Mortgage news, tips and tools – Page 15
The PennyMac Mortgage Blog is where you'll find unbiased, useful info to help save you money, time and peace of mind during the mortgage process. If you have a mortgage or are about to get one, we think you'll find info here you can't always get elsewhere.
When it comes to purchasing a home, many borrowers focus on price, not perfection. So it’s no surprise that home improvement projects—like fixing an outdated bathroom, or adding a fresh coat of paint—are on the rise. In fact, with more people buying older houses these days, the home improvement and repair industry has grown into a booming $326 billion business.
So, you’ve finally found your dream house. Sure, it may need a little work—okay, a lot of work—but you’re confident it will all be worth it in the end. That is until your home renovation project starts to go down the toilet (or worse, the toilet starts falling through the floor).
Like many American homeowners, your first mortgage may have been a loan with the Federal Housing Administration (FHA). Loans backed by the FHA are attractive to first-time homebuyers because FHA loans make it easier to obtain financing, requiring only minimal down payments and fair-to-good credit scores.
Do you know the return on investment (ROI) of your renovation project? Not all renovations automatically make your home more valuable. In fact, some projects may provide very little or no return value at all. It’s important to research and plan ahead before you begin so you can make sure you’re spending your money wisely.
Should you paint your bedroom red or blue? Ask a design psychologist. Since the 1960s, environmental or design psychologists have studied how our physical surroundings affect our well-being, from healthcare to the workplace. While we all respond as individuals, our emotions can be influenced by colors, shapes, textures and more.
When it comes to comparing mortgage lenders, many new homebuyers confuse the annual percentage rate (APR) with the interest rate. In truth, these rates measure two very different things. Understanding the role that each of these numbers play in the total cost of your mortgage isn't only important for personal knowledge, it could save you thousands of dollars over the life of your loan.
During the home buying process, you’re likely to be introduced to a wide variety of mortgage types. While it might seem logical to select a mortgage based upon what your friends or family have chosen, it’s more important to weigh whether or not a mortgage plan fits you and your individual lifestyle.
A conventional loan is a type of mortgage that is not part of a specific government program, such as Federal Housing Administration (FHA), Department of Agriculture (USDA) or the Department of Veterans’ Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with "conforming loans", since they are required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits.
With some mortgage experts projecting rates to remain near historically low numbers, it’s no surprise that refinancing continues to be a popular home loan option. Before you start comparing lenders, however, it’s important to take a 360-degree view of your options.