We are currently assisting a borrower who is purchasing a duplex in northern Indiana that will see significant advantages once the transaction closes. The borrower, who is a single woman, had some credit issues, and had been on the fence about whether to purchase a property, or continue to rent.

The borrower had good income and had money in the bank, but had been a bit sloppy in the handling of her debt over the years. We worked with her to get some collections and account disputes resolved, and her credit score improved considerably. With a pre-approval in hand, she searched for available properties, and ended up reaching out to her landlord about his willingness to sell the duplex that she resided in.

The landlord agreed to sell the property, and she went from paying $750 month in rent, to getting approved for a loan that will enable her to own the building and have a total obligation on the property of less than $775 for principle, interest, taxes and insurance. The other unit in the duplex has a renter that she knows and likes, who pays $750 per month in rent.

As a homeowner, she will have tax advantages of writing off her mortgage interest, property taxes, and certain expenses associated with renting the other unit.

Visit www.firstindianamortgage.com to research available mortgage products, obtain a rate quote, or apply for a loan.

We are currently assisting a borrower who is purchasing a duplex in northern Indiana that will see significant advantages once the transaction closes. The borrower, who is a single woman, had some credit issues, and had been on the fence about whether to purchase a property, or continue to rent. The borrower had good income […]

Despite the turmoil that has affected the housing market over the last few years, there are a few enduring reasons that buying a new home now will continue to be a good investment. Here are a few:

Mortgages are still cheap. Current interest rates for well qualified borrowers in Indiana for a 30-year fixed rate conventional mortgages are about 4.00%. These rates had been declining since December 2014, but are currently facing pressure, especially if inflation starts to increase.

Owning a home provides annual tax incentives. Mortgage interest and property taxes are tax deductible, and most gains on the sale of your primary residence are tax deductible.

Rental housing is hard to come by, especially in good school districts, and is, by comparison, more expensive over time, especially when the tax benefits of home ownership and the accumulation of equity is considered. Rents tend to increase year-to-year, while a fixed rate mortgage payment will remain constant for the life of the loan.

Owning a home gives you the freedom to make it your own. You don’t need approval to paint it, you can make your yard the way that you want, and you have the added comfort of knowing that this is your home.

The real estate market is stabilizing, and home values have been increasing. Historically, homeowners have viewed their homes as long-term investments, and that will always be the case.

First Indiana Mortgage, LLC is a mortgage broker in the state of Indiana. We are dedicated to providing low rates, competent advice, and superior customer service. Visit us at www.firstindianamortgage.com to obtain a rate quote.

Despite the turmoil that has affected the housing market over the last few years, there are a few enduring reasons that buying a new home now will continue to be a good investment. Here are a few: Mortgages are still cheap. Current interest rates for well qualified borrowers in Indiana for a 30-year fixed rate […]

With interest rates rising on fixed rate conventional mortgages, 2017 may be a year to consider whether an Adjustable Rate Mortgage (ARM) is a suitable loan alternative. Fixed rate mortgages are currently at their highest averages in over two years, and the sharp run up in rates since the election has priced many potential home buyers out of the market.

Adjustable Rate Mortgages, when compared to a fixed rate mortgage, offer lower rates and terms that certain homeowners may benefit from. Today’s ARM loans are often referred to as “hybrid loans” because they have an initial fixed-rate term, followed by an adjustable rate period for the remainder of the loan term. The fixed rate term of these loan products generally runs between 5- and 10-years.

Generally, the fixed rate portion of these hybrid loans is running about 0.75% lower than a comparable fixed rate loan. Unlike the ARMs of the past, current ARMs do not have prepayment penalties, and adjust only once per year after the initial fixed-rate period. Rate adjustments are limited by caps that are established at the outset of the loan, which minimize the worst case scenario.

A homeowner’s risk tolerances and personal preferences will help to determine which adjustable rate product is most suitable. If you are just starting your career, don’t have children, and don’t plan on staying in your current residence for more than five years, the 5/1 ARM may be your best choice; while if you intend to stay in your house longer and have less risk tolerance, the 7/1 or 10/1 loans may be best for you. Keep in mind that the longer the fixed rate term runs, the higher the corresponding rate will be.

Visit www.firstindianamortgage.com for additional information, or to obtain a free, no-hassle rate quote.

With interest rates rising on fixed rate conventional mortgages, 2017 may be a year to consider whether an Adjustable Rate Mortgage (ARM) is a suitable loan alternative. Fixed rate mortgages are currently at their highest averages in over two years, and the sharp run up in rates since the election has priced many potential home […]