Pacific Lending Group Inc. No Comments

5 Things to Know Before Purchasing Your First Home

Buying your first home in South Florida can be a meaningful time in your life. Not everyone reaches the point where they can afford a home, and when you’re finally at that point, you want everything to be perfect. However, a lot goes into buying a home, and you must ensure that you know all aspects before you begin buying one. Here are five things you should know before you start looking at homes to potentially buy:

Your Budget

Before looking at homes in your area or another town, you need to know what budget you can work with. Regarding your budget, it’s not the money you have in your bank account currently but all the money you would be able to invest in your home in the future too.

You might want to think about getting a loan or looking for a home mortgage to go along with your property purchase. You need to think about several aspects before looking at homes. Once you have settled on a budget, you can narrow down your search for homes using that budget as a starting point.

Mortgage Rates in Your Area

South Florida has varying mortgage rates, depending on which mortgage provider you’re approaching. You can find a provider available throughout the area, so you can work with one lender no matter where you’re looking to buy your home.

When you know your mortgage rates, you can plan better and find homes that fit the bill and your budget too. Mortgage rates will also ensure you know how much you will be paying in the future for your home.

Timeline for Possession

Once you are in the process of discussing the purchase of a home, you need to know what the exact timeline would be. Sometimes, the seller will need additional time to move out of the home or might want to rent it from you for a while. In these cases, you must know when you can move in.

From the time you put a down payment on the home, the process of purchasing the property officially starts. Ensure you know when you can move into the property before you start the process.

Land Record and Location

While South Florida is one of the most earthquake-free zones in the world, it doesn’t mean you don’t check the land your home was built on. Wildfires, tropical storms, and hurricanes can happen in the area, and you want to ensure that you know what you will be exposed to.
Once you know the location and the land record, you can also get started on disaster insurance for your property if required.

Hidden Charges

You will need to be reading all documents relating to the purchase of the property in detail to ensure that you’re not paying any hidden fees. You might need to pay estate charges or processing fees that you were unaware of. Ensure you’re reading everything, including the fine print, to save yourself from unnecessary expenses.

Looking to Finance Your Home? We Can Help

When you’re looking for a mortgage to help you buy your first home, Pacific Lending Group can help. You need to know your options as a first-time buyer and what you should be watching out for. Our experts can help you be more financially prepared to buy your first home without any hassles. Contact us at 954-227-4727 to get started on your home mortgage process with us.

Pacific Lending Group Inc. No Comments

Difference Between 15-Year Vs. 30-Year Fixed Loans

When you take out a mortgage, options are to choose between fixed-rate mortgages and adjustable-rate mortgages. Fixed-rate mortgages interest stays the same for the entire life of your loan. In contrast, adjustable-rate mortgages have interest rates that change according to external market conditions.

Virtually all home loans are “fixed rate,” but they can be either short- or long-term loans. If you’re planning to buy a property, refinance your current mortgage, or consolidate debt, knowing the difference between 15-year fixed vs. 30-year fixed loans can help you make an informed decision.

Key differences between these two mortgages:

Length of the Repayment Period

Your monthly repayments will be higher than with a 30-year loan, but you’ll pay less total interest throughout the loan. This means you’ll own your home sooner and can potentially make a much larger payment towards equity, as the interest will build up over a shorter time.
A 15-year loan is often referred to as a “half-a-loan” because you’ll make half the number of payments you would with a 30-year loan.

Interest Rates
The interest rate on a 30-year fixed mortgage is always lower than that on a 15-year fixed mortgage. That’s because a borrower who opts for a 30-year term commits to paying the loan off in half the time so that they can expect a lower interest rate as compensation for the increased risk of such a long-term loan.

The interest rate on a 15-year fixed mortgage, by contrast, is generally higher than that charged on a 30-year fixed mortgage. That’s because the shorter term makes it less risky for lenders, so they are willing to charge a higher interest rate.

Mortgage Insurance
If you take out a 30-year fixed mortgage, your monthly repayments will be lower than an equivalent 15-year fixed mortgage. That means you’ll have more money available each month to pay your property taxes and insurance premiums at the start of your mortgage term, which will significantly reduce the amount of mortgage insurance you’ll need to pay.
However, this comes at a cost: Longer-term mortgages are riskier for lenders, requiring mortgage insurance. Your mortgage payments will include monthly MIP premiums, also called private mortgage insurance or PMI.

