Blog — James Whitener - Whitener Team

Til’ Debt Do Us Part: How to Get a Mortgage If One Spouse Has A Poor Credit Score

Til' Debt Do Us Part: How to Get a Mortgage If One Spouse Has A Terrible Credit Score A poor credit history is a reality for many people, but it can be particularly daunting when it comes to investing in a house. Fortunately, if you or yours have experienced bad credit doesn’t mean that you should be penalized in the future. If your spouse has struggled with bad credit in the past but you’re both preparing to move forward and invest in a home, here are some tips for getting it together financially.

Face The Music

Many people who have bad credit are too scared to take a look at their credit report and broach it honestly, but it’s important to come to terms with the problem so that it can be fixed. Instead of ignoring it, get a copy of the credit report and review it for any errors so that you can update these if needed and be aware of the issues impacting your credit score. While there may not be any inaccuracies on the report, knowing what you’re dealing with will give you a point to start from.

Make Your Payments

At some point, most people have missed a credit card or bill payment, but the first step involved in improving your finances and your credit is ensuring your spouse is paying their bills on time. While this won’t require paying the complete balance each month, it’s important to pay the minimum balance before the due date, and stick with it! It may seem like a small step, but over time it will improve credit and say a lot to mortgage lenders!

Save Up For Down Payment

20% is the amount that’s often suggested when it comes to a down payment, but if your spouse has terrible credit, it may be worth your while to save up more. It goes without saying that having good credit for both yourself and your spouse is important in getting approved for a mortgage, but by having extra for your down payment and paying your bills on time, you may be successful at convincing lenders you’re a solid bet.

It can be a lot more difficult to get your mortgage approved if your spouse has bad credit, but there are steps you can take to improve your financial outlook and give lenders a better impression. If you’re planning on investing in a home in the near future, contact your trusted mortgage professionals for more information.

April 19, 2022/by whitenerteam_admin

What’s Ahead For Mortgage Rates This Week – April 18, 2022

Financial Reports

What's Ahead For Mortgage Rates This Week - April 18, 2022 Last week’s economic reporting included readings on monthly and year-over-year inflation and the preliminary reading on consumer sentiment from the University of Michigan. Weekly readings on mortgage rates and jobless claims were also released.

Gas Prices Drive High Inflation in March

Consumers felt near-record pain at the pump in March as gas prices continued to rise. Month-to-month inflation increased by 1.20 percent in March as compared to February’s month-to-month inflation rate of 0.80 percent. Analysts expected inflation to rise by 1.10 percent in March. The extent of rapidly rising gasoline prices on inflation is evident when comparing readings for the Consumer Price Index and the Core Consumer Price Index, which excludes food and fuel prices. The month-to-month Core Consumer Price Index reading for March was 0.30 percent; analysts predicted a reading of 0.50 percent growth, which matched February’s reading.

Year-over-year Consumer Price Index readings showed 8.50 percent inflation, which exceeded the expected reading of 8.40 percent, and February’s year-over-year reading of 7.90 percent growth in inflation. The year-over-year core Consumer Price Index rose to 6.50 percent in March and matched analyst expectations based on February’s year-over-year core inflation reading of 6.40 percent.

Mortgage Rates, New Jobless Claim Rise

Freddie Mac reported the average rate for 30-year fixed-rate mortgages rose by 28 basis points to 5.00 percent last week; rates for 15-year fixed-rate mortgages averaged 4.17 percent and were 26 basis points higher on average. Rates for 5/1 adjustable rate mortgages averaged 3.16 percent and averaged 13 basis points higher than in the previous week. Discount points averaged 0.80 percent for 30-year fixed-rate mortgages, and 0.90 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent.

First-time jobless claims rose to 185,000 new claims filed, which surpassed expectations of 172,000 new claims filed and the previous week’s reading of 167,000 new jobless claims filed. 1.48 million ongoing jobless claims were filed as compared to the previous week’s reading of 1.52 continuing jobless claims filed.

The University of Michigan released its Consumer Sentiment Index for April with an index reading of 65.7 as compared to the expected index reading of 64.1 and the March index reading of 59.4.

