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Spencer for Hire :: Home Loan Options: 15-, 20- and 30-Year

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When most people buy a home, they resign themselves to making a mortgage payment each month for the next 30 years. Fortunately, there are alternatives to this common scenario thank to the growing availability of shorter-term home loans. With historically low interest rates, home buyers have more loan options than ever.

One of the fastest ways to build equity in your home is to obtain a 15- or 20-year mortgage. By making larger payments each month, homeowners will pay less interest over the life of the loan and will pay down their principal balance sooner than they would on a 30-year mortgage. In most cases, homebuyers choosing shorter-term mortgages will also find that the interest rates are lower than rates for 30-year mortgages.

For move-up buyers or homeowners who are refinancing, shorter-term loans may make more sense. These buyers and homeowners may be more stable financially and at a point in their lives where they can dedicate more income to a larger mortgage payment, thus allowing them to pay off their mortgage sooner and at a lower total cost than longer-term loans. For first-time home buyers, a traditional 30-year mortgage loan may be the better choice because it offers more flexibility. With a 30-year term, most buyers will be able to qualify for larger mortgages, enabling them to purchase a more expensive home. These buyers may also prefer the lowest possible mortgage payment on their first home.

As with any loan, most lenders encourage prospective buyers to secure the financing before they start shopping for a home. Preapproval saves time for everyone and makes the closing process more efficient—and it can lower costs, since buyers will not have to shell out upfront fees for credit checks and appraisals only to find that they didn’t qualify. By providing more services and information to future home buyers, our Financial Literacy Workshop and Homebuyer Seminar is increasing accessibility to mortgage financing and making it easier for home buyers to find the financing that best suits their personal situation.

I had the pleasure to worship with A.K. Quinn AME Church in Moreno Valley this past Sunday. The pastor, Najuma Smith was dynamic yet humble. You could see the word of God flowing from her being. The congregants were equally magnificent. It was an atmosphere that was relaxing, joyful and felt like home. I encourage you to stop by on any given Sunday and feel the positive energy coming from that dwelling. This growing Church is doing great things in Moreno Valley such as computer classes, tutoring and a writer’s workshop. On Sunday, July 20th A.K. Quinn AME Church will be having a Homebuyer Seminar directly after the Service. This 2 hour event will be catered so be sure to stop by and fellowship with them. Their address and phone number is 25400 Allessandro Blvd, Moreno Valley, CA 92553 and 909-485-1933.

At this event, I will be speaking about the home loan options I covered above as well as mortgage banking and other topics including Home Equity Lines Of Credit, refinancing, reverse mortgages, predatory lending, first time homebuyer education and loan programs. Private council and prequalification will be provided after the event. There are church members who have experience and knowledge in mortgage finance including Joyce Mosley, Eileen Alexander, Clarence Vincent and Bernice Hudson. As a collaborating effort, they will be present and willing to provide their expertise to those in need. A Realtor, Escrow Officer and Title Agent are scheduled to attend the event as well. If you have any question call me at 909-248-4830 ext 228. See you next week.

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