July 12

AZ Jumbo Loans | Jumbo Mortgage Loans Utah | Sun American

Explore the possibilities of a jumbo loan by compl [...]

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Can you say “LUXURY!” Are you ready to upgrade and finally get into the home of your dreams? Or maybe you’ve outgrown your current single family residence and now it’s time to build or find an existing luxury home you’ve always wanted.

READY FOR A JUMBO LOAN?

Can you say “LUXURY!” Are you ready to upgrade and finally get into the home of your dreams? Or maybe you’ve outgrown your current single family residence and now it’s time to build or find an existing luxury home you’ve always wanted. Regardless of your situation, Jumbo loans are designed for higher priced mortgage loans…and we know Jumbo! Let’s get started!

A Jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. The limit is $417,000 in most parts of the United States, but is $625,500 in the highest-cost areas and in-between in others.

Generally the qualifying factors are the same as a conventional loan. However, the down payment and credit worthiness requirements are less flexible, as the risk is greater with larger loan amounts. 

Key Jumbo Loan Points

What is a Jumbo Loan?

A Jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders.

How are Jumbo Loans Different?

A Jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. The limit is $417,000 in most parts of the United States, but is $625,000 in the highest-cost areas and in-between in others.

the good stuff about jumbo loans!

Allows you to purchase a higher priced home. You can tell your friends you have a jumbo loan. You don't have to take out two or more loans, it's a one loan mortgage. You can choose from a fixed or AR. You'll now have room for the Mother in law (yay!)

I have a strong passion to help people realize the value of homeownership through a purchase or refinance. Let’s connect today and see what’s possible! ????

You Won't Believe
the Possibilities

Discover your home owning possibilities today by getting connected with us today!

The general rule of thumb is that a loan is jumbo if it is over $484,350 for single family home. More specifically, however, a loan is jumbo if it is above the limit backed by Fannie Mae and Freddie Mac in your geographic area.

With these large loan amounts, qualifying standards can be a bit more stringent, usually higher credit scores and down payments are required. But we are here to come up with creative financing options to help you get your dream home!

Possibilities realized

You’ve worked hard, scrimped, and saved. You deserve to buy your dream home.  A jumbo loan can make that happen.

Homes made possible

Fill in your details and I’ll get you a free mortgage payment quote!

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July 12

Arizona FHA Loans | Affordable Mortgage Loans Utah | Sun American

FHA loans can help you get a house with only 3.5% [...]

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 FHA is the largest insurer of residential mortgages in the world. The FHA loan 

allows buyers to purchase as little as 3.5% down.

LET’S GO FHA!

If you don’t think you can get financing because of your credit, or you just don’t have a lot money to put down…think again!  The Federal Housing Administration (FHA) insures mortgages that fit these types of scenarios, so that Sun American Mortgage can offer you an FHA loan that will meet your needs. With flexible qualification guidelines, these FHA loans are particularly designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down. So let’s get started with an FHA loan!

An FHA loan is a home loan that is insured by the FHA. In other words, there’s a guarantee that if you fail to repay the mortgage, FHA insures the lender that a portion of that debt will be paid. This is the reason you are required to pay a Mortgage Insurance Premium (MIP) in your loan. 

Disclosure: This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).

Key FHA Loan Points

What is an FHA Loan?

If you don't think you can get financing because of your credit, or you just don't have a lot of money to put down...think again! The Federal Housing Administration (FHA) insures mortgages that fit these types of scenarios so that we can offer you an FHA loan that will meet your needs. With flexible qualification guidelines, these loans are particularly designed to benefit first-time homebuyers and buyers who don't have perfect credit or a lot of money to put down.

Is an FHA Loan right for me?

An FHA loan is a home loan that is insured by the FHA. In other words, there's a guarantee that if you fail to repay the mortgage, FHA insures the lender that a portion of that debt will be paid. This is the reason you are required to pay a Mortgage Insurance Premium in your loan.

Benefits of an FHA Loan

Low down payment as low as 3.5%. Gifts and seller contributions allowed. Easier qualifying guidelines. The FHA loan is assumable, meaning someone can take over the loan for you.

