Options by Buyer Type
Buying Your First Home
For first time homebuyers, the terminology and jargon alone can seem daunting. Negotiating rates and terms may also seem intimidating and scary. But it doesn’t have to be that way!
Our loan officers understand the importance of home buying and have helped hundreds of people purchase their first homes. They have heard the questions, seen the confusion, and witnessed the fear that can come with this very important life decision. Through their experiences they have learned how to walk first time buyers through the process and help make the entire situation easier to understand and far less intimidating.
The Benefits of Homeownership
Owning your own home provides several benefits. In addition to the satisfaction of being a homeowner, you can build equity, enjoy tax deductions, say “good bye” to your landlord and take control of your living environment. Owning provides a sense of security and belonging that cannot be found elsewhere – It’s no coincidence that approximately 66% of U.S. households own their homes. Home ownership has always been a part of the American Dream and we have many different programs available to help make your dreams come true.
Financial Assistance is Available
Did you know that there are often assistance programs to help you with your down payment, especially if you are a first time home buyer? We have information on numerous programs that can be used to help you buy your first home. Before you decide you can’t afford to buy a home, speak with a trained and experienced loan officer to see if there are programs available to help you.
If you are considering your first home purchase, your best course of action is to seek information and our staff is here to help. If you would like to speak to someone, give us a call at 512.328.0400 or email us at email@example.com. Or you can use our online system to contact us today.
We can help you understand:
Credit Scores – know your score and how it was derived
Loan Programs – which loan product is best for you?
Buying Power – how much can you afford?
Tax Benefits – owning can decrease your tax burden every year
Common Pitfalls – avoid mistakes to close your loan faster
Use our Quick Quote form to start the process and we’ll help you see how much home you can afford.
Experience Absolutely Matters
Our loan officers average over 15 years of experience, so they understand and have worked through the ups and downs of the market. They know how to help you make the best decisions to help you to realize your financial goals. Besides having some of the most competitive lending programs in Texas, we also have the knowledge, expertise, and network of experts to help you succeed.
Move Up Buyers have specific needs. We understand those needs and can help you with:
- Selecting the right realtor
- Understanding trends in the real estate market
- Preparing your current home to sell quickly and easily
- Choosing a custom builder to construct your dream home
- Determining the right loan product for your financial situation
Call us today at 512.328.0400 and ask to speak with one of our Senior Loan Officers…they will be happy to assist you. Or email us at firstname.lastname@example.org with questions you have about your next home purchase or use our Quick Quote form to start the process and we’ll help you see how much home you can afford.
Buy Texas Property from Anywhere
Second/Vacation Home Buyers can also benefit from our expertise. With our electronic document signing capabilities, we can help people from anywhere in the world purchase property in Texas. With so much to offer, Texas has something for everyone.
From the coastal regions to the open prairies, big cities and small towns, Texas provides an ideal climate, low overall tax burdens, a growing economy, and home to more Fortune 500 companies than any other state. Texas also boasts world-class universities, top caliber professional sports teams, an array of legendary live music, and soon will be home to the world’s newest Formula 1 (F1) track, The Circuit of the Americas.Mission Mortgage understands second home buyers.
We realize your needs are different from those purchasing a primary residence. Don’t use just any mortgage company to buy your second home in Texas. Use a reputable leader with years of experience in the local market and a vast array of products and tools to help make your next home purchase the right one.
Email us at email@example.com for more information and to get started on your second home purchase today.
Use the Quick Quote form to get the information you need regarding your move up purchase or the purchase of a second or vacation home.
Investing in Real Estate
For those who are looking to invest in real estate in the state of Texas, we strongly recommend the following:
- Use a lender who offers electronic document signing to speed up the process and decrease travel
- Select a mortgage company with experience working with investors
- Find a company who can provide concrete market analysis to help you buy the right investment property in the right location
- Choose a financing partner with at least 20 years of doing business in Texas because Texas isn’t like anywhere else
- Trust only lenders with local experience when investing in real estate
- Understand the tax implications of your purchases – we can help!
