Top 5 Common Mortgage Myths

Getting a mortgage can be a mysterious procedure, specifically if you’ve never done it before. There’s a lot of outdated and incorrect information out there to contend with to make matters worse. Bank Hudson WI and many financial advisors and accountants tell customers to keep their mortgage even during retirement.

Here are some 5 Common Mortgage Myths

1.    You can’t get a mortgage with a bad credit rating

A poor credit score can make it more complicated when applying for a mortgage, but it doesn’t make it impossible. So even if you’ve been told there’s simply no way on earth you’re going to be able to get a mortgage, it could still be viable.

There are loan options for those with less-than-perfect credit scores. However, if you’re looking to enhance your credit regardless, several steps can be taken, such as lessening the amount of debt you owe.

2.    A 20% down payment is needed — no matter what

There is absolutely nothing wrong with a large down payment; that is what works best for some homebuyers. So have no fear if you can justify putting 10-20% down on your home. There are many no- and low-down-payment mortgage options to suit your needs.

3.    You can’t get a mortgage if you’re self-employed

Being self-employed can make getting a mortgage in Hudson more difficult because many mortgage lenders don’t have experience dealing with people with complex incomes. However, there are loads of specialist lenders who will consider your application.

4.    A lower interest rate will mean a cheaper mortgage

Everyone would choose a lower interest rate. But many factors go into your monthly mortgage repayments and how expensive your mortgage is.

For instance, if you are on a tracked mortgage, this could increase at any time, which is why many opt for a fixed-rate mortgage.

5.    The down payment is your only upfront cost

While the down payment is a considerable upfront cost to buying a home, there are other things you must consider. For example, there are also closing costs to consider. These fees account for all the charges required to facilitate the transaction. They often add up to 1% – 2% of the sale price.

Closing costs are generally split between the seller and buyer. However, if you don’t have the necessary funds to pull that off, you can ask the seller to cover closing costs for you. In that type of case, though they would pay the costs upfront, your portion will probably be rolled into your mortgage to be spent over time.

The steps listed above are some common mortgage myths. There are many mortgage experts who are fully qualified with experience in self-employed, bad credit, and complex mortgages in Hudson. In addition, they have a proven track record of getting mortgages for people who’ve been rejected elsewhere.

9 Dos and Don’ts For Avoiding Common Mortgage Mistakes

The mortgage procedure can be confusing, with numerous twists and turns to guide. But it doesn’t require to be rough. It doesn’t matter whether you are just starting to think about purchasing a new home or actively exploring; you have to understand the mortgage in Stillwater.

Dos For Avoiding Common Mortgage Mistakes

❖    Do have your finances in order

Ensure your documentation is complete and accurate to give your loan team everything they need to help you. Paperwork alters based on your mortgage lender but typically contains:

• Loan application
• Debts and assets documentation: bank statements, credit reports, investment accounts.
• Financial proof documents include W2s, tax returns, pay stubs, alimony, and child support documents.

❖    Do respond as fast as possible

Try to be as responsive as potential when working with your loan team. Your team will be better able to keep moving forward and close your loan quickly if you can respond within 24 hours.

❖    Keep your current employment throughout the loan process

If you want to make a job change, wait to move on to your next gig until after your loan has closed. Your work, and the income it brings, play a significant role in the mortgage procedure. Moreover, inform your loan team of any changes to your employment promptly.

❖    Do ask questions

It is possibly the most significant of all! Throughout the procedure, your Mortgage loan originator will do their best to make everything clear. However, do not hesitate to ask your team questions if anything is undefined.

Don’ts for Avoiding Common Mortgage Mistakes

• Don’t wait until you find the best house to apply

When you know you’re ready to start looking, apply for pre-qualification instead of when you’re “finished” searching. You will be better set with the seller and avoid possible heartbreak when you are preapproved for the price/type of the house you are examining for. If you don’t go via the preapproval procedure, you’ll be behind and may miss out on that house you fell in love with.