Not many mortgage professionals are CPA’s. I bring that extra level of financial expertise to each transaction to ensure you and your family is making the best decision to meet your goals. ????

You Won't Believe
the Possibilities

Discover your home owning possibilities today by getting connected with us today!

An FHA loan is excellent for someone who has less money to put down, and someone who has higher debt-to-income ratios, or someone whose credit is less than perfect.

FHA is the largest insurer of residential mortgages in the world. The FHA loan allows buyers to purchase as little as 3.5% down. 

With flexible qualification guidelines, these FHA loans are particularly designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down.

Homes made possible

Fill in your details and I’ll get you a free mortgage payment quote!

We’d love to hear from you!

DISCOVER WHAT'S POSSIBLE!

Fill in the form below and let’s connect to discuss what’s possible for you!

July 12

Best Mortgage Lenders in AZ & Utah | Refinancing Experts | Testimonials

Read reviews from home buyers about our mortgage s [...]

in changing lives for the better.

Average Rating 4.9/5

Very helpful and knowledgeable along each step in the process. Derek Hargrove specifically was great to work with. This is the 2nd time I’ve used Sun American and would recommend them to everyone!
Rex at Sun American was fantastic and went way above the normal service to help with a very complex deal. I can't say enough about the entire team that helped me. This was the best experience I have ever had.
Jon DesJardins is the man! Smooth process and every question I had was answered in minutes if not seconds.
Excellent customer service! I recommend Sun American Mortgage to anybody from first home buyers to experienced home homebuyers!
Craig Schnyder was our loan officer when we first bought our home and again to refinance. Always a pleasure working with him. He makes the process so easy! Honest, reliable and quick to respond to any questions we had. Thank you again Craig! ~Valerie & Jorge Arenas
Sun American Mortgage made my home buying process easy and fast. Derek and his team walked me through the entire process and explained everything in detail. I also work alot so the worked around my schedule to make sure documents were completed in a timely manner. I highly recomend Sun Armerican to anyone looking to purchase a home, they went...

Fill in your details and I’ll get you a free mortgage payment quote!

Read the terms and conditions HERE.

We’d love to hear from you!

Read the terms and conditions HERE.

July 12

Refinance Mortgage Calculator | Sun American Mortgage Company

Our Refinance Mortgage Calculator allows you to qu [...]

The Best Refinance Mortgage Calculator!

Discover your saving possibilities with our simple and user-friendly Refinance Mortgage Calculator.

This allows you to quickly calculate how much you can save on your mortgage by refinancing your mortgage.

Understand The Mortgage Payment +

Welcome to the best online refinance mortgage calculator. With this house payment calculator, you’ll be able to easily know how much house you can afford. One of the most important things when seeking a new home, is to really know what your mortgage payment will be, as well as how much home you can afford.  

Sun American Mortgage Company is dedicated to helping you navigate your way through this mortgage loan process. We are dedicated to seeing all of our clients succeed. With our in-house processing, underwriting and funding, you’ll feel like we are family!

Need a full pre-qualification?

Click the button below and one of our expert loan officers will contact you and go over your personal scenario. Our pre-qualification process is so easy, and in a matter of minuets, you’ll know for sure what you qualify for and what your actual mortgage payment will be. CLICK HERE!  

 

Mortgage Payment Overview

For most people, a home mortgage is probably the biggest loan they have and represents one of life’s largest commitments. Mortgage lending has been a staple of the housing market and a pillar supporting The American Dream. Yet, it can be an overwhelming and confusing process for many homebuyers.

This guide was created to help you through the basics of mortgages, and home financing. The idea is to give you the foundation to understand how the process works, what factors matter, common pitfalls, and useful resources.

P.I.T.I.: Principal, Interest, Taxes, and Insurance

Let’s start with the common components of a mortgage payment. In most cases, your payment will include some combination of the items described below, but variations do occur.

You may see P.I.T.I. commonly referenced as you begin to learn about mortgage payments. P.I.T.I stands for principal, interest, taxes, and insurance.

So what goes into your mortgage payment? 

