# Better Rate Mortgage

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## Posts

### Unlock Your Dream Home with the $5,000 Pre-Approved Homebuyer Guarantee

What Makes the $5,000 Guarantee a Game-Changer for St. Louis Homebuyers?



Picture this: you’ve found your dream home in St. Louis, but the market is hot, and your offer is competing with dozens of others. How do you stand out? Enter the $5,000 Pre-Approved Homebuyer Guarantee from Better Rate Mortgage, a unique service that transforms your offer into a near-cash equivalent. Led by Sean Zalmanoff, our team has never paid a penny on this guarantee in eight years, proving its reliability. This post explores how this guarantee works, why it’s a game-changer for homebuyers and realtors, and how it simplifies the home buying process in St. Louis. Read on to discover how we open the door to a better mortgage experience!



Understanding the $5,000 Pre-Approved Homebuyer Guarantee



The $5,000 Pre-Approved Homebuyer Guarantee is more than a promise - it’s a powerful tool that strengthens your offer. When you’re preapproved with Better Rate Mortgage, we provide a guarantee that essentially tells sellers: “This buyer is as good as cash.” Here’s how it works: while your realtor submits your offer, Sean Zalmanoff personally calls the listing agent to confirm your financing is rock-solid, backed by our thorough preapproval process. This level of assurance sets you apart in a competitive market, giving sellers confidence to choose your offer.



Why Sellers Love the Guarantee



Sellers want certainty, and our guarantee delivers. By waiving financing contingencies, your offer mirrors the reliability of a cash deal. With over 500+ five-star reviews on Yelp and Google, our clients consistently praise our smooth, professional process. The guarantee reduces seller risk, making your offer more attractive than others, even in a bidding war.



How It Benefits Homebuyers



For buyers, the $5,000 guarantee means more than just getting your offer accepted - it’s about peace of mind. You’ll know your financing is secure, and our streamlined process ensures quick underwriting and clear communication. Plus, our mortgage payment calculator helps you plan with confidence.



How Does the Guarantee Work in Practice?



The process is simple yet impactful. Here’s a step-by-step breakdown of how Better Rate Mortgage makes your offer shine:




Step 1: Get Preapproved – Submit your application through our online portal for a fast, painless preapproval.



Step 2: Secure the Guarantee – Once preapproved, you qualify for the $5,000 guarantee, allowing you to waive financing contingencies.



Step 3: Stand Out – Our team coordinates with your realtor and the seller’s agent to present your offer as a near-cash deal.



Step 4: Close with Confidence – Our quick underwriting and hands-on service ensure a smooth closing process.




[Suggestion: Embed a flowchart illustrating the guarantee process. Alt text: Flowchart showing the steps of the $5,000 Pre-Approved Homebuyer Guarantee by Better Rate Mortgage.]



Why It’s a Win for Realtors



Realtors partnering with Better Rate Mortgage close deals faster, earning more per hour. As Sean says, “Working with us either makes you more money or saves you time.” Our Realtor Partners Program streamlines communication, ensuring everyone stays on the same page.



Why Choose Better Rate Mortgage for Your St. Louis Home Purchase?



At Better Rate Mortgage, we’re not just about lower rates - we’re about a better mortgage experience. Our St. Louis-based team, led by Sean Zalmanoff, a Five Star Mortgage Professional, combines local expertise with cutting-edge technology. Here’s what sets us apart:



FeatureBenefit$5,000 GuaranteeStrengthens offers, giving you an edge in competitive marketsStreamlined TechnologyEasy online document uploads and clear communicationLocal ExpertiseDeep knowledge of the St. Louis market, from Gateway Arch to suburbs



[Suggestion: Include a testimonial carousel featuring client quotes from Yelp/Google. Alt text: Carousel of five-star reviews for Better Rate Mortgage’s $5,000 guarantee.]



Ready to Open the Door to Your Dream Home?



The $5,000 Pre-Approved Homebuyer Guarantee is your key to standing out in St. Louis’ competitive housing market. With Better Rate Mortgage, you get more than a loan - you get a trusted partner committed to making your homeownership dreams come true. Ready to get started? Apply now or explore our blog for tips on pre-qualification vs. pre-approval and more. Come on in - we’ll open the door to your better mortgage!

### Why Owner-Operated St. Louis Mortgages Deliver Market Leading Rates

How Does Owning the Company Lead to Lower Mortgage Costs?



Imagine landing your dream home in St. Louis without the sting of inflated rates holding you back. In a market where median home prices have climbed 9.8% year-over-year to $300,000, every saved dollar counts toward securing your financial future.. As the CEO and Chief Loan Officer at Better Rate Mortgage, I've built our boutique firm to cut through the noise of traditional lending. Our owner-operated model eliminates middlemen, passing direct savings to you. This post explores why this structure means lower margins for us and better deals for St. Louis homebuyers, refinancers, and realtors. We'll break down the benefits, compare options, and share tips to secure your preapproved mortgage offer today.



The Power of Cutting Out the Middleman in Mortgage Lending



In the mortgage world, layers of bureaucracy often inflate costs. Big banks and large lenders rely on intermediaries and too many management layers, which alone siphoned about $12 billion from consumers over five years. By owning Better Rate Mortgage outright, Sean Zalmanoff and our tight-knit team handle everything in-house. This slashes overhead, allowing us to shop lenders aggressively for the best rates without added markups. The result? Clients enjoy competitive St. Louis mortgage rates that align with or outperform national trends. 



Our approach isn't just cost-saving; it's client-focused. With over two decades of experience, we deliver a surgeon-like quick underwriting process that feels painless. Explore our $5,000 Pre-Approved Homebuyer Guarantee to see how we strengthen your offers and streamline closings.



Lower Overhead Equals Real Savings for You



Boutique lenders like ours operate with lean teams and digital tools, reducing expenses that big institutions pass on. Independent lenders often secure lower rates and fees due to this efficiency. For instance, our streamlined online document upload keeps things simple, avoiding the one-and-done frustrations of larger firms. This hands-on touch builds trust, reflected in our 4.9-5.0 star ratings across 500+ Google and Yelp reviews praising smooth, professional service.



Direct Access to Multiple Lenders Without the Markup



As both owner and loan officer, I negotiate directly with top lenders, bypassing broker fees that can add 0.5-1% to your rate. This owner-operated edge means we close loans at the lower margins, empowering homebuyers to afford more house and investors to maximize returns. Check out our pre-qualification vs. pre-approval guide for a head start.



Boutique vs. Big Bank: A Side-by-Side Comparison



To illustrate the difference, consider how our model stacks up against traditional banks. Boutique lenders prioritize flexibility and speed, often closing faster with tailored options.



FeatureBoutique Lender (Better Rate Mortgage)Big BankRates & FeesLower due to reduced overhead and direct shoppingHigher from corporate layers and markupsClosing TimeSurgeon-quick, often under 30 daysLonger due to bureaucracyPersonalizationCustom advice from local expertsStandardized processesGuarantees$5,000 Homebuyer GuaranteeRarely offeredCustomer Satisfaction4.9-5.0 stars (500+ reviews)Varies, often lower



[Suggestion: Embed an infographic version of this table with alt text: "Comparison of boutique vs. big bank mortgages in St. Louis for better rates."]



This table highlights why St. Louis clients choose us for a smoother home buying process.



Real Client Stories: Savings in Action



Take Sarah, a first-time buyer who saved $200 monthly by avoiding middleman fees on her $250,000 purchase. Or Mike, who refinanced seamlessly, pocketing extra cash for renovations. These aren't outliers; our model ensures everyday wins. Dive into home refinance loans to see potential savings.



Navigating High Rates: Strategies from a St. Louis Mortgage Expert



With interest rates hovering and profit margins compressing industry-wide, savvy borrowers seek edges like ours. Owner-operated firms like Better Rate Mortgage thrive by focusing on volume over high margins, delivering unmatched value. We provide post-closing market updates via our mortgage rate updates, keeping you informed for long-term success.



Local expertise matters too. In the St. Louis MSA, where population nears 2.8 million and homes average $300,000, our knowledge of the St. Louis market gives you an advantage.



Tips for Securing Your Lowest Rate




Shop early: Get preapproved.



Compare total costs: Beyond rates, watch fees.



Leverage guarantees: Our $5K offer boosts competitiveness.



Refinance wisely: Work with a professional.




Use our mortgage payment calculator to crunch numbers.



Ready to Open the Door to More with Better Rates?



Owning the company and serving as your loan officer lets us close at lower margins, cutting out the middleman for your benefit. From empowering first-time buyers with educational guidance to partnering with realtors for efficient closings, Better Rate Mortgage is your trusted St. Louis ally. There's more to a mortgage than a better rate-what you need is a better mortgage experience. Come on in; we'll make your homeownership dreams reality.Ready to start? Apply now or connect with Sean Zalmanoff, your mortgage expert.

### Government Shutdown and Mortgage Rates. Why Headlines May Matter More Than Data Right Now

When the government shuts down, the usual flow of economic data slows or stops. That means the reports that often drive mortgage rates are delayed. Instead of trading on the numbers, markets begin to trade on headlines, whispers, and expectations. In this kind of environment, mortgage rates can move on rumor and reaction as much as on facts.



Want a plan that looks past the headlines? Contact Better Rate Mortgage and I will map out a rate lock strategy for your situation.



Fewer Reports Means More Guesswork



Key releases from agencies like the Bureau of Labor Statistics and the Bureau of Economic Analysis can be paused during a shutdown. That includes the monthly jobs report from BLS, the Consumer Price Index, and even weekly jobless claims if the pause becomes prolonged. Without those anchors, bond traders lean on secondary indicators and news flow. Mortgage backed securities follow suit, and rates can become jumpy on smaller pieces of information than usual.



Why Volatility Often Rises



When markets lack fresh data, uncertainty climbs. Investors are forced to guess whether inflation is cooling or heating, and whether growth is firm or fading. In that vacuum, a single quote from a policymaker, a corporate earnings comment about demand, or a surprise geopolitical headline can spark a quick rally or selloff. That is why you may see mortgage rates move sharply intraday even though no major report hit the tape.



Need help deciding when to lock? Reach out today and I will help you weigh time, risk, and the size of a potential move.



The Catch Up Effect After a Shutdown



Once the government reopens, we usually get a wave of delayed data in a compressed window. Think of it like a logjam breaking all at once. If the first few reports point in the same direction, the bond market can make a large and fast adjustment. For mortgage shoppers, that can feel like a wild ride. A soft run of CPI and a cooler jobs report could push rates lower quickly. A hot surprise could do the opposite.



The Fed Is Watching the Same Uncertainty



If the shutdown drags on into the lead up for the next Federal Reserve meeting, policymakers will be short on their favorite indicators. That puts more weight on surveys, private data, and their own outlook. It also means the language they use at the meeting can matter even more than usual. A cautious tone could support bonds. A warning about sticky inflation could push yields higher. With thin data, every word lands with extra force.



Want context you can act on, not just headlines? Schedule a quick call and I will translate the Fed path into clear mortgage choices.



What To Do As A Buyer Or Homeowner



Plan for choppier day to day moves and build flexibility into your timing. If the payment works today and the home is right, consider locking a portion or using a float down option if available. If you are refinancing, run side by side scenarios so you know exactly how much a small swing in rates changes your outcome. Preparation beats prediction in a news driven market.



Bottom Line



During a government shutdown, mortgage rates trade more on news than numbers. Volatility often increases, and the eventual data catch up can deliver a quick move once reports return. If the pause lasts too long, the Fed goes into its meeting with less hard evidence and more uncertainty, which can amplify market reactions. Stay nimble, focus on your payment, and use a plan that fits your timeline rather than the news cycle.



Ready for a tailored strategy? Contact Better Rate Mortgage and I will help you make smart moves in a headline driven market.



Sean Zalmanoff 10/2/2025

### How Better Rate Mortgage Transforms Refinancing: Beyond Rates to a Seamless Journey

Refinancing your home can feel like a daunting reset button, especially in St. Louis where market fluctuations add complexity. But at Better Rate Mortgage, we flip the script: "A better rate is just the beginning." Everyone in St. Louis promises a better mortgage rate - but what you really need to turn that perfect house into your dream home is a better mortgage. Come on in, and we'll show you how. Led by expert Sean Zalmanoff, our approach prioritizes personalization, education, and innovation to make refinancing empowering.



This post explores refinancing through our lens, highlighting unique tools, client successes, and tips to maximize benefits. With mortgage rates influenced by fed decisions, as per our mortgage rate updates, understanding the bigger picture is key.



The True Value in Refinancing: More Than Savings



Refinancing isn't just about lowering payments; it's about aligning your loan with life changes. A study from Freddie Mac indicates that refinancers who focus on service quality report higher satisfaction, avoiding pitfalls like unexpected costs.



Our clients echo this: "Better Rate Mortgage made refinancing smooth and stress-free," says a Yelp reviewer, contributing to our near-perfect ratings.



Leveraging Tools for a Better Refinance



Central to our service is the accurate mortgage payment calculator, helping you project savings accurately. Pair it with our educational content, like conventional mortgages: your path to flexible homeownership, for informed choices.



For those challenging appraisals, our guide on how to challenge a low home appraisal provides actionable steps.



Step-by-Step Refinancing Process



Here's how we make it seamless:




Assessment: Review your current loan and goals.



Preapproval Check: Even for refis, a quick check ensures eligibility.



Document Submission: Online upload for efficiency.



Rate Lock: Secure rates amid fluctuations, informed by fed rate cuts.



Closing: In-person or mobile closer, with full support.




This process has helped hundreds, as seen in testimonials on our about us page.



Tailored for St. Louis Refinancers



St. Louis-specific challenges, like varying property values, are addressed through our local expertise. External resources, such as a Bankrate article on refinance trends, support our strategies.



For FHA options, see am I eligible for an FHA loan?.



Client Stories and Industry Leadership



Sean Zalmanoff's recognition in NMP National Mortgage Professional magazine highlights our edge. One client shared on Instagram: "Refinancing felt easy - thanks to the team!"



Looking Ahead: Refinance Smartly



Refinancing with us means more than rates - it's a partnership. Explore our home refinance loans today.



Contact us via https://betterratemortgage.com/contact/ or 314-361-9979 to begin.

### Why a Better Mortgage Experience Starts with More Than Just Rates in St. Louis

In the bustling St. Louis housing market, where every lender touts the lowest rates, it's easy to get caught up in the numbers. But as Sean Zalmanoff, CEO and Chief Loan Officer of Better Rate Mortgage, often says, "A better rate is just the beginning." What truly transforms a house hunt into a dream home reality is a better mortgage - one that's personalized, seamless, and stress-free. At Better Rate Mortgage, we believe everyone in St. Louis promises a better mortgage rate, but what you really need to turn that perfect house into your dream home is a better mortgage. Come on in, and we'll show you how.



This blog dives deep into why focusing solely on rates can shortchange your homebuying journey. We'll explore the unique elements that make Better Rate Mortgage stand out, backed by real client stories, industry data, and practical tips. Whether you're a first-time buyer eyeing a cozy bungalow on The Hill or a seasoned investor refinancing in Clayton, understanding the full picture can empower you to make confident decisions.



The Limitations of Rate-Only Shopping



Shopping for a mortgage based only on rates is like buying a car without test-driving it - you might get a great deal on paper, but the ride could be bumpy. According to a report from the Consumer Financial Protection Bureau (CFPB), borrowers who compare lenders beyond rates save an average of $300 per month in some cases, but the real savings come from avoiding hidden fees and poor service.



At Better Rate Mortgage, we go beyond rates with our dedicated team support, ensuring every step from application to closing feels effortless. Our clients rave about this in reviews, with one noting on Google: "The professionalism and smoothness were unmatched - truly a better experience."



Unpacking the $5,000 Pre-Approved Homebuyer Guarantee



One of our standout features is the $5,000 Pre-Approved Homebuyer Guarantee, designed to give buyers a competitive edge. In competitive markets like St. Louis, where multiple offers are common, this guarantee assures sellers that your financing is solid, backing it with up to $5,000 if issues arise.



How does it work? First, get preapproved through our streamlined process, which includes an online document upload that's quick and secure. This not only strengthens your offer but also builds confidence. As highlighted in our pre-qualification vs. pre-approval blog, preapproval shows you're serious, often leading to faster closings.



Industry experts agree: A Harvard Business Review article on real estate negotiations emphasizes that guaranteed offers can sway sellers in your favor, reducing the risk of deals falling through.



Streamlining the Process: From Preapproval to Closing



The mortgage process doesn't have to be overwhelming. At Better Rate Mortgage, we simplify it with educational resources and personalized guidance. For instance, our 5 things required for pre-approval checklist helps you gather documents efficiently.



Consider this step-by-step guide:




Initial Consultation: Chat with our team to discuss your goals - purchase, refinance, or otherwise.



Preapproval Application: Use our apply now portal for a fast review.



Document Upload: Secure online system to submit everything without hassle.



Rate Lock and Closing: Lock in your rate and close smoothly, with constant communication.




This approach has led to our 4.9-5.0 star ratings across platforms, praising our responsiveness.



Benefits for Different Buyers




First-Time Homebuyers: We demystify terms like financing and closing, making the process approachable. Check our am I eligible for an FHA loan? post for eligibility insights.



Refinancers: With current trends in fed rate cuts, as discussed in our fed rate cuts tag, now's the time to explore options via our home refinance loans.



Investors and Realtors: Our realtor partners program fosters collaborations for smoother transactions.




Data from the National Association of Realtors (NAR) shows that seamless processes reduce closing delays by up to 20%, aligning with our commitment.



Building Trust Through Expertise and Accolades



Sean Zalmanoff's two decades of experience, coupled with awards like the Five Star Mortgage Professional and features in Top Agent Magazine, establish Better Rate Mortgage as a leader. We're not just lenders; we're educators, as seen in our blog home with posts like how to choose the best mortgage.



External validation comes from sources like Investopedia's guides on mortgage basics, reinforcing our advice.



Empowering Your Next Step



In summary, a better rate is just the beginning - it's the full, supportive experience that counts. At Better Rate Mortgage, we're here to open that door.



Ready to experience it? Contact us at https://betterratemortgage.com/contact/ or call 314-361-9979 for a free consultation.

### Mortgage Rates Rose After a Fed Cut. Here Is Why That Makes Sense

Mortgage rates moved higher this week even though the Federal Reserve cut short-term rates. Your credit cards and home equity lines feel a cut right away. Fixed mortgage rates do not. They follow the bond market and the outlook for inflation, not the Fed’s overnight rate.



Rates Can Rise on Good News. Think Buy the Rumor, Sell the News



For the past month and a half, mortgage rates have been trending lower as markets digested friendlier inflation data. By the time the Fed announced the cut, traders had already priced in a lot of optimism. That is the classic sell the news move. The event arrives, positions unwind, and rates tick up.



We are still near the best levels of the past year. Buyers are writing offers and many homeowners are exploring a refinance to improve cash flow.



Curious if a refinance pencils out? Let’s run the numbers together and see your real payment options.



The Dot Plot and Why Fed Language Matters



The Fed released its dot plot which is the summary of where each voting member expects policy to go. Ten members looked for two more cuts this year while nine looked for one more. On paper that sounded supportive for bonds and mortgages. Prices for mortgage-backed securities improved at first which meant rates dipped briefly.



Then Chair Powell spoke. His comments leaned cautiously about adding cuts quickly. Markets took that to mean the path to lower rates might be slower than hoped. Bonds gave back some gains and mortgage rates moved higher.



Big Picture. Still A Constructive Backdrop



Even with this week’s bump, rate levels remain close to twelve-month lows. We are helping clients lock purchases, consolidate high cost debt, and position for long-term savings. For buyers on the fence, small day to day moves should not derail a good plan when the home and the payment both fit.



Thinking about making a move? Get pre approved today so you are ready the moment the right home hits the market.



Why A Measured Fed Is Better Than a Fast One



Cutting too fast risks a slowdown with sticky prices. That is the stagflation story from the late nineteen seventies and early nineteen eighties, and nobody wants a replay. A careful approach that keeps inflation trending lower is better for mortgage rates over time than a quick burst of cuts that reignites price pressure.



My job is to follow this day by day, so you do not have to. When you need straight answers and a clear plan, I am here.



Have questions or want a second opinion? Contact Better Rate Mortgage and I will give you a personalized strategy with zero pressure.







Sean Zalmanoff September 19, 2025

### Why Fed Rate Cuts Do Not Directly Impact Fixed Mortgage Rates

Whenever the Federal Reserve cuts interest rates, the media rushes to say that borrowing will get cheaper. While this is true for certain types of debt, like credit cards and home equity lines of credit, it is not the same story for fixed rate mortgage products.



Want to know how rate moves really affect your home loan? Contact Better Rate Mortgage today and we will break it down for your situation.



How Fed Cuts Work



The Federal Reserve sets the federal funds rate, which is the rate banks charge each other for overnight lending. When the Fed lowers this rate, it directly impacts variable rate debt. That includes credit cards, which are tied to prime, and home equity lines of credit, which adjust quickly when the Fed moves. Consumers can see immediate relief in those areas.



But fixed mortgage rates are not tied to the federal funds rate. They are influenced by the bond market, particularly mortgage-backed securities, and the long-term outlook for inflation. That is why you will often see mortgage rates move differently than the Fed’s rate cut headlines suggest.



Fed Cuts Are a Signal, not a Direct Lever



What Fed rate cuts really tell us is how the Fed views the economy. A rate cut is usually a sign that growth is slowing down or that the Fed is worried about a weakening environment. The language the Fed uses around these cuts often matters just as much as the cut itself. If the Fed signals that inflation is under control, mortgage rates may fall. If the Fed hints that inflation is persistent, mortgage rates can actually rise even after a cut.



Curious about how the Fed’s language is impacting today’s mortgage market? Reach out now and we will explain what it means for you in plain English.



The Disconnect Between Cuts and Mortgage Rates



Because mortgage rates are driven by bonds and inflation expectations, they can move in ways that seem counterintuitive. For example, a Fed cut may cause short term rates to drop while mortgage rates remain unchanged or even increase if investors believe inflation is not fully tamed. The media often oversimplifies this story, leaving buyers and homeowners confused.



At Better Rate Mortgage, we track these details every day, so our clients are not relying on headlines. Understanding how the bond market reacts to inflation data and Fed messaging is what really matters for your mortgage.



The Bottom Line



Fed rate cuts can be good news for your credit cards and your home equity line of credit. They are also a signal that the Fed is watching the economy closely. But fixed mortgage rates live in their own world, shaped by bonds, inflation, and investor sentiment. The cuts themselves do not move mortgages directly. The Fed’s words and the market’s reaction to them are what really matter.



Thinking about buying or refinancing? Contact Better Rate Mortgage and let’s look at how today’s market dynamics affect you.







8/26/2025

### How I Deliver Market Leading Rates Every Day

One of the questions I get all the time is how I am able to consistently offer better mortgage rates than most other lenders. The answer is simple: I own the company, and I am also your loan officer. That combination gives me an advantage that most other loan officers simply cannot match.



When you work with Better Rate Mortgage, there are no layers of management adding unnecessary costs to your loan. There are no branch managers, no regional managers, and no corporate executives who need to get paid from every deal. It is just me and my small, dedicated team focused on you and your mortgage.



Want to see how much you could save? Contact Better Rate Mortgage today and I will personally walk you through your numbers.



Cutting Out the Middlemen Means Cutting Costs



Most mortgage companies have multiple layers of people between you and the person actually working on your loan. Every one of those layers adds overhead that gets baked into the rate you receive. At Better Rate Mortgage, those layers do not exist. I run a lean business with a direct connection between the decision maker and the client. That efficiency translates into lower costs, and those savings go straight to you in the form of a better rate.



Ownership Means Control



Because I own the company, I make the decisions on how we operate and where we spend money. I choose to invest in technology, service, and efficiency instead of bloated management structures. I also own my building and my lot, which means I do not have massive rent or lease payments driving up my costs. All of this allows me to keep overhead low and pass those savings directly to you.



Thinking about buying or refinancing? Contact Better Rate Mortgage and let’s get you the rate you deserve.



Experience You Can Trust



When you work with me, you are getting decades of mortgage experience combined with complete control over the process. There is no back and forth between departments and no waiting for approvals from people who have never spoken to you. It is fast, it is efficient, and it is built to get you the best rate available every single day.



The Bottom Line



Owning the company and being your loan officer means I have the ability to cut out the extra costs that weigh down most lenders. No branch managers, no regional managers, and no corporate executives taking a piece of every deal. Just one person dedicated to giving you a better mortgage experience and a better rate.



If you are ready to see the difference, let’s talk. I will show you exactly how we beat most other companies daily.



Get started today with Better Rate Mortgage and see why our name is more than a promise—it is a fact.



Sean Zalmanoff August 2025

### The Impact of Tariffs on Inflation and Mortgage Rates Remains Unclear

Tariffs Show Up in CPI, But the Jury Is Still Out on the Impact



June’s Consumer Price Index report came in at 2.7 percent year over year and 0.3 percent month over month, with core inflation rising 2.9 percent. Analysts spotted some tariff-related price increases in goods like appliances, furniture and clothing. But those items are just a small slice of the overall CPI basket. The main drivers of inflation this month were the usual suspects: housing costs, medical care and professional services.



Bonds React, But With Reservations



Bonds did initially rally when CPI came in below forecasts. Yields eased back from recent highs, reflecting a positive initial reaction. But that rally felt muted and then turned. With shelter costs alone making up nearly half of year over year CPI gains and service inflation still running hot, bond investors are cautious. As the stock market opened there was a lot of bond selling then and it continued throughout the day making rates move up.



Want help understanding how bond market moves affect rates? Reach out today and let us walk you through it.



Tariffs Are a Factor, But Not the Whole Story



If tariffs drive up prices on certain goods, it follows that inflation could rise. But many companies anticipated this. They stockpiled before tariffs kicked in and absorbed some costs. That has slowed the immediate pass-through to consumers. June may show the first subtle tariff effects. But large parts of inflation still come from non-tariff sources like rent and healthcare.



The Jury Is Still Out



Markets now face a split narrative. Inflation data is mixed. Tariffs seem to be creeping into the mix, but widespread price hikes are not here yet. Bond investors have given the reports a head fake, but rates aren’t charging back to rate lows. That caution reflects the uncertainty about how deeply tariffs will affect inflation and whether those effects will be short lived or structural.



Thinking about buying or refinancing? Contact Better Rate Mortgage and get a clear read on where rates may be headed next.



What You Should Know



Inflation is part of the mortgage landscape. It influences bond yields, which influence rates. For now, June’s CPI gives us a mixed signal. Tariff effects are present, but not yet dominant. Core inflation remains sticky thanks to housing and services. That means mortgage rates could stay elevated or move quickly if inflation shifts. Staying flexible and informed is key.



Bottom Line



Tariffs are showing up in CPI data, but not enough yet to derail inflation forecasts. Mortgage rates took a tentative step lower, but then went higher and with inflation persistence in housing and services there is still uncertainty. If you are buying or refinancing, now is the time to stay informed and work with someone who reads the data as it comes in.



Want a clear path forward? Contact Better Rate Mortgage and let’s make sure your mortgage decision is backed by smart data—today and tomorrow.







Sean Zalmanoff July 15, 2025

### Why Bonds Do Not Always Respond to War Like You Might Expect

I have had a lot of conversations lately about how wars or global conflicts impact mortgage rates. Most people who follow markets closely understand that when uncertainty spikes around the world, investors tend to move into safer assets like US Treasuries. Usually, this helps rates. But that is not always the case, and recent events highlight why.



War, Uncertainty, and Mortgage Rates



Typically, global uncertainty caused by wars or conflicts boosts demand for safe investments like US Treasury bonds. More demand for bonds pushes their prices up, and when bond prices go up, interest rates go down. At least, that is how the textbook explanation goes.



But as we saw with Russia and Ukraine, the textbook does not always hold true. First, rates dropped as expected. Then they shot higher, driven by fears about inflation from disruptions to global energy markets.



Ready to lock in a rate or learn more? Get pre-approved now to secure your financing at the best possible terms.



The Oil Price Factor and Recent Surprises



Recently, many market watchers braced for a similar scenario due to another global conflict and its potential impact on oil prices. We expected oil prices to spike significantly, potentially triggering another jump in inflation fears. But it did not happen. Over the weekend, oil prices barely moved. And bonds, surprisingly, did not respond at all initially.



Now, as the market digests the latest news, bonds are actually gaining strength. Part of this strength is coming from reports that no radioactive contamination occurred following recent attacks, reducing some market fears. Another part is from unrelated news, specifically dovish comments made by Fed official Michelle Bowman, suggesting she may support a July rate cut.



What This Means for You



The bottom line is that market reactions, especially to global events, are not always straightforward. Bonds and mortgage rates do not always behave predictably in response to global uncertainty or conflicts.



That is why it is important to work with a mortgage professional who stays on top of these market shifts. At Better Rate Mortgage, we keep our finger on the pulse so you do not have to.



Wondering what this means for your mortgage? Reach out today and let us walk you through your options.







Sean Zalmanoff June 23, 2025

### Lower Inflation Data Is Helping Mortgage Rates. But There Is More to Watch

Good news has been coming in for mortgage rates. The latest Consumer Price Index and Producer Price Index reports both came in cooler than expected. That has helped mortgage rates improve as the markets adjust their expectations around inflation and future Federal Reserve policy.



But before we celebrate too much, it is worth looking a little deeper. There are some interesting dynamics playing out behind the scenes that could impact what happens next.



Looking to take advantage of lower rates? Contact Better Rate Mortgage today and let us help you get started.



Lower CPI and PPI Are Giving Rates a Boost



Mortgage rates move based largely on expectations about inflation and the Federal Reserve's response to it. When inflation runs hot, rates tend to rise. When inflation cools, rates can improve. That is what we are seeing now.



Both CPI and PPI reports showed that price pressures are easing a bit. Markets reacted positively, and mortgage rates have seen some relief as a result. Lower inflation means the Fed is less likely to keep rates elevated, and that has given mortgage-backed securities a lift.



Why Has Inflation Stayed in Check? Inventory Hoarding May Be Part of the Story



One interesting factor that may be keeping inflation lower is the way companies stocked up on inventory earlier this year. Many businesses increased their inventories ahead of the April 2nd tariff changes and supply chain shifts. This has left some companies with excess stock.



Because they are holding larger inventories, many companies have not been able to fully pass along price increases to consumers yet. They need to move through their existing inventory first. This dynamic has likely helped keep prices stable for now.



