By Jeff Ostrowski | Bankrate.com As mortgage rates surge and everyone awaits the Federal Reserve’s next move, market watchers are fixated on the …
The Fed on inflation: 3 possible scenarios for mortgage rates
Lots of options for First Time Home buyers. Get ready this winter and early spring for the home buying season – Fannie Mae – Home Ready or Federal Home Loan Bank’s – First Front Door programs are a really good place to start. Check with your mortgage consultant today!
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
via 4 Reasons to Buy A Home This Winter! — Inside My Real Estate Mind
A. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation authority to the Internal Revenue Service.
The term “Opportunity Zone” is a new term in accounting and finance. Yet, it should not be strange to accounting and finance professionals. This term was created when the Tax Cut and Jobs Act was enacted on December 27, 2017 under Trump’s Administration. According to the IRS, this Tax Cut and Job Act was created […]
via King of Tax Shelter in the US: Qualified Opportunity Zone — BnsTech Report
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
If you’re a homeowner, your mailbox is probably piled high with offers to “get the cash you need fast” with a home equity line or loan. It’s easy to understand why; with attractive rates, borrowing flexibility, and tax benefits, home equity borrowing can truly be a smart way to get the affordable money you need to finance life’s expenses.
Yet, even with all those benefits, home equity borrowing may not be the right decision for everyone. The housing recession several years ago was proof of that, as homeowners took out home equity loans only to see the values of their home decline, leaving them underwater and drowning in debt.
If, however, you have equity in your home and you use it wisely, you might be able to use a home equity line or loan to strengthen your financial situation. Here are four smart ways to do this:
Home renovations. The wisest use of home equity credit for home improvements involves renovations that add to the value of your home, such as a kitchen remodel or the addition of a bathroom. It’s important to note, however, that there’s a limit to the value they add, so you want to be conservative in your remodeling efforts. Home improvements that are cosmetic only, such as landscaping or adding a swimming pool, may not increase your home’s value.
Debt consolidation. Are you carrying extra debt, such as high-interest credit card debt? Consider consolidating your balances with a home equity line or loan, which might allow you to lower your monthly payments and the interest you’ll pay over the life of your debt. If you do this, be careful not to run up new debt with your credit cards. Otherwise, you could worsen your financial situation and end up putting your home at risk.
Emergency expenses. Life is unpredictable and there may be times when you get hit with unexpected expenses, such as medical bills or costly car repairs. In these situations, having a home equity line of credit can be a smart and more affordable way to handle these expenses.
College financing. With the lower interest rates and potential tax savings, home equity borrowing may also be a more affordable alternative to parent and student loans for financing your child’s education. Keep in mind, however, that you shouldn’t tap the equity in your home for your child’s education if it will put you at greater financial risk later on in life.
Depending on the situation, there may be other smart uses of home equity, such as starting a business or investing in a second home or property. The important thing to remember about home equity is that you should always use it wisely, and not for frivolous purchases of things you don’t really need or can’t afford. Otherwise, your debt could pile up faster than those offers in your mailbox!
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
Spring isn’t just the start of baseball season; it’s also the beginning of another big season – the spring home buying season. And just like baseball, the home buying season can be highly competitive, as multiple buyers often compete for the same home.
What can you do to put yourself in better position to get the home you want – and get a leg up on your competition? Here are seven smart moves you can make:
By taking these simple steps, you just might gain a negotiating advantage and score that perfect house.
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
With spring just around the corner and summer not far behind, many people are focused on getting into shape. While it’s always important to focus on our physical health, it’s equally important to focus on our financial health. And now is the perfect time for those carrying “extra weight” from debt to shape up.
It’s estimated that in 2015, the average amount of credit card debt in America was more than $16,000 per household. And, according to data from the Federal Reserve, total credit card debt in America as of August 2015 was $918.5 billion.
A smart way to shed added interest
So if you’re carrying the weight of extra debt, what can you do? If you’re a homeowner, you might consider one possible solution – a home equity loan or line. With competitive rates, potential tax savings (be sure to consult your tax advisor), and the flexibility to borrow money for any purpose, a home equity line or loan can be a great way to consolidate credit card and other high-interest debt.
Keep in mind, however, that if you decide to consolidate credit card debt with a home equity loan or line, you’ll be securing that debt with a second mortgage on your home, so be sure to make all your payments in a timely manner.
Put your debt situation to the test
Before you make any decisions on home equity debt consolidation, you should analyze your current debt situation to see how much you’re paying in interest. You’ll want to consider the following questions:
Do you have enough equity in your home?
How much will you save on interest?
Will consolidating debt improve your cash flow? Or help you pay off the debt more quickly?
Will you be disciplined enough not to run up your credit card balances again if you pay them off?
We can help you determine if home equity borrowing is a smart way for you to trim down your excess debt. As for the other “weight” you may be carrying, the forecast calls for beautiful running and cycling weather in the weeks ahead!
