selling quickly. One way to set your purchase offer apart is to accompany
With mortgage rates being at or near historic lows, Colorado homeowners always want the lowest mortgage rate they can get on a new home loan or a refinance. But be careful that you don’t make the low rate your idol. What does that mean? It means that you can make a big mistake by focusing
Mortgage rates have indeed come off their recent record low, but they are still in a historically low range. So, the question we get daily from Colorado homebuyers and those looking to refinance is “When are the rates going up again?”. Last year, we said that the mortgage experts predicted the interest rates would go