A and N Mortgage Tips: New Year, New Changes for 2014 Mortgages

Mortgages Affected: 2014
The Consumer Financial Protection Bureau are enforcing a new set of Qualified Mortgage rules that will start to phase in on January 10th, 2014 and the residential real estate market could be in for some major changes. The vast majority of mortgages issued these days are "Qualified" which means a borrower has to meet specified standards to obtain a home loan. In general home shoppers will undergo more scrutiny and may see their borrowing power shrink. In addition interest rates are also expected to be up possibly to as much as the mid 5 percent range.
These new rules all but eliminate most of the lending practices that caused the housing market bubble to burst. 
Here are some of the new rules:
The maximum debt to income ratio decreases from the current 45 percent to 43 percent.  
There can be temporary exceptions made to this rule that allow for higher debt ratios for loans that can be purchased by Fannie Mae and Freddie Mac. The obvious negative impact is that borrowers who are lower income or are really stretching themselves to get a mortgage may not qualify for as much as they need.
The new rules also help speed up the process of getting a mortgage by giving lenders the authority to reject outright credit-report information if a borrower can prove that it's wrong. This is a huge help as in the past lenders many times would use the credit report as the final authority.
The Qualified Mortgage grants the creditor greater protection from potential liability. Under this rule, lenders cannot include toxic features such as negative-amortization ARMs that increase borrowers' debt with each monthly payment, or excessive upfront points and fees.
In conjunction with the lower debt ratios, interest rates are going to affect how much money a homeowner can borrow. Economists are expecting interest rates to rise gradually during the coming year. The predictions for the most part put interest rates gradually rising throughout the year, starting at the high 4 percent range in the beginning of the year and hitting possibly 5.3 percent or more by years end. Put simply, you will probably get more bang for the buck if you buy your house earlier in the year. 
The process of obtaining a home loan can be arduous and confusing. New rules all the time, paperwork that's never-ending can lead to frustration and high blood pressure. So consider contacting your local mortgage broker as they are the experts that keep up on these new rules and regulations and can help answer any questions you have.

Keeping You Informed
A and N Mortgage mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Call A and N Mortgage today to obtain custom loan options designed to fit your needs and help you obtain your home goals.

THIS IS AN ADVERTISEMENT. This is not a commitment to lend. A and N Mortgage Services, Inc. is an Illinois Residential Mortgage Licensee and Equal Housing Lender.  1945 N. Elston Ave.   Chicago, IL   60642  p: 773.305.LOAN   ANMtg.com  
IL MB.0006638, FL MLD288, IN 11122, IA 2006-0064, MA MC19291, MI FL0012625, WI 19291BA/BR   

NMLS# 19291


Save Big Over The Life Of Your Loan

When purchasing a home, the interest rate of your loan is of prime importance as it can dramatically affect the amount you pay for your home. Depending on the amount of your loan, a 1 percent difference in loan rate can amount to hundreds of dollars a month, which on a 30 year loan can mean tens of thousands of dollars going into or out of your pocket. Here are some tips to get you the best possible interest rates on your loan.

Tip 1

Conventional lenders charge a higher interest rate for lower credit scores. This is a pretty obvious statement to anyone who has in the past bought anything on credit or has a credit card. The difference in interest rates for a 620 credit score and an 800 credit score could be as much as .5 percent. If your credit score is under 700 it is recommended you use a credit score simulator to help you improve your credit score, although it could take several months to improve your credit score.

Tip 2
Make a larger down payment. Today it is common for lenders to require a 20 percent down payment on the house you wish to buy to secure a mortgage. You can improve your chances of securing a loan and decreasing your interest rate by increasing the amount to more than 20 percent. Why? Because you are making a greater equity investment in your house thereby lessening the lending institution's risk of making a loan to you. A higher down payment can mean a .1 to .15 percent interest rate reduction. Of course, the higher the purchase price the bigger the difference.

Tip 3
Pay points. Paying discount points can reduce your interest rate by a quarter of a percent. Points are considered a prepayment of interest, and each point is equal to one percent of the loan amount. On a $200,000 loan, this could mean $40,000 in savings over the life of the loan.

Tip 4
Shorten your loan term. Typically by shortening your loan term, you can reduce your interest rate by one-eighth to three-eighths of a percent depending on the loan term. Obviously you have to make sure you can handle the larger payment due to the shorter term

Tip 5
Buy a single family home. Without a doubt, you will get the best interest rate on a single family home. Condominiums and townhomes are considered a riskier investment because they tend to lose more value than single family homes when housing markets are softer. If you increase your down payment you may avoid paying a higher interest rate for a condo/townhome loan.  
These tips are just a few of the more important ones related to securing the lowest possible interest rate for your home loan. Depending on which of these tips you choose or are able to take advantage of, you could possible save $50,000 to $100,000 or more over the life of your loan.

Keeping You InformedA and N Mortgage Services, Inc. mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Call A and N Mortgage Services, Inc. today  to obtain custom loan options designed to fit your needs and help you obtain your home goals.

Lower Your Costs While Making An Impact

Green Home Tips

There is no denying in today's society there is more awareness and interest in being green and as such people are becoming more interested in using green building techniques. Key components include using energy efficiency techniques, sustainable building materials and energy efficient appliances in homes that help to lower cost and environmental impact.

Tip 1

Heating and cooling interior spaces can account for as much as 50 percent of a home's energy use. Since that percentage is so high insulation becomes an increasingly important component in having a green home. Poor insulation equals wasted energy and higher energy costs. Some things that can be done to improve energy efficiency include using spray insulation to seal air gaps in walls and attics. Building exterior walls with 6-inch-wide studs instead of the traditional 4-inch s
tuds will also help the cause. The use of caulk to seal all gaps around doors and windows is a must. And of course, use Energy Star-rated low energy windows.

