Recently CNN interviewed a young couple who shared their tips for qualifying for a mortgage at a very young age.  While simple, the couple’s sound advice is great for those looking to get a mortgage on their dream home at 25 or at any other age.

Tip 1 – Work a Part Time Job if Possible

While going to school, both the man and woman in the couple interviewed worked part time jobs.  Working a part time job with a significant amount of hours can really help with savings.  If you are not still in school, but currently working a full time job, you may want to consider taking on something part time for a while to help you save and build a better financial footing.

Tip 2 – Work as Close to Home as Possible

In today’s job market, this tip might be tough to follow for everyone, but as the couple noted, keeping commuting costs to a minimum is always smart.   Commuting costs can really leave you with less room in your monthly budget, translating to the need for less house and a smaller mortgage.

Tip 3 – Keep your Credit Clean

Having good credit can help you to obtain the best interest rate and mortgage type.  If your credit is less than perfect but you’d still like to buy or refinance a home, talk to your mortgage broker about what steps you can take next to improve your standing.

Tip 4 – Make a Down Payment that Makes Sense for You

The young couple recently interviewed by CNN stated that they made about a 5% down payment on their home before their mortgage.  This was the amount they felt comfortable with and the amount that made sense for them.  While some couples strive to pay 20% or more, different numbers may work better for different people.  Be sure to check with an expert mortgage broker to find out what will work best in your situation.

Can you buy your dream home by age 25?  Although this will depend on your personal situation, consulting with the experts at Paradigm Mortgage is a great place to start when it comes to finding out.

Individuals and families across the country are usually faced with the could-be daunting task of saving for a large mortgage down payment if they don’t want to be renters for life.  Saving for a 20% down payment to avoid paying PMI on even an “inexpensive” property can be tough.  On just a $200,000 loan, 20% means shelling out a whopping $40,000 all at once.  For those who want to go the 20% or more down at once route, there is good news.  While saving for your initial down payment can take patience, it is possible.  Read on for some money saving tips that can add up in your mortgage down payment savings account.

Consider trading in extra vehicles or expensive vehicles for less expensive vehicles or consider using public transportation.  The lengths you can go to or want to go to when it comes to giving up your transportation will depend on your needs, whether you live in a city or in a suburb, as well as your personal preferences.  However, in many states owning an expensive new car eats up quite a bit of your potential monthly savings due to car insurance payments.  In addition, the payments on a new vehicle is often several hundred dollars per month.  Saving just a few extra hundred dollars per month can really add up when it comes to saving for your down payment.

Shopping around for a better savings account could also help.  If you are comfortable with online banking, look around and strongly consider moving your savings account (where you’ll keep your mortgage down payment funds) to a bank that pays a better interest rate.  Savings interest rate differences may not be a big deal for small savings accounts, but for savings accounts that will hold tens of thousands of dollars, those extra percentage points can really help your money to grow.  Want to know more about down payments and home loans?  Contact an expert mortgage broker at Paradigm Mortgage today.

Both the home buying and mortgage refinancing processes can be tough to navigate.  Those looking to do either often have many questions for their mortgage specialist or banker.  Here are some of the most commonly asked questions about mortgages.

1. How often can I refinance my home?

Did you know that there is actually no limit on how many times you can refinance your home?  Of course you must financially qualify for each new loan or loan transfer you want to apply for.  Each time you are thinking of refinancing make sure to ask an expert mortgage broker if doing so is the right  choice for you.

2. How does the bank figure out what my monthly mortgage payments will be?

Each individual home buyer will have a different monthly amount they must pay on their mortgage.  However, for each person taking out a loan, the monthly payment process is calculated out in a similar fashion.  It will depend on the amount you borrow, the interest rate, your mortgage term, and your mortgage schedule.  The best way to get an idea of what you’ll pay based on a certain loan is to use an online mortgage payment calculator.

3. How can I buy a home with less than a 20% down payment?  Is this even still possible?

Buying a home with less than 20% of the price of the home to put down is still possible, but to do so, you’ll need a low down payment insured mortgage.  These special mortgages provide insurance to cover a potential default of payment, and as a result their costs are higher than a conventional mortgage.