• Don’t give incomplete photos and documents

Time is at the core of the present housing market. Don’t let incomplete documents slow your loan method down. Ensure everything is in order before sending your documents to your loan inventor. Also, ensure you’re providing your loan inventor with the documents they need to finish the procedure. For instance, photos of documents are generally useless.

• Don’t apply for other forms of credit before or shortly after your loan procedure
  
  

Numerous credit inquiries simultaneously could harm your credit score and also the cost. You’ll save thousands of dollars by avoiding credit card inquiries and double-dipping on your mortgage.

• Ignore marketing calls offering mortgage “deals.”

A sad reality of running your credit score is that it triggers a shower of calls from firms looking to sell you a mortgage or steal your information. Don’t allow these calls to shake you.

The points listed above are some of the essential ones to consider when comparing mortgages. But, finding a lender who meets all these factors may be difficult. So, choose the Mortgage in Stillwater, which is best suited to your needs and the business’s financial health. 

Variables That Affect Your Mortgage Interest Rate

When taking a mortgage in Stillwater or Hudson, it is understandable that you want lower interest rates. But, often, you find it puzzling to figure out how your mortgage rate gets determined. Your bank in Stillwater, MN, and Hudson, WI, already knows it, and so you must know it too. Understanding the variables that affect your mortgage rate helps you prepare better for the home-buying process. In addition, it empowers you to negotiate more favorable mortgage deals with the banks.

Variable That Affects Your Mortgage Interest Rate in Stillwater and Hudson

1) Property Utility

If you are a primary residence of the property given for mortgage in Stillwater and Hudson, banks offer the lowest interest rates. But when it is your second home or some investment assets, the interest rate can soar higher.

2) Property Type

The type of your property also plays a significant role in determining your mortgage interest rates.

• Single-family homes and condominiums

 If you put 25% or more in a down payment or equity for such property, you get lower interest rates from banks.

• Condos, multi-family dwellings, and co-ops

You get higher mortgage interest rates if you put less than a 25% down payment.

3) Credit Score

Your credit score is the key variable that affects your mortgage interest rate with any bank in Stillwater, MN, and Hudson, WI.

If your credit scores are higher (like 800), you will receive better interest rates (at least 1.5% lower) than those with lower scores (below 640).

4) Down Payment

The percentage of down payment you make affects your mortgage interest rate directly. So, make a down payment of 30-40% instead of 20% and get a reduced mortgage interest rate in Stillwater and Hudson.

5) Loan Term

While taking a mortgage, consider keeping the loan term short. If you have a short and fixed loan term, say 15-years, banks will offer lower interest rates than longer-term programs like 30-years.

6) Loan Amount and Type

Mostly, banks offer lower mortgage interest rates for conforming loan amounts below $500 000. The high balance conforming loans might vary from one bank to another in Hudson, WI, and Stillwater, MN, but it always attracts higher interest rates. Similarly, the type of conforming loan (FHA, VA, USDA, and 203K loans) also impacts your interest rates.

7) Piggybacks or Second Mortgages

When you take a loan with a concurrent 2nd mortgage, it will get a higher interest rate than any loan taken with 20% with private mortgage insurance (PMI).

8) Rate Lock Period

You can have mortgage interest rates locked in or guaranteed with time coinciding with the closing date. The rate lock period can be from 30 to 60 days. Remember, the interest rate rises with a longer rate lock period. To get lower interest rates, keep the rate lock period short.

9) No-Cost Refinances

The offer might seem tempting while refinancing your mortgage loan, but banks always charge a higher interest rate for it.

Conclusion

Before taking a loan or mortgage in Stillwater and Hudson, consider these variables that impact the interest rate. Go for reliable banks that do not offer one-size-fits-all interest rates but instead recognize individual financial status to determine it.

When To Buy a House In Twin Cities

Cold temperatures, snow, and bare trees don’t usually make you think about searching for a new home, but maybe it should. In contrast, spring and summer are the busiest time of year and most popular time to buy a home. However, there are several benefits of buying a home during winters:

#1. Less Competition

If you’re frustrated over being in price wars with several other buyers, trust us – you’re not alone. Your frustration can alleviate if there are many buyers in the market, usually in winters. During the winter months (November – February), buyers competing for homes are less as most people are busy enjoying their vacation. This situation can help your odds of finding and purchasing a perfect home for yourself.

