48 Meriden Rd, Suite 1, Middlefield, CT 06455

Category: Mortgage Basics

$726,200 is The New Loan Limit for 2023; High Cost Counties Now Over $1m

If you’re just here for the conforming loan limit news, $726,200 is the number for 2023. Does this mean no one can get a mortgage for more than $726,200?  No.  The conforming loan limit is the maximum amount that can be guaranteed by Fannie Mae and Freddie Mac (the government-sponsored enterprises or GSEs).  That guarantee…
Read more

What is Your Debt-to-Income Ratio?

Your debt-to-income ratio, or DTI, is an important personal finance measure that compares the amount of money you earn to the amount of money that you owe to your creditors. This number comes into play when trying to line up financing to purchase a home because it is used to determine mortgage affordability. Once financing has been…
Read more

Mortgage Rates 101, Part 2: Basic Parts of a Mortgage

Key Concepts Mortgage rates are interest rates on home loans There are really TWO mortgage rates: the interest rate (or “note rate”) applied to your loan amount (or “principal”) and the rate implied by certain upfront costs (the “effective rate”). APR (Annual Percentage Rate) attempts to convey that “effective rate.” Understand the tradeoffs between upfront…
Read more

Mortgage Rates 101, Part 1: What is a Mortgage?

When people want to buy something now, but don’t have (or don’t wish to spend) the cash to buy it outright, they can instead use a loan (aka financing, borrowing, debt).  This typically involves an agreement between the consumer and a lender.  The lender provides the big chunk of money today (that big amount that…
Read more

How to Avoid Fake Pre-Approvals

How to Avoid Fake Pre-Approvals By Selena Boyts   You receive a call from an enthusiastic and considerate representative claiming to have an attractive pre-approved loan offer. Before getting too excited, pause and think before you act. More often than not, such calls are made by fraudsters or lenders trying to pull a fast one.…
Read more

Mortgage Broker or Bank?

There are many reasons why it can be better to work with a mortgage broker instead of a bank when you are trying to get a home loan. A great mortgage broker will work very hard for you to find you the best product and to help you get into your new home as quickly…
Read more

Am I Ready to Be a First Time Home Buyer and What are the Steps to Buying a Home?

Do you have a stable job with stable income? Do you have good control of your monthly debt payments and a decent credit score? If you answered yes, then you are probably ready. The first step to find out if you are ready to purchase a home is talking to a mortgage professional. A local…
Read more

Why is it important your Pre Approval Letter has been “Verified”?

One of the most important components of a prospective homebuyer’s offer is the Pre Approval Letter.  As our culture has evolved to a have-it-now mentality some online lenders have begun to take shortcuts.  These online lenders and banks have started to issue pre-approval letters simply to win over a borrower’s business without really doing a…
Read more

Non-Occupant Co Borrowers

Have a primary residence or non-primary home that you would like to finance for a family member? We offer solutions that work for you. What are the advantages to having a Non-Occupant Co-Borrowers on a Mortgage? Occupying Borrower is not required to have a minimum contribution to the monthly income Occupying and non-occupying Borrowers’ incomes…
Read more

What goes into determining interest rates?

The most common question asked when talking about mortgages is…  “What are today’s rates?” Ever ask yourself what determines these rates? Here is a quick list of what goes into determining the interest rate on your mortgage: Loan Amount – Loans over conventional limits are called Jumbo Loans and may have different pricing. This pricing…
Read more