Curious about what this means for your home financing options? Talk to our team today and let us walk you through your best strategies.



We Still Do Not Know Exactly How This Will Play Out



While the current inflation data is encouraging, there is still uncertainty ahead. We do not yet know how quickly companies will burn through their excess inventory. We also do not know how sticky inflation could be once supply and demand begin to rebalance later this year.



Markets are watching closely, and so are we. Mortgage rates could remain volatile as more data comes in. But right now, buyers have a window of opportunity to take advantage of lower rates.



The Bottom Line



Lower CPI and PPI data have given mortgage rates some breathing room. Companies hoarding inventory earlier this year may have also helped keep prices in check for now. But the story is not over. More data is coming, and the markets will continue to adjust.



If you are thinking about buying or refinancing, this is the time to stay informed and be ready to act. We are here to help you make smart moves in this changing market.



Ready to explore your options? Contact Better Rate Mortgage today and let us help you find the right loan for your goals.











Sean Zalmanoff 6/21/2025

### How Owning the Company Helps Me Deliver Market Leading Rates Every Day

I get asked this question all the time. How is it that Better Rate Mortgage can consistently offer market leading rates when so many other lenders seem to be priced higher? The answer is simple. It comes down to how I run my business and the fact that I own the company. When you cut out the layers of management and overhead that most lenders build into their pricing, you can pass those savings directly to your clients.



Want to see how much you could save? Contact us today and let’s talk about your goals.



No Layers of Management Means More Savings for You



Most mortgage companies are built on a traditional corporate model. They have branch managers, regional managers, and corporate executives. All of these people need to be paid, which means that the cost of originating each loan is higher. And guess who ends up paying that cost? The consumer.



At Better Rate Mortgage, I run a lean, efficient team. There are no branch managers. There are no regional VPs. There is no bloated corporate structure sitting between you and your mortgage. It is me, your loan officer and the owner of the company, working directly with you.



Ready to experience the difference? Get pre-approved now and let’s get started.



Owning the Company Gives Me an Edge



Because I own the company, I control the margins. I do not have to answer to layers of leadership who are focused on padding corporate profits. My focus is on serving my clients and delivering the most competitive pricing possible. I keep my overhead low so I can offer rates that many other lenders simply cannot touch.



I also own my building and my lot. That means I am not passing along expensive lease payments in the form of higher rates. Every dollar I save on operations is a dollar I can use to deliver more value to you.



Want a true market advantage? Reach out today and see why working with Better Rate Mortgage is different.



Your Loan Officer Is the Owner



When you work with Better Rate Mortgage, you are not getting handed off to a call center or a junior loan officer. You are working directly with me. I am invested in every transaction because this is my business and my reputation. That level of accountability means I am going to do everything possible to deliver the best rate, the best service, and the best experience.



Let’s talk about your next home or refinance. Schedule a time to chat and let’s build the right plan for you.



The Bottom Line



At Better Rate Mortgage, our structure is simple. We eliminate unnecessary costs so we can offer better rates. We operate lean so we can stay competitive every day. And we deliver personalized service because when you work with us, you are working with the owner. There is a lot more to a great mortgage than just a great rate, but when it comes to rates, you will not find a better deal than what we can offer.



Ready to get started? Contact Better Rate Mortgage today and let’s show you what a true local mortgage expert can do for you.

### St. Louis Housing Market Update: Sales Down but Sellers Still Winning

Pending Home Sales Are Down. But It’s Not What You Think



You’ve probably seen the headlines. Pending home sales fell in April. Nationally, they dropped 7.7% from the previous month and over 7% compared to last year. Sounds like a housing market slowdown, right?



Not really. This isn’t about buyers pulling back. It’s about something we’ve been dealing with for a while now in St. Louis: there just aren’t enough homes for sale. When inventory is this tight, even motivated buyers don’t have much to choose from.



Thinking about selling in St. Louis? Let’s talk about how low inventory puts you in a strong position.



Buyers Are Ready. Homes Are Not.



What the headlines don’t tell you is that demand is still strong. We’re seeing it every day with pre-approvals and multiple offer situations on well-priced homes. The problem is not demand. It’s that there are not enough listings.



Here in the St. Louis market, buyers are out there. They’re prepped, they’re serious, and many of them are frustrated because they can’t find a home that fits.



Have a home to sell? Reach out and we’ll help you price it right and sell it fast.



St. Louis Is Still a Seller’s Market



Despite what national numbers say, St. Louis remains very much in a seller’s market. Homes that show well and are priced right are still moving quickly. We’re seeing multiple offers on listings that would have flown under the radar a year ago. Serious buyers are still in the game.



At Better Rate Mortgage, we help our buyers stand out with full underwriting so they can compete with confidence. And for sellers, we make sure you’re ready to move quickly and get top dollar.



Want your offer to stand out? Let’s connect and give you a leg up on the competition.



The Market Is Not Crashing. It’s Just Stuck.



This isn’t a repeat of 2008. We are not in a market crash. We are in a market gridlock caused by low inventory. Rates have buyers thinking twice, but those who are still shopping are committed. And sellers who are ready to list have an advantage.



Whether you’re a buyer trying to break into the market or a seller looking to cash in on this inventory shortage, having a local expert in your corner makes all the difference.



Ready to talk strategy? Contact Better Rate Mortgage and let’s put a game plan together that works for you.

### Bridge Loans vs. Recasts: Which Option Is Best for You?

When navigating the world of home financing, one common challenge is how to buy a new home before selling the current one. At Better Rate Mortgage, we often guide our clients through this scenario, and two common solutions stand out: bridge loans and recasts. While both options can help, one may be a better fit depending on the situation.



Here’s a breakdown of both strategies and their pros and cons:



What Is a Bridge Loan?



A bridge loan allows homeowners to borrow up to 85% of their current home’s value to help fund the down payment for their new home. For example:




If a home is worth $100,000 and the homeowner owes $60,000, they could borrow up to $25,000 (85% of $100,000 - $60,000).




While bridge loans can be useful, they come with drawbacks. A bridge loan is essentially a full refinance, which means borrowers are subject to full loan costs. Additionally, the borrower must qualify with both mortgage payments during the transition period.



Click here to get started today



What Is a Recast?



A recast offers a simpler and often more cost-effective solution. Here’s how it works:




The buyer puts down as little as 5% on their new home.



After selling their current home, they apply the proceeds to the new mortgage.



The lender recalculates (or "re-amortizes") the loan based on the reduced balance, while keeping the original loan terms intact.



The recast typically costs $200-$300.




This approach avoids the costs associated with a full refinance, making it an attractive alternative for many buyers. However, as with a bridge loan, the borrower must qualify for both mortgage payments until their current home is sold.



A Third Option: Simultaneous Close



Another option is a simultaneous close, where both the sale of the current home and the purchase of the new home happen at the same time. In this scenario, the payment for the home being sold doesn’t need to be factored into the borrower’s qualifications. However, this often requires the offer on the new home to be contingent on selling the current home, which could make the offer less competitive in today’s market.



Click here to see what you qualify for today



Which Option Is Right for You?



While bridge loans can be helpful in certain cases, we often recommend recasts as a more cost-effective and flexible solution. The right choice ultimately depends on your financial situation, timeline, and market conditions.



At Better Rate Mortgage, we’re here to help you and your clients navigate these decisions with ease. Our goal is to provide personalized solutions that make the home-buying process smoother and more affordable.



Click here to find out your options today



Why Choose Better Rate Mortgage?



At Better Rate Mortgage, we don’t just offer competitive rates—we provide a streamlined, personalized experience to help you achieve your homeownership goals. Whether you’re a realtor looking for a trusted partner or a buyer exploring financing options, our team is here to guide you every step of the way.



Ready to Learn More?



If you’re working with clients facing this scenario, reach out to us today. We’re happy to provide guidance and discuss the best options to fit their needs. Let’s work together to make homeownership achievable for more people.



Contact Better Rate Mortgage Today



Sean Zalmanoff 12/11/2024

### Key Economic Reports to Watch This Week and Their Impact on Mortgage Rates

Introduction



With a heavy lineup of economic data scheduled for release this week, we’re keeping a close eye on the potential impact on mortgage rates. At Better Rate Mortgage, we know staying informed helps you and your clients make the best decisions in an ever-changing market. Read on for a breakdown of this week’s major reports and what they mean for rates.







Tuesday: JOLTS (Job Openings and Labor Turnover Survey)



The JOLTS report provides insight into the number of job openings in the economy. Fewer job openings can signal reduced wage pressures, which helps curb inflation. As a reminder, inflation is the primary opponent of fixed-rate instruments like mortgage-backed securities. When inflation is high, mortgage rates tend to rise, and when it decreases, rates can see relief. Understanding this relationship is key to predicting rate trends.



Looking for more insights into mortgage rates? Contact us at Better Rate Mortgage for expert guidance tailored to you.







Wednesday: ADP Employment Report and Gross Domestic Product (GDP)



The ADP report gauges private-sector employment changes, providing a preview of the broader labor market. In tandem, the GDP report shows overall economic growth. High employment numbers and strong GDP growth can lead to higher mortgage rates as they indicate economic strength and potential inflationary pressures. If GDP expansion is moderate, it could support stable or even lower rates.



Curious about how these trends could affect your mortgage rate? Check out our rate options and see how we can help you make the most of the current market.







Thursday: Core PCE and Employment Costs



The Core Personal Consumption Expenditures (PCE) index is a critical inflation measure, reflecting the prices people pay for goods and services. It’s a significant component of GDP and an inflation indicator closely watched by the Federal Reserve. Higher employment costs, as reported alongside PCE, can drive inflation further. If inflation pressures ease, rates could benefit.



Stay ahead of inflation’s impact on mortgage rates. Let’s discuss your mortgage needs and find the best options for you.







Friday: Bureau of Labor Statistics (BLS) Employment Report and ISM Manufacturing PMI



The BLS employment report is one of the month’s most impactful data points, with job creation numbers, unemployment rates, and average hourly earnings all influencing mortgage rates. The forecast is for 123,000 new jobs; a lower figure could be favorable for bonds, potentially leading to lower mortgage rates. ISM Manufacturing PMI, which surveys over 400 purchasing and supply executives, also sheds light on economic momentum. If the report indicates slower growth, it could help rates ease.



Are you ready to take advantage of favorable rates? Get started with Better Rate Mortgage today and let us guide you to the best solution.







Conclusion



As these critical economic reports unfold, mortgage rates could shift accordingly. At Better Rate Mortgage, we’re dedicated to providing you with the latest market insights and competitive rates. If you have questions about how this week’s data might impact your clients or your own mortgage plans, reach out—we’re here to help you stay ahead.



Contact Better Rate Mortgage today to learn more about how these market factors influence rates and how we can help secure the best financing option for you.



Sean Zalmanoff 10/28/24

### Conventional Mortgages: Your Path to Flexible Homeownership

If you’re shopping for a home and exploring mortgage options, you’ve likely come across the term conventional mortgage. As one of the most popular loan types in the market, a conventional mortgage offers flexibility and competitive rates for those with a solid financial standing. Whether you’re a first-time buyer or a seasoned homeowner, understanding how conventional loans work can help you make the right decision for your home financing needs.



Take the first step today! Get pre-approved for a conventional mortgage and start your journey to homeownership.







What Is A Conventional Mortgage?



A conventional mortgage is a home loan that is not backed by the government. This means that unlike FHA, VA, or USDA loans, conventional mortgages are offered by private lenders like banks and mortgage companies. These loans typically have more stringent credit and income requirements, but they also come with more flexibility and fewer restrictions on the type of home you can buy.



Curious about your options? Contact us to learn more about whether a conventional mortgage fits your homebuying plans.







Types Of Conventional Mortgages



There are two main types of conventional mortgages: conforming and non-conforming. Conforming loans adhere to the guidelines set by Fannie Mae and Freddie Mac, which include loan limits and credit score requirements. Non-conforming loans, also known as jumbo loans, allow you to borrow more than the conforming loan limit, but typically come with stricter requirements.



Which type is right for you? Talk to a loan expert to find out which conventional loan option suits your homebuying needs.







Conventional Loan Requirements



To qualify for a conventional mortgage, lenders typically look for a credit score of 620 or higher, a down payment of at least 3%, and a debt-to-income ratio (DTI) below 50%. If you have a larger down payment, you can avoid private mortgage insurance (PMI), which is required if you put down less than 20%. Conventional loans are a great choice if you have solid credit and want to minimize your overall borrowing costs.



Ready to see if you qualify? Get pre-approved now and see how much home you can afford with a conventional loan.







Benefits Of A Conventional Mortgage



One of the biggest advantages of a conventional mortgage is that it typically offers lower interest rates than government-backed loans if you have a strong credit profile. Additionally, you’ll have more options when it comes to the type of property you can buy—whether it’s a single-family home, condo, or vacation property. Plus, once you reach 20% equity in your home, you can cancel your PMI, which can significantly reduce your monthly payments.



Discover the benefits: Contact us today to learn how a conventional mortgage could save you money over time.







Conventional Mortgage vs. FHA Loans



While FHA loans are often a go-to for first-time buyers with lower credit scores, a conventional mortgage could be a better fit if you have a higher credit score and a larger down payment saved up. Unlike FHA loans, conventional loans don’t require mortgage insurance for the life of the loan, and they often come with lower long-term costs. It’s important to weigh the pros and cons of each loan type before making a decision.



Not sure which loan is best for you? Speak with a loan specialist to compare FHA and conventional mortgage options.







Is A Conventional Loan Right For You?



A conventional mortgage is ideal for borrowers with good credit, a stable income, and the ability to make a decent down payment. If you’re looking for flexibility in the type of property you can purchase and want to avoid long-term mortgage insurance costs, a conventional loan may be your best bet. It’s a great option for both first-time buyers and those looking to upgrade to a larger home.



Find out if a conventional loan is the best choice: Get pre-approved now and start your journey toward affordable homeownership.







Conclusion



Conventional mortgages offer flexibility, lower interest rates, and fewer restrictions on property types, making them a popular choice for many homebuyers. Whether you’re purchasing your first home or looking to refinance, a conventional loan could provide the perfect balance of affordability and flexibility.



Ready to get started? Contact Better Rate Mortgage today to see if a conventional loan is the right fit for your homebuying goals.



Sean Zalmanoff 10/11/24

### FHA Loans: Your Guide to an Affordable Path to Homeownership

Buying a home is one of the biggest financial decisions you'll ever make, but with an FHA loan, the process can be more accessible than you might think. Backed by the Federal Housing Administration, FHA loans are designed to help people with lower credit scores or smaller savings for a down payment get into their dream home. With flexible qualification criteria, they’re a great option for first-time homebuyers or those looking to refinance.



Take the first step today! Contact us to see if an FHA loan is the right fit for your homebuying journey.







What Is An FHA Loan?



An FHA loan is a mortgage that’s insured by the Federal Housing Administration, which means the government guarantees the loan to the lender. This backing allows lenders to offer more flexible terms, such as lower down payments and lenient credit requirements. Unlike conventional loans, FHA loans are aimed at buyers with lower credit scores, making homeownership more achievable for a broader range of people.



Explore Your FHA Loan Options: Talk to an expert now to see how an FHA loan can make your homeownership dreams a reality.







How Do FHA Loans Work?



FHA loans work by providing lenders with insurance on the mortgage, which reduces the risk to the lender. This enables lenders to offer better terms to borrowers, like the ability to make a down payment as low as 3.5%. The catch? You’ll need to pay mortgage insurance premiums (MIP) to protect the lender in case you default on the loan. But don’t worry—FHA loans still remain one of the most affordable options for first-time homebuyers.



Get Pre-Approved: Start your FHA loan application and learn how much home you can afford with as little as 3.5% down.







FHA Loan Requirements



To qualify for an FHA loan, there are a few key requirements you’ll need to meet. Generally, you’ll need a credit score of at least 580 to qualify for the 3.5% down payment option. If your score is between 500-579, you can still get approved, but you’ll need to put down at least 10%. Additionally, FHA loans require you to show a steady employment history and provide proof of income, so lenders can ensure you’ll be able to afford your monthly payments.



Ready to Qualify? Check your eligibility now and see if you’re ready to move forward with an FHA loan.







FHA Loan Limits



FHA loan limits vary based on where you’re looking to buy. In areas with higher home prices, the loan limits are higher, and in more affordable markets, they’re lower. These limits are set each year by the Department of Housing and Urban Development (HUD) and are designed to ensure that buyers can afford homes that fit within the local market’s pricing.



Check Your Local Limits: Contact us to find out the FHA loan limits in your area and see how much home you can afford.







FHA vs. Conventional Loans: Which Is Right For You?



While FHA loans are great for first-time buyers, you might also be considering a conventional loan. The main difference between these two options is how strict the qualification criteria are. Conventional loans typically require a higher credit score and a larger down payment, but they don’t require mortgage insurance if you put down 20% or more. FHA loans, on the other hand, are much more forgiving when it comes to credit, and you can get in with as little as 3.5% down, making them ideal for buyers with less-than-perfect credit.



Compare Your Options: Speak to a loan specialist to understand which loan is best for your financial situation.







Benefits Of An FHA Loan



FHA loans offer several advantages that make them a great choice for many homebuyers:




Lower Credit Score Requirements: FHA loans allow you to qualify with a score as low as 580 for a 3.5% down payment.



Lower Down Payments: You can buy a home with as little as 3.5% down, making it easier to save for homeownership.



Flexible Debt-to-Income (DTI) Ratios: FHA loans allow for higher DTI ratios than conventional loans, which means more buyers can qualify.




Unlock the Benefits: Get pre-approved today and take advantage of the flexible terms that FHA loans offer.







FHA Mortgage Insurance



One of the requirements of an FHA loan is paying mortgage insurance premiums (MIP). These premiums are a form of insurance that protects the lender in case you default on the loan. FHA loans require both an upfront premium, which can be rolled into the loan, and an annual premium that’s paid monthly. While this adds to your overall cost, the affordability and accessibility of FHA loans often outweigh the cost of the insurance.



Understand Your Costs: Talk to our team to find out how FHA mortgage insurance impacts your monthly payments and overall affordability.







How to Apply for an FHA Loan



The FHA loan application process is similar to other types of mortgages, but it’s crucial to work with a lender experienced in FHA loans. You’ll need to provide your financial information, including proof of income, employment history, and credit reports. Once you’ve gathered your documents, the lender will guide you through the rest of the process, including the appraisal required to ensure the home meets FHA standards.



Get Started Today: Apply for an FHA loan and let Better Rate Mortgage help you every step of the way.







Conclusion



An FHA loan can be a great option for first-time homebuyers, offering low down payments and more lenient credit requirements. Whether you’re just starting your home search or ready to make an offer, FHA loans provide an affordable path to homeownership for many buyers.



Take the Next Step: Contact Better Rate Mortgage today to see if an FHA loan is right for you and start your journey toward homeownership.



10/8/24 Sean Zalmanoff

### How Much Home Can I Afford? A Complete Mortgage Affordability Guide

Buying a home is one of the biggest financial decisions you’ll ever make and figuring out how much home you can afford is a crucial first step. Knowing your budget before you start house hunting can help you make more informed decisions and prevent you from falling in love with a home that’s out of reach. In this guide, we’ll break down the key factors that determine how much home you can afford and give you practical tools to make the process easier.  By the way when you work with Better Rate Mortgage, we help figure this out to help you make the best decision.



Take Control of Your Homebuying Journey: Use our mortgage calculator to determine what payment you are comfortable with and see what estimated payments look like based on the purchase price you’re interested in.







Understanding Your Income and Debt-to-Income Ratio (DTI)



One of the main factors lenders look at when determining how much home you can afford is your debt-to-income ratio (DTI). This ratio compares your monthly debt payments (like car loans, credit cards, and student loans) to your gross monthly income. While conventional loans do not allow for a DTI above 50%, FHA loans can approve up to 57% and VA can go even higher.  It is important to keep in mind that just because you may be able to be approved for more, it does not mean you should max your debt income ratio, in most cases that is not a good idea.



Calculate Your DTI: Get pre-approved today and see how your current income and debts affect your mortgage options.







How Much Should You Save for a Down Payment?



While many people think you need 20% down, that is often a terrible idea.  There are many different low downpayment options on convention, FHA, VA and USDA mortgages.  Waiting to save up a down payment means you are most likely going to pay significantly more for your home in the future and there is an opportunity cost with your money.  Putting down 5% instead of 20% and investing the other 15% could net you many $100,000s over your lifetime.  Financial education is one my favorite topics and I would love to explain this to you. 



Plan Your Down Payment: Talk to us today to explore down payment mortgage options.







Considering Your Monthly Mortgage Payments



Your monthly mortgage payment includes more than just the loan itself—it also covers property taxes, homeowner’s insurance, and, in some cases, PMI. To get a clear idea of what you can afford, you’ll want to consider how much you’re comfortable paying each month for your mortgage, including all these additional costs. As a general rule, we often suggest that your mortgage payment should not exceed 36% of your gross monthly income.  Keep in mind, this is a “general” rule, there are many factors that make this significantly higher such as having a significant other helping you with payments who is not on the loan.



Find Out What Your Payments Could Be: Get an estimate of your potential monthly payments based on current interest rates and your down payment.







Don't Forget Closing Costs and Other Upfront Expenses



It’s easy to focus on the down payment when thinking about how much home you can afford, but don’t forget about closing costs. These costs, which include fees for the lender, title company, and other services, typically range from 2% to 5% of the loan amount. Closing costs need to be factored into your upfront expenses, along with your down payment and moving costs.



Plan for Closing Costs: Get a personalized closing cost estimate and see how much you’ll need to bring to the closing table.







How Interest Rates Impact Affordability



The interest rate on your mortgage has a direct impact on how much home you can afford. Rates can change daily to so keeping an eye on current mortgage rates and locking in a favorable rate at the right time can increase your purchasing power. Lower rates mean you can afford a more expensive home, while higher rates may limit your budget.



Lock in a Low Rate: Check today’s rates and see how much more home you can afford with a competitive mortgage rate.







How to Improve Your Affordability



If you’re finding that your current income, down payment, or DTI doesn’t allow you to afford the home you want, don’t worry. There are ways to improve your affordability. Consider paying down debt to lower your DTI, saving for a larger down payment, or exploring mortgage programs that require less upfront cash. You can also improve your credit score, which could qualify you for better interest rates and save you money in the long run.



Boost Your Affordability: Speak with our mortgage experts to learn how you can improve your affordability and get closer to your dream home.







Conclusion



Understanding how much home you can afford is the first step toward making smart homebuying decisions. By taking into account your DTI, down payment, monthly payment, and other costs, you can set a realistic budget and find a home that fits within your means. Remember, it’s not just about the price of the home—it’s about ensuring you can comfortably manage all the costs associated with homeownership.







Get Started Today: Contact Better Rate Mortgage for personalized advice and find out exactly how much home you can afford.



Sean Zalmanoff 10/2/24

### Why Fed Rate Cuts Don’t Directly Affect Mortgage Rates – And What Really Does

When the Federal Reserve cuts interest rates, many potential homebuyers and homeowners think this means mortgage rates will immediately follow suit. But here's the truth: the relationship between Fed rate cuts and mortgage rates is far more complex. In fact, the Fed's rate decisions have no **direct** impact on mortgage rates. What truly influences mortgage rates are **inflation** and the broader economic outlook. Let’s break down why—and what you should really be watching.Take Control of Your Mortgage Today! Click here to see how current market trends affect your mortgage options. The Myth of Fed Rate Cuts and Mortgage RatesIt’s easy to assume that when the Fed cuts rates, mortgage rates will drop in tandem. But mortgage rates are tied to the bond market, not the Fed’s short-term interest rates. Mortgage lenders look to long-term bonds, like the 10-year Treasury yield, which moves based on market sentiment about future economic conditions, especially inflation. When the Fed lowers rates, it can signal their concern about slowing economic growth, but this doesn’t mean mortgage rates automatically go down.Get Expert Guidance! Curious about how today’s economic climate impacts your mortgage? Contact us to better understand your options.Why Inflation Matters More for Mortgage RatesInflation is the real driver behind mortgage rate changes. Lenders are focused on preserving their returns over the life of a mortgage. When inflation is expected to rise, lenders demand higher rates to compensate for the decreasing value of future interest payments. On the flip side, when inflation appears to be under control, mortgage rates tend to be lower because the long-term value of money is more predictable. This is why inflation data and expectations play a much greater role in shaping mortgage rates than any single Fed rate decision.Take Action Today! Get pre-approved and lock in a rate before inflation impacts mortgage costs further.Messaging from the Fed and Its Impact on Mortgage RatesEven though the Fed’s rate cuts don’t directly affect mortgage rates, their messaging can move markets. When the- Fed signals concerns about inflation or future rate hikes, it can cause bond yields—and subsequently, mortgage rates—to rise. On the other hand, if the Fed communicates confidence in keeping inflation low, it can drive mortgage rates lower. This dynamic shows that it’s not just the action of cutting or raising rates that matters but the broader message about the Fed’s economic outlook.The Bottom Line: Watch Inflation and Market Signals, Not Just the FedWhile it’s tempting to focus on headlines about the Fed’s rate moves, savvy homebuyers and homeowners need to pay closer attention to inflation trends and the overall economic outlook. These factors have a much more significant impact on mortgage rates. If you’re looking to buy a home or refinance, now is the time to stay informed and take advantage of favorable market conditions before inflation data drives rates higher.Make the Smart Move! Contact us today to see how inflation data and market conditions are influencing mortgage rates—and how you can take advantage of the current environment.



Sean Zalmanoff 9/16/24

### Do Mortgage Lenders Require Home Inspections? Debunking the Myths

When you're navigating the homebuying process, you're bound to encounter various steps that might seem confusing. One common misconception is the assumption that mortgage lenders require home inspections before approving your loan. But is this really true? Let's dive into the details and clear up this widely misunderstood aspect of homebuying.



The Truth About Home Inspections and Mortgage Lenders



Contrary to popular belief, most mortgage lenders do not require a home inspection. While a home inspection can be a crucial part of the homebuying process, lenders typically focus on a different, but similar-sounding, requirement: the home appraisal. These two are often mixed up, but they serve different purposes.




Home Appraisal: This is what lenders require to ensure that the home’s market value aligns with the loan amount. The appraisal protects the lender's investment, ensuring the home is worth the money they are lending you.



Home Inspection: This, on the other hand, is an in-depth examination of the property's condition, checking for potential issues like structural damage, plumbing, and electrical problems. Home inspections protect you—the buyer—by identifying potential repair costs and safety concerns.




Why You Should Still Consider a Home Inspection



Just because your lender doesn't require a home inspection doesn’t mean you should skip it. Purchasing a home is likely one of the biggest investments you'll ever make, and understanding the true condition of the property is key to making an informed decision.



A professional home inspector can uncover issues that aren’t visible during a casual walk-through, like hidden mold, foundation problems, or faulty wiring. While an inspection might add a few hundred dollars to your upfront costs, it can save you thousands in future repairs. In many cases, buyers use the findings from the home inspection to negotiate repairs or even a lower purchase price.



Key Differences Between Appraisals and Inspections




Purpose: Appraisals focus on the home’s value, whereas inspections evaluate the home’s condition.



Required By: Lenders require appraisals, while inspections are optional but strongly recommended for buyers.



Cost: Appraisals typically range from $400-$600, while inspections may cost around $300-$700, depending on the home’s size and location.




The Bottom Line



While mortgage lenders don't require a home inspection, it’s a vital step that protects your investment. Lenders care about the value of the home for loan security, while buyers should care about the condition of the home for long-term livability and cost savings.



Skipping an inspection could cost you dearly in the long run, even if it saves you some upfront cash. The peace of mind that comes with knowing the ins and outs of your potential new home is invaluable—and that’s something every homebuyer should consider carefully.



FAQs:




Is a home inspection mandatory? No, but it is highly recommended to avoid unforeseen issues.



Can I get a loan without a home inspection? Yes, lenders don't require it. However, opting for one can be a smart choice for you as a buyer.



What if the inspection reveals major issues? You can negotiate repairs with the seller or potentially walk away from the deal, depending on your contract terms.
















Conclusion: While not required by lenders, a home inspection is an essential tool for homebuyers that can provide significant benefits in terms of negotiating power and long-term peace of mind. Make sure you know what you're buying before you sign on the dotted line.



Sean Zalmanoff 8/27/24

### The Myth of a Housing Recession

The Myth of a Housing Recession: It’s All About Inventory



Despite recent headlines and widespread concern, claiming we are in a housing recession oversimplifies the complex dynamics at play. While it's true that existing home sales have fallen to levels not seen since 1978, attributing this solely to a housing market downturn misses a critical factor: the severe lack of inventory.



A Deeper Dive into the Numbers



The drop in home sales is not necessarily a sign of decreased demand but rather a symptom of insufficient supply. In many desirable markets, potential buyers are left with few options due to the scarcity of available homes.



The Supply-Demand Imbalance



The fundamental principle of supply and demand provides a clear explanation. High demand with low supply creates a bottleneck, pushing prices up and limiting the number of transactions. This phenomenon is particularly evident in urban and suburban areas where population growth and housing demand continue to rise, but new construction lags.



Economic Factors and Construction Challenges



Several factors contribute to the current inventory shortage:




Rising Construction Costs: Material costs, labor shortages, and regulatory burdens have    significantly increased the cost of building new homes. Builders are cautious, often limiting new projects to higher-end properties to ensure profitability.



Post-Pandemic Shifts: The COVID-19 pandemic altered living preferences, with more people seeking larger homes or relocating to less densely populated areas. This shift has further strained inventory in these newly popular regions.



Existing Homeowners Staying Put: With historically low interest rates locked in over the past decade, many homeowners are reluctant to sell and lose their favorable mortgage terms. This has reduced the turnover of existing homes, exacerbating the supply issue.




The Resilient Demand



Despite the lower sales volume, demand remains robust. Millennials, the largest generational cohort, are reaching prime homebuying age, creating a substantial base of potential buyers. Additionally, economic indicators such as employment rates and wage growth remain strong, further supporting sustained demand for housing.



Market Adjustments and Future Outlook



The current market dynamics suggest an adjustment period rather than a recession. As builders gradually overcome supply chain disruptions and adjust to new economic realities, we can expect a gradual increase in housing inventory. This will help balance the market, alleviate price pressures, and potentially boost sales volumes.



Conclusion



Labeling the current situation as a housing recession overlooks the nuanced reality of the market. The crux of the issue lies in inventory shortages, not a lack of demand. By focusing on increasing housing supply and addressing the underlying challenges faced by builders, we can foster a healthier, more balanced market. The future of housing depends on our ability to adapt and innovate, ensuring that supply meets the persistent and growing demand.



