Prosperity Home Mortgage, LLC Blog

Blog

The Assumable Mortgage: Taking Over a Seller's Loan

Apr 20

2:23

Category | Prosperity News

When interest rates rise, ask about an Assumable Mortgage.

What is an assumable mortgage?

An assumable mortgage is a loan that a buyer can take over from the seller of a home, often with little or no change in the loan’s terms, including the interest rate. After obtaining a lender’s approval, a qualified buyer agrees to make future payments as if they took out the original loan on the home.

What types of loans are assumable?

All government loans, such as FHA and VA loans
All conventional adjustable rate mortgage (ARM) loans
Some non-conforming ARM loans¹

Advantages of an assumable mortgage:

If the seller’s interest rate is lower than the rate a buyer can obtain based on current market rates or credit history, the buyer may enjoy significant savings.
Fewer closing costs are associated with an assumable mortgage.
Because not all mortgages are assumable, a seller may also benefit by marketing this advantage when competing with other homes on the market.

Considerations of an assumable mortgage:

A buyer will be required to qualify for the terms of the existing loan in order to assume the mortgage.
If the sale price of the home is more than the mortgage amount remaining on the home, a buyer will need to pay for the difference at closing out-of-pocket.
Certain conditions will need to be met based on the existing loan type.

If you have questions about an assumable mortgage, please contact a mortgage consultant near you!

1. Ask your local mortgage consultant to discuss assumable non-conforming loan programs for which you may be eligible.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

The Parts of a Mortgage Payment

Mar 29

12:10

Category | Prosperity News

As interest rates have risen, much attention has been paid to the effect rising rates may have on the housing market. While interest rates do play an important role in your monthly mortgage payment, they are not the only factor to consider.

If you’re planning to purchase a home this year, be sure to understand each of the components that make up a mortgage payment, which can help you determine a monthly payment with which you are comfortable. Here are the parts of a mortgage payment:

Principal: The principal part of your monthly payment pays off the loan amount you initially borrowed to buy your home.

Interest: In return for providing the funds you need to buy a home, lenders charge monthly interest on the principal balance you owe.

Taxes: Property taxes may be collected by your lender on a monthly basis and held in an escrow account to be paid on your behalf as they come due. The good news is: property taxes are usually fully deductible at income tax time. Consult a tax advisor for details.

Homeowners Insurance: Homeowners insurance provides financial protection in the event of losses that are the result of fire, wind, natural disasters or other hazards. Most mortgage lenders require you to have a homeowners insurance policy and may also be collect these funds to hold in an escrow account to pay your insurance company.

Mortgage Insurance: Mortgage insurance protects the lender against financial loss if a customer fails to repay the loan.

FHA-insured loans require a mortgage insurance premium (MIP)
VA loans may require a funding fee
Conventional loans can be insured with private mortgage insurance (PMI)

If mortgage insurance is applicable to your loan, that part of your payment is forwarded to the agency providing the insurance.

If you have questions, our mortgage consultants are always available to help you understand the home loan process! Please also check out our on-line resources such as our mortgage payment calculator or our house hunting checklist!

This table is only to be used as a guide and does not include all loan types or loan features. Not all loan types are available to all borrowers. Borrowers will be subject to qualification and must satisfy all underwriting requirements and conditions. Not all borrowers will qualify. Speak with your mortgage consultant and carefully consider each of your home financing options so you can determine the home loan that is right for you.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

Prosperity Home Mortgage Consultants Recognized by Mortgage Executive Magazine

Mar 16

11:35

Category | Prosperity News

30 Prosperity Home Mortgage Consultants Recognized as Top in the U.S. by Mortgage Executive Magazine

We are pleased to share that Prosperity Home Mortgage, LLC, (Prosperity) has been recognized for its exceptional mortgage originators once again by Mortgage Executive Magazine. In its Spring 2018 edition, the industry publication honored the Top 200 Mortgage Originators in America and the Top 1% of Mortgage Originators in America. 30 members of the Prosperity team were named to these exclusive lists.