#2. Lower Prices

In summers, the estate prices are very high due to the availability of many buyers. However, once the snow falls, the estate prices start decreasing due to the quieter demand. It could help you get the best price from the owner. However, if you’re getting a perfect home on a little over budget, you can always consider a house loan in twin cities

                       

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Top 3 Banks For Loans in Still water MN

Are you planning to get a loan for your small business or to buy a property? If yes, this blog is for you. We will describe the top three banks for loans in Minnesota that offer the best deals.

What are you waiting for? Let’s take a look at the three best banks for small business loans in MN: 

#1. First State Bank and Trust

FSBT bank opened its doors in 1914 for the people of Stillwater. They hold over $2 billion in assets and offer various services, including small business loans, insurances, and investments. First State Bank and Trust is a community that believes in doing more for their customers to achieve more. Want to apply for a mortgage, small business loan, or open a discount? Get in touch with them here!

#2. Central Minnesota Credit Union

Central Minnesota Credit Union bank was built in 1939. Their mission is to improve the lives of their customers by helping them with financial needs. They believe in going the extra mile to help their clients and make things work for them. They offer personal and business services, including personal savings, money market, SBA PPP, SBA relief funds, etc.

#3. Wells Fargo

The bank was established in 1852 and is located at 2000 Northwestern Ave S, Stillwater, MN. This bank is considered the 3rd largest bank in the U.S. in terms of the assets it holds. They offer services in personal, business, and commercial sectors, such as personal loans, business loans, investing & retirement, wealth management, and more. This bank has proven to be a pioneer in bringing banking convenience to its customers.

Choosing a bank to apply for Stillwater loans can be a daunting task. It would be best if you were very careful as it’s a lifetime task. Want to know more about these banks, as mentioned earlier, do let us know in the comment section.

Credit For Your Retirement Plan

Retirement plan credit is a credit that helps qualified retirement savers offset their federal income taxes. The credit for retirement plan can range from 10-50% for eligible savers, with the highest percentage going to taxpayers with the least income.

This credit for retirement plan was introduced as an incentive to encourage retirement savings, under the Economic Growth and Tax Relief Reconciliation Act of 2001. The credit is non-refundable, i.e., the amount you claim for credit can never be more than the amount you owe for a particular year.

Who Can Take the Credit?

You can check with your financial or tax professional to know whether you’re eligible for retirement plan credit or not. In 2020, you may be able to contribute to retirement plan credit if you contribute to SIMPLE, 401(k), 403(b), SARSEP, government 457(b) plan, or traditional or Roth IRA and your MAGI is less than $64,000.

You can claim 10%, 20%, or even 50% of your eligible contributions on your taxes depending on your MAGI, your filing status, and many other factors. The maximum credit amount is $2,000 for single filers, qualifying widowers, heads of household, and married couples who file separately. However, your maximum credit is $4,000 if you’re married and file jointly.

Other requirements to qualify for Minnesota retirement plan credit are:

• You’re 18 years old or above
• You are not a full-time student during the calendar year
• You don’t claim yourself as dependent on another person’s income tax return
• Your income falls within the limits established by the IRS in 2018

6 Important Services Offered By Banks to Their Customers

Banks offer many services to their customers to attract them. These services help banks to get more customers, retain the old ones and more. Here are some of the services that are offered by banks to their customers are:

#1. Deposit – Accepting money from account holders or savers to deposit cash is the primary function of a bank. However, banks can’t use this deposited money in profitable sectors. Most of the people prefer to deposit their money in banks to earn interest on the deposited amount.

#2. Mobile Banking – Mobile banking is a service offered by banks that allows account holders to perform balance checks, making payments, account transactions, and various other banking transactions through a smartphone or Personal Digital Assistant (PDA).

#3. Online banking – Online banking is also known as internet banking is a service offered by banks that allows account holders to access their account data via the internet. This service allows user do repetitive transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests. Moreover, users can use online banking service to apply for credit cards and loans. Account holders can access their accounts anytime, day or night, and from anywhere.

