Eugene Mortgage News

We can answer your questions on How seller concessions can and will help with your home loan purchase.  Give us a call at 541-683-3300.  

  • Sellers can pay your closing costs up to a certain percentage of the purchase price, which include:
    • Appraisal Inspection
    • Inspection fees
    • Title and Escrow fees
    • Property taxes
    • Homeowner’s Insurance
    • Points towards buying down your interest rate 
  • With the seller paying all or a portion of your closing costs, this allows you to keep money in your savings or put in a higher down payment.
  • The seller cannot contribute to your down payment.

 

Stepping Stone Mortgage, Inc. is a qualified mortgage lender with all loan officers and processing staff trained to handle your questions. Our dedicated staff will help you through the loan process in a very efficient manner for you to purchase or refinance your home.

Posted by Mike Herborn on November 28th, 2023 1:53 PM

Ever wonder how much home you can afford? Before you start searching home listings, give us a call at 541-683-3300.  We can run the numbers and help you identify a budget you can live with!

  • We will explain closing costs and what you can afford
  • We will answer your questions on home buying and what programs will fit your needs: USDA 100% financing, FHA, VA 100% financing, and Conventional
  • We can go over any questions in regard to your credit rating

 

Stepping Stone Mortgage, Inc. is a qualified mortgage lender with all loan officers and processing staff trained to handle your questions. Our dedicated staff will help you through the loan process in a very efficient manner for you to purchase or refinance your home.

Posted in:MortgagePosted in:home loans and tagged: mortgagehome loansrenting
Posted by Mike Herborn on August 15th, 2023 12:54 PM

We can give our clients extra flexibility with a lower monthly payment by offering a Temporary Rate Buydown to lower their interest rate at the start of their loan. It’s a great option for our clients who expect an increase in their income in the next few years or who have excess seller concessions to use — and want to take advantage of a low fixed rate.

Seller-paid 1- and 2-year buydown options

  • 2-1 buydown of 2% in the first year and 1% in the second year. By the third year, they are at the full rate.
  • 1-0 buydown of 1% in the first year. By the second year, they are at the full rate.
  • See an example of the potential savings on a 2-1 temporary buydown:
  • Our clients must qualify for the full monthly payment (before the buydown rate is applied)
  • Seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower’s monthly payments.

We have other suggestions as well.  Please contact Stepping Stone Mortgage at 541-683-3300 with any questions you may have about mortgage home loans.

Posted by Mike Herborn on March 8th, 2023 1:16 PM

Many new home-buyers make the mistake of rushing out to buy things to fill their home as soon as the seller says "yes" and the loan is approved. There are still a few major hurdles to jump before closing. Here is a list of things to avoid when buying a home:


 

  1. Don’t buy luxury items

    Fight the urge to go out and buy your new home furniture, electronics, or appliances. Opening new credit could put your credit worthiness at risk when you will need it the most. Using cash to buy things can also be a bad idea because most lenders look at your cash reserve when approving you for a loan.

  2. Don’t go searching for a new job

    Lenders will want to see a consistent job history on your application. Getting a new job before you apply for a mortgage may not jeopardize your approval. But in some cases, changing jobs during the mortgage approval process could raise concern and delay your application.

  3. Don’t move money around or change banks

    Most lenders will have you submit recent bank statements for accounts in your name: savings, checking, money market, and other assets. Your lender needs to see a consistent rise and fall of your funds each month. Even for innocent reasons, transferring money or switching banks may make it more difficult for your lending institution to document your account history.

  4. Don’t spend your savings

    Avoid spending the money you have set aside for closing costs. Keep these funds untouched in your savings until closing time.

  5. Don’t give Earnest money directly to seller

    Your Earnest money deposit does not belong to the seller: it remains yours until closing. The Earnest money is to be applied to your down payment and expenses upon closing. It's wise to put the funds into a trust account with the Title and Escrow Company or your Real Estate Company’s trust account.

  6. If you are currently renting before you purchase your new home 

Do not give 30-day notice until the inspections have been completed and you have negotiated any repairs that you want to have done. You also want to make sure that the appraisal has been completed and it made the value that you are paying. 

Posted by Mike Herborn on February 14th, 2023 12:54 PM
The Covid-19 Coronavirus has led to some challenging times for all of us. 
 