“It’s quite an honor to see that so many of our mortgage originators were recognized as some of the top in the country by Mortgage Executive Magazine,” said Tim Wilson, CEO of Prosperity. “I’m proud of not only their hard work and achievements, but that of our entire sales organization. We’re committed to providing personalized and focused service to every client at Prosperity, and it’s because of that ongoing commitment that we remain among the top lenders in the nation.”

Three of Prosperity’s mortgage consultants ranked among the Top 200 Mortgage Originators in America by annual mortgage volume. Jody Eichenblatt, a senior mortgage consultant based in Alexandria, Virginia, was ranked No. 71 on the list. He closed 264 loans for a total volume of $116,257,039 in 2017. Jonathan Okun, a senior mortgage consultant based in Bethesda, Maryland, earned the No. 93 spot on the 2017 list with 208 closed loans and total volume of $103,326,636. Thomas O’Keefe, branch manager of Prosperity’s office in Bethesda, Maryland, was ranked No. 144 with 183 closed loans and a total volume of $89,488,607 in 2017.

Additionally, 30 mortgage consultants with Prosperity have been named to Mortgage Executive Magazine’s list of the Top 1% of Mortgage Originators in America. To be eligible for the list, a loan originator had to personally produce at least $30 million in 2017. According to NMLS Mortgage Industry Report, there were more than 419,900 federally registered mortgage loan originators as of June 30, 2017. Below are the Prosperity members who were recognized:

Derek Alverson, Richmond, Virginia
Jason Adrzejewski, Gainesville, Virginia
Glenn Benson, North Bethesda, Maryland
Carleton Chambers, Ashburn, Virginia
Lynlea Cronin, Clarksville, Maryland
J. Ryan Dailey, Washington, D.C.
Kellian Deuterman, Alexandria, Virginia
Jody Eichenblatt, Alexandria, Virginia
Stephen Fitzpatrick, Raleigh, North Carolina
Christopher Fox, Havertown, Pennsylvania
Michael Graff, Devon, Pennsylvania
Jonathan Haug, Virginia Beach, Virginia
Michael Joseph, Potomac, Maryland
Bradley Katzen, Washington, D.C.
Janice Lanning, Fredericksburg, Virginia
Bryan Lovern, Washington, D.C.
Alex Luboff, Folsom, Pennsylvania
Michael Mento, Avalon, New Jersey
Denee Mueller, Cary, North Carolina
Joseph Nalls, Rockville, Maryland
Alicia O’Brien, Richmond, Virginia
Thomas O’Keefe, Bethesda, Maryland
Jonathan Okun, Bethesda, Maryland
Anthony Pellegrino, Cary, North Carolina
Nicholas Rocco, Columbia, Maryland
Terrence Schenck, Fairfax, VA
Greg Scholl, Washington, D.C.
Brad Stevenson, Williamsburg, Virginia
Michael Storti, Collegeville, Pennsylvania
Sarah Welsh, McLean, Virginia

Congratulations to each of our mortgage consultants on their success!

Home Buying: 5 Steps for Beginners

Feb 28

1:29

Category | Prosperity News

Venturing out to search for your first home is one of the most exciting times of your life! Unfortunately, it is also one of the most daunting. Between a lexicon of new terms and an onslaught of online information, the process of shopping for a home is understandably overwhelming for first-timers. First, take a deep breath. Then follow these steps and you’ll be on the path to finding your first home in no time:

1. Start searching for a real estate professional. You’ll need a well-informed, trusted guide throughout this process so start looking for a real estate agent to work with. Ask friends and family members for recommendations then do your research online to evaluate any individuals and conduct in-person interviews as well. Be sure to speak with at least three agents before choosing someone to work with.