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders on housing markets, federal government readings on housing starts, and building permits issued. Weekly reporting on mortgage rates and jobless claims will also be released.

April 18, 2022/by whitenerteam_admin

How to Calculate Your True Cost of Living and Determine How Much Mortgage You Can Afford

Home Mortgage Tips

How to Calculate Your True Cost of Living and Determine How Much Mortgage You Can Afford A monthly mortgage can seem like enough of a financial responsibility on its own, but there are many factors involved in home ownership that affect its fiscal feasibility. If you’re in the market for a house and are wondering how your income will stack up against the rest of your expenses, here’s how to determine a home cost that’s reasonable for you.

Determine Your Down Payment

Before you start with anything else, you’ll want to determine the amount of money you can put down so you can estimate your monthly payments. The traditional amount for a down payment is 20% of the home’s purchase price, so if you don’t have anything close to this amount it might be worth waiting a little longer so you can minimize your payments and the amount of interest or mortgage insurance you’ll be paying in the long run. Each person’s situation is different, and there may be programs available with less than 20% down. This is an excellent question to pose to your trusted mortgage advisor.

Calculate Your Monthly Budget

If your mortgage cost already seems high, it will definitely be worth carefully calculating your monthly expenditures. Instead of a wild guess, take the time to sit down and calculate what your costs are including food, utilities, transportation and any other monthly necessities. Once you do this, it’s also very important to add any debt repayments you’re making to the mix. The total amount of your estimated mortgage costs, debt payments and living expenses should give you a pretty good sense of if your mortgage is viable in the long term.

Don’t Forget About The Extras

When it comes to purchasing a home, many people envision that they will be eating and sleeping their new home so don’t pay attention to all of the additional costs that can arise with living life. A new home is certainly an exciting, worthwhile financial venture, but ensure you’re realistic about what it entails. If you’re planning to go back to school or have children in the future, you’ll want to add a little bit of extra cushion in your budget so that you don’t have to put your other dreams on hold for the sake of your ideal home.

It can be very exciting to find a home you feel good about, but it’s important before making an offer to realize the amount of house you can afford so you don’t find yourself in a hole down the road. If you’re currently on the market for a new home, contact your trusted mortgage professional for a personal consultation.

April 15, 2022/by whitenerteam_admin

Taxes And A Cash-Out Refinance: What To Know

Mortgage

Taxes And A Cash-Out Refinance: What To Know If you decide to go through the refinancing process, there are several options available. One of the most popular options is a cash-out refinance. Essentially, you capitalize on the difference between current interest rates and the interest rate on your home loan to keep your payments the same while also drawing equity out of your home in the form of cash. You can use this money to fund your retirement, complete home repairs, or do a renovation project. Even though you can do just about anything you want with this cash, what do you need to know about a cash-out refinance and taxes?

You Do Not Have To Pay Taxes On Your Cash-Out Refinance

You don’t have to pay taxes on the cash stemming from a cash-out refinance. The IRS generally looks at this money as a loan that you will be expected to pay back. Therefore, you don’t have to report it on your taxes. On the other hand, there are other implications you need to know.

The Interest On Your Mortgage Is Tax-Deductible

One of the biggest tax deductions you might claim is the interest on your mortgage. If you want to claim your mortgage interest as a tax deduction, you will need to itemize your deductions on Schedule A. Furthermore, there is a limit to the amount of mortgage interest you can claim on your tax forms. If you have questions about how to handle your mortgage interest on your taxes, you should talk to a tax professional or an attorney who can help you.

Consider Setting Up A Home Office

You might even want to use the money from your cash-out refinance to build a home office. If you are self-employed and working from home, you might be able to deduct the expenses related to your home office. Again, you need to be familiar with the requirements related to your home office if you want to claim this deduction. A tax professional can help you.

Be Aware Of The Implications Of Refinancing And Taxes

These are a few of the most important points you should keep in mind regarding taxes and the refinancing process. Reach out to a tax professional with any questions.

