The Mortgage Brothers Show

One of the most common questions I hear from prospective home buyers goes something like this: “I made $40,000 last year and $20,000 of that was commission/bonus income. Can I use that the commission income to qualify for a home loan?”

For many people who work in sales positions, commission-based income is a fact of life. If you’re successful at your job, you can make a good living from commissions, but lending rules sometimes make this income difficult to use in the event that you want to qualify for a mortgage.

Getting a mortgage can be a very trying time for you and your spouse, or even just you if you’re going at it alone. Choosing to co-sign a mortgage can be a very tough decision to make; even a simple Google search will show many mixed opinions on the topic. It’s crucial that you weigh the pros and cons before you make any decision and put your signature on the line.

Sometimes, getting the home or commercial real estate loan you need is challenging. The good news is that if you can’t qualify for a conventional loan, there are other options.

Private money mortgages are an option that not everyone considers. Private money mortgages are sometimes referred to as “Hard Money” loans because they’re tied to a hard/tangible asset, like a home, as collateral. And while it’s true that these loans aren’t for everyone, for the right buyer in the right circumstance, they can be just the ticket to getting the funding you need.

Imagine this scenario: a buyer is in the market for a new home. They’ve found a place that they like, and they have some money in the bank. In fact, they have significant assets in their name and are living comfortably. And yet they come to a lender looking to get qualified for a mortgage, and they are turned down. Why? The key is documentable income. Basically, what that means is income that can be shown on a paystub.

A fixed-rate mortgage doesn’t have to be a confusing concept to grasp. Basically, a fixed-rate mortgage has the interest rate set the moment you take out the loan, and it will not change throughout the duration of you loan. Fixed-rate mortgages are the most common types of loans and are primarily given out in 15 or 30 year periods. The other kind of commonly received loan is an ARM, or adjustable rate mortgage. This type of loan changes with the rising and falling interest rates.

With interest rates at rock bottom, record lows, many homeowners are considering refinancing their mortgages to save cash. But there’s a right way – and a wrong way – to go about refinancing your home for maximum savings.

Most homeowners refinance to lower their monthly payment, avoid balloon payments on Adjustable-Rate Mortgages (ARMs), to get rid of Private Mortgage Insurance (PMI) or to cash out a portion of their home’s equity.

Remember good ole Capital Gains? Now that properties have been flying off the market for nearly 2 years, and home prices are on the rise, many Arizona homeowners might be anxious to sell and get the money out of their homes. Sellers need to be cautious about potential capital gains taxes. Below is a good recap on the Capital Gains rules.

When you are applying for an Arizona home loan, you want to get the lowest rate possible, but you also want to keep as much money in your pocket for those unforeseen circumstances. If you are unfamiliar with mortgage insurance, it is essentially protection for the lender, not the consumer, in case you default on your loan.

Realistically it would seem that it was only a matter of time until the Arizona mortgage delinquency rate dropped. However, it’s important to note that it has dropped below the national average, which is a great sign for the overall health and vitality of the Arizona real estate market.

One would think that the devastation that struck the housing market nationwide only a few short years ago would be long behind us, that you wouldn’t have to worry all that much about a repeat event. However, the reality is that if you have a Phoenix home loan or any kind of Arizona-based mortgage, you need to realize what ultimately led to the collapse and that it could repeat itself again. There are steps you can take to help protect yourself and your investment, so education is the best first step.

If you’re looking to move to Maricopa County in Arizona, or you already live here and want to own your home, you will need to apply for a mortgage. For many prospective homeowners, this process can be daunting, yet filled with excitement. However, if you want to secure a home loan in Arizona and have less than ideal credit, then you’ll be met with a series of challenges.

Securing an Arizona mortgage when you’re self employed can be a frustrating challenge. There was a time when you could use your bank transactions as evidence of your income, but that’s no longer the case. Today, you need to show not only two years’ worth of income on your tax returns, but you also likely have to put down 20% or more and have up to six months’ worth of savings that can cover not only your mortgage payments, but also all of your other bills as well.

Once the housing market took a turn for the worse in 2007 and 2008, it seemed that the days of getting an Arizona mortgage with little to no money down were well behind us. That meant that a vast number of potential homebuyers (those that had qualifying credit and solid employment but not enough resources to afford a large down payment) would be left out of the market, at least for the time being.

During recent weeks, the mortgage interest tax deduction that has been discussed in Washington with regard to saving money, closing loopholes, and avoiding the ‘fiscal cliff’ has created a bit of controversy. While the interest deduction has no bearing on Arizona mortgage rates, it’s a good idea to become familiar with it: what it’s about, how it could save you money, and why losing it can cost you money over time.

We’ve heard for years now the term ‘fiscal cliff’ and while the leaders in Washington battle to steer us away from that edge, a home loan in Arizona, as well as everywhere else, could be directly impacted by the decisions they make in D.C. There hasn’t been a major overhaul of tax codes in this country in decades, but with the economic crisis growing worse each year, it appears that homeowners who have been struggling since 2008 could be in for more rough seas ahead.