Mortgage Payment = Principal (amortized) + Interest (amortized) + Real Estate Taxes (pro-rated) + Private Mortgage Insurance (pro-rated)

Principally speaking…

Principal is the actual amount you borrowed from the lender, and the part of the mortgage you probably care about most. Every time you make a payment, your principal balance decreases, and your home equity – the value of the home in excess of the mortgage obligation – increases.

Calculate your starting principal balance

Principal Balance = Purchase Price + Fee’s Rolled Into Mortgage – Down Payment

Still interested?

Interest is the other big chunk of your payment. Interest is accrued annually, as in Annual Percentage Rate, regardless of whether you have a fixed rate mortgage or an ARM. To figure out how much of your monthly payment is going toward interest, all you need to do is:

Calculate how much of your payment goes to interest

Interest Portion = Current Principal Balance × (APR ÷ 12)

You’ll notice that, when you are just starting out, the majority of your mortgage payment goes to interest. But every month you pay down a little bit of principal as well. So when you calculate your payment the next month, you’ll notice a little bit less went to interest and a little bit more to principal.

Example – monthly mortgage payments 

This example is for a fixed-rate, 30 year term, at 5% APR, with $200,000 Principal Balance, and a $1,073.64 monthly payment. (We’ll get to figure out your monthly payment a little later)

First Month:

$833.34 = $200,000 × (.05 ÷ 12)

Second Month:

$240.30 went to principal from the first month’s payment ($1,073.64 – $833.34 = $240.30) so…

$832.34 = $199,759.70 × (.05 ÷ 12)

And, if you paid down an extra $100 of principal in addition to your first month’s payment?

$831.92 = $199,659.70 × (.05 ÷ 12)

Doesn’t seem like much of a difference, but do that every month and you’ll shave more than 5 years off your repayment term and more than $30,000 in interest payments over the life of the loan!

 

This is basically how an amortization schedule works. Since the lender is mostly concerned with collecting interest in return for taking a risk on your loan, they balance the payments in a way that favors interest repayment in the initial years. It also helps stabilize the payments over the entire repayment term, ensuring that your monthly payment remains constant throughout.

Other factors can influence the balance of interest to principal in your payment, such as: changes to your interest rate (in the case of an ARM), re-financing, and lump sum payments toward principal.

Often times, mortgage payments include additional fees. Fees associated with the legal obligations of owning a home, like taxes and insurance, are generally wrapped into your monthly payment.

Private mortgage insurance (PMI) is necessary until you have paid down a sufficient amount of principal to own at least 20 percent of the equity in your home (percentage may vary depending on specific circumstances), or if you’re considered a credit risk. This protects the lender against default.

To ensure you keep the real estate taxes and PMI current, lenders typically set up an escrow account. The portion of your monthly mortgage payment associated with taxes and insurance will be held in escrow until it’s due, sometimes once a year such as with real estate taxes.

For instance, you may pay 1/12th of your total estimated real estate taxes each month as a part of your mortgage. This guarantees that when your payment is due, you have the money available.

 

Your monthly PMI contribution

PMI Monthly Escrow = (PMI Rate* × Principal Balance) ÷ 12

*Note: PMI is generally calculated as a percentage of your principal balance. Sometimes it’s a flat fee. Individual experience may vary.

Your monthly Real Estate Tax escrow contribution

RE Tax Monthly Escrow = (Tax Assessed Value of Your Home* × Local RE Tax Rate) ÷ 12

*The tax-assessed value of your home may be different from the appraised value of your home. Property listings on HomeFinder.com usually include “Public Facts” that feature both the tax amount and tax-assessed value of the property.

Once you’ve paid down a certain percentage of your principal, lenders will generally let you begin paying taxes and insurance directly. Real estate taxes can fluctuate, especially in gentrifying areas, so you’ll probably want to set aside a portion of the payment monthly anyway.

In some cases, as part of closing, you may have to pay for a year’s worth of PMI upfront. The same is true for taxes; you may pay a pro-rated portion of your taxes at closing as well as a monthly portion. Arrangements vary depending on what’s customary in your market, as well as your lender agreement.

After you have lived in your home for a few years, check out your equity. Mortgage insurance isn’t cancelled automatically, although you are supposed to be notified when it is no longer required. Once you’ve paid enough toward principal, you can drop the PMI and lower your monthly payment. You’ll need to make arrangements with your lender.