In summary, while the housing market faces significant challenges, the narrative of a recession is premature. The lack of inventory is the primary driver of reduced sales, and addressing this issue will be key to stabilizing and revitalizing the market.



Sean Zalmanoff 7/23/24

### Understanding Home Affordability: A Guide for Prospective Homebuyers

When it comes to buying a home, one of the most crucial questions to ask yourself is, "How much home can I afford?" It's a question that can feel overwhelming, but with the right approach and information, you can navigate this aspect of home buying with confidence. At Better Rate Mortgage, we're here to help you understand the factors that influence home affordability and guide you through the process.



Key Factors Influencing Home Affordability



1. Your Income and Debt-to-Income Ratio



Your income is the foundation of your home-buying budget. We typically recommend that your monthly mortgage payment should not exceed 35% of your gross monthly income. Additionally, your total debt payments (including your mortgage, car loans, student loans, and credit card payments) should not exceed 45% of your gross income. This is known as the debt-to-income (DTI) ratio, and it's a crucial metric that lenders use to determine how much mortgage you can afford. These percentages are only rough guidelines, once we analyze your goals, we will come up with a customized plan for you.



2. Down Payment



The size of your down payment significantly affects your mortgage affordability. A larger down payment reduces the loan amount, leading to lower monthly payments, but is not always the best option. You can put as little as 1% down on conventional mortgages, 0% down on VA and USDA mortgages, and 3.5% on FHA mortgages. There are also other low down payment options, especially for first-time homebuyers.



3. Interest Rates



Mortgage interest rates play a critical role in determining your monthly payment. At Better Rate Mortgage we pride ourselves on the competitive nature of our company and our market knowledge, we stay on top of the market and educate you to make so we can make the best decision together!



4. Loan Term



The term of your mortgage also affects your affordability. A 30-year mortgage typically has lower monthly payments compared to a 15-year mortgage, although you'll pay more interest over the life of the loan. We help you evaluate which term aligns best with your financial goals and monthly budget.



5. Property Taxes and Insurance



Don't forget to factor in property taxes and homeowners’ insurance. These costs vary by location and can add a substantial amount to your monthly payment. Use our online calculator to estimate these expenses: https://betterratemortgage.com/accurate-mortgage-payment-calculator/



6. HOA Fees



If you’re buying a home in a community with a homeowner’s association (HOA), you’ll need to budget for monthly HOA fees. These fees cover the maintenance of common areas and amenities but can vary widely.



Calculating Your Home Affordability



Step 1: Determine Your Gross Monthly Income



Include all sources of income such as your salary, bonuses, and any other income streams.



Step 2: Calculate Your Monthly Debt Payments



List all your monthly debt obligations, including car loans, student loans, and credit card payments.



Step 3: Estimate Your Monthly Mortgage Payment



Use the 35/45 rule as a guide. Your monthly mortgage payment (including taxes and insurance) should be no more than 35% of your gross monthly income, and your total debt payments should not exceed 45%.  Remember this is just a guide, we will help you determine what makes the most sense for you.



Step 4: Consider Down Payment and Loan Terms



Adjust your calculations based on your available down payment and the mortgage term you’re considering.



Tools to Help You



Online Mortgage Calculators



Take advantage of our online mortgage calculators to get a clear picture of what you can afford. These tools allow you to input different down payments, loan terms, and interest rates to see how each factor affects your monthly payment. https://betterratemortgage.com/accurate-mortgage-payment-calculator/



Pre-Approval



Getting pre-approved for a mortgage can give you a realistic idea of how much home you can afford. It also shows sellers that you’re a serious buyer, which is the only way to get your offer accepted in a competitive market.  Reach out to learn more about our $5,000 Seller Guarantee to really make your offer stand out.



Why Choose Better Rate Mortgage?



Understanding home affordability is crucial for making informed decisions during your home-buying journey. By considering your income, debt, down payment, interest rates, and additional costs, you can determine a realistic budget and confidently move forward in your search for the perfect home.



At Better Rate Mortgage, we’re committed to helping you every step of the way. Our team of experts provides personalized advice and the best mortgage options tailored to your needs. Let's make your dream of homeownership a reality.  We’re here to ensure that you not only understand your affordability but also get the most favorable rates and terms for available.



Reach out to us today and let our team at Better Rate Mortgage open the door to more.



For more information, tools, and resources, visit Better Rate Mortgage.







Published 6/2/24

### Navigating the Unpredictable: The Future of Mortgage Rates Explained

Author: Sean Zalmanoff, Mortgage Expert







As a seasoned loan officer, one question frequently comes my way: "What's going to happen with mortgage rates?" The short answer? It hinges entirely on the economic data we see and the trends that develop from them. Anyone claiming to predict these rates is essentially making a guess, sometimes educated, but mostly just a guess, amidst a sea of market uncertainty.



Unprecedented Market Volatility



In my decades of experience in the mortgage industry, I've never encountered a market as unpredictable as the one we're navigating today. The current volatility can be attributed to a myriad of factors, from consumer price indexes and retail sales numbers to job reports and wage growth. These elements have become focal points for market sensitivity, especially in the wake of the significant inflation we've experienced in recent years.



Inflation's Slowdown: What It Means



Interestingly, while the rate of inflation has begun to slow, it's crucial to understand that this doesn't imply a decrease in prices. Rather than goods costing 8% more than the previous year, the aim is to reduce that figure to around 2%. Currently, inflation hovers around the 3% mark, still higher than desired. This persistently high inflation rate keeps mortgage rates elevated, along with other interest rates.



The Wait-and-See Approach



The data from February, reflecting January's figures, poses a question: Was the observed spike in inflation a one-off occurrence or the beginning of a trend? As we look ahead, it's clear that speculation won't lead us to the answer. The only prudent approach is to wait and see what the next month's data reveals.



In this climate of unpredictability, my advice remains steadfast: patience, vigilance and to lock your loan in and not gamble. Jumping to conclusions based on incomplete data does a disservice to anyone looking to make informed decisions about mortgages. As we await further economic indicators, remember that anyone offering a definitive outlook is not presenting the full picture.



Stay tuned for next month's update, where we'll delve deeper into the latest economic data and its implications for mortgage rates. Until then, remember—the future of mortgage rates is a puzzle that only time can solve.











February 21, 2024

### The Turning Tide: How the Federal Reserve's Recent Moves Are Shaping Mortgage Rates

Author: Sean Zalmanoff, Mortgage Expert







After months of anticipation, we're witnessing a pivotal shift in the mortgage landscape. I've been emphasizing the significance of the Federal Reserve's actions in influencing mortgage rates. Now, it seems, we're at a watershed moment.



The Flag on the Hill: A Signal of Change



The Federal Reserve, led by Chairman Jerome Powell, has long been the watchtower for market directions. In recent times, their stance on interest rates has been the subject of much speculation. This week, however, Chairman Powell took a step that resonates deeply with the markets. Without outright declaring victory over economic challenges, Powell's statements have been a beacon, signaling a possible end to the era of rate hikes.



A Milestone in Mortgage Rates



This week's Fed policy meeting brought a pleasant surprise: the best mortgage rates we've seen in eight months. This development is a direct consequence of the Fed's latest meeting and Powell's impactful statements. While much of the meeting aligned with expectations, maintaining consistent language about future rate hikes, the standout element was the hint of an impending end to the cycle of rate increases.



Predictions and Cautions



Just a week ago, many economists anticipated up to six rate cuts by the Fed next year. I'm inclined to diverge from this view. Given the robust nature of our economy, still in a growth phase, a spree of rate cuts seems unlikely. The Fed's cautious approach, aimed at not fueling the inflation fire, appears to be a wise strategy.



The Dot Plot: A Forecast with a Grain of Salt



One intriguing aspect of the Fed meetings is the release of the 'dot plot' – the Fed's forecast for future rates. Despite its historical inaccuracy, the dot plot wields considerable influence over market reactions. This prediction, suggesting three rate cuts next year, took the markets by surprise. Remember, when the bond market 'loves' something, it means rates drop as bond prices rise – they have an inverse relationship.



The Road Ahead



The coming weeks and months may bring changes, but for now, we're experiencing a much-needed respite in mortgage rates. My commitment remains steadfast: to guide and support you through these evolving financial landscapes.







Stay tuned for more insights and updates on mortgage trends.



Posted 12/15/2023

### Navigating Markets Amidst Turbulence: A Heartfelt Update 🌍

Hey there, folks. I hope you're doing well in these times of change and uncertainty. This week's market update is coming with a heavy heart. We can't avoid talking about the recent terrorist attacks in the Middle East and how they're shaking up our financial world. These events have a profound impact, and it's crucial to understand what's happening and how it might affect us.



First Things First - Support for Our Heroes



Before we dive into the market rollercoaster, I want to take a moment to acknowledge those who are directly affected by these events. If you have a loved one called into duty or deployed, my heart goes out to you. I know several friends whose family members are on assignments that have been abruptly called to duty. I pray for their safe return and a swift resolution to these challenging times. No one should ever have to endure what's happening, but sadly, it's the world we live in today.



Markets in the Face of Uncertainty



When uncertainty rocks the world, we often see a phenomenon known as the "flight to safety." During times like these, stocks are typically sold off, and money flows into bonds, a safe haven for investors. As bonds are purchased, they drive interest rates down.



In the early part of this week, we witnessed a drop in interest rates. It was quite unique because the markets were closed on Monday due to the holiday. However, on Tuesday, we saw substantial interest rate drops, primarily due to futures trading. This trend continued through Wednesday and Thursday morning.



Shifting Tides and Market Impact



Then came Thursday, when the Consumer Price Index (CPI) was released, and it showed hotter-than-expected numbers. This gave more momentum to the Federal Reserve's decision to keep rates at the current level for a longer duration. Consequently, mortgage rates shot up. But today, we received some positive news regarding the trade deficit and import prices, leading to a market rally.



Overall, rates have slightly improved this week, and it seems we are nearing a market peak. However, this situation remains data-dependent, especially after the release of the CPI.



The Fed's Dilemma



As for the Fed, the chances of a rate hike in November stand at about 9%, while the December meeting has roughly a 30% chance of a hike. The Fed seems to be edging closer to the end of their rate-raising journey, although the full impact of their previous hikes is yet to be felt.



Silver Lining in Real Estate



In the midst of these financial fluctuations, it's still a great time to buy a house and become a homeowner. There's less competition in the market than we've seen in the past four years. Yes, interest rates are a bit higher, but the potential to refinance in the future might make it worth your while.



Let's Connect



As always, I'm here for all your mortgage needs, and if you ever need recommendations for roofers, plumbers, or electricians, I've got a list that might come in handy.



To all those with family members called into duty or facing challenging times, I wish for their safe return and a peaceful resolution to these trying circumstances. We're in this together, and I'm here for you.



I'm Sean Zalmanoff, and if you need anything or just want to chat, don't hesitate to reach out. Peace out, and let's navigate these times together.











Poted 10/13/2023

### Navigating the Rocky Road of Bond Capitulation: A Rollercoaster Update 🎢

Grab your favorite ice cream (not the rocky road variety), and let's chat about the tumultuous ride in the world of bonds. Spoiler alert: it's not as delicious as that chocolaty, marshmallowy treat.



Fed's Rumble and Tumble



Last night, bonds faced a large sell-off as the echoes of the Fed's statements reverberated through the markets. The word on the street? Another rate hike is looming. Now, call me old-fashioned, but I think the Fed has pushed the pedal to the metal, raising the overnight lending rate by a whopping 5.25% in the last 18 months. That kind of shift can't magically ripple through the economy yet.



But here's the kicker—I've got my eyes on the canaries in the coal mine, aka the trucking companies. When these guys start tapping the brakes, it's a signal that fewer goods are hitting the road because, well, fewer things are being ordered. Cue the economic slowdown.



Market Watch: Economic Data Extravaganza



Hold on to your calculators, folks! This week is a data extravaganza, culminating in the BLS Jobs Report on Friday. If we catch a break on the inflation front, we might just be able to stop the bleeding and capitulation in bond trading. Remember that "higher for longer" bombshell the Fed dropped a few weeks ago? Spooky stuff, especially since their crystal ball tends to be a bit cloudy. Case in point: two years ago, they were singing the "transitory inflation" anthem while we were all feeling the pinch.



Surprise, Surprise: Jolts in the Numbers



This morning, the Jolts number hit the scene, and oh boy, it was a surprise package. Job openings, the lifeblood of economic vitality, jumped to a whopping 9.6 million when the forecast was a more modest 8.8 million. More job openings might sound like good news but hold your horses. It could mean companies may be digging deeper into their pockets to attract talent, and that spells more inflation trouble. The mortgage rates, sadly, are setting new 23-year highs today.



Tomorrow's Tease: ISM Non-Manufacturing PMI



Set your alarms because tomorrow morning, we've got the Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) hitting the stage at 9 AM. Why is this important? It's where the consumer money dance is happening—weddings, vacations, and all the fun stuff. If this number slows down for a few more months, I'm placing my bets on a downward trend in inflation in the following months.



The Wheel Keeps Turning



And so, my friends, the wheel of financial craziness keeps on turning. Fear not, for I shall be your trusty guide through this storm. Whether it's deciphering economic indicators or helping you navigate the mortgage maze, I'm here for you.



Stay tuned for more updates because in the world of finance, the only constant is change.











Published 10/3/2023

### Navigating the Fed's Next Move: Your Mortgage Rate Outlook

Hey there, everyone! As we gear up for another crucial meeting of the Federal Reserve, all eyes are on them this week. These meetings happen only eight times a year, and they tend to steer the ship for our financial world. So, what can we expect? Let's dive in and explore the latest on the Fed and what it means for your mortgage rates.



Inching Towards Pause, but Not Quite There



Now, if you're hoping for the Fed to come out and declare an end to their rate hikes, I'd say hold onto your optimism for a little longer. While I believe they'll continue their pause, saying they're done might be a stretch at this point.



We're all eager for the Fed to plant their flag on the hill and shout "mission accomplished" in their battle against inflation. But let's face it, the data hasn't handed them that victory just yet.



A Strong U.S. Economy, but Inflation's Still a Player



In the grand scheme of things, the U.S. economy is looking robust. It's like a well-tuned engine, revving and ready to go. However, inflation, while it has taken a step back, is far from throwing in the towel. Last week's surprise with CPI, PPI, and Retail Sales all coming in hotter than expected was a stark reminder of that.



Remember, inflation is the archenemy of bonds. If bonds were superheroes, they'd be Batman, and inflation? Well, that's the Joker. The higher inflation climbs, the higher your mortgage rates and the cost of everything else you pay for.



Could the Fed Be Done?



Here's an intriguing thought – could the Fed be ready to call it a day when it comes to raising rates? They've already raised the Fed funds rate over 500 basis points in the past year and a half. But here's the twist – not all the effects of those hikes have rippled through the economy yet.



So, where does that leave us? Well, my friends, this is a cliffhanger that the Fed meeting might just shed some light on.



Stay Tuned for More Updates



Keep your seatbelts fastened and your eyes on the horizon because this financial rollercoaster is far from over. The Fed's next move could hold the key to what lies ahead for your mortgage rates.



Stay connected with us here at Better Rate Mortgage for more updates and insights. We're here to make sure you're informed and equipped to navigate the ever-changing world of mortgage rates.



In the world of finance, knowledge is power. Don't miss out on critical updates. Stay tuned, stay informed, and let's see where this financial journey takes us!



Published 9/18/23

### The Student Loan Dilemma: Don't Let It Derail Your Home Purchase!

Attention all homebuyers, sellers, and agents! We're about to drop a bombshell that could make or break your next real estate transaction. Brace yourselves, because as of September 1st, the student loan landscape just got a lot more complicated. It's a situation that most lenders might not be shouting about, but you need to know. Your trusted source for real estate advice is here, and we won't let you down.



The Student Loan Storm



Picture this: you're all set to buy your dream home, or you're an agent helping a client find the perfect property. Everything seems smooth sailing until you realize that student loans, yes, those seemingly dormant financial obligations, are about to make a thunderous comeback.



Starting on September 1st, the interest on student loans began accruing again, and come October 1st, payments are due. That's right, folks, if your student loans have been lounging in deferment for a while, it's time to wake them up, and that's where the trouble can begin.



Deferment vs. Reality



When your loans are in deferment, the rules for calculating your payments are relatively straightforward. Fannie Mae, Freddie Mac, and the FHA have specific guidelines for this scenario. But now, as borrowers start making payments again, the game changes.



We're talking about a shift from hypothetical deferment-based calculations to cold, hard reality – your actual payments. And here's the kicker – some of these real-world payments might be higher than what those deferment-based calculations suggest. It's a curveball that could throw a wrench into your home buying plans.



Stay Informed, Stay Ahead



So, whether you're the buyer's agent, the seller's agent, or the one looking to purchase a home, the key is awareness. You absolutely need to know what's happening with your or your client's student loans. Ignorance is not bliss in this situation; it's a recipe for disaster.



Don't let student loans wreck your next purchase transaction. If your lender isn't keeping you in the loop about this crucial development, it's time to reconsider your options. Your dream home shouldn't be sacrificed because of a lack of information.



Conclusion: Your Trusted Resource



At Better Rate Mortgage, we've got your back. We're not just here to help you find the perfect property or close the deal; we're here to ensure that every aspect of your real estate journey is smooth sailing. Student loans might be a silent threat, but with us by your side, you'll be equipped to navigate this storm and secure your dream home.



Remember, in the world of real estate, information is power. Don't let student loans surprise you or your clients. Connect with us today, and let's make sure your next home purchase is a success story, not a financial nightmare.



Your dreams, your home, your future – we're here to make it happen, no matter the obstacles. Get in touch with us now, and let's tackle this student loan challenge together!

### Navigating Mortgage Rate Trends: Finding Optimism Amidst Market Swings

If you've been keeping an eye on mortgage rates lately, you might have noticed some intriguing shifts. Last week, we might have witnessed a significant turning point in rates that left experts like me hopeful. Let's break down the recent events and what we might expect in the near future.



Reading the Market Tea Leaves



For the past few weeks, the world of mortgage rates has been a roller coaster ride, with bond traders relentlessly pushing rates higher. However, amidst the turbulence, a glimmer of hope emerged in the form of a "Bullish Hammer" pattern. And guess what? The trading patterns have lent their support to this optimistic signal.



Look at the graph at the top of this blog post – that unassuming circle holds a secret. Squint a little (or maybe a lot!), and you'll spot a resilient green hammer. Since that remarkable day, we've witnessed improvements, and things got an extra boost recently due to some unexpected news.



JOLTS in Our Favor



Ever heard of JOLTS? It stands for Job Openings and Labor Turnover Survey, and it's a key economic indicator. Recently, the JOLTS data was released, revealing a surprising 8.82 million job openings, well below the forecasted 9.46 million. What might sound like mere numbers has intriguing implications – it suggests the economy might be contracting, a scenario that's bond-friendly and ultimately leads to rate improvements.



Here's the deal: remember that handy graph with the red and green candles? Each of those represents a day of trading. And in the world of mortgage rates, there's an inverse relationship between yields and prices. The higher up those yields climb, the lower the rates go. So, it's as simple as this – green signifies good news, while red, well, not so much.



What's on the Horizon



The excitement doesn't stop here, my fellow rate-watchers. Brace yourselves for an upcoming data bonanza that's likely to have an impact on rates. We're talking about the GDP and ADP numbers tomorrow, PCE on Thursday, and the highly anticipated Non-Farm Payrolls on Friday. If these upcoming releases continue to lean towards inflation-friendly figures, brace yourself for the possibility of even more rate improvements.



Closing Thoughts: Seeing the Silver Lining



As we look at the recent market trends, it's clear that mortgage rates are anything but static. The "Bullish Hammer" pattern might just be the guiding light we need after weeks of ups and downs. With economic indicators like the JOLTS data hinting at a contracting economy, there's room for optimism about rate improvements.



So, here's the bottom line, dear readers – while the journey of mortgage rates might be unpredictable, understanding the signals and patterns can help you make informed decisions. Keep your eyes peeled for those signals or just come back here or call me for the latest info!







Published 8/29/23

### Decoding Market Dynamics: Hot Retail Sales vs. Bond Market Rally - What's Up with Mortgage Rates?

We're back with a market update, and boy, do we have a head-scratcher for you. Buckle up as we dive into the intriguing twists and turns that have been keeping us all on our toes.



So, picture this: the retail sales numbers drop this morning, and let's just say, they were on fire. Much hotter than anyone had even dared to anticipate. Now, if you're thinking that mortgage rates would've gone into overdrive and shot sky-high, you're not alone. But here's the plot twist – the bond market, in all its unpredictable glory, decides to rally instead. And guess what? Rates? Yep, they're actually showing a slight improvement.



I know, I know, it sounds like a classic case of market madness. You're not alone in feeling a tad bewildered. We've been witnessing these roller-coaster-like trends that defy every ounce of logic. But here's the kicker – this isn't a one-off. It's been the name of the game for a few weeks now.



The thing is, the market seems to have embraced its role as the conductor of a symphony of surprises. It's like we're all just along for the ride, trying to make sense of moves that seem to dance to their own rhythm.



So, while you're here scratching your head, just remember, it's not you – it's the market. We're right there with you, trying to unravel the mysteries and keep our finger on the pulse of these quirky trends.



Stay tuned for more updates, because one thing's for sure: as long as the market keeps the surprises coming, we'll be here to break it all down for you.



Catch you on the flip side.















Published 8/15/2023

### Understanding Mortgage Rates and the FED: Unveiling the Impact of Rate Hikes and Market Uncertainty

Mortgage rates have shown little change since the start of last week but brace yourself for potential fireworks on Wednesday. The Federal Reserve (FED) is expected to raise rates by 25 basis points. However, don't worry about rates skyrocketing in response, as the market has already factored in this adjustment. What truly matters is the FED's statement - will it offer hints of a possible future pause or signal the end of rate hikes? 



I'm inclined to believe that the FED won't outright declare an end to rate hikes. Instead, they might emphasize that future decisions will be data dependent. This stance could be beneficial for mortgage-backed security pricing, ultimately leading to more favorable mortgage rates. Typically, mortgage rates run approximately 1.75 to 2% higher than the 10-Year Treasury note. Presently, the 10-Year Treasury stands at 3.87%, indicating that 30-year fixed rates should ideally be below 6% based on historical trading trends. 



However, that's not the case; mortgage rates are currently a full point higher. So, why the disparity? The uncertainty prevailing in the market has prompted investors to anticipate increased volatility. Once the FED signals the end of rate hikes, the gap between Treasury rates and mortgage rates will likely narrow, causing rates to decline. 



Keep in mind that we still have a few more months before the FED may consider such a declaration. In the meantime, it's an opportune moment to consider buying a home. As rates eventually drop, demand will rise, impacting prices as well. Rest assured, I'll keep you well-informed of any developments in this dynamic landscape!

### Exploring Your Loan Options: No Points, No Regrets!

Here's the thing: some lenders out there have ridiculously high margins built into their pricing. As a result, they can't offer a loan without points to borrowers like you. It's pretty frustrating, to be honest.



Now, there are other lenders who try to compensate for their not-so-great rates by charging points. But let me tell you, that's a major disservice. Why? Because most people who are getting a loan these days will refinance within the next 18 months. And guess what? There simply isn't enough time to recover the points paid before they go ahead and refinance.



So, my point is this: don't fall for the "pay points to get a good rate" trap. It's just not worth it, especially considering where the market will head.



I want to make sure you're aware that we're not like those lenders. We believe in offering you the best rates without resorting to points. Our goal is to help you save as much as possible on your loan today, knowing that you'll be refinancing in the near future when rates are expected to drop. 



By choosing not to pay points, you'll be putting yourself in a better financial position. You'll have more flexibility and freedom when it comes to your loan, and you won't be tied down by unnecessary fees.

### Should You Buy a House With Foundation Issues?

In some cases, foundation issues can be repaired, but in other cases, they may be too expensive or difficult to fix.



When you are buying a house, it's crucial to inspect the property carefully. You should especially look for any signs of foundation issues. But what happens if you find the house has foundation problems? Should you still buy it? 



The team at Better Rate Mortgage specializes in making the home purchase a great experience. Below, we'll explore this question and help you make an informed decision.







What Are Foundation Issues?



Foundation issues refer to any problem with the support structure of a house. The foundation is what the home sits on, and it's essential for the stability of the property. Foundation problems can range from small cracks to complete failure of the foundation. In some cases, foundation issues can be repaired, but in other cases, they may be too expensive or difficult to fix.



Signs of Foundation Issues



Here are 4 signs that a home may have foundation issues:




Cracks in the walls or floors - This is probably the most obvious sign of foundation trouble. If you see cracks, especially if they're large or spreading, it's best to err on the side of caution and move on to another property.



Gaps around doors or windows - If doors and windows no longer fit snugly against their frames, that's a sign that the house is settling and the foundation is shifting.



Pooling water around the house - If water is pooling in the yard or near the foundation, it could be a sign of drainage problems or leaks in the foundation itself. Either way, it's not something you should ignore.



Uneven floors - If you notice that floors are no longer level, it's a good indicator that the foundation is settling unevenly.




Should You Buy a House With Foundation Issues?



If you are considering buying a house with foundation issues, you should consider a few things.



The Severity of the Problem:




First, you need to determine the severity of the problem. If the issue is minor, such as some cracks in the foundation, it may be possible to repair the problem. However, if the case is more severe, such as a shifting foundation, it may be necessary to replace it altogether. This can be an extremely costly repair.




The Cause:




Another thing to consider is why the foundation is having problems in the first place. If the problem is due to poor construction or materials, the issue will likely continue to be a problem in the future. On the other hand, if the problem is due to an environmental issue, such as erosion, it may be possible to mitigate it.




Your Budget:




Finally, it would be best to consider whether you are willing and able to fix the problem. Foundation repairs can be very expensive and time-consuming. If you are not prepared to make the necessary repairs, walking away from the property is better.




Considering all these things, you'll be able to make an informed decision about whether or not to buy a house with foundation issues.



The Better Rate Mortgage Team



Are you considering buying a house and need a home loan? Contact Better Rate Mortage - we can help you get the financing you need.

### 5 White Lies That Can Hurt Your Chances of Approval For a Mortgage

Here are a few of the most common lies told on mortgage applications - and why you should avoid them at all costs.



We all want to put our best foot forward, especially when journeying towards something we want. And when it comes to buying a home, getting approved for a mortgage is often the make-or-break factor. So it's no wonder some people are tempted to fudge the truth on their mortgage applications. Unfortunately, while a little white lie might seem "trivial," it can seriously damage your application.








Inflating Your Income - One frequent fib is inflating your income to make yourself look more financially stable. Unfortunately, this strategy can backfire. First of all, most lenders require tax returns or pay stubs as proof of income. So if you inflate your income, you're likely to get caught. Secondly, even if you manage to get away with it, you could end up in over your head financially if your actual income doesn't meet the expectations. So why take the risk? Just be honest from the start, and you'll have a much better chance of getting approved for a mortgage.



Claiming You Have a Higher Credit Score Than You Actually Do - Lenders will pull your credit report as part of the loan application process, so it's only a matter of time before they find out the truth. Plus, if you're not approved because of your low credit score, you'll damage your credit further by applying for multiple loans.



Overstating Your Assets - Another common misrepresentation is overstating your assets. Again, lenders will find out about these eventually - so it's best to be upfront about them from the start.



Omitting Debts From Your Credit History - Another white lie that can hurt your chances of getting a mortgage is failing to disclose all your debts. This includes credit card debt, car loans, student loans, etc. Lenders need to know about your debts to assess your financial situation properly. If you fail to disclose any of your debts, it'll likely lead to a denial of your mortgage application.



Misrepresenting Your Employment Status - With employment history under intense scrutiny these days, more and more people are misrepresenting their employment status on their mortgage applications in an effort to obtain approval. Unfortunately, mortgage lenders take discrepancies in your employment history very seriously, and even a small lie can jeopardize your chances of getting approved for a loan. So if you're tempted to exaggerate your work history, think twice - it's not worth risking your chance to buy a home.




While it's understandable to want to put your best face forward, it's essential to be honest about who you are and what you can afford. After all, a mortgage is a big responsibility - and one that you'll be stuck with for years to come.



Contact Better Rate Mortgage



Are you looking for a mortgage? We can help. The Better Rate Mortgage Team offers a variety of loan programs to fit your needs. Contact us today to learn more.

### Why Take the Time to Look at Multiple Homes Before Making an Offer

Looking to buy a new home and need a mortgage? We can help! Better Rate Mortgage offers a variety of mortgage products to fit your needs.



Homebuyers often have the urge to make an offer on a home as soon as they find one they like. They worry they'll miss out on their perfect home if they wait. However, it's essential to resist this temptation and take the time to view various homes before making an offer. There are a few reasons for this.







You'll Know What You Really Want and Don't Want



At first glance, every house looks like a winner. But if you take the time to look at multiple homes, you'll quickly learn what you really want and don't want in a property. For example, you may think you want a house with a large backyard, but after looking at a few homes, you may decide that you'd rather have a smaller yard in exchange for a shorter commute. Or perhaps you think you need a house with four bedrooms, but after touring several properties, you may realize that you'd be just as happy with three bedrooms and extra living space.



The bottom line is that the more homes you see, the better sense you'll have of your must-haves and preferences.



To Avoid Emotional Attachments



It's easy to fall in love with the first home you see, but keeping your head when making such a big decision is essential. Looking at multiple homes will help you stay objective and avoid getting attached to any one property.



You'll Be Able to Negotiate Better if You've Seen Other Homes



Looking at multiple homes will also give you a better sense of the housing market in your preferred area. You'll get an idea of how quickly homes are selling and the kind of prices buyers are willing to pay. This information will be helpful when it comes time to make an offer on a home. With a better understanding of the market, you'll be better positioned to negotiate a fair price for the home you want.



To Avoid Buyer's Remorse



Few life decisions are as sizable or irreversible as buying a home. It's not surprising then that you may feel some buyer's remorse if you didn't take the time to look at multiple homes before buying.



Buyer's remorse is when you make a purchase and then later regret it because you didn't take the time to compare your options. So be sure to take your time, look at several homes, and then make an informed decision. You'll be glad you did.



How Many Homes Should You Look at Before Making an Offer?



