Reblogged from Majestic Home Loan

Some people want to know how to calculate mortgage payments. You don’t really need to do the work, but if you’re curious you can certainly do so. To calculate mortgage payments, you need to know a few details about the loan. Let’s go through the steps and tools you can use to calculate mortgage payments.

Why Calculate Mortgage Payments?

By going through the process, you get an idea of how much you pay in principal and interest each month. Calculating mortgage payments lets you look "under the hood" and see how your loan really works. When you calculate mortgage payments, you’ll see how your loan amortizes. Amortization is the process of paying down a loan.

Fixed-Rate Mortgage Calculator

Here at Majestic Home Loan, our fixed-rate mortgage calculator is fairly simple to understand. You only need to plug in three numbers to make it work. You'll use the beginning balance of your loan, your interest rate and the term of your loan in years. Simply type in these numbers and press calculate and you will get your monthly payment amount and the length of time it will take you to pay off your loan if you make each payment on time and only for the amount that is due.

So how does the calculator work? It inputs the numbers you give it into a simple mathematical formula that is programmed into its code. It is not much different from a formula in Excel. It's just dressed up in a calculator form to make it more friendly and accessible to the user. Remember, a mortgage calculator can only provide a good estimate. For more exact numbers,  be sure to speak to one of our licensed loan officers. Contact us today at 1-877-546-2145

Reblogged from Majestic Home Loan

MHL is your direct wholesale mortgage lender with the most competitive rates online. There are many advantages to choosing Majestic Home Loan for your mortgage goals. Here are but a few:

• Direct Lender
• In-House Underwriters
• Professional Mortgage Team
• Quick & Easy Instant Online Approval
• Conventional 30 year fixed, FHA Streamline Refinance, VA IRRRL and more...

Contact us today and let us help you find the lowest rates.

1-877-546-2145

You can also speak with someone using the LiveChat feature located in the lower-right corner of your screen

Please click here to visit http://www.mhlmtg.com/getquote

Reblogged from Majestic Home Loan

As the U.S. housing market recovers from last decade's downturn, today's home buyers aren't always flush with cash. For buyers with few funds for downpayment, loans via the Federal Housing Administration are a popular option.

The FHA allows mortgage loans with as little as 3.5% down.

ABOUT THE FHA MORTGAGE

The Federal Housing Administration (FHA) was established in 1934, which, in U.S. history, was a period of "heavy renting". The country was emerging from The Great Depression. Just 4 in 10 households owned their homes.

At the time, the mortgage terms offered by lenders were a burden to many borrowers. To get a loan meant to make a 50% downpayment; to agree to a loan term of 5 years or fewer; and, to make a large "balloon" payment to the bank after the mortgage's first few years.

Few U.S. consumers could meet the terms of a 1930s mortgage. Meanwhile, the government wished to increase the rates of homeownership nationwide. With more homeowners, the government reasoned, neighborhoods would stabilize and the U.S. economy would get back on track.

From this, the FHA and its flagship mortgage program was born. 

The main feature of the FHA-backed mortgage was its Mortgage Insurance Premium (MIP) program, a self-sufficient insurance fund through which the FHA could insure the nation's lenders against "bad loans".

In order for a bank to get the FHA's insurance on its loans, it was required to verify that its loans met the FHA's minimum qualification standards.

These rules came to be known as the FHA Mortgage Guidelines.

In time, the FHA MIP system gave banks confidence to make better loans with better terms for hopeful U.S. home buyers. Soon, the downpayment requirements for a home loan dropped; 5-year loan terms were replaced with longer terms of 15 and 30 years; and mortgage rates dropped.

The FHA is currently the largest insurer of mortgages in the world.

BENEFITS OF AN FHA MORTGAGE

• FHA Allows A 3.5% Downpayment

• The FHA Doesn't Require A SSN

• The FHA Insures All Property Types

• The FHA Has Flexible Credit Standards

• Allows Access To The FHA Streamline Refinance

For more than 80 years, the FHA home loan program has helped U.S. homeowners purchase homes affordably and refinance them. Call us today and see what an FHA loan can do for you.

Reblogged from Majestic Home Loan

Which mortgage option is best for you?

·        Do you plan to stay in your home for many years?

·        Do you prefer a consistent mortgage payment for financial planning needs?

·        Does your peace of mind depend on a payment that never changes?

If you answered “yes” to any of these questions, a 30-year fixed-rate mortgage might be right for you! Since your rate will not change over the life of your loan, your principal and interest payment will never increase.

Fixed-rate mortgages are a good choice if you:

• Think interest rates could rise in the next few years and want to keep the current rate
• Plan to stay in your home for many years
• Prefer the stability of a fixed principal/interest payment to a payment that changes periodically (which is what happens with an ARM, or adjustable rate mortgage)

The 30-year fixed-rate mortgage is one of the most popular mortgage products available today. Many people prefer the fixed interest rate and stable monthly payment over the risks associated with adjustable rate mortgages (ARM).  Please contact one of our mortgage professionals for a no obligation needs analysis today.