Down Payments & Loan to Value (LTV)

These two components play a big role in determining your maximum mortgage loan amount, interest rate, and consequently your monthly payment.

The down payment is the amount you pay toward the principal value of the property. This helps determine your loan-to-value ratio. It also gives the lender confidence that, in the event of foreclosure, the value of the property can cover the remaining principal balance of the mortgage.

In general, you should attempt to provide the biggest down payment you can afford. The bigger the down payment percentage, the lower your interest rate will be and the easier it will be to secure a mortgage.

In some cases, a big down payment can even offer you the opportunity for a non-standard 15-year mortgage, or similar shorter repayment period.

This is not only advantageous from the perspective of an easier-to-secure lower interest rate, but because of the accelerated repayment plan you can literally save tens-of-thousands of dollars on interest over the life of your loan.

How much is your down payment?

Down Payment $ = Principal × Down Payment %

Loan-to-value (LTV) ratios represent the relative size of the mortgage, compared to the value of the home. This is important in determining both your interest rate, and the need for PMI.

Even small changes in interest rate can translate into thousands of dollars over the term of the loan. So, working to get the lowest LTV you can will save you money.

Figure out your loan-to-value percentage

LTV % = (Principal $ – Down Payment $) ÷ Principal $

For example:

A $200,000 mortgage at 5% will have you paying the lender approximately $186,000 in interest after 30 years.

Cut that rate to 4.5% and you will be out only $164,000 after 30 years. That’s $22,000 in savings over 30 years on interest alone. Wow!

Debt to Income Ratio: Front End vs. Back End

Debt to income ratio is the primary calculation mortgage brokers and lenders will use to qualify your ability to repay the loan.

This is one of the most important numbers lenders will reference during the mortgage approval process. The lender will add up all your monthly obligations, including: student loans, insurance(s), bills, and credit card payments.

The total of your monthly obligations will then be divided by your gross monthly income. The resulting percentage represents the portion of your income that your debt constitutes. The lower the percentage, the more likely you are to secure a mortgage with good terms.

Most experts recommend that your debt-to-income ratio should be below 40 percent, so you can comfortably afford paying a monthly mortgage.

This is a great baseline when figuring out affordability, but definitely consider that this is based on your gross (pre-tax) income and does not take into account your tax liabilities, among other monthly expenses.

You should consult a licensed tax professional and/or an attorney to review the tax implications of owning a home.

Figure out your debt-to-income ratio

Debt to Income % = Sum of monthly debt obligations ÷ Your gross monthly household income

The above formula is a good start, but lenders and brokers will generally take it a step further and calculate the “front” ratio (housing costs only), then compare that to your “back” ratio (including monthly consumer debt obligations).

This allows lenders to evaluate your information and creditworthiness with and without housing accounted for, as well as understand how much of your total monthly debt obligations are taken up by housing expense.

Your “front-end” debt-to-income ratio

“Front” Debt to Income % = Sum of monthly housing obligations (inc. P.I.T.I., assessment, HoI) ÷ Your gross monthly household income

Your “back-end” debt-to-income ratio

“Back” Debt to Income % = Sum of monthly debt obligations (inc. housing, auto, student loans, credit cards etc.) ÷ Your gross monthly household income

Mortgage experts say a healthy front-to-back ratio is about 33/38. That means that a borrower’s housing costs should consume no more than 33 percent of their monthly income.

Adding the borrower’s monthly consumer debt to the housing costs should amount to a maximum of 38 percent of monthly income, in order to meet sound mortgage payment requirements (or, in relative terms, 87 percent of your monthly debt is from housing).

Rationally evaluating your debt-to-income ratio can help prevent the purchase of your dream home from turning into an endless nightmare. Don’t agree to a “surprisingly generous” loan offer if you think you can’t handle it.

If the monthly payments will leave you with little gas, medicine or grocery money, or lacking a safety net in case of job loss – then it’s not the right deal for you.

 

Some things you should consider:

  • See how much you can save by contributing an additional monthly amount to principal only.
  • Check what will happen if you refinance your current mortgage.
  • View how a lump sum pay down will change your outlook.
  • Keep track of your equity.