Okay, you're convinced that home buyers should take their time and look at several homes before making an offer, but how many is enough? There's no set number of homes that you should look at before making an offer. It's ultimately up to the buyer to decide when they've seen enough properties and are ready to make a decision.



Contact the Better Rate Mortgage Team



Looking to buy a new home and need a mortgage? We can help! The Better Rate Mortgage team offers a variety of mortgage products to fit your needs. Contact us today to get started!

### Factors That Can Hurt a Home Appraisal

These are just a few factors that can impact a home appraisal. Every situation is unique, so be sure to speak to us about any concerns you may have.



Many things can impact the value of your home when it comes time for an appraisal. We'll discuss some of the most common factors that can hurt a home appraisal. Keep in mind that every situation is unique, so if you are unsure whether or not something will impact your appraisal, be sure to speak to your lender or appraiser!







Poor Curb Appeal



Poor curb appeal may be the most obvious factor that can hurt your home appraisal. If the home's exterior is in disrepair, it'll give the appraiser a bad impression from the start. Even small details like peeling paint or an overgrown lawn can make a big difference. Furthermore, any major structural issues with your home, such as a cracked foundation or a leaky roof, will likely result in a lower appraisal value.



Several ways to improve curb appeal include adding landscaping, painting the exterior, and pressure washing the driveway.



The Location of the Property



If the home is located in a high-crime area or an area that is prone to natural disasters, it could lower the value of the house. Additionally, if the home is located in a rural area, it may be challenging to find comparable sales, which could also lower the value.



The Age of the Home



Age also influences how much an appraiser will value your home. In general, an older home will be valued less than a newer one, all else equal. This is because older homes need more repairs and updates than newer ones. Even well-maintained older homes often lack the features and amenities expected by the housing market, such as open floor plans, updated kitchens and baths, and energy-efficient windows.



The Size of the Home



Generally speaking, larger homes are worth more than smaller homes. This is because there is simply more space to work with, and more rooms usually mean more potential buyers. However, there are some exceptions to this rule. For example, a large home in a rural area with little demand for property may not appraise for as much as a smaller home in a more desirable location.



The Condition of the Housing Market



The condition of the housing market can also have an impact on your appraisal. If the housing market is struggling, it could lower the home's value. Additionally, if there are few buyers in the market, it could reduce the value. This is why it's always a good idea to stay up-to-date on the state of the housing market and speak to your lender about how it may impact your home's value.



These are just a few factors that can impact a home appraisal. As we mentioned, every situation is unique, so be sure to speak to your lender or appraiser about any concerns you may have. With a little preparation, you can ensure you get the most accurate appraisal possible!

### Construction Home Loans - What You Need to Know

The Better Rate Mortgage Team specializes in making the home purchase or, in this case, the construction home loan process, a great experience!



Building a home is an incredible opportunity and a popular option these days. When you design and build your own home, you get precisely what you want - walk-in closets and pantry, a guest bedroom, a finished basement, and a primary suite with an en suite bathroom. Anything that you want that you can't quite find in an existing home is possible.



Construction financing options and programs are available to help make your dream home a reality. But how does a construction loan work, and what is the process for obtaining one? 





Building your own home is exciting but also involves a lot of work. More is involved than materials, land, builders, and the time it takes. You'll need to meet several requirements to obtain the necessary financing to make your dream become a reality.



Breaking Down the Loan Process



There are a couple of construction loan options. One option is a two-time closing construction loan. The first loan is an interest-only loan and is for the actual construction. It covers the cost of the land, materials, contractor labor, permits, and other associated expenses.



On average, it takes seven months to build a house from start to finish. During this time you'll pay only interest. This loan works like a line of credit in that it funds a series of draws or installments that cover the costs of the specific building stages. Your interest-only payments are based on these draws and can be made as monthly payments or rolled into the loan itself.



When construction ends, you'll need to qualify for your final loan. This loan will replace your short-term construction loan. This process generally begins when your builder informs us that you're 45-60 days away from completion. At this point, we'll start completing your permanent mortgage.



Other types of construction loans include:




Construction-only loan - This loan provides the necessary funds to complete the home's building. Still, the borrower is responsible for paying the loan in full or obtaining a mortgage to secure permanent financing. This is also an interest-only loan.



Renovation loan - A renovation loan is used if you want to upgrade an existing home rather than build a new one. These come in several forms depending on the amount of money you spend on the project.



Owner-builder construction loan - These are construction-to-permanent or construction-only loans where the borrower also acts in the capacity of the home builder. However, lenders that approve these loans will only allow it if the borrower is a licensed builder by trade.




Construction Loans St. Louis



At Better Rate Mortgage, we have streamlined the construction process to make closing your loan as easy as possible. If you have questions, call us today. Our loan advisors are here to help!

### Mortgages and Loan Programs for Different Types of Properties

Financing is one of the most significant differences between purchasing a single-family home and a different type of property. 



When people think about owning a home or buying residential real estate, they often think of a single-family home. After all, purchasing this type of property is common. However, other residential real estate options might better suit your lifestyle and financial situation.



Financing is one of the most significant differences between purchasing a single-family home and a different type of property. Habitable, existing homes are typically financed with an FHA loan, conventional mortgage, jumbo loan, or VA loan. However, there are other mortgages for other types of properties.









Condominiums



There is generally a little less competition for condos than for single-family houses. This makes these properties more attractive to people who want to buy a home but don't want the hassle of a bidding war. Condos are often ideal for young families and professionals just starting out. It's also an excellent option for empty-nesters who are looking to downsize. Regardless of your situation, there are several benefits to owning a condominium that is worth exploring.



It was problematic to finance condos in the past if they didn't fit within the conventional guidelines of Freddie Mac or Fannie Mae. Condominiums that don't adhere to the appropriate guidelines are referred to as non-warrantable condos, which require non-qualified mortgage financing.



Current rules for FHA loans allow you to purchase a condo within an unapproved complex, known as a spot approval. FHA loans generally offer lower down payments, interest rates, and credit score requirements.



New Construction



Many people choose to build or custom-design a new single-family house. This is accomplished through a construction loan. There are several options when it comes to choosing the right construction loan. One way is to have one loan that funds the construction phase, and then as your home approaches completion, you'll get another loan that pays off the construction loan and becomes your permanent financing.



A construction loan is interest-only, which means you only pay the interest. This can be done in monthly payments or rolled into your loan. Permanent financing is a traditional loan where your monthly payments go toward principal and interest, just like a standard mortgage.



Fixer-Uppers



Do you enjoy DIY projects? Are you a fan of HGTV? Many people buy fixer-uppers because they love the challenge of renovating their own homes. You can buy a house like this with a renovation loan. Whether the house needs a minor fixing up or a complete renovation, there's a loan for that.



Renovations loans finance the cost of the work through your mortgage and can then be used whether you're renovating your current home or buying a new property that needs work. One of the best parts about these loans is that they don't require any money out of pocket.



Investment Properties



People purchase investment properties not because they're looking for a home to live in, but one that can make money. Real estate can be an excellent way to invest as long as you understand the risks and stay within your budget.



Solutions for You



Just as a mortgage is available for every property type, there's also a home loan program for every nontraditional borrower. Are you ready to get started? The Better Rate Mortgage Team can walk you through each type of property and their corresponding financing options. Contact us today to find the right solution for you!

### House Viewing Etiquette Rules for Homebuyers

Just as you would follow specific etiquette rules when visiting someone's house, there are also etiquette rules to follow when viewing a home for sale.



After searching for a while, you've finally found a listing that ticks all of your boxes. It combines location, size, features, and price perfectly. You contact the seller and set up a time to come and take a look. But it's important to remember that you'll be a guest in the seller's home. Just as you would follow specific etiquette rules when visiting someone's house, there are etiquette rules to follow when viewing a home for sale.











Do Your Research Ahead of Time



This is an old but excellent house viewing rule for a reason. Going unprepared leaves too much to chance and often means you'll miss key details. As such, it's best to research the neighborhood and homes in the area ahead of time. This will give you a better idea of what to expect and what is a fair price for the home. In addition, you should be prepared to ask questions about the house and the surrounding area. This will show the seller that you are serious about buying the home and ensure you get all the information you need to make an informed decision.



Arrive on Time



Yes, things happen, but try your best to arrive on time (or even a few minutes early). After all, you would expect the same courteousness if you were the one showing your home to prospective buyers. If you're running late for some reason, do call or text the seller to let them know - courtesy goes a long way.



Respectful of the Seller's Privacy



Be respectful of the seller's privacy. This is their home, and they're likely to live there still while showings occur. That means you need to be mindful of their personal belongings and space. Don't snoop through drawers or open up closets. If you want to get a better sense of the storage space in the home, ask the homeowner if you can take a quick look inside one of the closets.



Speaking of privacy, avoid asking personal questions about the seller or their family. This includes questions about their job, income, or why they are selling the home.



Refrain From Making Negative Comments About the Home



This can be challenging if you find something you really don't like, but it's important to keep your thoughts to yourself. Negative comments could potentially offend the seller and jeopardize your chances of reaching a deal. Some examples of negative comments that should be avoided include:




Criticizing the décor or style of the home



Pointing out faults or problems with the property



Expressing doubts about whether the home is worth the asking price




Plenty of fumbles can turn an excellent house viewing tour into a disaster. Following the proper etiquette can avoid blunders and make a great impression on the homeowners. They might even be more inclined to accept your offer if they know you're respectful and courteous.

### How to Challenge a Low Home Appraisal

Common mistakes on appraisals include incorrect square footage, the wrong number of bedrooms and bathrooms, and errors in the comparables used.



When you are refinancing your home, an appraisal is a key part of the process. Unfortunately, if the appraisal comes in lower than expected, it can throw a wrench in your plans. The good news is there are ways to challenge a low home appraisal and get a more accurate valuation for your property. In this article, we'll discuss the steps you can take to challenge a low appraisal and get an exact value for your home!







Common Reasons for a Low Home Appraisal:



The Appraiser Used the Wrong Comparable Sales



Comparable sales are one of the most significant factors determining your home's value. The appraiser will look at recent sales of similar properties in your area to estimate your home's worth. If the appraiser uses comparable sales that are not similar to your home, it can lead to a low appraisal.



For example, if your home is a four-bedroom house and the appraiser uses comparable sales of one-bedroom apartments, the appraised value will likely be lower than it really is. Or, if the comparable sales are of homes in poor condition, it will again lower the appraised value of your home.



The appraiser Didn't Consider All the Improvements You've Made



Another common reason for a low appraisal is that the appraiser didn't consider all your home improvements. If you've made significant renovations or additions to your home, the appraiser needs to factor that into the equation.



For example, let's say you added a new bedroom and bathroom to your home. If the appraiser didn't consider that, they may use comparable sales of homes without those features, which would lead to a lower appraisal.



The appraiser Is inexperienced or Biased



Unfortunately, not all appraisers are created equal. Some appraisers may be inexperienced and make mistakes that lead to a low appraisal. Others may have a personal bias against your home or property type, leading them to underestimate your home's value. If you suspect that the appraiser may be inexperienced or biased, you can request a different appraiser.



What You Can Do If You Get a Low Appraisal



If you get a low appraisal, don't despair! You can take steps to challenge the appraisal and get a more accurate valuation for your home. Here's what you can do:



Get a Copy of the Appraisal and Look for Mistakes



The first step you should take when challenging a low appraisal is to get a copy of the report from the appraiser. Once you have the report, carefully review it for any mistakes. Common mistakes on appraisals include incorrect square footage, the wrong number of bedrooms and bathrooms, and errors in the comparables used. If you notice any mistakes, be sure to point them out to the appraiser and ask for a revision.



Provide Additional Information to the Appraiser



If you have information about your home that you think the appraiser may not be aware of, you can provide that to them. For example, if you've made major renovations or improvements to your home, ensure the appraiser is aware of that. You can also provide comparable sales that you think are more accurate than the ones the appraiser used.



Get a Second Appraisal



After taking the steps above, you can always get a second opinion if you're still unhappy with the appraisal. You can either ask the lender to provide you with a list of other appraisers you can choose from or hire your own.



Call Better Rate Mortgage 



Are you looking to refinance your mortgage? We can help! We offer competitive rates and flexible terms. Contact us today to learn more!

### How Lenders Determine How Much Mortgage You Can Afford

Many factors determine the amount of money you can borrow for a mortgage.



"How much mortgage can I get?" This is a question that most potential homebuyers ask at some point during their journey. In truth, there's no definitive answer to this question. In this article, we'll discuss five of those factors. 







Your Annual Income (before taxes)



Lenders will want to see proof of your income and your Tax Returns. They will use this information to calculate your Debt-to-Income Ratio, which is a critical factor in deciding whether or not to approve your loan. In general, the higher your income, the more money you'll be able to borrow. 



Employment Status



Your employment status will strongly affect the amount of money you can borrow for a mortgage. If you are employed full-time, lenders will feel more confident in your ability to make regular payments and will therefore be more likely to approve a larger loan. On the other hand, if you are self-employed or have an unreliable income, lenders will be more conservative and may require a higher down payment or a cosigner. In general, the steadier and more reliable your income is, the easier it will be to secure a larger loan.



The Mortgage Term You'll Be Seeking



The mortgage term you'll be seeking also plays a significant role in how much money you can borrow for a mortgage. A shorter-term loan will typically have a lower interest rate, which will save you money over the life of the loan. However, a shorter-term loan also means that you'll have to make higher monthly payments. As a result, you may not be able to qualify for as much money when you're seeking a shorter-term mortgage. On the other hand, a longer-term mortgage will have a higher interest rate but lower monthly payments. This could make it easier for you to qualify for a larger loan amount.



Credit Score



Lenders will look at your credit score to assess the risk of lending you money for a mortgage. The higher your credit score, the lower the interest rate you will be offered and the more money you will be able to borrow. For example, someone with a credit score of 750 or above is considered to have excellent credit and could be offered an interest rate of 3.5% on a $250,000 loan. In contrast, someone with a credit score of 620 or below would be considered to have poor credit and could be offered an interest rate of 5.5% on the same loan.



Type of Mortgage



The type of mortgage can significantly impact the amount of money you can borrow. For example, a conventional mortgage typically requires a down payment of 20%, while an FHA mortgage only requires 3.5%. As a result, borrowers with less saved up for a down payment may be able to qualify for a larger mortgage with an FHA loan.



These are just a few factors that determine how much money you can borrow for a mortgage. In reality, every borrower's situation is unique, so it's essential to speak with a lender to get a more accurate idea of how much you'll be able to qualify for.



Contact Better Rate Mortgage to learn more



Are you thinking of buying a home? We can help! We offer many loan products, including fixed-rate and adjustable-rate mortgages, FHA and VA loans, and more. Contact us today to see how we can help you get your dream home.

### Can You Switch Mortgage Lenders Before Closing?

There are many reasons why you might consider switching mortgage lenders. However, several factors should be considered before making the switch.



So you're in the process of buying a new home, and things are progressing smoothly. Your mortgage application has been accepted, and almost all the paperwork is done. But then, a few days before closing, you get a call from your loan officer with some bad news —the interest rate on your loan has gone up. Suddenly, the deal you thought you had is no longer looking so good. So what can you do? Is it possible to switch mortgage lenders?





Is It Possible to Switch Mortgage Lenders?



Yes, it is possible to switch mortgage lenders before closing. However, you should only do it if you are absolutely convinced that the new lender provides a better deal than your current one.



Why You Might Consider Switching



There are many reasons why you might consider switching mortgage lenders. Perhaps the most common reason is that your current lender no longer offers the terms and interest rates you need. In this case, it may be worth looking into other options to find a lender that can provide you with the financial security and stability you're looking for.



Another possible reason for switching mortgage lenders is if your current lender is not offering prompt or reliable customer service. Whether they are slow to process applications or unresponsive to your inquiries, poor service can leave a bad impression and make you want to switch to a new lender.



Other reasons may include:




Misplaced paperwork or documents



Constant changes to whom you're working with




Disadvantages of Switching Mortgage Lenders



While switching lenders can be a good way to secure a lower interest rate or adjust the length of your repayment term, several disadvantages should be considered before making the switch, including:




Closing Delays - Switching mortgage lenders can sometimes lead to delays in the closing process. This is because the new lender will need time to process, review and verify your application. In addition, the new lender may have different requirements or guidelines that need to be met before the loan can be approved. As a result, the entire process can take longer than expected and cause significant closing delays. These delays can even cause the deal to fall through entirely in some cases.



Additional Costs - When you switch mortgage lenders, you'll likely have to pay any outstanding fees and penalties to your current lender and any associated closing costs on your new loan. In addition, your new lender may require you to pay for a property appraisal and title insurance. These costs can add up and offset any savings you might get from switching lenders. As a result, it's essential to do your homework before switching mortgage lenders. Otherwise, you could end up paying more in the long run.




As you can see, it is possible to switch mortgage lenders before closing. However, be sure to crunch all the numbers before switching lenders to ensure it's the best option for you.



Contact Better Rate Mortgage Today



Are you in St. Louis and looking for the best mortgage deals? You're in the right place! At Better Rate Mortgage, we have a wide variety of mortgage products to choose from, and our experienced team of loan officers will work with you to find the perfect loan for your needs. Contact us today to learn more!

### 5 Mortgage Mistakes Homebuyers Should Avoid

The Better Rate Mortgage Team specializes in making the home purchase or refinance process a great experience.



The textbook description of the mortgage loan process makes the process sound easy. In reality, however, the process has potential pitfalls that can trip up even the most prepared homebuyer. 



The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience. Whether this is your first purchase or your 10th, we make it happen for you! 







Here are some of the most common mortgage mistakes that homebuyers should avoid.



1. Not Shopping Around for the Best Rate



Homebuyers, especially first-timers, often assume all interest rates are the same. After all, banks are banks, right? Well, not exactly. Mortgage rates can vary significantly from one lender to the next, and failing to shop around can end up costing you thousands of dollars over the life of the loan. In addition, some lenders may offer additional discounts or special programs that could further lower your rates. For these reasons, it's always important to get multiple quotes before committing to a mortgage.



2. Not Considering All of Your Options



Another common mistake is not considering all of your options. Not all home loans are created equal, and there are various loan types available that could better suit your needs. For example, if you're a first-time homebuyer, you may be eligible for government-backed programs like FHA loans that have more relaxed credit requirements. Several interest-only and adjustable-rate mortgages could offer lower monthly payments, although they tend to come with higher risks. So, don't limit yourself when shopping for a mortgage. You could be missing out on some great deals.



3. Leaving Items off Your Application



Lenders rely on complete and accurate information to make sound lending decisions, and leaving out key details could cause your loan to be denied or delayed. So, before you submit your application, take the time to double-check that you have included all of the required information. Doing so could save you a lot of hassle in the long run.



4. Not Checking Your Credit Score



Your credit score is one of the key factors that lenders look at when considering a loan, and a low score can lead to a higher interest rate. Additionally, poor credit history may mean that you won't be approved for a loan. Checking your credit score before you apply for a mortgage will give you an idea of where you stand and whether you need to take steps to improve your credit.



5. Applying for Too Much Debt



It's tempting to try and stretch your budget by taking out a larger loan than you can afford, but this is a mistake. It will make it challenging to make your monthly payments, but you'll also end up paying more in interest over the life of the loan.



These are just a few of the mistakes that homebuyers should avoid when applying for a mortgage. The best way to safeguard against these pitfalls is to educate yourself about the mortgage process and work with a reputable lender. With some preparation, you can avoid these mistakes and enjoy a smooth loan experience.



The Sean Z Team



At Better Rate Mortgage, we understand that taking out a mortgage is a big decision. We're here to help you navigate the process and avoid common mistakes. Contact us today to learn more about our mortgage products and services.

### Buying a Home Through a Dual Agent – Pros and Cons

Buying a home is a considerable investment, and you want to make sure that you are working with someone who has your best interests at heart.



When buying a house through an agent, you can take three main routes. You can have the seller's agent represent you, work with a buyer's agent, or hire a dual agent to represent you and the seller. Each of these types of representation has its own set of pros and cons that you should consider before deciding.











Pros of Buying a Home Through a Dual Agent



Pro #1: Streamlined Communication



One of the benefits of working with a dual agent is that it streamlines communication between the buyer and the seller. In a traditional real estate transaction, the buyer and seller are represented by separate agents who liaise between the two parties. This can often lead to miscommunication, as information must be relayed between the two agents before reaching the buyer or seller.



However, with a dual agent, both parties are represented by the same agent, which helps reduce misunderstandings and clarifies both the buyer's and seller's expectations. In addition, a dual agent can provide expert advice and guidance to both the buyer and the seller, which can help smooth out the negotiation process.



Pro #2: It Can Save You Time and Money



With one person representing both sides of the transaction, things can move quicker. You don't have to schedule two different agents to show you homes at other times. There's also only one set of paperwork. In addition, a dual agent can often be more flexible on price than two separate agents representing each side. They can also provide valuable insights into the negotiation process and help you get the best possible deal.



Pro #3: You Can Expect Full Disclosure



Since a dual agent has a duty to both parties, they must disclose any material information about the property. This means that you can be confident that you're getting all the facts before deciding whether to buy.



Cons Lack of Checks and Balances



Buying a home is a considerable investment, and you want to make sure that you are working with someone who has your best interests at heart. When working with a dual agent, only one real estate agent represents both the buyer and the seller. This can lead to a lack of checks and balances, as the agent may be more inclined to help the seller rather than the buyer. In addition, dual agents are not obligated to disclose all relevant information about the property or the transaction, leaving buyers in the dark.



As you can see, there are both pros and cons to working with a dual agent. It's essential to carefully weigh the pros and cons to decide what's best for you and your situation.



Contact Better Rate Mortgage.



Are you thinking about buying a home but not sure if you can qualify for a mortgage? We can help. We offer a variety of home loan programs to fit your needs and budget. Contact us today to learn more!

### Things to Consider Before Buying a Second Home

Buying a second home is a big decision, and it's not suitable for everyone. But if you're considering it, weigh the pros and cons carefully to decide if it's the right choice.



With the rate of homeownership steadily improving yearly, more and more people are considering purchasing a second home, and for a good reason. Owning a second home is not just a status symbol; it also has several advantages to improving your quality of life. From providing a relaxing getaway to building equity and generating rental income, here are the top eight reasons to consider buying a second home.







Financial Benefits



Diversifying Your Assets: When you buy one investment property, you're putting all your eggs in one basket. If something happens to that property, you could lose everything. By investing in a second home, you diversify your assets and spread out your risk. In other words, you'll protect yourself from inflation and market volatility.




Potential Tax Deductions: Several tax benefits are associated with owning a second home. You may be able to deduct the money paid towards your mortgage interest, mortgage insurance premiums, and any property taxes you may incur.



Build Equity: A second home can be a great way to build equity. You'll be able to use the equity in your second home as collateral for other investments, or you can tap into it if you need extra cash.



Potential Rental Income: If you're considering buying a second home, chances are you'll want to rent it out when you're not using it. Renting out your second home can provide many benefits, such as: Generating extra income and Helping to offset the costs of ownership. Of course, there are also some challenges to renting out your property, such as finding reliable tenants and dealing with repairs. But if you're prepared for the challenges, renting out your second home can be a great way to generate extra income.



It's an Appreciating Investment: Historically, property prices rise over time. By buying a second home, you make an investment that is likely to go up in value. This is especially true if you purchase a property in an area growing in popularity.




Non-Financial Benefits



Have a Dedicated Vacation/Relaxing Spot: Your primary home may be your sanctuary, but it's also likely full of the stresses of day-to-day life. A second home can be your dedicated spot for relaxation.




Retirement: A second home can be a great retirement option if your golden years are on the horizon. You can downsize to your second home and use the equity from your primary residence to help fund your retirement.



A Home Away From Home: If you have children away at college or working in another city, a second home can be a great way to stay connected.



Always Vacation Ready: If you own a second home in an area you frequent for vacation purposes, you always have a place ready to stay in whenever you want.




Factors to Consider Before Buying a Second Home



Of course, there are also some things to consider before buying a second home. Here are a few factors to keep in mind:




The Cost of Ownership: Owning a second home is not cheap. In addition to the purchase price, you'll also have to pay for things like insurance, taxes, and utilities.



The Maintenance: Another cost to consider is the maintenance of your second home. You'll need to budget for repairs and upkeep if you rent it out.




So, Is It Worth It? Only you can answer that question. Buying a second home is a big decision, and it's not suitable for everyone. But if you're considering it, weigh the pros and cons carefully to decide if it's the right choice.



Sean Z Team



Need a mortgage? We offer the lowest mortgage rates and the best customer service in town. Contact us today to learn more about our services.

### When Buying a Home - What Are Closing Costs?

Understanding closing costs can be challenging, but the Better Rate Mortgage Team is here to help!



When buying a home, your down payment isn't the only thing you'll need to bring to the closing table. Closing costs are an expense you'll have to pay to your lender in exchange for loan services.



It's not uncommon for first-time homebuyers to underestimate how much they'll need to pay in closing costs. They also might not know that there are ways to lower the cost.







What are Closing Costs?



First things first, what are closing costs? They are fees paid to the lender at the closing or end of a real estate transaction. They are incurred by either the seller or the buyer. Closing costs cover things such as your home appraisal and searches on your home's title. The specific amount you'll pay depends on the type of loan you choose and where you live.



Here are answers to some frequently asked questions about closing costs:




How much are closing costs? They typically make up about 3-6% of the home price. For instance, if you take out a mortgage for $200,000, you can expect closing costs to be $6,000-$12,000.



What is the average closing cost amount? Homebuyers in the U.S. pay an average of $5,750, including taxes.



Who pays closing costs? The buyer and seller both pay. However, the buyer generally pays most of them. It's possible to negotiate the cost with the seller; this is known as seller concessions.



Why are closing costs necessary? Buying a house is a somewhat complicated process with several players involved and several moving parts. Some states and types of loans require certain inspections beyond the basic home inspection. In addition, there are property and transfer taxes, insurance coverage, and various additional fees.



Can you reduce the amount of the closing costs? Yes, there are ways to negotiate these fees.




Ways to Lower Your Mortgage Closing Cost



The cost of closing on a mortgage can add up quickly. It's easy for the final tally to reach the thousands of dollars between application fees, appraisal costs, and insurance fees. Fortunately, there are many ways to lower your closing costs. Some of these include:




Negotiate your fees



Ask the seller to cover some of the costs



Buy a less expensive home



Consider a "No-Closing Costs" home loan



Contact the Sean Z Team for help




Ready to Buy a House?



If you're ready to buy a home, the Better Rate Mortgage team is here to answer all your questions andtake the time to find the right mortgage with a payment you can afford. Our team is just as excited about your new home purchase as you are. We are proud to be a part of such a monumental milestone in your life and are dedicated to ensuring that it is an enjoyable experience.

### How to Buy a Home with Student Loan Debt

Do you worry that your student loan debt will make it hard to buy a home? Don't worry, we can help you qualify.



As we enter graduation season, graduates from the past and present are reminded of the cost of their education. According to the most recent debt statistics, nearly 46 million Americans have student loan debt. 



Many potential home buyers worry that it will be challenging to purchase a new home with a mound of student debt. However, there are options for those with student debt to buy homes.







First, let’s look at how student debt might affect your ability to get a mortgage. Then, we’ll show you how lenders view this kind of debt and give you some tips to improve your probability of qualifying.



How Student Debt Affects Ability to Get a Mortgage



First of all, your student loan debt will affect your ability to get a mortgage. But the good news is it's still possible to qualify for a mortgage. It all depends on your situation. Several factors affect your mortgage approval. Here are some of the main things you'll need to think about:




Debt-to-income ratio - Lenders set maximum limits for your monthly mortgage payment based on what percentage of your income goes toward the amount of debt. This is known as the debt-to-income (DTI) ratio. Typically, you're limited to a DTI ratio of about 43%, although this varies by loan type.



Your credit score - Lenders generally have minimum credit score requirements when you apply for a mortgage. Your student can adversely affect your credit score if you've missed any payments. If you've made all of your payments on time, it will increase your credit score.



Your income - There's no minimum income when it comes to buying a house. However, a lender wants to know that you can afford the mortgage. This means you'll need to prove you earn enough to cover your future monthly payments and that your debt-to-income ratio is within the acceptable limits.




How to Qualify for a Mortgage With Student Loans



Having student loans while buying a home can put a bit of a damper on what type of home you can get. However, student loans don't ultimately limit your ability to afford a house or qualify for a mortgage. If you contact a good mortgage advisor, they'll be able to help you figure out what type of mortgage suits you best and how that fits into your comprehensive financial life.



There are ways to increase your chances of qualifying. Here are the top tips we recommend following:




Check Your Report for Mistakes – The first thing you need to do is get copies of your credit reports from the top credit bureaus. Once you get the reports, take some time to review them and check for any mistakes and errors that could help boost your score if fixed.



Take Care of Your Debt – Next, develop a plan to help you take care of your debts. Paying debts shows you can be trusted and know how to manage your finances.



Pay Your Bills on Time – A missed or a late payment punches your credit score downwards, resulting in bad payment history. A bad payment history reduces your chances of getting good mortgage rates and terms. If you want to raise your rating, pay loans, bills, and credit card payments on time. A great trick to reduce your credit consumption ratio involves making extra payments in the middle of your billing cycle.




Contact the Better Rate Mortgage Team!



Contact the Better Rate Mortgage team if you have student loan debt but are looking for a mortgage or have any mortgage-related questions. We specialize in making the home purchase or refinance process a great experience; whether this is your first purchase or your 10th, we make it happen for you!

### Is This The Best Time to Buy a House: A Homebuyers Guide

Armed with this information, you can make an informed decision about the best time for you to purchase a home!



It is a question that homebuyers have asked for years: when is the best time of the year to buy a house? Well, the truth is, there is no one definitive answer to this question. However, specific trends occur in different seasons that home buyers should be aware of. This article will explore what generally happens to the housing market during winter, spring, summer, and fall. 







The General Home Buying Trends Throughout the Year




Winter: There are typically fewer homes available for sale during the winter months. This can be due to many reasons, such as sellers waiting until spring to list their home or buyers being less likely to go house hunting in the cold weather. Because of this, buyers have less competition, and sellers are often more willing to negotiate on price. However, this decrease in inventory can also lead to an increase in prices as buyers compete for the limited number of homes on the market.





Spring: The spring season is typically when the housing market begins to pick up again after the winter slowdown. This is because the weather improves, and more homes are listed for sale, giving buyers more choice. Additionally, many families want to move during the summer to have their children start at a new school in the fall. This means that many sellers are motivated to sell their homes quickly, leading to some great deals for buyers!