2. Figure out what you can afford. Before you start looking at neighborhoods and homes, determine what you can comfortably afford... the key word being “comfortable.” There are many unexpected expenses that arise when you’re a homeowner, so don’t stretch yourself too thin. Determine how much you can afford for a down payment, then use an online mortgage calculator to see what your monthly payments might be for various-priced homes. Once you’ve arrived at your budget, stick with it.

3. Pick your neighborhoods. Choose your location before you start looking at homes, as where you live will ultimately be more important - both in terms of your day-to-day happiness and your investment - than the home itself. You may have to compromise a bit on location depending on the home you can afford. Your real estate agent can help advise you here.

4. Choose your musts. When thinking about the home you’d like to buy, take an honest look at needs vs. wants. Sure, there are a lot of things we’d love to have in our dream home, but figure out what are the nice-to-haves vs. the must-haves. Use a house hunting checklist to rate the features and condition of homes you view.

5. Search online. Once you’ve got your price range, your neighborhoods, and your must-haves down, start your search online to narrow down your options. Your real estate agent may also know of some homes that fit the bill right off the bat. This will mean fewer homes to visit in person and hopefully, lead to a quicker selection.

Above all, be open minded, flexible and patient in the home-search process. Your opinions and priorities may change as you learn more, and despite the best planning, curve balls happen. The journey will be well worth it, however, once you’re happily settled as a new homeowner.

When you’re ready to discuss your home financing options, contact a local mortgage consultant who can answer any questions you have about the mortgage process.

This list is only to be used as a guide and is not all-inclusive.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

Get Ahead of Rising Mortgage Rates

Feb 13

3:15

Category | Prosperity News

When home buyers begin house hunting, they often find that the home buying journey can be a lengthy process. Finding a place with the right combination of must-haves and nice-to-haves can be complex and time consuming. How much square footage is needed? Should the property be close to parks, shopping, or services? Will the commute to work be acceptable?

These types of questions are important, but they can be overshadowed by the possibility of rising mortgage rates as buyers apply for a home loan. While interest rates should not be the only concern when obtaining home financing, the rate does have an impact on the loan amount for which a buyer can be approved. Quite simply, a lower interest rate can mean more buying power.

When interest rates change, we still want our clients to be able enjoy an exciting path toward homeownership, not one filled with anxiety about rising rates. That’s why current home buyers may be interested to learn about the Prosperity Buyer Advantage: Lock, Shop & Home loan program, which provides an opportunity to counter the worry of rising interest rates.

The Prosperity Buyer Advantage¹ allows buyers to get much of the home financing process out of the way and obtain a Commitment Letter, which can help set their purchase offer apart from other offers a seller may be considering. Participating in the Prosperity Buyer Advantage costs nothing additional and can help prevent last-minute issues with home financing, so buyers can enjoy an on-time loan closing.

What’s more, Lock, Shop & Home allows buyers to lock in an interest rate for up to 90 days at TODAY’S rate instead of waiting to lock in a rate only after they have found a home to purchase. Here are a few highlights:

No property address is needed at the time of application and rate lock.
Lock an interest rate up to 90 days.²
Conforming and high balance loan amounts are available.
May be used with conventional or government fixed rate loan programs.³

Want to learn more about the Prosperity Buyer Advantage: Lock, Shop & Home loan program and see if it's the right fit for you? Contact a mortgage consultant near you!

1. Prosperity Buyer Advantage is not a loan approval. Ask your mortgage consultant for details about Prosperity Buyer Advantage. A Commitment Letter is based on information and documentation provided by you and a review of your credit report. The interest rate and type of mortgage used to approve you for a specified loan amount is subject to change, which may also change the terms of approval. If the interest rate used for credit approval has changed, you may need to re-qualify. Information provided by you is subject to review and all other loan conditions must be met. After you have chosen a home and your offer has been accepted, final loan approval will be contingent upon obtaining an acceptable appraisal and title commitment. Additional documentation may be required.

2. Additional fees may apply.

3. Lock, Shop & Home program is not available for bond, jumbo, or renovation loan programs.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)