Real estate investors are seeking profits. Mission Mortgage understands that and we have a long history of helping investors select and purchase properties that provide solid cash flow and long term equity. We have experts on our staff who can explain the market dynamics, provide quality advice, and assist you in acquiring loans for up to 10 investment properties (many lenders are limited to just four properties). The right mortgage company can be the difference between a positive real estate investment experience and a nightmare. Mission Mortgage has over 25 years of mortgage experience and we have the staff to help you make the most informed decision.
Moreover, Mission Mortgage enjoys real estate investing. We watch for opportunities and we discuss investment strategies on a regular and ongoing basis. Through our network of connections to builders, bankers, developers, and realtors, we can identify current opportunities and help you determine the right move for your financial future. If you are new to real estate investment, we suggest contacting us to arrange a meeting so we can help guide you through the initial stages of purchasing property for profit.
If you are interested in becoming a real estate investor or if you are already an investor and you wish to expand your portfolio, contact us today at 512.328.0400 or by emailing us at firstname.lastname@example.org.
Use the Quick Quote form to establish numbers for your next investment purchase.
What Does Your Dream Home Look Like?
When you know the perfect home for you doesn’t exist until you have it designed and built specifically for you, then you are ready for a custom built home. Custom homes allow owners to include the amenities and features they want without the ones they don’t. And while you design the home of your dreams, we’ll be right behind you helping you to finance the lot, the construction, and the final permanent loan.
Buying a custom built home is a very special situation that requires a knowledgeable and experienced mortgage lender. Trust Mission Mortgage of Texas, Inc with your custom built dream home. Our network of builders, architects, and landscapers can help you get the most out of your custom home.
At Mission Mortgage of Texas, Inc. we have created programs specifically for our custom home buyers. Our One-Time Close program allows buyers to purchase the lot loan and the final permanent loan in one transaction, saving valuable time and energy.
In addition, we have a pool of builders who we know and trust. These preferred builders have done business with us and have proven that they are capable of providing high quality product and customer service. In return, we can expeditate the funding of their construction by issuing their draws in-house. Saving time for the builder means lower costs, fewer delays, and greater satisfaction for all parties involved.
We also have experts on our staff who can advise you on the best locations for the home of your dreams. Whether you are building in the heart of the city or away from it all, we have the loan program and expertise to help you make your dreams a reality.
If you are interested in learning more about our custom home buyer programs, please contact us at email@example.com or call us at 512.328.0400. We will help you make the right decisions, choose the right builder, find the right lot, and fund your dreams.
At Mission Mortgage, You’re Almost Home™.
Use the Quick Quote form to start the process and we’ll help you finance the home of your dreams.
Should You Refinance?
Mortgage rates are near historic all-time lows and there’s not a better time to refinance your existing mortgage. While rates may stay low for the short term, history shows us that they will eventually rise. Rather than wait, Mission Mortgage of Texas, Inc. recommends that you take advantage of the lower rates now and start paying less monthly right away. The sooner you refinance, the sooner you begin to save.
There are many reasons to consider refinancing. Here are some of the most common reasons why people refinance their home loans:
- Get a lower mortgage rate and reduce interest costs.
Convert an adjustable rate mortgage to a secure, fixed-rate mortgage.
- Consolidate your first and second mortgages into a mortgage with a lower rate.
- Pay off installment debts and credit cards.
Refinancing Myths and Misconceptions
When speaking with potential customers, we hear a lot of incorrect assumptions about refinancing a mortgage. With so much in the media, it is understandable that some myths and misconceptions have developed over time.
Here are a few of the things we hear most often, with an explanation of the truth for each one:
Myth #1: The Costs Outweigh the Benefits
In most cases, the costs associated with refinancing a home mortgage can be saved in just a few years’ time. After that, the amount saved each month is truly savings and over the life of the loan can add up to a substantial amount of money.
Myth #2: You Must Have a Lot of Cash to Refinance
The costs associated with a home mortgage aren’t enormous, but can still be more than some people have saved and are ready to spend. The good thing is that you don’t have to have a lot of cash. In most instances the closing costs can be rolled into the loan. This makes the break-even point a little further down the road, but you can still benefit by saving money during the later part of your note.
Myth #3: You Have to Start Over Again, Delaying the Final Payoff
The beauty about a refinance is that it is actually an entirely new loan. Because of that fact, you don’t have to get the same terms as you had before. For example, Mission Mortgage recently had a client who originally took out a 30-year mortgage and had been paying on it for just over 6 years. At first the client was hesitant to refinance because she planned to stay in her home for the long term and didn’t want to start her 30 years over. After consulting with her, we found that we could move her to a 20-year term, shaving four years off of her payoff schedule and we saved her a little money each month, too.