Summer: The summer months can be a mixed bag for home buyers. On the one hand, more inventory is available as families look to move before the new school year begins. However, there are also more buyers looking for homes during this time, leading to increased competition and prices.





Fall: The fall is typically a slower time in the housing market as families are settled into their routines, and not as many people are looking to buy or sell a home. This can be an excellent time for buyers to find good deals on homes, as sellers may be more willing to negotiate on price.




So when is the best time to buy a house? The answer is: it depends! By being aware of the trends in the housing market during different seasons, you can make an informed decision about when is the best time for you to purchase a home. Please do your research and work with an experienced real estate agent to find the perfect home for you, no matter what time of year!



Call the Sean Z Team



Are you in St.Louis, Mo, and looking for a mortgage? We offer the best rates in town. Fixed-rate, adjustable, FHA, and more! Give us a call today to learn more about our current offers.

### Signs You're Looking to Buy in the Wrong Neighborhood

There are many factors to consider when choosing a neighborhood - you don't want to end up regretting your decision. 



If you're looking to buy a home, it's essential to ensure you're doing so in the right neighborhood. Just because a home is affordable or looks like a great deal doesn't mean it's the right choice for you. There are many factors to consider when choosing a neighborhood, and if you're not careful, you may regret your decision down the road. 



The Better Rate Mortgage team offers a variety of mortgages, including fixed-rate and adjustable-rate mortgages and government-backed home loans. Contact us today to learn more!







High Crime Rate



Nothing affects the value and desirability of a neighborhood more than its crime rate. As such, it's best to steer clear of areas with high crime rates. If you make the mistake of buying a home in a high-crime neighborhood, you can expect your home's value to drop over time. Not only that, but you'll also have a tough time selling your home if you ever decide to move.



An Army of "For Sale" Signs



Unless a neighborhood is in the process of gentrification, an abundance of "For Sale" signs is usually a sign that the neighborhood isn't desirable. The property values have likely plummeted, and there's a good chance they will continue to decline.



The Neighbors Seem Unfriendly



If the neighbors seem unfriendly or don't seem to want you there, it's probably a sign that you don't want to be there either. A friendly, welcoming neighborhood is key to feeling at home in your new community.



Surrounding Homes Aren't Well-Maintained



No matter how nice your home is, it will always look bad if run-down houses surround it. This is especially true if the problem affects a large percentage of homes in the neighborhood.



There Aren't Any Sidewalks or Parks Nearby



If there are no sidewalks or parks nearby, it's likely that the neighborhood isn't well-maintained and is unsafe for pedestrians and children.



The Neighborhood Is Too Quiet



This may seem like an odd one, but if the neighborhood is too quiet, it's likely because there's nothing to do there. And if there's nothing to do, it's probably not a desirable place to live.



Conversely, if the neighborhood is too noisy, it's likely because there's a lot of crime. And as we already mentioned, a high crime rate is something to avoid when looking for a new home.



The Property Values Seem Too Good To Be True



If the property values seem too good to be true, it's usually because they are. When a neighborhood is in decline, the property values will inevitably decline. So if you're looking to buy a home, be careful not to get caught up in the hype of a falling market.



It's Not Close to Your Work or School



Another sign that you may be looking to buy in the wrong neighborhood is if it's not close to work or school. You'll likely want to be close to your job and your children's schools. So if the neighborhood you're considering doesn't meet this requirement, you may want to keep looking.



There you have it! By recognizing the signs of a bad neighborhood, you can avoid making a potentially disastrous investment!



Contact Better Rate Mortgage



Are you in the market for a mortgage? If so, be sure to check out Better Rate Mortgage. We offer a variety of mortgages, including fixed-rate and adjustable-rate mortgages and government-backed home loans. Contact us today to learn more!

### Our $5,000 Pre-Approved Homebuyer Guarantee

With our $5,000 Pre-Approved Homebuyer Guarantee, you can rest assured your pre-approval letter is more than just ink on paper. We stand behind our pre-approval!







Mortgage Approval Program



Many buyers think they need to find a house to buy before getting the mortgage paperwork done. However, 95% of what we do has nothing to do with the house in the mortgage world. All we need to do is get an appraisal and the title work, and as long as your home appraises and the title is clean, you will be able to get a loan.




Does your lender stand behind their pre-approval?



We put our money where our mouth is.



Certified Home Buyer - Don’t accept anything less.








The Better Rate Mortgage Team



We will not only take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind; we go further. Our mortgage underwriters will examine your credit history, employment history, debt ratios, down payment amount, reserves, and other necessary documentation to get you approved for financing while your house is still "To Be Determined."



*This offer is subject to all conditions stated on the Certified Home Buyer Certificate. This guarantee is not valid if Buyer and/or Sellers choose not to close on the loan or a delay is caused by reasons beyond the control of Better Rate Mortgage. Not a commitment to lend. Additional terms and conditions apply. This advertisement does not constitute a loan approval or a loan commitment. Loan approval and/or loan commitment are subject to final underwriting review and approval.

### What is a Mortgage Cosigner and What Are the Risks?

There are a few different situations where getting a cosigner might make sense, but it's important to understand the risks.



So you’re in the market for a mortgage, and you find one that’s perfect—except for the fact that your credit score is just a little too low to qualify on your own. What do you do? You could try to increase your credit score, but that could take a significant amount of time. Or, you could ask someone to cosign on the loan with you. This article will discuss everything you need to know about mortgage cosigners.



Questions about a Mortgage?Call (314) 361-9979





What is a Mortgage Cosigner?



A cosigner is someone who signs the home loan with you and agrees to be equally responsible for the loan, even if they are not living in the home or using the property in any way. If you default on your monthly payments or default on your loan obligations for any reason, they will be held financially responsible—and their credit score will also take a hit. 



When Does Getting a Mortgage Cosigner Make Sense?



There are a few different situations where getting a cosigner might make sense. For instance, if you have poor credit or no credit, having a cosigner with good credit can help you qualify for a loan (and get a lower interest rate). Also, if you’re self-employed, have a lot of debt, are unemployed, or don’t have the minimum income required, having a cosigner can help you qualify for a larger loan.



What are the Risks of Having a Mortgage Cosigner?



Before asking someone to cosign on your mortgage, there are a few risks to consider. First and foremost, if you default on your loan, the cosigner’s credit score will take a hit—and so will their ability to get a loan in the future. Additionally, if you have a falling out with your cosigner for any reason, they could technically ask to be removed from the loan—leaving you responsible for the entire mortgage on your own.



How to Choose a Mortgage Cosigner



If getting a cosigner makes sense for your situation, the next step is to choose someone willing and able to sign on the dotted line. Ideally, you should choose someone with good credit and a steady income—someone who will be able to make the payments if you can’t. Additionally, it’s essential to choose someone you trust.



More Qualities of a Good Mortgage Cosigner




They should be reliable—you need to be sure they will make the payments if you can’t.



They should be patient—it could take years for you to improve your credit score enough to refinance the loan and remove them from the mortgage.




What Happens if You Can’t Find a Mortgage Cosigner?



There are a few other options if you can’t find a cosigner (or you don’t want to ask someone to cosign on your mortgage). You could try to get a government-backed loan, like an FHA loan, which has more lenient credit requirements. You could also try to increase your credit score, use collateral, or shop around for a lender willing to work with you without a cosigner.



Contact the Better Rate Mortgage



Are you looking for a mortgage? Better Rate Mortgage can help! We work with people with all sorts of credit scores and can help you find a loan that fits your needs. Contact us today to learn more!

### Important Features to Consider When Buying a House

No matter what type of house you're dreaming of, there are seven important features to consider before purchasing.



It's finally time. You've saved up, researched, and are ready to buy your first house. But what kind of house is right for you? Well, it all starts by figuring out what you're looking for. Do you want a place with plenty of outdoor space? Maybe you're more interested in a cozy cottage close to downtown. No matter what type of house you're dreaming of, there are seven important features to consider before purchasing. Keep reading to learn more!



First Time Home Buyeru003cbru003e(314) 361-9979





Location, Location, Location



Too often, buyers make decisions based on the house itself without giving much thought to the surrounding area. But the location of your home is just as important, if not more so, than the property itself. After all, you can't change the location of your house, but you can renovate, update, and customize the actual dwelling to suit your needs better. So when considering a home, be sure to consider the surrounding neighborhood. Is it safe? Are the schools good? What is the commute like? These are all important factors to consider before making your final decision.



Outdoor Space



Do you love spending time outdoors? If so, you'll want to make sure that your new home has plenty of outdoor space to enjoy. From a small backyard to acres of land, there's sure to be a property that meets your needs. If you're not an outdoorsy type, this may not be as important to you, and you can focus your search on homes with less land.



Home Size



"Size doesn't matter" is a phrase you often hear a lot when buying a house, but, in reality, size is one of the most important factors to consider. After all, it would help if you made sure that your new home could comfortably accommodate your family, your furniture, and all of your belongings. So before falling in love with a property, be sure to take measurements and get an idea of how much space you'll have to work with.



The Layout



Another important factor to consider is the layout of the house. Is it an open concept, or does it have a more traditional design? Do the bedrooms all have suites or are they located close together? Consider your needs and how you would ideally like your new home to be laid out before deciding.



Finishes and Fixtures



When you walk into a house, the first things you notice are the finishes and fixtures. These details can make or break a deal from the flooring to the countertops. If you're looking for a high-end property with luxurious finishes, then you'll need to be willing to pay a bit more. But if you're not as concerned with the details, you may be able to find a great deal on a home that just needs a bit of updating.



Consider Your Commute



If you have a long commute to work, you'll want to make sure that your new home is located close to major highways or public transportation. Otherwise, you'll spend hours sitting in traffic or waiting for the bus every day. But if you don't mind a longer commute, this may not be as important to you, and you can focus your search on homes that are further from the city.



Roof's Age and Condition



The condition of the roof is another important factor to consider when buying a house, especially if you're looking at an older home. Be sure to have the roof inspected by a professional and get an estimate for repairs or replacement before making your final decision.



Now that you know what to look for, you can search for the perfect home. Keep these factors in mind, and you're sure to find a house that you'll love for years to come.



Our Mortgage Deals



Are you planning to buy a home and looking for the best mortgage deal? Better Rate Mortgage offers the best mortgage deals in St. Louis. We have various options to choose from, so you can find the perfect fit for your needs. Contact us today to learn more about our mortgage deals.

### A Second Mortgage: What is It and How Does It Work

We discuss how a second mortgage works and highlight some of the advantages and disadvantages of taking out this type of loan.



A second mortgage is a type of loan that allows homeowners to borrow against their mortgaged property. In other words, a second mortgage, otherwise known as a junior lien, is a loan that is taken out in addition to your first mortgage. This loan can be used for various purposes, such as home improvement projects, debt consolidation, paying for college, etc.



Call Today About a Second Mortgage(314) 361-9979





How a Second Mortgage Works



Like your first mortgage, a second mortgage is secured by the property you borrow against. This means that if you cannot make your payments, the lender can take possession of your home.



To qualify for a second mortgage, you will need to have equity in your home (usually 15-20% of your home's value). Equity is the portion of your home's value that you own outright or the part that you would pay if you sold your home today and paid off your first mortgage balance.



For example, let’s say that your home is worth $250,000 and you have a first mortgage balance of $150,000. Your equity in this scenario would be $100,000 (i.e., $250,000 - $150,000 = $100,000).



Next, you will need to have a good credit score and prove you can afford the monthly payments.



It's worth noting that the interest rate on a second mortgage is usually higher than on your first mortgage, so it's essential to shop around for the best deal.



What Are the Advantages of a Second Mortgage?



There are several advantages to taking out a second mortgage:




You can use the money for any purpose.



The interest on a second mortgage may be tax-deductible (consult your tax advisor to see if this applies to you).



A second mortgage can be an excellent way to consolidate high-interest debt, such as credit card debt.




The Possible Disadvantages



Like any other loan, a second mortgage has its downsides:




You may end up paying more interest over the life of the loan because you will have two separate loans with different interest rates.



If you cannot make your payments, you could lose your home to foreclosure.



You may need to pay for mortgage insurance if your down payment is less than 20%.



You may have to pay closing costs, which can add up to several thousand dollars.



If you sell your home or refinance your first mortgage, you will need to pay off your second mortgage balance.




As you can see, there are both pros and cons to taking out a second mortgage. Therefore, it's crucial to weigh the benefits and drawbacks before deciding if this type of loan is right for you.



Contact Better Rate Mortgage



Are you planning to buy a home and are looking for the best mortgage option? The team at Better Rate Mortgage can help! We offer a variety of mortgage products to suit your needs. Contact us today to learn more about our services!

### Questions to Ask Your Mortgage Broker When Refinancing

By asking the right questions, you can ensure that you get the best deal possible! 



Refinancing your mortgage can be a great way to save money on interest and lower your monthly payments. However, you need to ensure you're getting the best deal possible. That's why it's essential to ask your mortgage broker the right questions.



This article will discuss questions that you should ask when refinancing your mortgage. By asking the right questions, you can ensure that you get the best deal possible!



Contact Better Rate Mortgage at (314) 361-9979!





Will Refinancing Benefit Your Current Situation?



First things first, you need to determine whether or not refinancing will benefit your current financial situation. To do this, you need to ask yourself some critical questions.




What are your financial goals?



Can you afford to refinance?



Do you have any other debts that you could pay off with a lower interest rate?



How long do you plan on staying in your home?




If you can answer these questions honestly, you'll have a good idea of whether or not refinancing is right for you.



What's the Current Interest Rate?



The current interest rate is one of the most important factors to consider when refinancing. How do the current interest rates compare to the rates you're currently paying? If the interest rate is lower than your current rate, refi may be a good idea. First, however, you need to make sure that you're not refinancing for the wrong reasons.



What Are the Closing Costs?



Closing costs are another essential factor to consider when refinancing. These costs can include application fees, appraisal fees, and origination fees. You'll want to make sure that you're aware of all the costs associated with refinancing before you make a decision.



What's Your Credit Score?



This is another question that should loom large when thinking of refinancing. Many lenders require a credit score of 680 or higher to qualify for refinancing. If your credit score is lower than that, you may want to wait until you improve your credit score before refinancing. Speaking of credit score, be sure to ask whether refinancing will impact your score.



Are There Prepayment Penalties?



Some lenders may charge a prepayment penalty if you pay off your loan early. Again, this is something that you'll want to ask your mortgage broker about before refinancing.



How Long Will the New Loan Term Be?



The loan term is another vital thing to consider when refinancing. You need to ask your mortgage broker how long the new loan will be. If you refinance for a longer-term, your monthly payments will be lower, but you'll also pay more in interest over the life of the loan.



These are just a few of the questions you need to ask your mortgage broker when refinancing. By asking the right questions, you can be sure that you're making the best decision for your financial future!



Talk to Better Rate Mortgage



Are you looking for the best mortgage deals? Look no further than Better Rate Mortgage! We offer some of the best mortgage deals around.

### Ways to Lower Your Mortgage Closing Costs: Tips from the Pros

There are many ways to lower your mortgage closing costs, and by following these tips from the pros, you can save yourself a lot of money in the long run. 



It's no secret that the cost of closing on a mortgage can add up quickly. Between application fees, appraisal costs, and insurance fees, just to name a few, it's easy for the final tally to reach into the thousands of dollars. Fortunately, there are many ways to lower your closing costs. In this article, we'll discuss some tips from the pros on how to save money on your mortgage closing.







Shop Around



The first and most important step to lowering your mortgage closing costs is to shop around. By comparing different lenders, you can find the one who offers the best rates and terms for your situation. It may seem like a lot of work at first, but it'll be worth it in the end when you get a lower rate and better deal overall.



Once you have found a few lenders you are interested in, be sure to ask for a good faith estimate from each lender. This will give you an idea of your final closing costs. Again, it's essential to compare these estimates closely, as they can vary significantly from lender to lender.



Negotiate Your Fees



Another great way to lower your closing costs is to negotiate your fees. Many of the fees associated with closing on a mortgage are negotiable, so don't be afraid to ask for a better deal.



If you're having trouble negotiating on your own behalf or just want someone else to take care of the details, using a settlement agent may be the right option for you. Settlement agents can help reduce your closing costs by negotiating on your behalf and helping to streamline the process.



Ask the Seller to Cover Some of Your Costs



Another creative way to lower your mortgage closing costs is to ask the seller to cover some of your costs. This can be a great option if you are short on cash and need help paying the closing expenses.



Buy a Less Expensive Home



The more expensive a house is, the more expensive the closing costs will likely be. So if you're looking to save money on your mortgage, consider buying a less expensive home. This may require some compromises on your part, but it could end up saving you a lot of money in the long run.



Consider a 'No-Closing Costs' Home Loan



Many lenders offer "no-closing costs" mortgages. In these loans, the lender charges a higher interest rate in exchange for paying some or all of your closing costs. This can be an attractive option if you don't have much cash on hand to pay for closing expenses upfront and would rather spread out those costs over time by paying a little bit more in interest.



There are many ways to lower your mortgage closing costs, and by following these tips from the pros, you can save yourself a lot of money in the long run.



Are you looking for the best mortgage deals in St. Louis? Contact Better Rate Mortgage for all of your mortgage needs.

### Sneaky Real Estate Agent Tricks to Watch Out For When Buying a Home

Our team of experienced professionals will help you find a home loan that fits your budget and needs. Contact us today! 



When you're buying a home, it's essential to be aware of the tactics that some real estate agents can use to get you to spend more money. For example, sometimes, they might pressure you into making an offer on a property before you've had a chance to consider it fully. Or they might try to convince you that you need to buy now, even if the market isn't ideal.



This article will discuss some of the most common tricks some agents use to get buyers to sign on the dotted line. Educate yourself and be prepared not to get taken advantage of!







Trick #1: Pushing You to Make an Offer Before You're Ready



Some agents will try to get you to make an offer on a property before you've had a chance to consider it fully. They might tell you that someone else is interested in it, and you need to act quickly. They might also tell you that the property will go up in value over time or that you can rent it out and make a profit. Don't fall for this trap! You should always control the process and make sure you have time to think about what's best for you and your family before making any decisions.



Trick #2: Using Confusing Marketing Lingo



Some real estate agents are notorious for using confusing language to confuse buyers. For example, you may hear them talk about "CMA" or "CCR" reports, which is just another way of saying Comparative Market Analysis (CMA) and Conditional Closing Report (CCR). When they use complex, confusing jargon, they want you to think that they know more than someone else and that you need to listen to them to make the right decision.



Trick #3: "As Is" Listings



Sometimes you'll see a home listed as "as is." But what does this mean? It means the seller isn't willing to make repairs, so if there are any problems with the house, then you'll have to pay for them yourself. This can be expensive and time-consuming!



Trick #4:Gazumping



It's a funny-sounding term but gazumping is when a seller accepts an offer from one buyer but then sells the house to someone else for a higher price. This often happens when there are multiple offers on the same property. The original buyer may not have the money to go higher, so they lose out on their dream home.



Trick #5: Removing Evidence of Damage



Sometimes an agent will try to remove evidence of damage or wear and tear before showing a home to buyers. This is so that the buyer doesn't get scared off by the sight of repairs that need to be done.



Contact Better Rate Mortgage for The Best Mortgage Deals In St. Louis



Are you planning to buy a home in St. Louis, Missouri, and looking for the best mortgage deals? If so, look no further than Better Rate Mortgage! Our team of experienced professionals will help you find a home loan that fits your budget and needs. Contact us today!

### Mortgage Default: Everything You Need to Know

Mortgage default can be a scary prospect, but you can reduce your chances of going into default by following these tips. So be sure to keep them in mind. 



Mortgage default is a scary prospect for homeowners. This article will answer some frequently asked questions about mortgage default. Namely, what is mortgage default? What are the consequences of defaulting on a mortgage? And how long does it take to default on a mortgage? We'll also highlight five tips you can use to avoid mortgage default.



What is Mortgage Default?



Mortgage default is the failure to make mortgage payments when they are due. Generally, a homeowner defaults on a mortgage for two main reasons: they can't afford the payments or don't want to be in the home anymore. 



That said, borrowers can also go into default if they:




Fail to carry adequate homeowners' insurance



Fail to occupy the house as stipulated in the mortgage agreement



Transfer property ownership to another person without lender permission




Mortgage default can also arise if damage to the home lowers its value below the outstanding mortgage balance.



Consequences of Mortgage Default



There can be several consequences for homeowners who default on their mortgages, including:




Foreclosure and eviction: The lender can take back the home through a foreclosure process if the borrower fails to make payments.



Damage to credit score: A default on your mortgage can leave a black mark on your credit report. Unfortunately, the black mark can stay on your credit report for up to seven years and will make it difficult for you to obtain future loans or lines of credit.



Late fees and penalties: If you're more than 30 days late on a payment, you may be charged a late fee.




How Long Does it Take to Default on a Home Loan?



It typically takes around 2-3 months for a homeowner to default on their mortgage. However, this varies depending on the terms of your mortgage agreement.



Tips to Avoid Mortgage Default



Here are a few things you can do to avoid defaulting on your mortgage:




Seek help: If you're struggling to make your monthly payments, reach out for help. Many organizations offer assistance to homeowners who are in danger of defaulting on their mortgages.



Refinance your mortgage: If you're having trouble making your payments, you may be able to refinance your mortgage and get a lower interest rate. This could help reduce your monthly payments.



Get a loan modification: If you're having trouble making your monthly payments, you may be able to get a loan modification, which will lower your interest rate or change the terms of your loan.



Stay organized: Make sure you keep track of all your mortgage payments and stay up-to-date on your account status. This will help you avoid any surprises down the road.




Mortgage default can be a scary prospect, but you can reduce your chances of going into default by following these tips. So be sure to keep them in mind.



Contact Better Rate Mortgage.



Are you looking for the best mortgage deals in St. Louis, Missouri? Contact us today, and we'll help you find the perfect mortgage for your needs. We can also answer all of your mortgage questions!

### Mistakes Many Homebuyers Make When Negotiating a House Price

Armed with this information, you can avoid these six mistakes and get the best deal possible on your new home! 



The home buying process can be a daunting task, especially when it comes time to negotiate the price of the house. Unfortunately, many people get so wrapped up in the excitement of buying a new home that they forget to negotiate correctly. This often leads to mistakes that can end up costing thousands of dollars. This article will discuss some of the most common mistakes homebuyers make during house negotiations and how to avoid them.



Mistake #1: Not Knowing Your Limits



Not knowing your budget limit is probably the most significant and common mistake homebuyers make. Before negotiating with the seller, you need to know exactly how much you are willing to pay for a home and how much you can afford. Also, don’t be afraid to walk away from a deal if you believe or feel the price is too high.



Mistake #2: Settling for Less Than You Want



Another common mistake is settling for less than you want. Don’t be afraid to ask for what you want, even if it seems like the seller won’t budge. Sometimes it takes a little pushing to get the price you want. Also, remember that there are plenty of other houses out there, so do not feel pressured into buying something that is not right for you.



Mistake #3: Not Considering Monthly Expenses



Many people focus too much on the sticker price and do not consider the monthly expenses of owning a home. These include things like property taxes, insurance premiums, and other costs associated with maintaining your new property. Don’t forget to factor in these expenses when negotiating a house price!



Mistake #4: Not Getting Pre-Approved for a Mortgage



This is a big one. Not getting pre-approved for a mortgage before starting to negotiate can put you at a disadvantage when dealing with sellers, who’ll likely be in talks with buyers who are already pre-approved. Get ahead of other bidders by getting pre-approved for a mortgage.



Mistake #5: Not Having Enough Money for Down Payment



You will need to put down at least 20% of the home price to get a mortgage in most cases. If you don’t have enough money for the down payment, then you will be in a very vulnerable position during negotiations.



Mistake #6: Not Getting a Home Inspection



Never buy a home before having it checked out by a professional home inspector. Not getting a home inspection can lead to some costly surprises down the road if there are any significant problems with the property. So always get a home inspection before buying a house; it could save you a lot of money in the long run.



Contact Better Rate Mortgage



There you have it - the top common mistakes that homebuyers make when negotiating a house price. Armed with this information, you can avoid these mistakes and get the best deal possible on your new home!



Are you looking for the best mortgage deals in St. Louis, Missouri? Contact Better Rate Mortgage today. We have access to some of the best rates in the market, and we can help you get approved for a home loan in no time. Contact us now to learn more!

### What Is a Balloon Mortgage and How Does It Work?

A balloon mortgage might be an excellent option for you, depending on your specific situation.  



If you’re new to mortgages, the term “balloon mortgage” will be unfamiliar to you. So what exactly is a balloon mortgage? A balloon mortgage is a type of mortgage with its benefits and drawbacks.



If you’d like to learn more about balloon mortgages, you’re in the right place. Below, we’ll look at what a balloon mortgage is and how it works.







What Is a Balloon Mortgage?



A balloon mortgage is a type of mortgage that starts with little or no monthly payments at the beginning. However, the borrower is expected to pay a lump sum of the loan amount during the course of the loan. Most borrowers make this payment at the end of the loan term.



How Do Balloon Mortgages Work?



Like conventional mortgages, a borrower will take out a particular mortgage from the lender. Payment terms vary from lender to lender, but they generally follow the same pattern.



During the start of the repayment, the borrower will have to make fixed monthly payments to the lender. Some lenders adopt the interest-only payment approach where the lender only pays the interest amount during the initial months. The borrower pays the balance during the last month, which comprises the principal amount and associated mortgage fees.



Lenders have to pay the interest and principal amount in small monthly payments with other borrowers. However, the payments are small at the start of the mortgage. At the end of the mortgage, the lender has to pay a lump sum to fulfill the mortgage.



Benefits of Balloon Mortgages



Balloon mortgages are popular with homeowners because of their many benefits. Some of these benefits include:




Affordable Down Payment - The low-down-payment is what makes balloon mortgages so attractive to homeowners. This widens the scope of eligibility and makes it open to many home buyers.





Low-Interest Rates - Balloon mortgages are low-interest loans, translating to low monthly payments. This makes them great for individuals on a tight budget that need a place to call home.





Straightforward Qualification - It’s much easier to qualify for a balloon mortgage than a conventional one. This means if you don’t qualify for other mortgages, you can give balloon mortgages a whirl.




Drawbacks of Balloon Mortgages



Balloon mortgages aren’t without their drawbacks. Borrowers who cannot meet the lump sum payment risk foreclosure on their homes. This is pretty common because most borrowers can’t fulfill the large lump sum amount.



Contact Better Rate Mortgage



A balloon mortgage might be an excellent option for you, depending on your specific situation. Crunch the numbers and see whether a balloon mortgage is right for you.



Are you planning to buy a home in St. Louis? Contact Better Rate Mortgage today to get started on your mortgage. We offer the best deals and terms in town. So call us now and book an appointment!

### What Is Mortgage Insurance?

While the prospect of getting mortgage insurance seems beneficial, what exactly is mortgage insurance, and who is it for? 



There have been many misunderstandings concerning mortgage insurance, especially among borrowers. While the prospect of getting mortgage insurance seems beneficial, what exactly is mortgage insurance, and who is it for?



Today, we'll be looking at what mortgage insurance is, how it works, and who it's for. So let's get right into it.







Mortgage Insurance: The Definition



Mortgage insurance is a type of insurance that protects the lender from borrowers who pose a greater risk of defaulting on their mortgages. Typically, mortgage borrowers need to pay 20% of the mortgage price as a down payment. However, this may be too much for some borrowers.



In cases where borrowers cannot meet the 20% threshold, they may be required to take mortgage insurance. Mortgage insurance is meant to protect the lender if the borrowers fail to fulfill their payment agreements.



This insurance makes it possible for low-income borrowers to qualify for a mortgage, even if they can't afford the down payment. All FHA mortgages require borrowers to pay mortgage insurance, even when they can afford a 20% down payment.



How Does Mortgage Insurance Work?



The confusion on how mortgage insurance works is because the borrower pays the insurance, yet it protects the lender. The borrower pays a monthly insurance fee to the insurer to put it into perspective. Then, if you stop making payments, the insurer pays the lender a portion of the principal.



However, this doesn't mean that the borrower is now free to default on the mortgage entirely. If you fall behind on several payments, the lender has the right to foreclose your home.



How Do Mortgage Insurance Payments Work?



Mortgage insurance varies with the type of mortgage borrowers take out. For instance, mortgage insurance for conventional loans is different from that of government-backed loans.



Conventional Mortgages



Lenders can allow as little as 3% down payments as long as they pay for mortgage insurance. Borrowers will have to pay Private Mortgage Insurance or PMI. You can use a PMI calculator to determine how much you'll have to pay, depending on your circumstances.



FHA Mortgages



Lenders allow a down payment of as little as 3.5% of the mortgage. However, borrowers will have to pay for a mortgage insurance premium or MIP throughout the mortgage period. For example, if you pay a down payment of over 10% of the mortgage, you'll pay the insurance for about 11 years.



USDA Loans



USDA loans don't require any down payments and are typically for rural homes. For these loans, you'll pay an upfront fee and subsequent fees annually for the life of the loan. The federal government decides how much fees you'll pay yearly on a fixed basis.



Mortgage Insurance Made Easy



Clearly, mortgage insurance isn't for everyone, but it does come in handy for low-income earners. However, if you can't afford to pay the 20% down payment of the mortgage amount, you can always take the mortgage insurance route.



Do you need a mortgage? Contact Better Rate Mortgage today to get started on your mortgage application.

### Reverse Mortgage: What Is It and How Does It Work?

Before you borrow a reverse mortgage, here are a few factors you need to consider. That way, you can tell whether opting for a reverse mortgage is a good idea.



If you're in the market for a new mortgage, you'll probably hear one or two things about reverse mortgages. The name in itself sounds peculiar because how can mortgages work in reverse, and how does one qualify for a reverse mortgage?



If these questions have been wracking your brain, worry not; we're here to help. In today's post, we'll be looking at everything you need to know about a reverse mortgage, including what it is and how it works. So let's dive straight into it.







What Is a Reverse Mortgage?



A reverse mortgage is a type of mortgage available for people over 62 years. This mortgage allows borrowers who've already fulfilled their mortgage to get part of their home's equity as untaxed income.



Reverse mortgages get the name because, unlike regular mortgages where the borrower pays the lender, it's the lender who pays the borrower in reverse mortgages.



How Do Reverse Mortgages Work?



First off, it's worth noting that homeowners can't borrow their entire home value regardless of whether they fulfilled their mortgage completely. Instead, borrowers can only borrow a specific percentage of their home's value. This amount is what is known as the principal limit.