Why Bother With 15-Year Fixed vs. 30-Year Fixed?
As you can see, fixing the interest rate on a home loan for longer-term will result in a lower monthly repayment. This can be of major benefit to many borrowers.

One significant advantage is that you can afford a larger home by stretching out the loan term and still keeping your monthly repayments low enough to manage.

The biggest benefit of a 15-year fixed mortgage for many borrowers is that your monthly repayments will be lower than if you took out a 30-year fixed loan.

Banks typically require you to pay higher MIP premiums when you don’t have much to put down as a down payment or if your credit history is marred. A 15-year term allows you to put off paying higher premiums in the short term, even though your monthly premiums will be larger in the long term.

Contact Pacific Lending Group to Make the Right Choice

Pacific Lending Group has an extensive track record delivering competitive interest rates for 15-year and 30-year fixed loans to all credit profiles. Contact us today at 954-227-4727

Pacific Lending Group Inc. No Comments

What You Should Know About Mortgage Refinancing

Buying a home involves various financial obligations, and you may have taken out a mortgage to help pay for your home. However, with fluctuating interest rates and an unstable financial outlook, you might be looking to adjust your current home mortgage with one that is more flexible to your requirements.
Refinance mortgage is an ideal option for many homeowners, whether they’re looking to free up some money or want to shift from an adjustable rate to a fixed rate. Here is what you should know about mortgage refinancing before you get started:

What is Mortgage Refinancing?

Mortgage refinancing is when you get a new home loan to replace the existing mortgage on your property. It may be due to various reasons, like you might be getting a lower interest rate than what you’re paying for your current mortgage, thereby saving money.
While mortgage refinancing can sound complicated, it is quite simple to get started if you’re working with a trustworthy home mortgage company.

When Should You Get One?

Several reasons may prompt you to get mortgage refinancing, and these include:
If you’re getting a lower interest rate on your new home mortgage

If you want to shift from a fixed-rate mortgage to an adjustable-rate mortgage, and vice versa
When you want to shorten the repayment period of your mortgage, or conversely, you are looking for a 30-year mortgage plan to replace your existing 15-year mortgage.

If you’re looking to consolidate your debt or have a sudden financial emergency
Depending on your current financial situation, refinancing may not be the best option for you. It can cost anywhere between 3% to 6% of your loan’s principal amount and has separate application fees.

How to Start

If you’re considering refinancing your home mortgage, you should have a clear reason for doing so. Whether it is to save money or extend your repayment period, you need to be clear. You will need to check your credit score and history to ensure that you can get good rates for your refinancing.
When you don’t have a good credit score but are refinancing to get lower interest rates, it might be worthwhile building your credit score for a few months first. You will also need to determine your existing home equity. When you have more equity on your home, the lender will determine your refinancing is less risky, which can make it more favorable for them.

Working With the Right Experts

Ensuring that you get the best refinancing plan for your home is essential, and you will need to look for a good and experienced mortgage refinancing business in South Florida. It’s best to discuss with your lender the possible options, so you can lock in your rate before it goes up.

Looking for Reliable Mortgage Refinancing? We Can Help

When you’re in South Florida looking for the best mortgage refinancing plan for your needs, Pacific Lending Group is here to help. Our business has maintained an A+ rating from the Better Business Bureau for years, which shows our commitment to our customers and our dedication to serving your needs. Refinancing doesn’t need to be a stressful experience, and we can simplify it for you with the help of our experts. Call us at (954) 227-4727 to schedule an appointment.

mortgage rate lock
Pacific Lending Group Inc. No Comments

Mortgage Rate Lock: When to Lock In a Rate

Mortgage Rate Lock: When to Lock In a Rate. Buying a home can be a stressful process, especially when it’s your first time. When you’re looking for a mortgage to help pay for your home, there are many things to consider. Mortgage rates are constantly shifting, and you need to keep an eye on them to ensure you get the best rate.

When you want to ensure that you’re getting the best rate, you have to lock in a rate before it’s too late. Here is what you should know about mortgage rate locks:

What’s A Mortgage Rate Lock?

