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Burbank Mortgage Lender - Down Payment Savings

Tips on Saving for a Down Payment

Buying a home for the first time is an excellent investment, however, it is important that you have enough money saved up before you begin the home buying process. As your local Burbank mortgage lender, Juan Barraza understands the type of financial commitment involved in buying your first home. So to help you get started, he has provided some useful tips on saving for a down payment.

What Is A Down Payment?

A down payment is a certain percentage of your home’s purchase price that has to be paid for before your Burbank mortgage application is completed. You have to supply this full amount, meaning you cannot borrow this money from any financial institution.

The more you pay towards your down payment, the better your mortgage rates will be. If you do not pay at least 20% of your home’s purchase price, you will be required to obtain private mortgage insurance (PMI). This is an additional monthly fee you will have to pay in order to insure the lender in case you default on your payments. Do not be mistaken, this insurance is paid for by you, however, it only protects the lender.

How To Start Saving

Before you begin shopping the market for your dream home, you must first assess your finances. Go through your common expenses and make a budget. This will help you know how much you can afford to pay towards your mortgage. Once you know your affordability, you will have a better understanding of what price range to shop in for a home. Knowing this amount can help you avoid stretching your finances too far and accruing large amounts of mortgage debt. For specific details on how much you will be able to borrow from a lender, contact your local mortgage broker in Burbank at 818-601-2389.

Another useful tip to help you save money is to limit the amount of time you go out to eat per week. Focus more on making meals at home, and put that money you would have originally spent at a restaurant into a separate saving account solely for your down payment. It might also be a good idea to postpone any family vacations until the following year, and instead, put that money into your savings.

Contact Us

Being organized with your finances and not overspending is the best way to help you save for a down payment. For more useful tips or to get started on your application today, please contact your mortgage lender in Burbank at 818-601-2389.

Burbank Mortgage Lender - American Mortgage News

Updated News in the American Mortgage Industry

Regardless if you are looking to purchase a home for the first time or make your fifth home purchase, it is important to always be up to date with the current news in the mortgage industry. Interest rates on mortgages in Burbank are constantly fluctuating, which means you should be familiar with the current trends before you apply for a home loan.

So, to help you get started, Juan Barraza, your local Burbank mortgage lender, has listed the most current news in the American mortgage industry.

Home Sales

According to CNBC, the number of home sales has been drastically decreasing compared to past years. In some of the biggest home buying areas, the number of sales has dropped 5.5% compared to June last year. This could be due to the increase in housing prices.

The number of applicants for first-time homebuyers is dwindling and the mortgage rates are increasing. Mortgage applications have fallen as much as 0.2% in the past week, and 12.6% compared to this time last year. This is all due to the inability to afford the rising interest rates for first-time homeowners.

Labor costs, land costs, and material costs are increasing, which is largely affecting the number of home sales throughout the United States. These rise in costs are mainly affecting home sales that are ranging in the $250,000 price range.

Interest Rates

We could see a huge turn in mortgage interest rates in this upcoming month. This depends on the current tariffs. Tariffs can drive mortgage rates either up or down depending on inflation. Tariffs can encourage inflation, which could cause local mortgage interest rates to increase.

If you are looking to purchase a home and obtain a mortgage, talk to your mortgage lender in Burbank for more information on locking in a rate now before they get more expensive.

Stay Informed

Keep an eye on the current market trends to get a better understanding of where the prices could head in the near future. For more information on current news in the American mortgage industry, or to apply for your mortgage in Burbank before the rates increase, please contact Juan Barraza at 818-601-2389.