There are tons of factors that affect how much of your home's value you can borrow in a reverse mortgage. Some of these factors include:




The current interest rates



The age of the borrower



The age of the spouse (should also be eligible for borrowing)



The HECM borrowing limit




The lender uses a combination of these and other factors to determine how much the homeowner can borrow. As you'd expect, the higher the borrower's property value, the more they can borrow. Also, older borrowers are more likely to get a higher principal limit because, with younger borrowers, the lender will have to pay more over the life of the loan, given their longer life expectancy.



Important Factors to Consider About Reverse Mortgages



Before you borrow a reverse mortgage, here are a few factors you need to consider. That way, you can tell whether opting for a reverse mortgage is a good idea.




Fees: Lenders will charge origination and closing fees for the reverse mortgage. Make financial arrangements for these payments.



Interest rate isn't fixed: The interest rate is bound to change over time, specifically with reverse mortgages tied to financial indexes.



Interest isn't tax-deductible: The interest fees on these mortgages aren't tax-deductible throughout the entire loan period.



You still have to pay house costs: The house still belongs to you with a reverse mortgage. That means all house expenses like utilities, maintenance, and fuel costs are still your responsibility.




Contact Better Rate Mortgage



Consider the positive and negative aspects of a reverse mortgage before deciding. While this is a perfect plan for many St. Louis residents, it may not benefit every candidate. Our team can tell you about other options you have if the terms of a reverse mortgage don't fit your needs. Let's talk and see if a reverse mortgage is right for you.

### How to Calculate Your Mortgage and How It Can Help You Save Long Term

To estimate your monthly mortgage payment, use our mortgage calculator. With it, you are able to input a different home price, down payment, interest rate, and loan term to see how your monthly payments will change.



The number of people who prefer owning a home to paying rent has skyrocketed in the past decade, and for a good reason. For starters, owning a home is less expensive than renting in the long term. Plus, you get to enjoy your space while making a few changes to the house, such as repainting or adding an extra room without breaking the bank. 



But do you know how to calculate your mortgage so you save money in the long term? If not, this article is for you. Here's how to calculate your mortgage and save money long-term.







How to Calculate Your Mortgage



Use a Mortgage Calculation Formula



You can use this formula to calculate a mortgage using the loan principal and the interest without factoring in HOA, taxes, and homeowner's insurance fees. Let's break it down a bit for easier understanding.



M = P [ I(1 + I)^N ] / [ (1 + I)^N – 1]




M-means mortgage



P-means principal, which is the down payment or deposit amount you will pay to get the loan



N-means the number of payments you will make to pay off the loan




An adjustable-rate mortgage has dynamic rates which change over time, meaning you have to use the PMT function of Microsoft Excel to create an amortization table. This allows you to change the formula as the mortgage changes to capture the remaining time and reflect the new terms.



Use Mortgage Calculators



Some people generally find it hard to understand or input the above formula into ordinary calculators. If you're one of them, worry not. You can use an online mortgage calculator. Here are examples of automatic calculators you can use:




Amortization Calculators



Refinance Calculators



Purchase Calculators




These are just two of the many methods you can use to calculate your mortgage. Regardless of the method you choose, make sure it's comprehensive and accommodates all factors relating to your loan.



How Calculating Your Mortgage Can Save Money Long Term



Calculating your mortgage will help you arrive at the final figures, which will help you make the following sound decisions to save money long term:



The Loan Term



The loan period is months or years you will pay off the loan. Longer terms attract low monthly repayments with higher interests, while shorter terms are the opposite. Calculating your mortgage will help you know the loan term so that you can take measures such as recasting and increasing monthly principal payments and down payment to cut on the loan term, thus reducing interest payable over time.



Determining Affordability



Calculating your mortgage helps you arrive at monthly repayments, which enables you to judge whether you can afford it or not. Look at your outstanding debt, income, and credit score and compare it with the monthly repayments to save in the long term.



There's no reason to overspend on a house when you have other matters like emergencies, financial goals, and retirement to attend to. Calculating your mortgage will help you pick a home loan with an affordable monthly payment, making it less likely you'll miss or skip a payment.



Need a Mortgage? Talk to Better Rate Mortgage.



Are you looking for a mortgage or have any mortgage-related questions, contact the experts at Better Rate Mortgage. We'll be happy to help.

### Things to Consider If You're Thinking of Taking On a Big Mortgage Loan

We specialize in making the home purchase process a great experience.  If you've been on the fence about taking on a big mortgage loan, we're here to help you make the right decision. 

















When taking out a mortgage, it's generally advisable to go big. Unfortunately, most people are scared of big mortgage loans, but this fear and misunderstanding often work to their detriment because they miss out on certain benefits.



If you've been on the fence about taking on a big mortgage loan, we're here to help you make the right decision. Below, we'll explore a few reasons why a big mortgage loan might be a good idea for you.



The Mortgage Has no Effect on Your House Value



There's a common belief that taking a big mortgage loan can affect a home's value. But the truth is that borrowing a mortgage, large or small, has zero impact on your house value. In other words, your home's value will rise and fall in the next few years whether you take a small or large loan.



And given this fact, it means that you're better off taking a significant and long-term mortgage because it'll let your equity grow while your home's value increases.



Mortgages Are Among the Cheapest Loans You Could Borrow



Believe it or not, mortgages are one of the cheapest loans you could borrow. Seriously, good luck trying to borrow a low-interest two hundred thousand loan for thirty years. If you crunch the numbers, you'll agree with us when we say that mortgages are among the cheapest loans you could borrow.



Plus, with mortgages, the more confidence the lender has in your ability to repay the loan, the lower your interest fees. Leverage this affordability to your advantage and borrow a big loan for your home or real estate investment.



You Can Get Tax Deductions on Your Mortgage Interest



Any interest you pay on your mortgage for your home is tax-deductible. The deduction correlates to your tax bracket. For instance, if you're in the 40% tax bracket, you get 40 cents deducted for every dollar you pay in interest fees. This means the more interest fees you pay over time, the more deductions you get on your taxes.



Paying Your Mortgage Gets Easier Down the Line



Most people who borrow a mortgage tend to grow in their careers and businesses over time. So although the monthly payments seem like a financial burden initially, things are bound to get better over time. If you borrow a long mortgage, mortgage payments will be almost insignificant by the time you're finishing off the mortgage.



Contact Better Rate Mortgage



Are you in St. Louis, Missouri, and looking for the best mortgage deals in the region? Look no further than the Sean Zalmanoff Team. We offer low-interest rates and feature home loans for borrowers with different types of credit.

### What Is an Assumable Mortgage?

An assumable mortgage can benefit both the seller and the home buyer. Here are some advantages of assumable mortgages.



If you’re in the market for a mortgage, you may have come across lenders that offer assumable mortgages. But, what is an assumable mortgage? How does it work? And should you take out an assumable mortgage? For answers to these questions and more on assumable mortgages, keep reading.







Assumable Mortgage: The Definition



An assumable mortgage is a financial agreement between three parties, a lender, mortgage owner, and a buyer. With assumable mortgages, the mortgage owners agree to transfer their mortgages and outstanding balances to willing buyers. In doing so, the buyer “assumes” the mortgage owner’s mortgage and avoids getting their own mortgage.



How Do Assumable Mortgage Work?



When homebuyers agree to take out a mortgage, they get money from the lender, provided they repay the principal and interest fee. However, homeowners may decide to sell the house in some cases before completing mortgage payments; this is still okay.



If homeowners decide to take this route, they can either take the money from selling the house or complete mortgage payments in monthly installments. Alternatively, they can transfer the outstanding mortgage balance to the homebuyer entirely. This saves the homebuyer the trouble of taking out another mortgage to pay off the house.



The homebuyer assumes all contractual terms of the mortgage, including principal and interest fee payment, repayment period, among other contractual terms. Depending on the mortgage, house buyers might benefit from lower interest rates once they take out an assumable mortgage. However, this may not hold for fixed-interest mortgages.



It’s worth noting that not all mortgages are assumable, and whether a house buyer can approve a mortgage is subject to the lender’s approval. Conventional mortgages are harder to assume, while FHA, VA, and USDA mortgages are assumable.



What Are the Benefits of an Assumable Mortgage?



An assumable mortgage can benefit both the seller and the home buyer. Here are some advantages of assumable mortgages:




Makes house-selling easier - Assumable mortgages make homes easier to sell, especially if interest rates have increased over the years. For instance, if the seller took out a mortgage with a 3.5% interest rate and the interest rate on the same type of mortgage is now 6.0%. The assumable mortgage will make the house more attractive to buyers.



Better House-Buying Offers - Home sellers can use assumable mortgages to their advantage when pitching an offer. That way, they can better negotiate leverage for offers for the homes they’re selling.



Lower interest rates - House buyers can benefit from lower interest rates if they assume a mortgage with a favorable interest rate.



Reduces closing costs - home buyers will pay lower closing costs because most assumable mortgages limit assumption costs.




Assumable Mortgages Made Easy



The information above is everything you need to know about assumable mortgages. Whether assuming a mortgage is a good idea depends on your specific situation. However, be sure to do your research and seek advice from a mortgage expert before accepting a mortgage to ensure it works for you.

### Should I Pay Off My Mortgage Early?

Whether paying off your mortgage early is a good decision depends on your specific situation. The Sean Z Team can help you determine if it's right for you!



Thanks to a financial breakthrough or something of the sort, you’re now able to pay off your mortgage early. However, you’re still on the fence if doing so is such a good idea. On the one hand, you can cut your monthly payments, but on the other hand, you will lose your mortgage interest tax deduction. Not to mention you may end up with potential loss if the real estate market plunges.



This begs the question, should you pay off your mortgage early. Well, keep reading and find out. Today, we’ll be looking at why paying off your mortgage early may and may not be a good idea. So let’s dive straight into it.







When Is Paying Off Your Mortgage Early a Good Idea?



In certain situations, paying off your mortgage early might work for the best. Some of these situations include:




You want to reduce your monthly expenses - If your mortgage payments are taking up too much of your monthly budget, early mortgage payment might be a good idea. That way, you can save enough money for other things. This is extremely useful if you get a limited monthly income.



You crave financial freedom - Sometimes, regular monthly payments may compromise your peace of mind. If you want financial freedom and peace of mind, then you’re better off paying off the mortgage once and for all.



You want to save on interest payments - You have to pay considerable interest on top of your mortgage. The longer your mortgage is, the more interest you’ll have to pay. If you want to cut interest costs, you can pay off the entire interest once and forget about interest charges.




When Is Paying Off Your Mortgage Early a Bad Idea?



Sometimes an early mortgage payment may not be the best course of action. Here are a few situations where paying off your mortgage early works to your detriment.




You’re Low on Funds - If your bank account leans towards the dry side, paying off your mortgage early is a bad idea. You’ll end up draining your cash reserves and have no cash to sustain you.



Your income portfolio needs diversification - Your home is one of the most significant investments you’ll have in your life. However, you don’t want to channel everything into this single investment. So, instead of paying off the mortgage early, you can use the money to diversify your income portfolio.



You need money for retirement savings - If you’re running behind on your retirement savings, paying your loan early is a bad idea. Instead, focus on saving up for retirement while making small monthly payments on your mortgage.




Make the Right Decision



Whether paying off your mortgage early is a good decision depends on your specific situation. Think everything through and crunch all the numbers to determine whether you should pay off your mortgage early.



Are you looking for the best mortgage deal? Contact Better Rate Mortgage, and we’ll help arrange your next mortgage to bring you closer to your new home.

### What Are Points When Refinancing a Loan?

Are you planning to buy a home? Talk to the Sean Z Team today so we can get started on your mortgage. 



Mortgages throw us a lifeline when we can't afford to buy our homes in cash. But however helpful mortgages are, sometimes borrowers have trouble meeting their mortgage repayments. That's why anything that can reduce your mortgage cost is worth looking at.



You might have come across the term mortgage points if you've borrowed a mortgage. And like most people, you're probably wondering: What are these mortgage points, how do they work, and are they worth your money? Well, today, we'll be exploring what mortgage points are and how they can benefit homebuyers.







What Are Mortgage Points?



Mortgage points, or discount points, are a fee mortgage borrowers pay to reduce the interest rates on their mortgages. Some lenders may refer to mortgage points as buy-down points; both terms mean the same. Mortgage points help borrowers save a bundle on their mortgages, especially long-term mortgages.



Every point you buy will cost you 1% of your mortgage. Let's say you borrowed a mortgage worth $100,000. 1% of $100,000 is $1000. That means every point you buy will set you back $1000. You can think of it as paying your interest beforehand to reduce your monthly payments and lower your interest costs.



Every point you buy is equivalent to a set percentage of your interest rate. For instance, some lenders will allow a 0.50% reduction on your interest rate for every point you buy. However, there's a limit to how many points you can buy with most lenders.



Case Example:



For instance, you take out a mortgage of $250,000. The mortgage has a fixed interest rate of 4.50% with a repayment term of 20 years. The lender grants you an interest rate of 4.0% if you buy a single mortgage point. Since one point will cost 1% of your mortgage, you'll have to spend $2500 for a point.



If you decide not to take the mortgage point, you'll repay the mortgage with a 4.5% interest rate per annum. However, if you take the point, you can reduce your interest rate by 0.5% to 4%. Crunch the numbers, and you'll have saved a whopping $45,000 by purchasing the discount point.



Is Buying Mortgage Points a Good Idea?



First, you should only buy mortgage points if you can afford them. For large mortgages, the points may be too expensive for borrowers. Whether purchasing a point is a good idea depends on your situation and the lender.



Mortgage points are only a good idea if you manage to break even. Breaking even means when the amount you pay for the points equals or is less than how much you save on the mortgage. Do your math to establish whether buying points is a good idea conclusively.



Now that you know what mortgage points are, it's on you to decide whether they're right for you. Remember to find a lender with a reasonable point to percentage ratio to save a significant amount.



Are you planning to buy a home? Talk to Better Rate Mortgage today so we can get started on your mortgage.

### 5 Things Homebuyers Need to Know Before Making an Offer

One of the biggest mistakes you could make as a soon-to-be homeowner is rushing to buy a house without doing proper research first. 



The United States real estate market is worth a staggering $156.2 billion, which means plenty of houses go around. A home is easily one of the most significant investments you could make in your life. That's why it's essential to put a lot of thought into buying a home, especially your first one.



One of the biggest mistakes you could make as a soon-to-be homeowner is rushing to buy a house without doing proper research first. Doing so makes you more vulnerable to upselling and compromises your bargaining power. So if you're in the market for a new home, here are five things you need to know before making an offer.







The Home's Location



One should never buy a home without knowing its location. However, you'd be surprised how many homeowners blindly buy their house with zero consideration about where it's located. By location, we're talking more than just the state and city; we're talking down to the neighborhood and surrounding area.



When in the market for a new home, start looking at areas you wish to move to. Don't forget to look at things like amenities, schools, and proximity to urban centers. Also, do some research about the crime rate to figure out how safe the neighborhood is.



Your Budget



Make sure you have a clear budget for your house before you begin house hunting. Having a clear budget will narrow down your options to homes you can afford. After creating a budget, liaise with a reputable mortgage lender to begin the loan application process. Getting a pre-approval puts you in a better place to negotiate house prices and land a good deal.



The Neighbors



It's super important to have a brief conversation with the people surrounding your potential home. Remember, you're not just buying a home; you're also getting the neighbors that come with the house. They'll form a crucial aspect of your stay in that particular location.



Talk to the neighbors briefly and see whether they're friendly and welcoming. Ask them about the amenities and how secure the neighborhood is. You can learn a lot about the neighborhood by just talking to the neighbors.



The Home's Condition



Don't make an offer before you have a walkthrough of the home and get to know its condition. Internet photos may be deceiving, captured in angles that hide certain aspects that may turn off potential house buyers. Ensure you visit and tour the house before you make an offer.



Also, arrange for a home inspection so you can get intricate details about the home's condition. The inspection should help you make a well-informed decision about buying the house.



Your Dream Home Awaits



The information above should help you make the right decision when looking to buy a new home. Don't rush to make an offer before knowing everything we've talked about above. That's the only way you'll land your dream home at a great price.



Are you looking for a mortgage? Contact Better Rate Mortgage today for the best deal on mortgages in Missouri.

### The Best Use of a Home Equity Loan

Your home equity can benefit you in many ways. Contact the Sean Z Team today to discuss your home equity loan options.



There are many advantages to leveraging the equity you have in your home. If the value of your home has significantly increased since you purchased it, the value of your home versus what you owe may provide you with more equity than you think. Or, you may have lived in your home for so long that you've paid down a lot of the principal. Whatever your circumstances, there are various ways you can consider using the equity in your home.



The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience. If you have questions about a loan, call us today!













Here are some ways to use the equity in your home to your advantage:



Increase the Value of Your Home



There are several ways to use your home equity to increase the value of your home. This is true whether you plan to move shortly or over some time. You might consider a significant home renovation. Particular renovations add more value than others, so it's essential to do your research when looking for renovation ideas that fit your lifestyle, home, and homeownership plans.



Some of the most common home renovations include:



BathroomsKitchen and appliancesOffice or closetsExterior upgrades - new roof, siding, paint, fence, or landscapingPlumbing or electricalWindows, especially if they are energy efficient



Consolidate Credit Card Debt



Whether it's credit card debt or other high-interest obligations, consolidating your debt by leveraging the equity in your home can be a good idea. Remember, though, that a home equity line of credit is simply another form of a loan. You're basically exchanging one form of a loan for another. Therefore, make sure to consolidate under a lower interest rate than that of your original debt.



Using your home equity to consolidate credit card debt can save you money. It can reduce your expenses by spreading the payments out longer. But one critical thing to keep in mind is that it's often too easy to slip back into credit card debt. Don't use your home equity to pay off your credit cards, only to rack up that debt again.



Pay for Education



Another popular way people use their home equity is to pay for upcoming college expenses for a child or other family member. Since higher education can be expensive, utilizing your home equity can eliminate the need for student loans. If the interest rate for your home equity loan is lower than the student loan rates, this option can save you money.



Other Ways to Use Your Home Equity



In addition to the above uses, your home equity can benefit you in other ways. Some of these additional ways include:



Increase your home's energy efficiency - new windows, doors, or appliancesAdd a new addition to your home - increase square footagePlan an amazing vacationCreate an emergency fundInvest in real estateHandle an emergency expense



Contact the Sean Z Team



Leveraging the equity in your home has many advantages. To discuss your options, contact the Sean Z Team today. We are committed to making sure that you can receive the funding you need and helping you make the best decision.

### Factors That Affect Mortgage Rates

If you’re in the market for a mortgage, it’s a good idea to understand how lenders arrive at their interest rates. Doing so ensures you don’t get the short end of the stick while applying for your mortgage. 



Approximately 44% of consumers in the US take out mortgages; that’s almost half of all consumers. Mortgages have allowed individuals from all walks of life to afford their own homes. If you’re in the market for a mortgage, it’s essential to understand how lenders arrive at their interest rates. Doing so ensures you don’t get the short end of the stick while applying for your mortgage.







In this article, we’ll be highlighting a couple of factors that affect the mortgage interest rate. So without wasting time, let’s get right into it.



1. House Price and Loan Amount



How much you need to borrow on your mortgage depends on the price of the house, minus the deposit and closing costs. Lenders will look at something known as the loan-to-value amount when deciding interest rates. This is how much your mortgage is compared to the value of the home—the lower the loan-to-value ratio, the lower the interest rate your mortgage attracts.



2. Credit Scores



Lenders will look at your credit score to determine your mortgage viability and your interest rate. Typically, the higher your credit score, the lower the interest rate you should expect from the lender. Credit scores show how reliable you are in repaying your loan. Your credit score is a culmination of information from credit reports, credit cards, and other loan histories.



It’s essential to check your credit score before you look for a mortgage. Doing so lets you know what interest rate you should expect from the lender. There are many ways to get your credit score; choose one that suits your needs.



3. Location



Different states have different interest rates, with some being much higher than others. The disparity in interest rates is because of factors like competition, foreclosure laws, and the likes. States with lower loan amounts have high-interest rates. That’s because it’s much easier for lenders to sell these types of loans. It’s hard to say the same for large mortgage loans.Remember, the lender also has to make up for rent and property taxes, plus legal fees. That’s why interest rates tend to be higher in some states than others.



4. The Loan Term



The longer the loan term, the higher the interest rate you should expect to pay. However, mortgages with shorter repayment periods tend to have lower interest rates.



That’s because borrowers are less likely to default on short-term mortgages. However, with long-term mortgages, anything can happen between the repayment period to hinder the borrower from fulfilling the loan. That’s why long-term mortgages attract higher interest rates.



Know Your Interest Rates



There are tons of factors that affect your mortgage interest rates. Knowing them will help you prevent any upselling by the lender. Remember to get your mortgage from reputable mortgage lenders with no hidden fees. You can use our custom mortgage calculator to get started.



Contact Better Rate Mortgage team today for affordable mortgages with reasonable interest rates.

### Top 5 Reasons: Why You Should Become a Homeowner

Unlike buying a car whose value depreciates immediately after driving it off the dealer's parking lot, a home's value appreciates with time.



Why should you consider buying a house? Well, for starters, owning a home is a form of long-term investment and can come in quite handy in your golden years.



Also, more people embrace it because they've realized they can own a home without breaking the bank. Still not convinced? Here are more reasons why you should buy a home now.








It's a Great Investment - Buying a home offers a better return on investment than other large purchases, such as buying a car. Unlike buying a car whose value depreciates immediately after driving it off the dealer's parking lot, a home value appreciates with time.



You Get to Pay Less Tax - As a homeowner, you can get tax benefits for buying, owning, remodeling, and even selling your property. These benefits come in the form of tax deductions. That's right; you can deduct the interest you pay on your mortgage from your taxable income. Also, should you happen to sell your home, you'll not be required to pay taxes on the profit you make from the sale.



Peace of Mind and Stability - Another benefit of owning a home is the peace of mind and stability of paying a fixed monthly mortgage. Unlike rent, mortgage payments are not affected by market factors. Instead, they're set at a constant rate, meaning that your housing payments will reduce over time. What's more, when you rent a home, you are basically under your landlord's mercy - they can decide to increase the rent upon renewal of the lease or even evict you if you violate any lease terms.



You Get a Sense of Pride and Belonging - When you buy a home, you're not only investing in the neighborhood but also get to benefit from the social aspect of belonging to a community. In addition, there are lower crime rates among homeowners, which makes you feel safer and stable.



You Have the Freedom to Do Whatever You like with Your Property - Most leases don't allow you to make even the slightest adjustment in the house you are renting. However, when you're a homeowner, you can make whatever home renovations you want. You can paint your walls whichever color you desire, add another room, expand that tiny closet, turn the attic into your home office, and so much more. In addition, when you're a homeowner, you get to keep as many pets as you can have. This is something that most renters don't enjoy since most landlords don't allow tenants to keep any pets.




Contact the team at Better Rate Mortgage Today



With so many benefits of being a homeowner, it's time to take a leap of faith and become one too. So, contact Better Rate Mortgage today, and let's get started on securing you the perfect home. Your dream home is a phone call away.

### 3 Reasons You Should Consider Taking a Renovation Refinance Loan

A renovation refinance loan is a loan that allows you to refinance a home in need of improvements. 



Are you looking for a way to fund your home renovations? If yes, then a renovation refinance loan can be an excellent option for you.



What is a renovation refinance loan? And why should you consider it? A renovation refinance loan is a loan that allows you to refinance a home in need of improvements. And instead of paying back separately, the improvement costs are rolled into a new mortgage loan.







Here are three reasons you should consider taking a renovation refinance loan.



1. You’ll Be Able to Take Advantage of Low-Interest Rate



If the current mortgage rates are lower than when you initially financed your home, taking a renovation refinance loan can lower your monthly payments and interest rate.



2. Remodeling Is Better than Buying a New Home



Prices in most markets have been skyrocketing, and the housing market is no exception. With people scrambling for the available houses, the ensuing bidding wars have led to increased home prices. With the current high prices, remodeling might be cheaper than moving to an entirely new home.



3. Remodeling Will Raise Your Home’s Value



If you consider selling your home, you’ll want to make it look more appealing to potential buyers. Revamping your flooring or replacing your roof will not only give your home a new look but also raise its price tag. You could also borrow against your home value after the remodeling.



Considerations to Review Before Applying 




Research the right product - Renovation refinance products vary from one lender to another. And each product has its unique terms and conditions. Pick a renovation finance product that suits your needs and one that has low monthly payments.





Familiarize yourself with refinancing requirements - Get to know what the lenders require. Standard requirements include employment records, debt to income ratio, or credit rating.





Get a competent contractor - Estimating home improvement costs is no easy feat. For accurate estimation, engage a certified home developer who can give your renovation a detailed budget to determine how much you need to borrow.





Compare different lenders - Don’t rush to take your renovation refinance loan with the first lender that comes your way. Instead, get out there, meet with several lenders, compare their offers and pick the best. Also, when choosing a lender, make sure the lender has a good reputation. You can visit online review sites to find out what previous clients are saying about the lender. If the reviews are positive, then you can go ahead and work with the lender. On the other hand, find another lender right away if the negative reviews outweigh the positive ones! Also, be careful not to choose a lender who has hidden fees and unfriendly terms.




Get in Touch With the Better Rate Mortgage team



Are you in St Louis and looking for the best renovation refinance loan lender? Contact the team at Better Rate Mortgage today so we can get started on your renovation loan application as soon as possible.

### Short Refinancing: Everything You Need to Know

The short refinance application process isn't much different from the process you undergo when applying for a mortgage. 



Short refinancing can be an incredible option to reinstate your loan and avert foreclosure if you're currently in default on your mortgage payments. Ahead, we'll dive deeper into short refinancing, explaining what it is, how to get it, and its benefits and downsides.







What Is Short Refinance?



Short refinancing, also known as principal reduction or simply "short pay refinance," is a type of refinancing where the lender agrees to settle your current mortgage and replace it with a new loan. The new loan is usually lower than the existing outstanding home loan amount.



This will reduce your monthly mortgage payments and prevent a foreclosure. This also means you get to stay in your home for much longer, and your bank or mortgage lender gets to avoid losses associated with the foreclosure.



"How Do I Get a Short Refinance?"



The short refinance application process isn't much different from the process you undergo when applying for a mortgage.



Generally, when you apply for short refinancing, the lender will ask for several documents, including your most recent W-2s, most recent bank statements, and recent pay stubs. The lender will also check your credit score to make sure you meet the set standards. They may also require an appraisal to ensure they aren't giving you a loan that's more than your current home's value.



Also, since the lender will make a loss by taking a lower amount than your existing outstanding loan, they'll require you to provide a good reason for defaulting on your monthly mortgage payments.



Advantages of Short Refinancing



The benefits of short refinancing vary from borrower to borrower. That said, here are some of the most significant benefits of short refinancing:




Lowering your total amount of debt owed: You get to reduce the amount of debt owed by getting a short refinance.



Lowering your monthly mortgage payments: When your overall amount owed is reduced, it automatically means that your monthly mortgage payments will also be reduced. This also means that the prevailing interest rate also goes down.



You get to keep your home: This is perhaps the most significant advantage of a short refinance. You get to continue staying in your home and avoid moving out or, even worse, facing homelessness.




Disadvantages of Short Refinancing



The main disadvantage of short refinancing is that your credit rating will take a huge hit, making it quite challenging to get financing on other things. Your mortgage lender or bank also takes a loss since they'll agree to take a less amount than they originally lent out.



Looking to Buy a Home in St. Louis?



Are you planning to buy a house in St. Louis and looking for a mortgage lender to help finance your home? Contact the Better Rate Mortgage team so we can get started on your home loan application. We offer the best mortgage deals in town and have great refinancing solutions.

### How to Avoid Mortgage Closing Scam

At Better Rate Mortgage, our team uses advanced security measures to safeguard your details from scammers. Give us a call today for all your mortgage and refinancing needs. 



The mortgage closing process is a very exciting time for most homeowners. It’s the last step to becoming the legal owner of a new home and is very thrilling. However, given the significant financial transactions involved in mortgage closing, this process is a big target for scammers and often leaves thousands of unsuspecting home buyers bankrupt. For example, in 2020, over 13,638 homebuyers were victims of mortgage fraud resulting in a total loss of $213,196,082.



Below are ways criminals can get away with your money and how you can avoid being a victim of fraudulent home buying transactions.







How Do Scammers Steal Your Money?



Scammers may target your realtor, hack your email, and monitor your conversations only to show up disguised as your realtor when you are just about to close on your dream home. At this point, they’ll send you an email with instructions to send your down payment and the closing cash to a fake account.



Additionally, scammers may pounce when you’re looking to refinance your mortgage. They’ll offer you an excellent and tempting deal while, in reality, you’ll be signing up for a tearful ending.



Here are ways you can protect yourself from fraudulent home closing deals:




Call your representative using the contact details on their business card or official website. The details on the email may look legit, but make sure you verify the details because they are prone to fraudulent edits.



Beware of any email suggesting changes in wiring instructions. Legit real estate professionals rarely alter their wiring details. Also, confirm the wiring instructions with them to make sure you have the correct information.



Go through the instructions with your bank before completing the transaction. They may be able to pinpoint phony names and account numbers and warn you. Your bank can also check the number against the list of scammers.



Don’t use the same password for all of your accounts. If your password falls into the hands of a fraudster, it will expose all your other accounts to fraud. Instead, use different strong passwords for different accounts.



Avoid emailing your financial details and never disclose your financial details over phone calls you don’t trust. A scammer may pose as your agent and ask you to confirm your number. Before doing so, call your authorized agent and ensure whether the call is from one of their representatives.



Refrain from using public WI-FI or computers as they are perfect breeding grounds for scammers.



When wiring the funds, avoid opening email attachments from unexpected and suspicious sources. Scammers might take control of your computer and sweep your account clean.



Confirm with your trusted representative that they have received the money. If not, contact the Police immediately.




Looking to Buy a Home in St Louis?



At the Sean Z team, we have advanced security measures to safeguard your details from fraudsters. Give us a call today or get in touch with us for all your mortgage and refinancing needs.

### How to Choose the Best Mortgage

Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. 



Mortgages are differentiated into various types, and it’s hard to know which one is right for you. Unfortunately, most people go for the cheapest option and conclude their mortgage search in a snap. It’s a fast and straightforward approach, but it could work to your detriment.



