Avenue Mortgage, LLC

NMLS #1115220

  • Home
  • About
    • About Kay
    • Accessibility Statement
    • Complaint/Recovery Fund Notice
  • Blog
  • Our Resources
    • First Time Seller Tips
    • First Time Buyer Tips
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
    • What to Expect at a Loan Closing: A Step-by-Step Guide
  • Our Reviews
  • Contact Us

3 Mortgage Mistakes That Could Be Costing You Money

July 13, 2016 by Kay Monigold

3 Mortgage Mistakes That Could Be Costing You MoneyPurchasing a home can be one of the most exciting and stabilizing investments of your life, but because of the expense, there are many ways you may be spending more money than you should. If you’re wondering about the financial soundness of your home investment, here are some things to consider before putting anything down.

Investing In Too Much Home

Many homebuyers are so gung-ho about having their own home that they forget a mortgage takes many years to pay off and there’s a lot of living to do in the interim. While you may be looking at the monthly cost of your mortgage as something to get through, it’s more important to find a home that will provide you with a more flexible lifestyle. Instead of spending half your income on your home, it’s better to choose a more affordable option that won’t lead to buyer’s remorse.

Putting Less Than 20% Down

One of the greatest struggles for those who want to make the leap into home ownership is the down payment, and many buyers will put down a lot less than 20%. While this might seem like a better deal in the short term, putting 5 or 10% down means you’ll have to pay for mortgage insurance in case you default on your payments. It can be hard to come up with 20% for many buyers, but putting this amount down means you don’t have to pay for added insurance.

Not Asking The Right Questions

A house is likely your most valuable asset, so it’s a good idea to know as much as possible about your mortgage before you rush toward closing day. Starting with asking which mortgage option is best for you. Your mortgage lender will be able to answer this question once you’ve completed an application and the lender takes stock of your employment, income, assets, credit, debt, expenses, down payment and other information about your finances. Research the major questions you should ask your mortgage lender before signing up for a loan.

It can be overwhelming to buy a home with all of the information and energy that goes into finding the right place and the right price. However, by being realistic about what you can afford and searching for the best loan for you, you’re well on your way to a sound purchase. If you’re currently on the market for a mortgage, contact your trusted mortgage specialists for more information.

Filed Under: Home Mortgage Tips Tagged With: Down Payments, Home Mortgage Tips, Mortgage

Buying a New Home? Learn How the ‘Conforming Loan Limit’ Might Affect Your Purchase

February 24, 2016 by Kay Monigold

Buying a New Home? Learn How the 'Conforming Loan Limit' Might Affect Your PurchaseFrom mortgage to equity to debt-to-income ratio, there are many terms associated with home ownership that can be quite confusing if you’ve never been on the market for a home before. ‘Conforming loan limit’ may be a less familiar real estate term than the rest, but here are some things you’ll need to know about it and what it could mean for your biggest investment.

What Is The ‘Conforming Loan Limit’?

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are legally required to provide loans for balances below a specific amount, and this amount is what is known as the ‘conforming loan limit’. While the loan amount is determined by credit history and income amount, these conforming loans that are less than the specific amount are considered lower risk. If a loan amount is above the conforming loan limit, it is known as a jumbo loan and usually comes with higher rates.

How The ‘Conforming Loan Limit’ Is Determined

The Federal Home Financing Agency determines any adjustments made to conforming loan limits and the decided-upon amount is based on the home prices from October to October for the previous year. This amount is released annually in November and is enforced the following January. While this limit was continued at $417,000 through 2016, the amount for regions like Alaska, Guam, Hawaii and the United States Virgin Islands is significantly higher than the standard amount due to the cost of housing.

Going Above The ‘Limit’ And Combination Loans

While jumbo loans carry more risk, there are ways to avoid going above the conforming loan limit. There is the option of acquiring a conforming loan for $417,000, the amount established for 2016, and then utilizing a second mortgage for the remaining amount that will ensure you do not have to take out a jumbo loan; however, the rates for a second loan will likely be higher. In the event that you would like to avoid jumbo loans or a combination loan, you may want to consider putting more money down on your initial down payment.

The conforming loan limit changes each year, but it may have a significant impact on your home purchase if it falls below a certain amount. If you are curious about real estate terms because you’re considering a home purchase in the near future, you may want to contact one of our local real estate professionals for more information.

Filed Under: Home Buyer Tips Tagged With: Buying a Home, Down Payments, Home Buyer Tips

« Previous Page
Next Page »

Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Ron MartinRon Martin
Residential Mortgage Loan Originator

NMLS#316821

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

GET A RATE QUOTE →

Connect with Us!

Browse Articles by Category

Accessibility Statement

We are committed to ensuring that its website is accessible to people with disabilities. All the pages on our website will meet W3C WAI’s Web Content Accessibility Guidelines 2.0, Level A conformance. Website Accessibility Policy

Equal Housing Lender


100 Independence Place, Ste. 308
Tyler, TX 75703
nmlsconsumeraccess.org

Quick Links

  • About
    • About Us
    • Texas Complaint/Recovery Fund Notice
  • Get a Rate Quote
  • Resources
    • Loan Process
  • Contact Us

Copyright © 2025 · Powered by MySMARTblog

Copyright © 2025 · Genesis Sample Theme on Genesis Framework · WordPress · Log in