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Benefits of Refinancing Your Home

Benefits of Refinancing Your Home

When you buy a house, you may feel like everything about your mortgage is set in stone. But refinancing makes your mortgage far more flexible than you may realize. Need a lower interest rate? Want to pay off other debts faster? Regretting that you went for the adjustable-rate mortgage (ARM)? Refinancing lets you adjust your mortgage so it fits the needs and opportunities you have today. What Does It Mean to Refinance Your Home? When you refinance, you take out a new mortgage that pays for the old one. Then, you continue your payments on the new mortgage. Here’s how it works: You meet with the lender of your choice and explain what you’re looking for. If you don’t like the lender you used the first time around, you’re free to choose another one. The lender looks at your finances to assess what kind of loan they can offer — just like they did when you took out your first mortgage. If the lender can offer you a more favorable mortgage, they do! The new mortgage pays the remaining...

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What 2022’s Loan Limit Increases Mean for You

What 2022’s Loan Limit Increases Mean for You

Last year, house prices rose by over 18% — so loan limits are rising with them. As a result, the Federal Housing Finance Administration (FHFA) has announced its largest loan limit increase in history.  This is big news if you’re planning to take out an FHA loan or a conventional loan. None of us knows how high house prices might go. But this adjustment to loan limits means you should still be able to get the mortgage you need. Let’s dive into what these loan limits are and what they may mean for you. Wait, the Government Can Limit My Loan? Contrary to their name, loan limits aren’t about keeping you from getting an amazing house. They’re actually designed to help as many people as possible get their dream homes.  You see, when you apply for a mortgage, you work with a lender or a bank. But lenders and banks don’t have unlimited money. And if they tied up all their money in people’s houses, they would quickly run out!  Here’s what they often do instead: Congress created...

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5 Ways to Use Your Tax Refund to Buy a House

5 Ways to Use Your Tax Refund to Buy a House

     Have you thought about how you’ll use your tax refund? If you’re like most Americans, you want to be strategic with these extra funds. A study found that about half of consumers put their refunds in savings, and about a third pay down debt.  Those are great moves for future home buyers. But they aren’t your only options. Today, we want to share five ways you can use your tax refund to buy a house — and how even your savings can be strategic! Let’s get started! 1. Put Your Refund Toward Your Down Payment Every bit counts when you’re saving for a down payment. Contrary to popular belief, lenders don’t require you to have a full 20% down payment. However, they may have you pay for private mortgage insurance (PMI) if you can’t meet that threshold. PMI is a monthly payment you make, on top of your house payment, to insure the lender until you’ve paid off 20% of the house. So, the sooner you get to 20%, the better — and your refund can give you a big boost. The average tax refund is...

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Fixed-Rate vs. Adjustable-Rate Mortgages

Fixed-Rate vs. Adjustable-Rate Mortgages

When it comes to securing a home mortgage, most of us are concerned about securing a good interest rate. But do you understand how your rate will be handled?  Most home loans come as a fixed-rate mortgage or an adjustable-rate mortgage (ARM). And while friends may strongly advise you toward one or the other, you need to understand the differences between them before you make a decision. What is a Fixed-Rate Mortgage? As the name indicates, a fixed-rate mortgage has an interest rate that will stay the same for the duration of your loan. It’s fixed in place, whether the term of your loan is 10 years or 30. The economy can’t touch it. These loans tend to have a higher interest rate because they have to be profitable for the whole life of the loan. With a fixed-rate mortgage, your payment is stable. Your property taxes and insurance payments may go up, but the payment on your loan is set until you pay it off. Most homebuyers opt for this type of loan, but an adjustable-rate mortgage...

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Scarcity vs. Abundance Mindset when Buying a Home

Scarcity vs. Abundance Mindset when Buying a Home

Buying a HOUSE. Sounds a little intimidating, right? It doesn't help that almost everyone will tell you that buying a house is the BIGGEST purchase you will ever make. And you need to do RIGHT NOW for reasons ranging from “the rates are the lowest they’ve ever been” to “you want more kids so you might as well buy a house,” to “if you don’t do it now, you’ll miss your chance.” We’ve heard all the scare tactics. Is it possible that our culture has twisted the idea of buying a home into a bad thing? Owning a home is fantastic and has so many benefits that come with it, but why do we approach the topic with a scarcity mindset instead of an abundance mindset? What if there was enough to go around that you wouldn’t have to rush into buying a home you don’t actually love or that you’re not financially ready for yet? We want our clients and potential clients to retrain their brains into thinking of this market (and future markets) as the glass is half full, not half empty. You don’t have to...

