How to Find the Real Cost of Monthly Payments

Maybe you've run a mortgage calculator to determine the payment on your dream home, and it seems reasonable. However potential homeowners need to understand the real cost of purchasing a home before they sign the mortgage documents. There are several itemized charges that add to a monthly total payment which should be considered; Reliance First Capital brings you a few examples of what they are.

Principal: Don’t suffer sticker shock when you see that you’ve only paid off a tiny fraction of your loan after a year of monthly payments. When you take out a fixed-interest loan for a specified term, your basic monthly payment will stay the same for the life of the loan. However, that payment includes both the amount going to the loan total (or principal) and the interest. At the beginning of the loan the majority of the payment will be going to interest. As time goes on and the principal gets paid down, more of the payment will go toward principal.

Interest: Your basic loan payment will always include both principal and interest, but interest is applied in different ways. The most common loan structures offer either fixed or adjustable interest rates:

Taxes: You will also pay property taxes (for city, county, state, and school district) in monthly increments through your mortgage payments. A part of each month’s payment goes into an escrow account held by the lender, which then pays the taxes when they become due.

It’s critical to understand all of the elements of your total payment before closing on your house. At Reliance First Capital, we take special care to help our customers determine which loan is right for them, and help them decide how much debt burden they can and should take on based on their real monthly payment.

Reliance First Capital can find the loan option to meet your unique lifestyle and financial goals. Learn more about Reliance First Capital by contacting us at 866-735-9004 or visiting us online at www.reliancefirstcapital.com.

Quick Stat

Freddie Mac reports that 84% of homeowners who refinanced their first-lien home mortgage either kept the same loan amount or decreased their principal balance by paying additional money at closing. 46% of these borrowers maintained about the same loan amount, while 39% reduced their principal balance in the latest period.

To learn more about which loan programs you may qualify for, contact your Reliance First Capital mortgage analyst today. Reliance First Capital can find the loan option to meet your unique lifestyle and financial goals. Learn more about Reliance First Capital by contacting us at 866-735-9004 or visiting us online at www.reliancefirstcapital.com.

Source: http://blogs.wsj.com

Spring Cleaning for the Office and Your Brain

Is your home office too cluttered? If so, your business and your sanity could be suffering. Reliance First Capital understands that your living space is a reflection of what is going on inside your mind. Likewise, your home office space reflects what is going on in your business and household affairs. If your office is cluttered with inconsequential junk, chances are your business may be a little disorganized as well.

How to get started

The art of clearing is the practice of discarding what no longer works for you to make room for what matters. 

• Give to get: You no longer use that 35mm camera or flip phone — it’s time to donate unused items to a thrift store or worthy cause. They get something useful and you reduce your clutter. 

• Digitize it: Don’t print every receipt or email or keep every magazine. Create organized files on your computer and scan or download important documents. Use a cloud service to keep it backed up.

• Five-minute mail smackdown: When you bring in the mail, focus on dealing with each item immediately. If you can handle the required action in under five minutes, take care of it right away. Otherwise, file it, trash it, or tuck it in your to-do folder. The same rule applies to emails.

So get organized - not only will you become more efficient, but your brain and your business will thank you!

 

Reliance First Capital specializes in helping customers reach their individual needs with the best loan options. Reliance First Capital can find the loan option to meet your unique lifestyle and financial goals. Learn more by contacting Reliance First Capital today at 866-735-9004 or visit us online at www.reliancefirstcapital.com.

Shouldn't I Use My Local Bank for a Mortgage?

Local banks are great for checking accounts, savings accounts, safe deposit boxes, and other services. But they may be very limited in the mortgage programs they can provide.  Reliance First Capital is a direct lender specializing in home mortgages.  We have the flexibility and access to offer many different loan programs which we can customize to match your financial goals.

In addition, a local bank may have stricter lending guidelines which means they might fit you into a standardized plan rather than tailoring a plan to meet your unique needs. Reliance First Capital's Mortgage Analysts take the time to speak with you and identify your specific needs and then customize a loan program to help you achieve your goals.

In the end, whether you use a local institution or a direct lender like Reliance First Capital, we always suggest you choose a mortgage analyst who makes you feel comfortable, provides you with useful information and options, will work around your schedule, and has access to as many programs as possible to help you achieve your financial goals.

Learn more by contacting us at 866-735-9004 or visiting us online at www.reliancefirstcapital.com

Reliance First Capital’s experts can answer your home finance questions and find options that will help you meet your goals.