You’ll have to do a lot more to find the best mortgage for your next home. Sean Zalmanoff and our entire team specialize in making the home purchase or refinance process a great experience! Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you can receive the funding you need.







Check the Mortgage Length



The longer the length of your mortgage, the more interest you’ll have to pay over the long term. However, that doesn’t mean you should steer clear of mortgages with lengthy repayments periods. Remember, lengthier mortgages also attract lower monthly installments throughout the loan’s lifespan. You’ll have to find a mortgage with a repayment period that fits your current and projected financial situation.



Most mortgages have repayment periods of between 10 to 30 years. Some lenders even have “write your own mortgage” programs that allow borrowers to negotiate their mortgage terms. You’ll first need to calculate how much you can afford in monthly payments and how much interest you’re willing to pay. This should help you make a better decision when choosing the length of your mortgage.



Figure Out How Much You Can Afford



Most people make the mistake of overstretching their financial reach when applying for a mortgage. Provided you have an excellent credit score, lenders would be more than happy to grant your mortgage request. However, the decision to take an expensive mortgage will likely come back to haunt you in the future unless you can afford the mortgage in question.



Borrowing a mortgage that you can’t afford will only strain your finances in the future. So regardless of your stellar credit score, borrow a mortgage that’s within your financial capability.



Settle for the Right Type of Mortgage



As mentioned above, there are many types of mortgages to choose from. However, not everyone can qualify for every mortgage. Some mortgages are specific to particular groups of people. That said, here are the main types of mortgage loans.




VA loans for veterans and individuals with a military background



FHA loans for people with poor credit scores



USDA loans for folks who are comfortable living in rural or suburban areas




If you don’t belong in any of the above categories, conventional mortgages are your best fit. They don’t have any perks or special conditions, but they can get you a new house.



Choose the Right Mortgage and Mortgage Lender



Choosing the right mortgage is just part of the process; next, you have to find the right mortgage lender to grant you the mortgage. Make sure you put in as much effort as you did when choosing a mortgage in choosing your lender. Fortunately, the best mortgage lender is a phone call away.



Contact the Better Rate Mortgage Team today so we can get started on your mortgage loan application as soon as possible. Your dream home awaits.

### What Is a Mortgage Loan Acceleration Clause?

It's always advisable to read every part of your mortgage contract to ensure you know what you're getting into.  



If you're new to mortgage loans, you might come across a few unfamiliar terms like "acceleration clause." Acceleration clauses are found in most loan contracts but are more familiar with mortgage loans.



Like most people, you may come across this clause and brush it off as unimportant. Big mistake! It's always advisable to read every part of your mortgage contract to ensure you know what you're getting into. This article will look at an acceleration clause and what it means for both the lender and borrower.







Acceleration Clause: The Definition



An acceleration clause in your mortgage contract stipulates specific loan repayment provisions for the borrower. It allows the lender to demand outstanding mortgage repayment prematurely if the borrower doesn't meet certain conditions. The acceleration clause will state the said conditions and how much the lender expects from the borrower if they fail to fulfill them.



What Situations Merit an Acceleration Clause?



Not all mortgage loans have acceleration clauses, but most do. Lenders trigger acceleration clauses for various reasons and the mutual benefit of both parties. Here are a couple of situations that can trigger the acceleration clause.




Delayed or Missed Payments - Repeated missed payments may force the lender to effectuate an acceleration clause. Thankfully, making full mortgage payments before can reverse the process. It would be wise to follow up on any missed payments before the lender invokes an acceleration clause.





Canceling Homeowner's Insurance - Most mortgage lenders require borrowers to have comprehensive homeowner's insurance throughout the mortgage lifespan. Homeowner's insurance protects the lender's collateral if you fail to repay the mortgage. The lender can initiate an acceleration clause if you cancel your homeowner's insurance because it means their collateral is no longer protected.





Filing for Bankruptcy - Filing for bankruptcy means you're no longer in a position to pay off your mortgage. Lenders will enforce an acceleration clause to ensure you pay off your outstanding mortgage before filing for bankruptcy. That way, they can protect themselves from any defaulting or delinquency on the borrower's part.





Transferring Your Property Illegally -  Illegally transferring your property to a person or entity could trigger an acceleration clause. The lender might perceive this as trying to evade the mortgage by relinquishing ownership. Lenders have the right to enforce an acceleration clause in cases of unauthorized property transfer.




Are Acceleration Clauses Legal?



Yes, acceleration clauses are perfectly legal and are invoked to protect the lenders' interests. It also saves the lender the trouble of suing the borrower every month for delayed payments.



Make Timely Payment to Sidestep Acceleration Clause Invocations



An acceleration clause may sound a tad scary for mortgage borrowers, but it's nothing to worry about if you make timely mortgage payments. Also, ensure you get your mortgage from a reputable lender to avoid illegal acceleration clauses.



Contact the Better Rate Mortgage team today so that we can get started on your mortgage process.

### What's the Difference Between Mortgage Prequalification and Preapproval?

The mortgage prequalification and preapproval are integral parts of the mortgage application process. Call Better Rate Mortgage today to get your mortgage process started.



Are you planning to apply for a mortgage? If you're a first-time homebuyer, you'll come across many mortgage terms and phrases that it's easy to get lost. Fortunately, we believe in making your mortgage application smooth and successful.



In our article today, we explore the terms Mortgage "Prequalification" and "Preapproval," looking at what they mean and their differences. So let's dive straight into it.







What Is Mortgage Prequalification?



Prequalification is among the first steps in the home loan application process. During the prequalification phase, the lender will ask for your financial documents and then use them to come up with a rough estimate of what amount you may be able to borrow.



Given that prequalification relies primarily on self-reported financial data, it's a ballpark stage of the mortgage process. The most significant benefit of prequalification is that it'll give you an idea of what you can and can't afford. It also presents an opportunity to familiarize yourself with the application process and the various mortgage options.



What documents do you need for prequalification? Well, it depends on the lender. That said, most lenders will only ask for your credit reports, proof of income, and asset documents.



What Is Mortgage Preapproval?



Preapproval is a bit like prequalification but a tad more elaborate and conclusive. During this phase, you'll need to provide official financial documents to prove your financial history and income stability. Then, the lender will conduct a diligent investigation of your assets, income, credit history, and pending debts.



The lender will also cross-check the information you self-reported during the prequalification phase. You'll need to provide your W-2s, pay stub, monthly expenses, and a list of assets you own for the preapproval. If you already own property, you might have to present a copy of your home insurance policy and previous mortgage statements.



If you qualify for preapproval, the lender will send you a preapproval letter. This letter details the mortgage amount and the type of mortgage you should expect from the lender. This letter is a great plus if you're out house shopping because you can use it to assure the seller that you can afford the home.



When Should You Get a Mortgage Preapproval?



The best time to get a mortgage preapproval is when you're ready to talk to real estate agents or do your house shopping. It's worth noting that, in some cases, you might get a higher amount than your preapproval amount. However, you'll first need to find a reputable lender before that can happen.



The mortgage prequalification and preapproval are integral parts of the mortgage application process. Hopefully, you now have a firm understanding of both and can confidently apply for your mortgage. Remember, only a respectable lender can give you a reasonable mortgage with zero underhandedness.



Get in touch with Better Rate Mortgage today to get your mortgage process started.

### What to Do When Your Mortgage Application Gets Denied

We know how frustrating and disheartening having your mortgage application denied can be. We are ready to guide you through the mortgage application process and improve your chances.



Having a mortgage enables you to keep your cash reserves, purchase a home without cash and enjoy cost-effective borrowing. However, just like any other loan application, a mortgage application can be declined. And this introduces today's question: what should you do when your home loan application gets denied? Here's what to do — courtesy of mortgage experts here at Sean Zalmanoff.







Why Mortgage Applications Get Rejected



Some of the reasons that may make your mortgage lender reject your mortgage application include a bad credit score, insufficient or unverifiable source of income, high debt to income ratio, and lack of credit history.



Tips for the Second Application Round



While having a rejected mortgage application can be frustrating, you can re-apply numerous times until successful. Here are tips that can increase your chances of a successful mortgage application:



1. Start Saving Up



If the reason your previous application got declined was insufficient income or a lack of savings, then the best thing to do is save up. Buying a home is no small investment, and if you're going to get approved for it, you need to be financially prepared. If your job pays well and you have room to save, this step will probably be the easiest.



2. Improve Your Credit Score



Another reason why a lender may reject your home loan application is a bad credit score. Common causes of bad ratings include bankruptcy, defaulting on a loan, foreclosure, and too many recent credit inquiries.



If a poor credit rating is a reason why your application was rejected, don't worry. These three tips can help improve your credit rating.




Take care of your debt



Pay your bills on time



Review your credit report and check for any mistakes and errors that could boost your rating if corrected




3. Spend Less



The best way to proceed after a rejected mortgage application due to insufficient income would be to cut down on your expenses. Additionally, you can consider changing your job to enable you to earn more or spend time on a side-hustle to boost earnings.



4. Get References if Required



If your previous application got declined because of financial problems, at least one lender would request that you get a few professional references to prove that there's no funny business going on. While it's not difficult, it can take up some time and effort.



5. Get Things Right Before You Re-Apply for a Loan



Before you re-apply for the home loan, make sure you've corrected all the issues that caused your first loan application to be rejected. Also, go for home loans that target your income bracket.



Contact the Better Rate Mortgage team



We know how frustrating and disheartening having your mortgage application denied can be. Luckily, we are ready to guide you through the mortgage application process, improve your chances of getting your mortgage application accepted and help you secure the best deal on the market. Get in touch with the team from Better Rate Mortgage.

### Do Mortgage Lenders Require Home Inspections?

Although lenders generally won't require you to have a home inspection done, it is highly recommended that you schedule an inspection before proceeding with your mortgage application. 



So you've just found the house of your dreams. It's reasonably priced, and the seller has agreed to sell it to you (congratulations!), so now all that's left is to apply for a home loan.



But there's just one issue: You don't have a home inspection report to prove your home was inspected, and you're wondering, can this cause your mortgage application to be denied?













Mortgages and Home Inspections



While a home inspection is necessary when buying a home, mortgage lenders generally don't require one. In most cases, they'll only ask for a wood-destroying organisms report (WDO) and an appraisal report. The former certifies that the property is free from destructive organisms such as termites and fungi, while the latter shows the property's market value. These two reports help the lender know if the home is worth the money — in other words, it helps ensure they're not originating a home loan that's too risky.



That said, it's worth noting that, in some rare cases, mortgage lenders may ask you to get a home inspection. For example, suppose the pest control or appraisal report highlights some structural defects in the home. In that case, the underwriter may require a home inspection to determine if the house is worth investing in.



Home Appraisals Vs. Home Inspections: What's the Difference?



Both services (home appraisal and inspection) help uncover hidden issues, providing the home buyer with a complete picture of the investment. But that's where the similarities end.



The main difference between these two services is that an appraisal evaluates the home's value based on its condition and similar properties in the neighborhood. In contrast, an inspection is used to determine the overall condition of the house.



Having a Home Inspection is a Good Idea



Although lenders generally won't require you to have a home inspection done, it is highly recommended that you schedule an inspection before proceeding with your mortgage application. Here's why:



Helps in uncovering hidden issues: Having a home inspection done will help you identify any mechanical, plumbing, and pest issues and have the seller fix them before you purchase the home.Pinpoints potential future problems: A home inspection won't just reveal current issues with a home. It'll also provide an in-depth analysis that can pinpoint issues that may become a problem in the future. If you can identify potential problems before they happen, you can take the necessary measures to address them.Gives you an upper hand in negotiations: If a home inspection reveals significant problems, you can negotiate with the seller to lower the price of the house.



Need a Mortgage Loan?



Are you in St. Louis, Missouri, and looking for the best home loan deals? The Sean Zalmanoff Mortgage Team is your go-to partner. We have a professional team dedicated to making your home purchase or refinancing as smooth as possible. Contact us today for more information.

### What Can Depreciate Your Home’s Value?

It’s crucial to understand what can be the cause of a home’s depreciation, and so here is a quick run-down of the most important factors. 



Many factors impact the valuation of homes across the country, including demand for real estate, interest rates, and economic conditions. However, it’s a host of local factors that drastically affect your home’s value, some of which are in your control.



A home is one of the most substantial investments for most people. That being the case, it’s crucial to understand what can be the cause of a home’s depreciation, and so here is a quick run-down of the most critical factors.







Internal Factors




Carryover Maintenance - Your home’s value significantly drops because of dated and damaged structures. It would help if you did frequent checks on your home’s structures and systems using a comprehensive checklist from the Department of Housing and Urban Development to keep tabs on your home’s condition.



Outdated Kitchen and Bathrooms - An outdated kitchen and appliances stand out like a sore thumb and drastically depreciate your home’s value. As a result, prospective buyers always watch out for the state of kitchen appliances to shake off any possibility of upgrading costs.



Home Improvements Not Done to Code - Any work done without a permit is a big red flag to savvy buyers. Aside from being illegal, you run the risk of damages such as pipe bursts due to code violations. Prospective buyers will bargain for a lower price considering the extra cost they’ll incur bringing the work to code.



Poor Landscaping - Poor landscaping can shake off the value of your home by as much as 10 percent. Your landscaping should be at least at par with that of your neighborhood. See to it that regular trimming and mowing the lawn is done.




External factors




Location Value - Homes with proximity to utilities such as schools, grocery stores, and public transport tend to have higher demand and depreciate at a sluggish rate. A decline in employment and population in the city can trigger a great deal of depreciation of home values.



Local Foreclosures - A good deal of foreclosures happening in the neighborhood can cause a ripple effect of depreciating home prices. Foreclosed homes that aren’t well maintained and have been unoccupied for a considerable time in the locale weigh down the value of your home.



Economic Environment - Adverse economic conditions affect demand in the real estate market. For example, with hardly any people looking for new homes, prices of real estate properties come tumbling down. In addition, people who’ve lost their jobs during recessions may have no alternative but to put their homes up for sale and this, in turn, creates a surplus of properties in the market, shooting down house prices. Also, asking prices for your home may drop at high speed if your home stays in the market for a long time.



Neighborhood - Bad neighbors bring down the value of properties in the locale, particularly those with unkempt lawns and shabby homes. A registered sex offender in your neighborhood can also bring down the value of your home significantly.




Choose Better Rate Mortgage



Are you looking for a mortgage? Choose Sean Zalmanoff and the Better Rate Mortgage team as your mortgage partner. We have smooth application processes and offer some of the best mortgage deals in the St. Louis area. Contact us today.

### Who Regulates Mortgage Lenders?

As the mortgage market continues to thrive, who keeps them in check and ensures they're fair to their customers? 



According to recent research, mortgage debts increased from $9.1 trillion to 10.3 trillion in 2020. This is a record high. But as the mortgage market continues to thrive, who keeps them in check and ensures they're fair to their customers? Below are some of the institutions responsible for regulating mortgage lenders.







Consumer Financial Protection Bureau (CFPB)



CFPB is the main government agency responsible for protecting consumers' rights in the financial sector. The government created this agency back in 2008 with the sole intention of preventing banks and other lenders such as mortgage companies from maltreating their consumers.



The bureau relies on laws passed by Congress to enforce regulatory measures in the mortgage sector. Some of these laws include:




Real Estate Settlement Procedures Act - This is one of the major acts in the mortgage lending sector. The act asks mortgage lenders to disclose details of a real estate settlement process to borrowers, including the total settlement costs. RESPA also prohibits interested parties from receiving kickbacks from a lending institution for recommending their mortgage services.





Truth in Lending Act - The TILA is among the oldest acts to protect consumers from unfair and malicious practices by lenders. This law requires mortgage lenders to provide their borrowers with information concerning a home loan before making a final decision. The details should include interest rates, terms of service, fees, steps to filing a complaint, and other loan provisions. The TILA helps consumers get the information needed to compare loan terms for different companies and make their preferred choice.





Equal Credit Opportunity Act - ECOA seeks to protect borrowers from discriminatory practices by mortgage companies based on color, religion, sexuality, age, marital status, and race. This means a mortgage lender cannot deny you a loan if you qualify for it. Also, they shouldn't discourage you from applying for a loan or offer less favorable terms than candidates with similar qualifications.




Department of Housing and Urban Development (HUD)



HUD is the primary government agency that ensures Americans have access to affordable home opportunities. This agency's core responsibility is to enforce the:




Fair Housing Act - The Fair Housing Act, or FHA, is among the few acts to undergo several amendments to ensure total consumer protection. One of the main functions of this act is barring discriminatory actions against people during house financing.



Federal Trade Commission - The Federal Trade Commission (FTC) is an independent government agency whose primary role is to ensure the protection of consumers. The commission regulates mortgage companies engaging in deceptive and unfair practices that affect their consumers. Such actions include omitting essential facts to encourage individuals to take house loans, deceptive actions like overpricing fees, or misleading statements.




Better Rate Mortgage – St. Louis Mortgage Bank



The Better Rate Mortgage Team specializes in making the home purchase or refinance process a great experience, whether this is your first purchase, your 10th, or you need assistance with the FHA 203k or Fannie Mae Homestyle construction loans, we make it happen for you!

### Fixed-Rate Vs. Adjustable-Rate Mortgage - What’s the Difference?

We specialize in making the home purchase process a great experience! We will help you determine which mortgage is right for you.  



Your choice of mortgage primarily boils down to two options, fixed-rate and adjustable-rate mortgages. If you’re looking for a mortgage, it’s important that you understand the difference between the two to make a more informed decision.











This article will look at what makes fixed-rate and adjustable-rate mortgages different. Hopefully, after reading this, you’ll have a firm understanding of both and a clear idea of what type of mortgage is right for you.



What Is a Fixed-Rate Mortgage?



As the name connotes, a fixed-rate mortgage is a home loan with a fixed interest rate throughout its life. This means that the interest rate remains the same regardless of market fluctuations and other factors that would otherwise affect the interest rate.



A fixed interest rate makes budgeting easier for homeowners because the repayable amount remains the same. Plus, they can opt for standardized monthly payments to make the mortgage repayment a breeze.



What Is an Adjustable-Rate Mortgage(ARM)?



An adjustable-rate, or variable-rate mortgage, is a home loan with an interest rate that changes depending on market conditions. Adjustable-rate home loans have an initial interest rate lower than that of fixed-rate loans. This initial interest rate remains steady for a particular period then resets once the period elapses. The fixed period varies from one month to ten years. After the reset, the mortgage gets a new interest rate that depends on the current market conditions. The interest rate remains the same until the next reset, where it changes again.



Common Terms With Adjustable-Rate Mortgages



ARMs are more complex than fixed-rate mortgages. To have a firm understanding of ARMs, you’ll need to get familiar with a few terms, including:




Adjustment frequency: This defines the period between resets or interest rates adjustments.



Adjustment indexes: This is a benchmark tied to a mortgage interest rate. It could be a specific market index, an asset, or even CDs.



Ceiling: This limits how high the interest rate can climb throughout the given loan period.



Cap: The cap is a limit on what percentage the interest rate can increase between resets.




Which Mortgage Is Right for You?



The biggest hurdle for most soon-to-be homeowners is figuring out which type of mortgage works best for them. You’ll have to consider your current and future financial situation, the general economic atmosphere, and your preferred lender to make the right choice.



Before picking a mortgage type, ask yourself the following questions:




Whether you can afford the maximum interest rate of an ARM?



What’s the largest mortgage amount you can comfortably afford?



Does the future look promising or bleak, given your current financial situation?




Remember, you can always seek advice from a financial advisor or mortgage expert to ensure you make the right decision.



Pick the Right Mortgage Type



Take your time and choose the right mortgage type to finance your home. Apart from the mortgage type, ensure you find a reputable, reliable, and trustworthy lender for your mortgage. Luckily, one such lender is just a call or email away; contact Better Rate Mortgage so we can get started on your mortgage.

### Tips to Get a Good Mortgage Rate with Low Income

We have incredible mortgage deals and smooth pre-approval processes. Get in touch for more details! 



Potential homebuyers are often discouraged from the idea of applying for a mortgage because of worries they might not qualify due to their low income. But did you know there are mortgage programs designed for low or moderate-income earners? Here are a few mortgage programs you can apply for with a lower income:







HomeReady Mortgage



The HomeReady mortgage is a low-interest rate loan given to low-income first-time homebuyers. To qualify for this mortgage program, you must have decent credit,  around 620, and a 3% down payment in cash. Once your application is approved, you’ll enjoy minimal risk-based price adjustments and reduced mortgage insurance costs.



Home Possible Mortgage



The home possible mortgage is another mortgage program ideal for first-time and low- to average-income homebuyers. You need to meet the 660-credit score and 3% down payment requirement to enjoy flexible funding and favorable mortgage insurance that this mortgage program offers.



USDA Single Family Housing Program



Guaranteed by USDA Rural Development, single-family housing home loans allow low- or moderate-income homebuyers to build or buy a home in suitable rural areas. Depending on the lender, you may not be required to show your credit score to qualify for this program. All you need is to demonstrate you have the ability to service the loan.



Now that you’ve understood the different low-income mortgage programs you can pursue, below are four tips to help you get a good mortgage:




Create a Budget and Stick to It - Budgeting is important when taking a mortgage. Therefore, use a mortgage calculator to calculate your monthly income, debts, and estimated cost of living. This will give you an idea of how much you can pay each month and help you settle on a mortgage you can afford.



Improve Your Credit Score - A good credit score allows you to access mortgages easily and quickly. How? Your credit report gives a clear picture of your income level, payment history, and credit history, which mortgage lenders use to approve or disapprove your mortgage application. Therefore, ensure you have a healthy credit score. You can start by paying your bills on time and clearing any debts you may have.



Save for a Down Payment - While not all low-income mortgage programs require a down payment, having a down payment can help lower your interest rate. It also leaves you with less mortgage to finance and pay interest on.



Work with the Right Lender - Choose an experienced mortgage lender, has incredible mortgage offers and possesses great customer service. Such lenders understand your home buying needs and will offer you favorable terms.




Contact Better Rate Mortgage Today



Are you in St. Louis and planning to apply for a low-income mortgage loan? Contact the Better Rate Mortgage Team. We have incredible mortgage deals and smooth pre-approval processes. Get in touch for more details!

### What Is an FHA Loan and What Makes a Person Eligible?

If you're wondering whether an FHA loan is right for you, don't worry, we're here to help! 



An FHA loan is a type of government-backed loan for borrowers who earn a low to moderate-income. The Federal Housing Administration insures this mortgage, hence the name FHA loan. They are popular among first-time house buyers for a couple of reasons that we'll highlight later. 















If you're wondering whether an FHA loan is right for you, but you're having trouble rummaging through the FHA handbook, worry not; we're here to help. This article will look at everything you need to know about FHA loans. That way, you can make a more informed decision on whether you should apply for an FHA loan.







How Do FHA Loans Work?



FHA loans involve three parties, the borrower, the lender, and the FHA. The borrower pays a minimum of 3.5% down payment to the lender if they have a credit score of 580 or higher. Borrowers with credit scores of between 500 to 579 can still qualify for an FHA loan, but they have to pay a 10% down payment.



The lender can be a bank, credit union, or private lender. All lenders that issue FHA loans must have approval from the FHA to issue these loans. In addition, for any mortgage issued by an FHA-approved lender, the FHA insures it, thus protecting the lender in case of default. That's why FHA-approved lenders tend to be more lenient with their mortgage terms, even to people who may not have the necessary loan qualifications.



These loans come in either 15 or 30-year repayments terms with fixed interest rates. The only catch is that borrowers must pay the FHA mortgage insurance. This is the same insurance that protects lenders from losses should the borrower fail to repay the mortgage. All FHA loan borrowers must pay two insurance premiums which are:




Upfront premium - This is 1.75% of the loan amount. The borrower pays for this once they are approved for the loan. In some cases, it can be part of the financed loan amount.



Annual premium - Borrowers pay 0.45% or 1.05%, depending on a variety of factors. These factors include the loan amount, the loan term, and the loan-to-value ratio or LTV. Your LTV ratio is the loan amount divided by the property's value expressed as a percentage.




What Makes One Eligible for an FHA Loan?



If you're looking to apply for an FHA loan, ensure you first meet the following criteria:




Have proof of employment history for the past two years



Have a credit score of over 500



Want financial assistance to finance a primary residence



Have proof that an FHA-approved appraiser appraised the property in question




Your lender will inform you of any other special requirements for their FHA loan. However, the above are some of the main requirements to qualify for an FHA loan.



Apply for a FHA Loan Today



With flexible terms and plenty of FAH-approved lenders, applying for an FHA loan is never a bad idea. Contact Better Rate Mortgage today, and we'll get started on your FHA loan.

### 7 Pitfalls to Avoid When Finalizing Your Mortgage

Before you close on your mortgage, it's essential to avoid making these mistakes with your finances that could derail the closing process.



No matter what type of mortgage you are looking for, it is essential to avoid actions that could ruin your mortgage closing. Often, simple fixes can help bring a ‘mortgage deal’ back to life, but sometimes your actions could take the deal off the table completely. Here are mistakes you should avoid when finalizing your mortgage.








Changing Your Job - Your job stability will play a vital role in getting your mortgage approved. If you plan to change your current job, try to buy yourself some time until your home loan is finalized. Your lender will look at your job history to see how long you have been in your current job to ensure you do not have a sporadic history.



Making Huge Purchases - Are you planning to buy high-end assets during your application period? Please wait. This will change your debt-to-income ratio, and this can complicate your mortgage closing. It would be best if you first closed on your loan then buy the item later.



Changing Your Bank Accounts - When you apply for a mortgage, your lender will ask you to submit your bank statement along with other documents. This is to make sure you can afford to pay the required down payment and additional closing charges. And also to determine the source of your income. If you change your bank, you will have to repeat the process repeatedly, including waiting for another three months. Worse still, you may be required to submit a written explanation. Avoid it at all costs.



Multiple Hard Credit Inquiries - Multiple hard inquiries on your credit status can lower your average FICO score. For this reason, you should avoid taking new credit before you get your mortgage approved.



Making Sudden Huge Deposits - When you make huge deposits, your lender will want to know where it came from. Depending on the source, this could potentially derail your home loan approval. So if you know you’re going to receive a considerable cash deposit -- whether in your checking or savings account -- be sure to inform your lender in advance to avoid hurting your approval. Equally important, avoid making huge withdrawals. Again, this could affect your cash reserves, which may delay your mortgage closing.



Taking a New Credit Line - There are always some credit companies offering discounts on their credits. And you may be enticed by their offers and apply. However, do not take new credit lines. Applying for a new credit line will lower your credit score, and this will, in turn, affect the likelihood of success in your mortgage application.



Avoiding Questions - Your lender may ask many questions to gather information on your ability to finance your mortgage. Although some of the questions may feel invasive, you have to answer them truthfully. Failing to do so will only derail your closing.




Contact the Better Rate Mortgage team



Are you planning to apply for a mortgage? We have smooth applications and excellent customer service. Contact us today. We will be happy to help you buy your dream home.

### How to Make a Competitive Offer On a Home

While having your home offer accepted gives you a spark of hope, the process can be psychologically and financially draining without the correct information.



Buying a home is a significant milestone and a lifetime achievement. This is mainly because the process requires you to undergo rigorous bidding and have top-notch negotiation skills. Additionally, the real estate market is competitive, so you’ll need to go the extra mile to be the best buyer amidst the competition.



While having your home offer accepted gives you a spark of hope, without the correct information, the process can be psychologically and financially draining. Below we share with you time-tested tips to help you make a winning offer on your dream home.







Secure Your Pre-Approval



Not having a mortgage pre-approval when negotiating with the home seller can drastically reduce your chances of getting the house. How? Well, the seller might have already received numerous offers but will only sell to the buyer whose financing is secured. So make sure you get your pre-qualification letter from your lender to stand out from other prospects.



Make Your Earnest Offer



Earnest money is the offer you make to your seller as a good faith deposit to show you are serious and ready to buy their home. Most sellers request an earnest offer as it makes them feel that their interests are protected. This is because they receive 1-3% of the buying price in an event where the buyer changes their mind about the purchase. Therefore, making your earnest offer raises your credibility and increases your chances of getting your dream home.



Limit Your Contingencies



Contingencies are provisions for possible future issues, and they must be factored in before closing on the sale. While they are made to protect you as a buyer, you need to be smart to ensure they are not a turn-off to your seller. The more contingencies you have, the less the chances of your offer being accepted. Try to scrape off unnecessary contingencies and stick to those you think are crucial.



Build a Rapport with Your Seller



It is no secret; a seller receives multiple competitive offers. And your offer needs to have an emotional, personalized connection to win the heart of your seller. Do some background checks about the seller and their house, and use the gathered information to connect. For example, you could tell them why you want to be the next owner of their home. Share with them why you love their yard or their neighborhood. This, paired with a competitive financial offer, will make them remember you when it’s time to choose their ideal buyer.



We Offer the Best Mortgage Deals In St. Louis



Are you looking to buy a home in St. Louis, Missouri? Contact the Better Rate Mortgage team for assistance. We have incredible mortgage offers, and our pre-approval processes are quick and smooth. Contact us and let us help you secure the home of your dream.

### How to Qualify for a Home Loan if You're Self-Employed

Your self-employed status isn’t a barrier to your dream home. If you follow the steps and tips, qualifying for a mortgage will be easy. 



Contrary to popular thought, self-employed individuals can qualify for mortgages and purchase their dream homes. That’s right; you don’t need to work for a company or a recognized employer to land a mortgage. However, it’s worth noting that applying for a mortgage as a self-employed individual is slightly different from applying for one when a company employs you.



You’ll still need good credit and have to fill out a mortgage application just like employed people do. But you might be required to fill out more paperwork than your employed counterparts.







What Do Lenders Look for in Self-Employed Individuals?



Qualifying for a mortgage loan can be a little harder for self-employed individuals because of the characteristic risk and unpredictable cash flow typical of self-employed ventures. Here’s what mortgage lenders look for in self-employed individuals.




Cash flow stability



A strong future earning capability



A business with considerable financial muscle




If you or your business meets the above criteria, you’re well on your way to landing a mortgage for your first home purchase. With that out of the way, let’s look at the documentation you’ll need to provide.



What Documents Do You Need for Your Home Loan Application?



If you’re self-employed, you’ll first need to provide documents that verify your self-employment status. Some of these documents include:




Evidence that your business has proper insurance (if applicable)



Emails or letters from current clients



State business licenses



Proof of membership of a professional organization (optional)




Apart from your self-employment verification, you’ll also need solid proof of income. The following documents show proof of income:




Tax returns



Forms indicating profit and losses made



List of assets



Bank statements




Some forms that may come in handy while providing proof of income include form W2, form 1120S, or a schedule C form. Of course, all this depends on the type of business you’re running. Also, keep in mind that even if your business had a great run for the past year or so, lenders might still review income from previous years.