The Government has created the CARES Act to assist homeowners whose income may have been adversely impacted by the coronavirus.  One of the components of the CARES Act is the possibility of mortgage forbearance.
 
Forbearance is often misinterpreted.  Many people are mistakenly thinking that forbearance equals forgiveness.  It does not.  This is truly intended as temporary relief for those who need it most. 
 
Forbearance means that the payments will be suspended for a short period of time, initially up to 6 months, but will need to be caught up when the forbearance period is over. Think about when you buy something at a furniture store that offers “no payments” for 3 months.  You still must pay for the furniture…the payments are just deferred. 
 
There is absolutely no financial benefit by exercising forbearance
, as you will either have to pay a lump sum, modify your loan, or owe the balance when you refinance or sell your home. 

If you really need to exercise forbearance, you cannot just decide to stop making payments.  You must notify your Mortgage Servicer and agree to the forbearance terms.  
 
Depending on your situation, I may be able to help by eliminating your debts, lowering your payment, and giving you a cash cushion during these turbulent times.   
Contact us to see how we can help at 541-683-3300.
Posted by Mike Herborn on April 3rd, 2020 10:55 AM

Whether you are refinancing, buying or selling, you will want to make you home picture perfect for the appraiser and Lender.  The house is clean and bright without clutter throughout and outside looks parklike.  Picture perfect!  The appraiser is taking pictures to show the lender what your house is about.  You want to make sure your amenities look its best!

Make sure that you give yourself enough time to get your items fixed on your to do list. 

  • The appraiser will look at Improvements to kitchens and baths, windows, the roof and the home’s systems (heating, electrical and plumbing) over the previous 15 years that make the home more up-to-date, functional and livable by today’s standards.  Exterior amenities such as patios, RV parking, garden area.

  • Repair what you can.  Broken windows, holes in walls, open electrical wires, all have to be fixed. Make sure that your water heater is strapped and that you have smoke and carbon monoxide detectors throughout.

  • Freshen up Paint that might be peeling or faded. 

  • Any pets should be contained and smells masked. You don't want the appraiser to be rushed to get out. 

Get your home ready for the Appraiser!

  • The home is clean throughout and the lights are on for it to be nice and bright.

  • The lawn is mowed and yard is clean of clutter. 

Coming up with value.  The appraiser will look at similar comparables that have sold within the last 6 months within a ¼ of mile from your home.

Posted by Mike Herborn on February 14th, 2019 11:09 AM

What is Refinancing?
Refinancing is the process of replacing and paying off a current mortgage with a new mortgage. Refinancing is typically done if it offers a better interest rate and term to save the borrowers some money.  The original mortgage will be paid off, allowing for the new mortgage to be created. If you have a loan that has a high interest rate or making your payments has been tougher than you expected, you may consider refinancing. Below we have listed some of the pros and cons of refinancing your mortgage: 

Pros 

1. Save money: A typical reason to refinance your mortgage is to get a new loan with a lower interest rate than your current interest rate. In the long run, a lower interest rate could end up saving you a significant amount of money. 

2. Lower monthly payments: Usually when you refinance into a mortgage with a lower interest rate, you can end up having lower monthly payments. This leaves you with more money accessible for other monthly obligations. 

3. Shorten the term of the loan: You may refinance to shorten the term of your loan. For instance, if you have a 30-year loan you might refinance into a 15-year loan to get rid of your debt faster. 

4. Change the type of loan: You may refinance to change the type of your loan. If you currently have a variable-rate loan and want a set monthly payment for the life of the loan, you might consider refinancing into a fixed rate loan. 

Cons 

1. Transaction cost: Like any home loan, refinancing will still have closing costs. It is important to consider this and make sure refinancing will benefit you and end up saving you money. 

2. Debt: It is important to realize that your loan balance will not change if you refinance. You may have lower monthly payments and a lower interest rate on your new loan but you still have debt.  

As always, you should converse with your mortgage consultant about whether or not refinancing will benefit you and your needs. If you have any questions or need to make an appointment to talk about whether or not you should refinance, call 541-683-3300! We are always happy to help. 

Posted in:Mortgage
Posted by Mike Herborn on February 23rd, 2018 1:56 PM

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Stepping Stone Mortgage

NMLS-235749 ML-3770

1140 Willagillespie Rd., Suite 13
Eugene, OR 97401