April 13, 2022/by whitenerteam_admin

Understanding Your Debt To Income Ratio: What It Means

Mortgage

Understanding Your Debt To Income Ratio: What It Means If you are looking for a home, you might need to finance it using a lender, such as a bank or a credit union. There are a number of factors that will influence whether your mortgage application is approved. Then, these same factors will play a role in the terms the lender might offer you. One of the most important factors is called the debt to income ratio, or DTI. It is important to understand how this will impact your mortgage application.

What Is A Debt To Income Ratio?

Your DTI is important to the lender because this allows the lender to figure out the likelihood of you paying your mortgage on time. The less debt you have, the more financial stability you have to pay a potential mortgage.

To calculate your debt to income ratio, you need to calculate all the bills you have for the upcoming month. For example, if you have rent and a car payment, you add these numbers together. Then, you divide this number by your gross monthly income. If your rent is $900 and your car payment is $200, your total debt is $1100. Then, if you earn $3300, divide $1100 by $3300. This is about 33 percent.

Student Loan Debt Is A Driving Factor

With many members of the younger generation getting ready to purchase a house, it is important to understand the impact of student loan payments. Because a lot of potential home borrowers have student loans to pay back, their debt-to-income ratios will be significantly higher. This could make it harder for younger borrowers to get qualified for a mortgage, particularly one with favorable terms.

How To Improve Your Mortgage Application

Before you apply for a home loan, you should try to improve your debt to income ratio by paying down your existing bills. For example, if you have credit card debt, this will be included in your debt to income ratio. Try to pay this off before you apply for a mortgage. You should try to pay down your student loans as much as possible before applying for a mortgage as well. The less debt you carry, the more likely your mortgage application will be approved.

April 12, 2022/by whitenerteam_admin

What’s Ahead For Mortgage Rates This Week – April 11, 2022

Financial Reports

What's Ahead For Mortgage Rates This Week - April 11, 2022 Last week’s economic news included remarks given by Federal Reserve Board Governor Lael Brainard and the release of the minutes of the most recent meeting of the Fed’s Federal Open Market Committee. Weekly readings on mortgage rates and jobless claims were also released.

Federal Reserve Leaders Prepared to Address Inflation

Lael Brainard, a Governor of the Federal Reserve Board, addressed the central bank’s concerns over rapidly rising inflation in her remarks made at a financial conference in Minneapolis, Minnesota. “Currently, inflation is much too high and is subject to upside risks. It is of paramount importance to get inflation down” Ms. Brainard concluded. “The Fed is prepared to take further action if inflation indicators and expectations indicate that such action is warranted.”

Ms. Brainard described the Fed’s strategy for controlling inflation as a series of interest rate increases and rapid reductions to the Fed’s balance sheet that may occur as soon as the Federal Open Market Committee meets in May.

Federal Open Market Committee Meeting Minutes Indicate Plan for Slowing Inflation

Minutes of the March meeting of the Fed’s Federal Open Market Committee outlined the Fed’s plans for controlling runaway inflation. The plan is not set in stone yet, but “many” FOMC members were on board with the proposals for reducing the Fed’s portfolio by $95 billion a month after three months and raising the Fed’s key interest rate by 0.25 percent during future FOMC meetings. Committee members originally planned to raise the Fed’s interest rate by 0.50 percent at each meeting but reduced proposed rate hikes to 0.25 percent due to the potential impact of the war in Ukraine.

Mortgage Rates Rise, Jobless Claims Data Mixed

Freddie Mac reported higher mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by five basis points to 4.72 percent; the average rate for 15-year fixed-rate mortgages rose by eight basis points to 3.91 percent. Rates for 5/1 adjustable rate mortgages rose by six basis points and averaged 3.56 percent. Discount points held steady and averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Fewer new jobless claims were filed last week than in the prior week with 166.000 new claims filed as compared to 171,000 initial claims filed in the previous week. Continuing jobless claims inched up with 1.52 million ongoing jobless claims filed as compared to the previous week’s reading of 1.51 million continuing claims filed.

What’s Ahead

This week’s scheduled economic news includes multiple readings on monthly and year-over-year inflation and the University of Michigan’s consumer sentiment index. Weekly readings on mortgage rates and jobless claims will also be published.

April 11, 2022/by whitenerteam_admin

The Latest News