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
It’s that time of year again; the time to think about the goals you’d like to accomplish over the next 12 months. If one of those goals is owning a home, there are some important steps you can take to put yourself in the best position to get the mortgage you’ll need to make it happen:
So, as you can see, putting yourself in a better position to obtain a mortgage isn’t rocket science. However, if you follow these steps, you can get the best rate and be over the moon in 2016.
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
It happens the moment you decide to become a homeowner; you’re flooded with a series of questions and decisions. What type of home are you looking for? Where do you want to live? What mortgage term should you choose? Unfortunately, the questions don’t cease once you become an actual homeowner.
That’s also true when you make the decision to borrow from the equity in your home and apply for home equity credit. From the start, you’ll be asked to make one very important decision:
Do you want a home equity line of credit or a home equity loan?
Know your home equity options.
Before you decide, it’s important to understand the difference. A home equity line is actually a revolving line of credit that works very much like a credit card. You borrow what you need over time and only pay interest on the money you use. As you repay the money you owe, it becomes available to you again. The important thing to remember is that the interest rate you’re charged is variable, so the amount you owe can change each month.
A home equity loan is different in that you’ll receive the funds in a lump sum. Another key difference is that the interest rate on a home equity loan is set for a fixed term. You’ll pay the same amount each month for the entire term of the loan, making budgeting easier.
Finding the right home equity solution for you.
Which choice is best? The answer, of course, depends on you. Or more specifically, the reason you need to borrow. If you need to borrow to make a one-time purchase – to consolidate debt or purchase a car– a home equity loan could be a better choice. If you want the flexibility to borrow over time to pay for ongoing expenses, such as college tuition bills, you could choose a home equity line.
Choose your lender carefully.
Home equity rates vary by lender, so be sure to shop for competitive rates. At DNB First, we’re currently offering special low rates on both lines and loans, but they’re only available for a limited time. To learn more, visit our website or stop by your nearest branch for a consultation with your banker, who can help you make you the right choice.
by Vince Liuzzi
Executive Vice President and Chief Banking Officer, DNB First
To buy a home or not to buy a home? That is the question. 
If you choose the former, your real estate professional will instantly hit you with a barrage of pressing questions:
Which city or town?
How many bedrooms?
Will you buy or build?
House or condo?
How much can you afford?
Once you find your new home, you’ll be faced with more difficult decisions including one of the most important ones:
What kind of mortgage do you need?
To answer that, you’ll want to pose questions of your own to your mortgage lender:
What type of loans do they offer? For example, if this is your first home, you may want to know if they offer first-time home buyer programs or affordable mortgage programs that offer more flexibility with credit and down payment requirements. Also, find out what terms they offer on both fixed- and adjustable-rate mortgages.
What are their rates? The lender must be able to tell you the annual percentage rate (APR) on a particular mortgage, which will reflect the interest rate, points, and fees they charge.
How much must you put down on the home? Most lenders require a down payment of anywhere from 3% to 5%. Keep in mind, however, that if you put less than 20% down, you may be required to pay private mortgage insurance (PMI), which increases the amount of your monthly payment.
What are the qualifying guidelines? In order to ensure you qualify for a loan, you should know the income, employment, credit, and other guidelines the lender requires. Keep in mind that some programs and lenders offer more flexible underwriting requirements. You should also ask the lender what documentation they require as part of the application process.
Will there be a prepayment penalty? In order to reduce the amount you owe on your mortgage, you may want to pay more than is required each month. You should check with your lender beforehand to ensure they don’t charge penalties for prepayment.
Here to help.
At DNB First, our knowledgeable mortgage loan officers can answer all your inquiries and help you find the perfect home. No question.
by Vince Liuzzi
Executive Vice President and Chief Banking Officer
DNB First
It’s “the one.”
You knew it the very second you saw it, and that you had to have it.
It’s everything you wanted and so much more.
It’s your perfect home.
You excitedly make your offer to purchase it, only to discover that there’s one problem standing between you and its welcoming front door – others want it, too.
Unfortunately, this is an all-too-common scenario for prospective home buyers shopping in today’s competitive real estate market. They come across the home they desire in the perfect location and find themselves competing with other buyers.
There’s one simple step you can take to put yourself in a better position to win any home buying competitions you may face – get pre-approved for a mortgage before you start shopping for a home.
One of the smartest moves you can make.
With a mortgage pre-approval, a lender evaluates and reviews your credit and financials to determine if you can actually qualify for a mortgage and the amount you can borrow. A pre-approval differs from a mortgage pre-qualification in that the lender actually verifies your financials, whereas a pre-qualification is simply a calculation based on the numbers you provide.
A mortgage pre-approval offers a very important benefit: it tells a seller that you can afford to buy their home, giving you a powerful negotiating edge. Pre-approvals also allow you to –
What you’ll need.
Qualifications vary by lender, but in general, you’ll need to provide the following financial information to get pre-approved for a mortgage:
Free pre-approvals under our roof.
As an experienced mortgage lender, DNB First provides free pre-approvals as well as expert guidance every step of the way in the home buying process. Talk to us today; it just might get you in the door to that perfect home.
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