Myth #4: You Must Own Your Home for Years to Refinance
The truth is the time you have owned your home has no bearing on your eligibility to refinance. The two key elements are rates and equity. The amount of time doesn’t matter as long as the rates have decreased enough that it saves you money to refinance and that you haven’t lost equity in the home. Every situation is unique and there are no blanket answers for all borrowers, but in most cases today’s rates can save you money. But hurry! Indications are that rates may begin to rise again soon.
Myth #5: You Must Refinance with the Same Bank
Again, because the refinance is actually a new loan, it doesn’t matter who refinances your home. The original loan will be paid off and the new loan will take effect. It also doesn’t matter if your loan was sold to another servicer. The new refinance will start a new loan for you. So, choose who you wish…but do it soon. The historically low rates we’ve seen recently won’t last forever.
Special Bonus When Refinancing
Did you know that when you refinance you get to ‘skip’ a monthly payment? That’s right. Your refinance pays off your loan and that acts as a payment to your original loan provider. The new provider won’t expect a payment until the next cycle date, giving you a month off from your regular payment. Now, technically, you aren’t skipping a payment…you still owe the full amount, but you do get a month without a mortgage payment when you refinance.
Options by Loan Type
Fixed Rate Mortgage
With a fixed rate mortgage, the interest rate does not change for the term of the loan; the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.
30-Year Fixed Rate Mortgage
A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.
Benefits of a 30-Year Fixed Rate Mortgage:
- Lower monthly payments than a 15 year fixed rate mortgage
- Interest rate does not go up
- Payment does not go up, it stays the same for 30 years
Drawbacks of a 30-Year Fixed Rate Mortgage:
- Higher interest rate than a 15 year fixed rate mortgage
- Interest rate stays the same even if interest rates go down
15-Year Fixed Rate Mortgage
A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.
Benefits of a 15-Year Fixed Rate Mortgage:
- Lower interest rate
- Build equity faster
- If interest rates go up, yours is fixed
Drawbacks of a 15-Year Fixed Rate Mortgage:
- Higher monthly payment stays the same if interest rates go down
- Interest rate stays the same even if interest rates go down
Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae and Freddie Mac. Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.
Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans.
Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes, and usually require a higher down payment than traditional loans.
FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.
Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.
Here’s how it works:
- 100% financing without private mortgage insurance or 20% second mortgage.
- A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
- When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
- When refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.
RHS Loan Programs
The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.
RHS Loans are an attractive option because:
- Minimal closing cost
Low or no down payment
RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner’s insurance and property taxes.
State and Local Housing Programs
Many state, county and local government programs offer financing for qualifying low-to-moderate income families wishing to purchase their first home. Loan assistance programs like Mortgage Credit Certificate (MCC) offer a partial tax credit for interest on the loan.
These programs typically offer:
- More relaxed qualifying guidelines
- Lower upfront fees
- Lower interest rate
- Fixed rate
B/C Loans do not meet the credit requirements of Fannie Mae and Freddie Mac. They are known as B, C and D paper loans. Loan applicants typically have a bad credit history, have filed for bankruptcy, or have had a property in foreclosure. B/C Loans are often issued as temporary loans until the applicant can restore credit and qualify for conforming “A” loans. Interest rates on B/C Loans are generally higher than for conforming “A” loans.
Location Efficiency Mortgage (LEM)
Location Efficient Mortgages are available to individuals purchasing more expensive homes in areas where with efficient public transportation systems. These loans take into account monies saved on the expenses related to owning or leasing automobiles.
While LEM loans will allow a purchaser to buy a house that is more expensive than they would qualify for using a traditional mortgage, it does not lower the monthly payment.
LEM loans are only available in certain markets:
- Chicago, IL
- Los Angeles, CA
- San Francisco, CA
- Seattle, WA
Conventional loans are mortgage loans offered by non-government sponsored lenders.
These loan types include:
- Fixed Rate Loans
- Balloon Mortgages and Pledge Asset Loans
- Jumbo / Construction Loans
- Reverse Mortgage