A mortgage rate lock is when a lender offers to guarantee the interest rate on your home mortgage for a fixed period. While the lender may ask for a fee for doing so, it can vary depending on the lender you are working with.

The lock period generally starts from the time you begin the process for the loan all the way to the time you end up closing on the loan. Once your interest rate is fixed, it won’t be changed unless you end up changing crucial details on your application form.

When Is The Best Time to Lock In A Rate?

If you’ve already begun the process of looking around for good lenders in South Florida, you might already be at the stage to lock in a lender. When you’ve compared a few mortgage interest rates, contact the lender who offers you the best conditions and interest rates.

Once approved for a home loan, you can lock in a rate with your desired lender. While you can wait and see if the mortgage rate goes down, this can be both a waste of time and money. The rates fluctuate, and trying to predict them can take more effort than it’s worth without conclusive results.

Does It Cost To Get A Rate Lock?

Depending on your lender, you might be charged for a rate lock, or it can be free. Ensure that you ask beforehand so you are not blind-sighted by any unexpected fees. If you end up paying for a rate lock, it can be dependent on the amount of your loan and the prevailing interest rate.
You should be aware that rate locks can last up to 30 days in most cases; if you plan to take longer than that to complete your mortgage process, you should talk to your lender.

Consulting With An Expert

When you’re thinking about locking in a rate, you need to take guidance from a lender on the best way to do so. There are some risks associated with locking in a rate that you might not be aware of, and a reliable lender can help you through the process while making sure you’re aware.

Looking to Lock In Your mortgage rate lock? We’re Here to Help

If you’re shopping around for the best mortgage rates in South Florida, Pacific Lending Group can help. Our years of experience and excellence ensure that you never make a wrong decision regarding your home mortgage. Our mortgage professionals can guide you through the process, so you never have to second-guess yourself. Call us today at 954-227-4727 to schedule an appointment and get started with your home mortgage process.

Pacific Lending Group Inc. No Comments

When Do You Know It’s Right to Refinance Your Home?

Refinancing a home mortgage loan is an important decision that can save you thousands of dollars in interest and reduce your monthly expenses. However, it is a significant undertaking and should only be done when the benefits outweigh the costs.

You’ll pay off your current mortgage and take a new one with refinancing. This is not something you should do lightly because it can lead to missed payments, damaging your credit score.
Let’s find when is the right time to refinance the mortgage on your home:

When You Can Obtain a Lower Interest Rate

The amount of time it will take you to recoup the refinancing costs is heavily dependent on the interest rate, so when you see your rates are trending downward or about to fall, that can indicate that it’s time to refinance.

However, the process of refinancing can be a lengthy one, so you should only consider it when rates are going to go down.

When You Need to Reduce Monthly Payments

Your home is the biggest asset you own. It should come as no surprise that refinancing to a loan with a lower rate and/or better terms will reduce your monthly payment.

When refinancing, you can often get a longer-term or a lower rate, or both. If you are interested in lowering your monthly payment, refinancing can benefit you.

When You Want a Better Mortgage

While refinancing can help you reduce your monthly payment, it may not result in a better deal. If the rates and fees associated with your loan are too high for you, refinancing could provide a better option.

When you take out a refinance loan, the total cost will be higher than your current loan. However, the amount you spend on interest and fees should be smaller, resulting in a lower monthly payment and/or a better loan term.

When You Need to Consolidate Debt

Refinancing can be a great way to consolidate debt. You may want to refinance the mortgage if you have other debts, such as credit card debt or an auto loan.

By consolidating all of your debt into one loan, you will save some money since you won’t be paying any fees for multiple accounts. Low-interest rates can be challenging to find, but refinancing can make it happen.

If you use your home to consolidate your debt, you need to be sure that the loan will help you pay off your other debts faster.

If You Want to Take Out or Receive Cash

While refinancing your home is generally not used to take out cash, it can be something that you use to provide some quick cash for a purchase.

If you go through some of your equity when refinancing, you can get the money you need to cover an emergency or another financial need.

Call Pacific Lending Group for the Right Advice!

If you are ready to refinance your property, you must make the right decision. Pacific Lending Group holds extensive experience in refinancing loans and is happy to help you with your decisions.

Call our specialists at 954-227-4727 or visit us online to learn more.