#4. Advancing of Loans – As banks are profit-oriented business organizations, they work on the basis of advancing loan to the public and generating interest in the form of profit. Banks offer different types of loans such as short-term, medium-term and long-term loans, according to the needs of borrowers.

#5. Cheque Payment – Every bank provides chequebooks to every account holder. Account holders can use those cheques to make their payments. Banks pay for cheques after proper formal verification.

#6. Debit cards – A debit card is a plastic card that an individual can use to withdraw money from its account by using ATMs. The money that an individual withdraws directly come from its personal account.  Most debit cards require a Personal Identification Number (PIN) to be used to verify the transaction.

Need to know about the bank services, you can get in your area? Contact Bayport Banks to get complete information.

3 Ways To Invest Your Money In Bayport Banks

If you’re looking for a way to invest your money, saving your money in banks is one of the best options. The various investment options that banks avail are:

• Investors Plus Money Market
• Super Kids Savings
• Health Savings Accounts

You can use financial calculators to know how much amount of money you need to save every month in order to meet your financial goals.

3 Investment Options

#1. Investors Plus Money Market

The more you save, the more you earn. The interest rate increases as your balance grows. You need at least $2,000 to invest in this pan.

Program Details:

• You need $2,000.00 minimum balance in your account to avoid a maintenance charge. If balance falls below minimum, you need to pay $10 monthly maintenance charges. Moreover, the interest rate can returns to the Statement Savings rate.
• You are allowed to do up to six transfers per month by using pre-authorized, automatic, internet banking or telephone transfer methods.
• You can do unlimited transactions if transactions are made in the bank not online. Interest rate may change at any time.
• ATM card is available.

#2. Super Kids Savings

Tell your kids the value of saving at an early age. Kids of age under 18 years can open Super Kids Savings account in the bank. No minimum balance is required to open this saving account.

Program Details:

• Kids can open account at $1 minimum deposit.
• No minimum balance is needed to obtain annual percentage yield.
• Interest rates may vary from time to time.
• You can do a maximum of six transfers per month through preauthorized, automatic, Internet Banking or telephone transfer methods.
• You don’t need to pay any monthly maintenance charges with a $100 minimum balance. If your balance drops below $100, you will be charged with $2 as monthly maintenance.  The monthly service charges are waived if the kid is not older than 18 years.

Health Savings Accounts

A Health Savings Account (HSA) is a tax-exempt account that you can use to qualify medical expenses. Some of the benefits of an HSA are:

• Tax deductions for contributions.
• Tax free distributions.
• Existing HSA owners can transfer funds here.

These are few of the investment options that Bayport banks offer to help you save your money.

What All Benefits You Can Have With Bayport Online Banking?

Online banking is common these days. It allows you to pay all your bills online and keep a record of your transactions online. It makes your financial life much easier to manage. So if you’re planning to apply for online banking, here are some of the benefits that you can have with Bayport Online Banking:

Easy monitoring –   Online banking allows you to keep a track of your bank account anywhere, anytime. Due to a large number of daily transactions in businesses, there are chances that you can miss some unusual activity in your account. With online banking, you can easily access your accounts to review your daily transactions.

Pay your bills online –   You can use online banking to pay your bills. This will eliminate the need to stand in long queues and waiting for your turn. If your bank doesn’t have an option to pay your bills online, you might need to use the third-party organization to pay your bills. Be careful with third-party organizations as they may charge a convenience fee.

If you pay your bills online, make sure to consider these points.

• Pay bills online through your bank or directly through the website of your service provider.
• Watch out for convenience fees associated with online bill pay.
• You can also set up automatic bill payments for bills that do not change.

Quick money transfer between accounts – The third thing you can do with online banking is instant money transfer between accounts. It’s more convenient and easier in comparison to than using the automated phone service. Whenever you set up your online banking, make sure that all of your bank accounts are listed with your online banking account. This will make it easier to transfer money from one account to another. However, your bank may limit the number of transactions depending on your account type.

If you need any help with online banking in the bank Stillwater, do let us know in the comment section here!