Tip 2

One way to have a more energy efficient design is to keep the sun and wind in mind when designing your home. Using overhangs to help shade windows in summer while allowing sun to warm the house in winter are smart and money saving ideas. Planting shade trees near the south-facing sides of buildings can also help. A well placed skylight or two can help by increasing natural light in the home and allowing you to keep those light switches in the off position.

Tip 3

If you are really serious about your home being green the use of sustainable materials is a must. One way to really do your part is to use reclaimed lumber. Reclaimed lumber is lumber that has previously been used to build houses and factories. It is thought that reclaimed lumber is stronger than today's lumber due to the fact much of it was harvested from virgin forests. You may have to put some serious time into finding reclaimed lumber as its use is very popular in certain parts of the country. The bonus is you will probably spend less money in the end using reclaimed wood. Being green doesn't stop with using recycled wood. Recycled plastics and composites also are abundantly available. Many times these are long lasting products that don't need to be replaced as often thereby saving you money.

Tip 4

Unless you haven't looked at an appliance in 20 years you are familiar with Energy Star appliances. They are money saving appliances deemed to be energy efficient by the E.P.A (Environmental Protection Agency). They are easily identified by those familiar blue energy star labels. Choosing to use Energy Star appliances for heating, cooling, refrigeration, cooking and lighting will help to ease the burden on energy resources. You might even consider a tank-less water heater which uses less energy as you don't have to keep a large tank of water hot for use. Remember that these green tips are not only useful in building new homes but also are things to keep in mind when remodeling any room in your house. The benefits are saving valuable natural resources and keeping more money in your pocket. Sounds like a win-win situation.


Neena Vlamis Talks Homebuying and Credit with Bill Moller on WGN News Radio

In order to maintain the absolute best credit score make sure to set your bills on auto pay for the minimum payment.  This way when you are out of town you won’t miss a payment!

Listen to Bill Moller interview Neena Vlamis on WGN Radio News on homebuying and credit scores right here:


Call Neena at 773-305-LOAN for a pre-approval

THIS IS AN ADVERTISEMENT. This is not a commitment to lend. A and N Mortgage Services, Inc. is an Illinois Residential Mortgage Licensee and Equal Housing Lender. IL MB.0006638, FL MLD288, IN 11122, IA 2006-0064, MA MC5413, MI FL0012625, WI 19291BA NMLS# 19291 


A and N Mortgage: Thoughts of the Day‏

Can you believe it has been 74 months since the number of total foreclosure filings has been this low?

My prediction is that the inventory is going to stay low, you will see developers  come  back into the business, the banks will not be as foolish this time loaning money out to developers hand over fist as you saw in 2005. 

A and N friends like to know, why do people use Neena Vlamis over a bank?

Borrower "I am calling a bank for a quote as well"
Neena "once you call a large bank you will realize that they promoted a teller, who doesn't need a license to originate mortgages... Really?  .. To deal with your biggest asset!  I am a licensed mortgage professional who only does mortgages, I don't open checking accounts, I do two things, mortgages and diapers and I do them well!  When someone is doing too many things they are a jack of all trades and master of none. Now some advise on properties that sell the quickest: declutter your home and get it staged, I can give you a staging expert and a realtors number and let's put your team of professionals together and get you into a new home that meets your goals to match the growth of your family!"

Borrower "okay you had me at mortgages and diapers!"

Make it a great day!!! 

A and N Kids Club - Talk About Money with Your Kids‏

Is it okay to share the household bills with your children?

 My parents started to show the household bills to me at 10 years old. It all started because I couldn't understand why my friend had more shoes and clothes than I did. Because my parents sat me down showed me their income and what money was paid out each month I sure did have an awakening! I understood how much the electric bill was And consequently I started to shut off the lights every time I left my bedroom, I became cognizant of how much water I was using, I understood that my parents didn't have credit card debt and that my friends parents could have with the amount of shoes and clothes my friend had!

When your child receives money for the holidays and their birthdays, is it okay to save the money in the children's college fund instead of letting them spend it on frivolous items?

Yes your children will appreciate that you saved their money for them once college time comes around! They will be grateful that you cared enough to be strict with them and actually saved the money. I remember my friend in college had $15,000 because her parents took all of her money and put it in her savings a account and I felt so envious, she actually bought a used car with it!

Should I give my child an allowance?

Yes if they earn it by cleaning up after dinner, doing dishes, cleaning their rooms. Only give them money if they earned it and give them less money if they didn't do their assigned chore well. 

Teach your children the value of money so they don't have a sense of entitlement.


Holidays May Be Prime Investment Time

With holidays on the brain, many individuals don't realize that this lull in home sales during holiday season is extremely beneficial for buyers. There not only is less competition for those attractive homes, but the many sellers are motivated, willing and ready to make a deal. 

The Slower Market

    This slow market enables buyers to shop a multitude of listings. Those nasty bidding wars with other buyers, which often times drives up the cost of the home, are less likely to occur.

Many Motivated Sellers

    With holiday expenses and unemployment rates rising, sellers are more than willing to negotiate their selling price, especially if the home has been on the market for several months.

Enticing Tax Breaks for Buyers

   Closing on or before December 31st could mean a sizable tax write off when you deduct the interest of your first mortgage payment from your stated income.
Call or email today for a complimentary quote!