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Can You Buy a Home with Poor Credit?

At Volunteer Home Mortgage, we love making the dream of homeownership a reality for our clients! In fact, one of the most satisfying parts of our job is showing people they do not have to have good or perfect credit to buy a house. No matter what some banks or friends have told you, having no credit history or low credit scores does NOT automatically disqualify you from every mortgage lender or loan product. Securing a home loan IS still possible for many borrowers whose credit may prevent them from getting a traditional mortgage loan, and we want to show you our proof. What is Credit? When mortgage lenders are reviewing borrower loan applications, they are looking at borrowers’ credit. Typically, they prefer to loan money to borrowers with good to excellent credit. That sounds simple enough, right? Mostly, but let’s break it down even more.CREDIT is your ability to borrow money for products or services AND pay it back. Lenders report the history of how well and promptly you repay...

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4 Types of Closing Costs You May Owe to Buy or Refinance a Home

Whether you’re buying a home or refinancing one, you know it’s going to cost you money. That’s why you need a mortgage loan! Of course, you probably need the loan to cover the house’s purchase price or its current value. But many buyers need their mortgages to cover closing costs, too. We at Volunteer Home Mortgage know the ins and outs of mortgage loans, and we want you to be prepared for closing cost expenses you may not have expected. What Are Closing Costs? What, then, costs so much “extra” money? What expenses do you owe to buy or refinance your home other than the purchase price? Well, obtaining a mortgage loan is not as simple as withdrawing money from your bank’s ATM. You must apply for a loan, be reviewed for a loan, and be approved for the loan. That process requires your lender to put in a significant amount of work on your behalf which will cost you money. After you are approved for the loan, the bank must make sure the house you are buying is worth the money you are...

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Residential Construction Loan Requirements

Residential Construction Loan Requirements

If you cannot find your perfect home, build it! Home buyers tend to dream BIG but end up making countless small compromises. But why? Why do people prefer buying a less-than-perfect house that is already built rather than building their “perfect” dream house? We at Volunteer Mortgage believe the answer is simple – most home buyers are afraid of construction loans. They have heard that building a house requires more money out-of-pocket, more paperwork, more proof of income, more closing costs, more work, and more headaches than buying a house. So let’s simplify construction loans. Let’s create a checklist of what you need to qualify for a residential construction loan. Choose a Plot of Land.After months or years of searching, you finally found the ideal land in the ideal location. Maybe your grandmother willed you a portion of her farmland, and you own the land free and clear. Or perhaps, you stumbled across the perfect greenspace to build your dream home, but you need a loan to...

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Volunteer Moving Checklist

The big day is here, finally! Your moving date is set, the house is closing, boxes have been packed. Now what? Volunteer Home Mortgage knows how much time and preparation goes into moving when you purchase a home. We want to make sure our buyers understand what to do once things start rolling. You can’t expect to remember everything, so here’s a checklist to make this transition as smooth as possible.   1. Give notice to your landlord It can be so easy to get caught up in the excitement of buying a home that you forget to notify the most important people! It’s crucial for you to communicate with your landlord at the correct time that you will be leaving the rental within a reasonable timeframe. If you’re in a 12 month lease and know that your lease will be up soon, that is a great time to alert your landlord. Don’t wait until the last minute and potentially risk damaging a good relationship.   2. Movers or no movers? As you get closer to your moving date, you’ll start...

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When should you refinance your mortgage?

Purchasing a home is typically the biggest financial decision someone will make in their lifetime. It’s important to be wise during this time and to also know your options as you embark on that journey. One aspect of being a homeowner is having the option at a later date to refinance your mortgage. Why would someone want to do that? As a homeowner, you do not have to pay the same amount of money every month for 30 years if you play your cards right! Although, the monthly payment is just one reason why refinancing is a solid option. There are many reasons why someone would want to refinance their mortgage. You can lower your monthly payment, get a better interest rate, and even change the type of loan that you have. When you refinance your mortgage, depending on your situation, you can really make your home work for you instead of feeling like you are at the will of your mortgage!   So, what does it actually mean to refinance? Refinancing your mortgage means that you get a new...

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Volunteer Home Mortgage

1033 W. Broadway Ave
Maryville, TN 37801