Tips for Getting Your Mortgage Application Approved



While your application is under scrutiny, here are a couple of tips to increase your chances of landing a mortgage.




Watch your debt: Increasing your debt could jeopardize your chances of approval. Therefore, keep your debt at a bare minimum throughout the review process.



Have your down payment in order: Most lenders require proof of your ability to pay the down payment and a few months of mortgage payments. Make sure you save enough to cover both to avoid delays.



Be patient: Mortgage applications for self-employed folks can be frustrating, but be patient and don’t give in to your frustration — even if the lender asks for more documents or there are delays with your application review. Remember, patience pays.




Contact Better Rate Mortgage today



Your self-employed status isn’t a barrier to your dream home. If you follow the steps and tips, we’ve highlighted above, qualifying for a mortgage will be easy. If you’re looking for a reputable mortgage lender in Missouri, Sean Zalmanoff and the Better Rate Mortgage team are here for you. We have incredible mortgage offers and smooth pre-approval processes. Contact us today!

### 4 Tips to Fast-Track Your First Home Down Payment

Saving a pile of money for your down payment on your first home is easier said than done. Consider these tips for first-time home buyers.



Owning a home is a dream come true, but owning a home remains a dream for most people because of skyrocketing house prices. Fortunately, you can always opt for a mortgage — an economically friendlier way to purchase your home. In fact, in 2020, approximately 44% of consumers in the US have a mortgage and for all the right reasons.



Before taking out a mortgage, lenders will require you to pay a deposit, usually 3-20 percent of the mortgage amount. This can be a tad daunting for some people, maybe because of financial indiscipline, unexpected events, or other reasons. If you’re wondering how to raise your first home loan deposit, we have compiled a comprehensive list that will help you get your deposit quickly.







1. Be Realistic



Being overly optimistic is a mistake most individuals make when buying their first home. Most homebuyers are out to look for their “forever” home, which most likely is in a price bracket they can’t afford. Remember, you don’t need to have everything on your first go. Instead, set realistic goals and expectations to ensure you don’t run into financial complications on your journey to the property ladder. After all, you can always save up and, with time, sell your first home and buy your dream home.



2. Create a Comprehensive Budget



A budget acts as your guiding light towards your financial goals; your home deposit in this case. Creating a budget helps you manage your finances accordingly and gives you control of your money. When creating a budget, ensure you factor in the amount of money coming in and out of your bank account. The more detailed your budget is, the better it will be for your financial management. Look for areas where you can cut back, and remember to always stick to your budget.



3. Set a Savings Target



Goals are easier to achieve when they’re clearly defined. That’s why you need to set a target for your savings and save away. As mentioned earlier, always remember to be realistic and practical with your savings to avoid frustrations. To set a savings target, all you have to do is consider the mortgage amount you want and the amount the lender requires as a deposit.



4. Reduce All Other Debts



It’s normal for lenders to inquire about other debts before approving your mortgage. So if you have any other debts like car loans or credit card loans, you best clear them pronto or at least reduce them. If you’re having trouble clearing your debts, you can always consolidate them or seek help from a reputable financial adviser. A financial advisor will advise you on the best ways to save or reduce debts.



We’re Here to Help



A helping hand during the home-buying process is priceless, and if you’re looking for the best mortgage lender in St. Louis, Missouri, then look no further. Sean Zalmanoff and the Better Rate Mortgage team are here for you. We have incredible mortgage offers and smooth pre-approval processes. Give us a call today!

### Mortgage loan: What's The Maximum I Can Borrow?

It’s the top question potential buyers ask before starting to shop for a new home: how much can I borrow?



The answer to this question will directly influence the type of home you can shoot for, so it’s natural to know the ballpark of your price range before you start looking around.



Unfortunately, answering this question is not always so easy because it will mostly consider your current financial circumstances. But, things can change. You could get a promotion that could increase the amount of money you’d be eligible to borrow, or the house prices could fall, so the mortgage loan calculator is really an estimation and not a final amount.



Still, there are two main factors you can take into consideration to determine this figure: your monthly income and your current financial obligations.







Why Your Wage Matters



Lenders want to lend you money, but they also want to make sure you can make the monthly mortgage payments. They will analyze your current salary (or income) to determine how much you could realistically borrow from them to pay them back every single month comfortably.



Of course, other criteria can also factor in, such as how ‘stable’ your job is or the length of the mortgage loan you want, but for the most part, all lenders will ask you how much money you’re making. The higher your wages, the more money you can end up borrowing.



Why Your Current Financial Obligations Matter



A good salary doesn’t really mean a lot if you already have other loans and financial obligations. Lenders want to know if you’re already carrying the burden of a sizable monthly payment that could potentially impact your ability to make the monthly mortgage payments to them.



They can be credit card payments, student loans, car payments, and any other financial commitments you have that can overlap with your mortgage. If you already have a lot of withstanding debt, you might even not get a loan approved at all.



Other Factors That Could Impact Your Maximum Loan



Maximum mortgage loans are determined on a case by case principle because simply put, everyone’s financial situation is unique. Apart from your wages and outstanding debt, the lenders can rely on other criteria to determine how much money to give you:




Your credit history



Your average monthly spending



Their own guidelines (lenders can have different rules when it comes to determining loan amounts)



The type of loan you choose, etc.




What Can You Do?



Some online mortgage calculators will give you a rough idea of how much you could borrow based on your income, but it’s always best to shop around for a mortgage and get an estimate directly from the source. While even that won’t necessarily be set in stone, it will be the closest you’ll get to the final loan figure.



The Better Rate Mortgage Team specializes in making the home purchase or refinances process a great experience, whether your first purchase, your 10th, or needing assistance with the FHA 203k or Fannie Mae. Homestyle construction loans, we make it happen for you!

### Signs It’s Time to Refinance Your Mortgage

Are you in St Louis and thinking about refinancing your mortgage? Better Rate Mortgage is here for you. We offer competitive rates, smooth applications, and excellent customer service.



Are you looking to cut the interest on your mortgage or shorten your mortgage term? Well, refinancing your home loan could be the perfect way of achieving this. But with the ever-changing market forces and life events, it can be difficult to tell the right time to do it. Below we have listed six tell-tale signs you should refinance your home loan.







1. Decreasing Interest Rates



Interest rates determine the amount of your monthly installment payment. When the interest rate is low, your monthly home loan payments will be lower. And you'll save money. If the interest rates have dropped, you should consider refinancing. But what decrease is worth refinancing? Well, if the rate goes down by at least one or two percent, then it's wise to refinance.



2. An Increased Credit Score



Your credit score matters a lot when it comes to mortgages. If your credit score was not appealing when applying for your mortgage, your interest rate might have been high. But if you have taken measures to build your credit score, such as improving your debt-to-income ratio and making timely bills payment, your current credit score might be higher. With a high credit score, you can get a better interest rate if you refinance your mortgage.



3. Your Income Has Increased



A low income at the time of application may force you into taking a long-term loan with a huge interest. But you may find a better-paying job in the future. When this happens, you might want to refinance your mortgage to reduce the interest. You see, when you refinance a 20-year mortgage loan to a 10- year loan, your monthly installment might increase, but you will end up saving more in the long run.



4. You Are Concerned About Your Adjustable-Rate Mortgage (ARM)



When your ARM initial term is over, you will realize that the rate will increase per the number of years in the agreement. And the new rates might be higher than what your income can comfortably accommodate. But you don't need to struggle. Instead, you can take the easy way out by replacing your ARM with a fixed-rate mortgage you can comfortably finance.



5. You Are Approaching Your Retirement



If your retirement is approaching fast and you are worried your monthly payments are high, you can refinance your mortgage into a lower rate loan, which you will be able to finance when your income goes down.



6. You Want to Use Your Home Equity to Fund a Project



Do you have medical bills or college fees that need paying? Then, you can opt to cash out on your home equity through refinancing. Although this will increase your loan balance, it is far much cheaper than taking another personal loan.

### Asset Statements: Why Are Mortgage Lenders Interested in Them?

The Better Rate Mortgage team can tailor your mortgage to your specific needs. Our experts are also ready to answer any mortgage questions you may have. Call (314) 361-9979.



Applying for a loan can often feel like an invasion of your privacy. Every aspect of your job, income, tax returns, and more are analyzed. An asset statement is another required item! This is something that almost every mortgage lender will ask for. But why? Why are asset statements so important?







Why Do Lenders Ask To See Your Asset Statement?



Most lenders will require you to back your application with your asset statements. This may include your investment, retirements, savings, or checking accounts. It may feel invasive, but it’s for your own good. See, your asset statement will help your lender determine your creditworthiness. This, in turn, helps avoid default risk, which could make you lose your home, hurt your credit score, raise your tax bill, and more.



What Do Lenders Look For on Your Bank Statement?



The reason lenders insist so much about your asset statement is to confirm you have enough funds and document your money source. You need to have all the required down payments when applying. Bank statements also help verify your income and source of money.



To qualify for the best mortgage rates and terms available, make sure your finances are consistent, and you have a great credit score. Also, don’t take out new lines of credit at least six months before you apply for a home loan. Your lender may occasionally check your statements after approving your mortgage, so do not make negative financial changes that may raise eyebrows.



How Many Asset Statements Does Your Lender Need to See?



Generally, you will be required to provide statements running for the last two or three months for all the asset accounts you want to use in your application. Why must you provide multiple asset statements, you ask? Well, your lender will want to dig deep to make sure they are making prudent lending decisions.



Your lender will also want to be double sure the funds in your account are really yours. Also, you need to prove you have not taken a loan from someone to meet the mortgage requirement. If the funds in your accounts have been there for the last two months, then it means it’s yours.If you have a huge untraceable deposit on your asset statement, you will need to prove its source failure, to which your application may be denied. Are you expecting some money from a family member before the closing day? Make sure you notify your lender in advance to avoid making the process complex and lengthy.



Call the Better Rate Mortgage



Are you looking for a mortgage? We can tailor your mortgage to your specific needs. Our experts are also ready to answer any mortgage questions you may have: Whether it is the type of mortgages we offer or the criteria we use to determine creditworthiness. Contact Better Rate Mortgage today and kick start your journey towards owning your dream home.

### Get the Best Mortgage for Your First House with an FHA Loan

Applying for an FHA loan can seem intimidating, but the right help can make a big difference in how smoothly the process goes. Contact the Better Rate Mortgage for help.



Our team works with first-time homebuyers to make sure that they are set up for a long and prosperous future in their new homes.











FHA loans are one of the easiest and hassle-free ways to borrow money for a first-time homebuyer. This is because the government backs FHA loans. First, however, you have to qualify for them. The qualifications will include your income, debts, credit score, and many other factors. To ensure that you get your loan approved, you need to follow certain steps.



How to Get an FHA Loan



The first thing you need to do is go through a consultation with a mortgage lender to find out the requirements for an FHA loan and how you can fulfill them. They will also tell you what you need to qualify for and whether or not you qualify for the FHA loans. Then you will be required to submit a formal mortgage application that includes the mortgage documents, your credit report, and your financial information, such as your monthly income and debts. These documents can be faxed to the FHA directly, or you can mail them to them.







Why You Should Apply for an FHA Loan



The main benefits of these loans are low interest rates and no down payment. Even if you have a low credit score, the FHA might still approve the loan. Another benefit of these loans is that there are no restrictions on applying for a home loan. Although most first-time homebuyers do qualify for these loans, not everyone will qualify.



Steps to Take Before You Apply for the FHA Loan



The first thing you should do before you apply for an FHA loan is to check your credit report to find out if there are any errors. You can get a free copy of your credit report at least once a year. If you have had any late payments or bankruptcies in the past two years, you can have these removed from your credit report. Another thing you can do to improve your credit score is to make sure all of your payments are made on time. Paying your bills on time will help your credit in the long run. This will save you money over the life of the loan and help your credit score as well.



Once you have made sure that all of your financial records are in order, the next step is to search for a lender. You must shop around and compare the different loans that are available. The FHA usually does not approve mortgage loans for first-time homebuyers unless there is a special need for them. You should find a lender that specializes in FHA loans. By doing this, you can be assured that you are getting the best mortgage possible for your situation.



Contact the Sean Zalmanoff Mortgage Team



Applying for an FHA loan can be intimidating, but the right help can make a big difference in how smoothly the process goes. Contact the Better Rate Mortgage team for assistance. Our team works with first-time homebuyers to make sure that they are set up for a long and prosperous future in their new homes.

### Understanding the Relationship Between Inflation and Mortgage Rates

Navigating the field of home loans can be a daunting experience for many homeowners, especially if economic issues like inflation or even potential inflation are in the mix. The team at Better Rate Mortgage is here to clear it up!



Inflation and interest rates are often influenced by each other, but many potential borrowers might not be all too aware of just how connected the two really are. Inflation refers to the rate at which prices rise, which in the US is based on the federal funds rate determined by the Federal Reserve.



The Federal Reserve tries to influence the rate of inflation by placing targets for the federal fund rate, which allows it to expand or reduce the supply of money as needed. Generally speaking, when inflation rates are reduced, people can buy more because they have more money to spend. This will end up increasing inflation again over time.



But, when inflation rates increase, the opposite is true. People have less money to spend, so they tend to save instead of buying. The economy, therefore, slows down, and inflation decreases.







Inflation Can Lead to a Higher Mortgage Rate



Higher inflation leads to the prices of goods and services increasing. The longer inflation lasts, the more likely it is for mortgage rates to rise as well.



Inflation devalues the buying power of the US dollar, meaning it can devalue everything denominated in the currency, which can include mortgage bonds. As you know, investors don’t want to invest in assets at risk of losing value, affecting the economy.



Additionally, a higher price tag on goods and services leads to a drop in demand, as people either don’t have the funds to spend right now or are actively choosing to save than to spend. This will eventually lead to the prices falling since providers will try to get back the buyers by letting go of some of their rates.



For lenders, their job is to maintain interest rates that are at the very least sufficient to overcome the drop in purchasing power and ensure they can still turn a profit. When inflation is high, their interest rates tend to be lower, as they have a higher demand for people wanting to borrow money for high-ticket items, such as homes. When inflation is low and fewer people require additional borrowing, interest rates rise.



To put it into perspective, if the mortgage rates are at 5%, but the annual inflation is 2%, the lender only gets back a 3% profit. Therefore, mortgage lenders always analyze the inflation rate very carefully and adjust the rate to increase their profit.



Get Professional Help in Finding the Right Loan



Navigating the field of home loans can be a daunting experience for many homeowners, especially if economic issues like inflation or even potential inflation are in the mix.



But a professional loan advisor like Better Rate Mortgage can help you make the right financial choice for you and your future home by choosing the best type of mortgage for your financial situation.

### Applying To Mortgage Lenders: How Many Quotes Should You Get?

When applying for a mortgage, many borrowers are left confused about approaching the process effectively. But Better Rate Mortgage can help!



There are many different factors to consider when deciding which lender to sign the agreement with, and most of these factors, particularly the rate, will become visible through the quote.



The quote you receive from a lender estimates how much you will end up paying each month back to the lender. The mortgage rates are dependent on the mortgage-backed securities (MBS), which are bonds sold and bought on Wall Street. Because of that, they can rise when bond prices drop, and they can drop when bond prices rise. But when you’re shopping around for a mortgage, how many quotes are enough?







You Should Get as Many As Possible



Just like when you shop for any other product, it’s important to be careful and see what the market has to offer, compare the quotes from multiple lenders, and see which one is the most advantageous for your situation.



For example, you want to renovate your bathroom and have a specific budget to work with. You then start to look into renovation companies that could do the job you want within your budget, so you contact them and ask for a quote.



Then, you compare the quotes from all the companies you’ve talked to. Some have a higher estimate that might exceed your budget, but that company may have additional services offered in that quote others don’t have. Or, one company could have a better reputation or be more experienced in the type of tasks you need to renovate your bathroom.



It’s not that different when it comes to applying to a lender. These financial institutions each have their reputations, fees, and approach to handling the process, and the quote is simply one of the many steps you’ll have to take to compare them until you can find the lender who can offer you the best deal.



How the Better Rate Mortgage Makes it Easy



We can help streamline the application process for you to help you get the funding you need. The FHA, or the Federal Housing Administration, is not a lending institution. What they do instead is provide insurance to lenders who are willing to grant mortgages to high-risk buyers. This gives a St. Louis resident with a below-average credit score the opportunity to own their own home.



The Better Rate Mortgage team specializes in making the home purchase or refinance process a great experience, whether your first purchase, your 10th, or needing assistance with the FHA 203k or Fannie Mae. Whatever you need, whatever you're dreaming about, we make it happen!

### What Credit Score Do You Need to Get a Mortgage?

We specialize in making the home purchase or refinance process a great experience; whether this is your first purchase or your 10th, we make it happen for you!



With the median price of homes in Missouri hovering around $188,302, you’ll most likely need to get a mortgage to finance your next home. But is your credit score good enough for a mortgage? Your credit score is one factor that will be used to determine the type of loan you get and the amount of interest rate you’ll pay.



Read on to learn the minimum credit score you need to qualify for a mortgage and the tips you can use to improve your credit score.







What’s the Minimum Credit Rating Required for Mortgage?



The minimum credit rating requirements vary based on the mortgage loan type you want to obtain. Typically, a Federal Housing Administration (FHA) loan requires borrowers to have a FICO credit rating of at least 500. Homebuyers seeking VA loans or conventional mortgage loans are required to have a credit score of 620 or more.



Note: These are just estimates. Ultimately, the credit score you’ll need to qualify for a mortgage will depend on the lender, property type, and your financial history.



The Biggest Little Ways to Improve Your Credit Score



Mortgage interest rates and terms are not created equal. It would be best to qualify for the best mortgage rates and terms available if you had a high credit rating. This leads us to the question that’s on everyone’s mind: How can you improve your FICO score?



Luckily, any credit score can be improved with enough effort — and you may already be familiar with some of the tips you can use to improve and maintain a good credit rating. Here are the top tips we recommend following:




Check Your Report for Mistakes - The first thing you need to do is get copies of your credit reports from the top credit bureaus. Once you get the reports, take some time to review them and check for any mistakes and errors that could help boost your score if fixed.



Take Care of Your Debt - Next, come up with a plan to help you take care of your debts. Paying debts shows you can be trusted and know how to manage your finances.



Pay Your Bills on Time - A missed or a late payment punches your credit score downwards, which, in turn, results in bad payment history. A bad payment history reduces your chances of getting good mortgage rates and terms. If you want to raise your rating, make sure you pay loans, bills, and credit card payments on time. A great trick to reduce your credit consumption ratio involves making extra payments in the middle of your billing cycle.




Tip: To avoid late or missed payments, set up an automated bill payment system with your bank or credit card provider.



Contact the Better Rate Mortgage Team!



If you are looking for a mortgage or have any mortgage-related questions, get in touch with Better Rate Mortgage. We specialize in making the home purchase or refinance process a great experience; whether this is your first purchase or your 10th, we make it happen for you!

### Our Top Tips For Purchasing a Home In the Hot St. Louis Housing Market

We can help you explore your loan options, build a budget, and get pre-approved for a loan in St. Louis – which may make it easier to find your dream home.



All 50 of the largest metro areas in the U.S. face an extremely hot housing market, including St. Louis. Median house prices have risen to $270,000 as of April 2021 – up 17.4% compared to April of 2020. Not only that, but housing inventory has sunk by 52% compared to April 2020.



This has all added up to a “seller’s market,” where desirable homes are snapped up very quickly, often for above market value. How can you navigate this hot housing market and find a great home for a reasonable price? Here are a few suggestions from the Sean Zalmanoff Mortgage Team.







1. Get Pre-Approved For A Mortgage



Unless you’re paying in cash, you absolutely need to be pre-approved for a mortgage before you start shopping for a home. This is because pre-approval means that your lender is very likely (though not 100% guaranteed) to approve your loan. This makes it easier to compete in a hot housing market.



For example, if you’re pre-approved by Sean Zalmanoff: Better Rate Mortgage for a $300K mortgage, a home seller who is selling their home for $250K will know that you can afford their price and is more likely to work with you.



2. Keep An Eye Out For New Listings



Once you know where you want to buy a new home, perform daily searches for new listings. Homes are selling really fast in St. Louis, but if you’re consistent about looking for new listings, you can be one of the first people to take a look at the home – and even put in an offer if everything looks good.



3. Expand Your Search Area



Don’t get your heart set on one area of St. Louis. If you are serious about buying a home soon, you should make sure you have a few top options to choose from.



Take some tours around other neighborhoods – you might like what you see. And the more areas you’re looking for homes in, the more likely you are to spot a home that’s perfect for you and your family.



4. Be Willing To Compromise



So, you’ve found a great house for you and your family. But the kitchen is outdated, and the basement needs work. That’s fine!



As long as the home is in a good location, it’s in your budget, and it’s in good overall shape, compromising on a few things is not bad – especially if it’s something like an outdated kitchen or an unfinished basement, which you can address in the future with renovations.



5. Be Patient



Above all, be patient. Don’t just make a big offer or buy a home that’s not right for you just because you’ve lost out on a few other homes.



Make a list of your “must-haves.” Find homes that fit your needs and your budget. Take tours, get inspections, and make offers. It will take time, but you’ll eventually find the one that’s right for you.



Contact Better Rate Mortgage



We can help you explore your loan options, build a budget, and get pre-approved for a loan in St. Louis – which may make it easier to find your dream home. Don't wait. Contact us today!

### What Additional Costs Will I Have To Pay on Top of My Monthly Mortgage?

Our team is always here to help you get the mortgage you need, and we can discuss the fees and other costs related to your home purchase and how to plan for them.



If you’re a first-time home buyer in St. Louis, you probably know that you'll have a mortgage payment every month. But there are other additional costs you may need to pay on top of your monthly mortgage, too.



It’s important to keep these in mind when shopping for a home and getting a mortgage from Sean Zalmanoff: Better Rate Mortgage. So let’s discuss some of these costs now so that you can budget accordingly.







Property Taxes



The property taxes you’ll pay depend on the value of your home, as well as your community in St. Louis, abatements, and a few other factors. You can use this online tool from the City of St. Louis to see how much you may need to pay.



Property taxes are usually paid twice a year but maybe rolled into your mortgage. If this is the case, you will pay toward your property taxes every month. Then the bank will pay your property taxes for you every six months.



Homeowner’s Insurance



Homeowners insurance protects your home from theft, fire, natural disasters, and other such things. Again, this may be included in your monthly mortgage payment along with your property taxes – make sure to consult with your lender to make sure this is the case.



The cost varies depending on your home’s location, size, age, and many other factors, but you will usually pay about $35 per month for each $100K of home value.



Private Mortgage Insurance (PMI)



Private Mortgage Insurance (PMI) is required if you put less than 20% down on your home. So if you get an FHA loan, for example, with a 3.5% down payment, you will have to pay PMI.



PMI protects your lender and reduces their risk if you stop paying your mortgage. Usually, it’s priced at between 0.5% and 1% of your loan amount per year. So if your mortgage is for $150,000, you’ll owe $750-$1,500 in PMI.



Again, this is usually rolled into your monthly mortgage payment, if applicable, but this is not always the case.



HOA (Homeowners Association) Fees



If your neighborhood has an HOA (Homeowners Association), you may need to pay monthly fees directly to the HOA. Failure to do so could result in civil penalties or even foreclosure.



These fees may pay for maintaining common areas and amenities like tennis courts, swimming pools, shared parks or green space, and other such costs. Usually, HOA fees are between $100 and $300 a month in St. Louis, but many areas don’t have an HOA at all, so this depends on where your home is.



Need Help? Contact Sean Zalmanoff: Better Rate Mortgage Today!



At Better Rate Mortgage, our team is always here to help you get the mortgage you need, and we can discuss the fees and other costs related to your home purchase and how to plan for them. So don’t wait. If you need guidance and a great rate on your mortgage in St. Louis, contact us today to schedule an appointment.

### Shopping For Mortgage Rates: 4 Things To Consider

We specialize in making the home purchase or refinance process a great experience. Whether this is your first purchase or your 10th, we can make it happen for you!



For most people, a mortgage is one of the biggest long-term financial commitments of their entire lives, so, unsurprisingly, many will take a bit of extra time shopping for a convenient rate.



But, if you don’t have a lot of experience with mortgages, it can be difficult to know what to look for. The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience. Whether this is your first purchase, your 10th, or you need assistance with the FHA 203k or Fannie Mae Homestyle construction loans - we make it happen for you!







Here are 4 things to consider when shopping for mortgage rates:



1. Your Credit Score



Your credit score tells the lender if you can qualify for one of their loans, as well as the kind of interest rate you’ll pay. Higher credit scores lead to better terms, so it’s worth checking your score before looking for mortgage rates. It’s a good idea to start this process a few months in advance to give yourself some time to correct any errors in your score before you start meeting potential lenders.



2. The Lender



It would help if you looked into your potential lender’s terms and conditions outside the meeting with one of their loan offers. Since they are representatives of specific lenders, two issues could arise:




They only know the terms and conditions of the lender they work for



They may not be able to give you the best financial advice




Loan officers don’t know everything, so take the time to review the pros and cons of borrowing money from a particular lender.



3. The Additional Costs



Many borrowers fixate on the interest rate and completely forget about the many additional costs added to their loan. What’s more, a lender can heavily promote a low-interest rate to distract borrowers from high additional costs that increase the mortgage cost tremendously.



From appraisal to underwriting, or even closing costs, these smaller fees can add up to something big in the end, all of which you’ll have to cover! Remember to ask the officer about any additional costs you have to pay for before you agree to their terms.



4. Your Current Finances



The bigger the down payment you can put on a home, the lower the interest rate you’ll have on your mortgage. Lenders view borrowers who put more money upfront on their purchase as a lower risk, and in turn, a bigger down payment reduces the amount of money you need to take. This leads to lower interest rates when you put a 20% down payment versus just a 5% one.



The Better Rate Mortgage Team



Applying for a mortgage can be both an exciting and overwhelming thing to do for many people. Still, a good loan adviser can help you navigate the process with ease and make the right financial decisions for you and your family.



Contact Better Rate Mortgage now to find out more about how we can help you access the money you need to buy your dream home.

### Is an Adjustable-Rate Mortgage Right for Me?

The Better Rate Mortgage team will go over your options, your fiscal situation, and your plans for the future to decide which type of mortgage you should get. Call us at (314) 361-9979.



Buying a home can be an intimidating process. What are all the different types of loans and mortgages, and which one is right for you? It’s not as scary as it seems. At Better Rate Mortgage, we’ll explain one of the most common types of mortgages - an Adjustable Rate Mortgage or ARM.







What is an ARM?



An Adjustable Rate Mortgage is a type of mortgage where the interest rate adjusts up and down over the course of the loan. With an ARM, your initial interest rate will be fixed for a while. Then after that, the interest rate will adjust annually or monthly. It might go up or down. These are also called “floating mortgages” or “variable-rate mortgages.”



Why do ARMs go up and down?



An adjustable-rate mortgage goes up and down based on a benchmark or index. There are usually limits on the interest rates, and your payment can rise over the course of a year. Your ARM interest would go up or down, and you would also have to pay a set margin on top of the new interest.



Indexes affect ARMs



Mortgages are usually affected by a few different indexes. LIBOR (the London Interbank Offered Rate), the 11th District Cost of Funds Index, and the maturity yield of one-year Treasury bills are the three main indexes. You don’t need to understand all the details of these indexes, but be aware that they might impact your interest rate.



Constant Margin in Addition to Interest Rates



The margin on your interest rate will stay the same regardless. If your margin is 3%, and the index is 2%, you will have a 5% rate. However, if the index falls to 1%, your margin will still be 3%. Your new rate would be 4%. The margin does not change.



Pros and Cons of Adjustable Rate Mortgages



An ARM is often cheaper than a fixed interest rate, so you might get to pay less interest or have to take out fewer loans from the bank. If interest rates decline, so do the rates on your mortgage! On the other hand, if interest rates go up, your bank might charge you more. There is more certainty with a fixed-rate mortgage. Once a fixed-rate mortgage is set, it’s unlikely to change. In comparison, an adjustable-rate mortgage might fluctuate with the economy. It can be hard to budget for an interest rate that might change month to month.



Should you get an ARM?



There are benefits and downsides to adjustable-rate mortgages. Meeting with an experienced mortgage team like Better Rate Mortgage can be helpful for newer buyers. You can go over your options, your fiscal situation, and your plans for the future to decide which type of mortgage you should get. 



To get more information, fill out the contact form on our website or call (314) 361-9979.

### Mistakes To Avoid When Refinancing Your Home

Get all of the latest St. Louis housing information from Better Rate Mortgage and let our team of mortgage pros help you to understand your options. Call us today at (314) 361-9979.



Refinancing your home loan can be a great move for your finances, but certain mistakes end up costing homeowners greatly. The process isn’t as simple as just finding a good interest rate and jumping at that opportunity.



Get all of the latest St. Louis housing information from Better Rate Mortgage and let our team of mortgage pros help you to understand your options.













Here are 4 common refinancing mistakes you need to avoid:



1. Going Straight to Your Regular Bank



You don’t have to go to the bank that gave you the first mortgage when you want to refinance your home. Sure, that bank can offer the best deals in the end, but you won’t know that for sure unless you shop around to see what others are offering.



2. Not Taking into Account All the Other Costs



Are you trying to choose a refinancing opportunity only based on interest? Well, there are plenty of other costs that should influence your decision as well.



Closing fees, for instance, can differ from lender to lender, and though you find a decent interest rate at one in particular, they could have some pretty high, not-worth-it closing costs. Be sure to ask the lender about all the other fees they usually require when shopping for a refinancing loan.



3. Taking Out Way Too Much Home Equity



People sometimes use a mortgage refinance to borrow against their home equity and take out some cash. If you have some repairs or are otherwise in need of money, this can seem like a good option to get it.



However, taking out too much could potentially hurt you down the line if the housing prices fail, not to mention that it could increase your mortgage payments beyond what’s comfortable for you to cover.



4. Extending Your Loan



Mortgages are usually decades-long commitments, and by the time you refinance it, you likely have already paid a good portion of those decades. But, refinancing shouldn’t be an opportunity to extend your loan. In fact, that’s not a good decision at all, because although your monthly payments will be smaller, you’ll pay a lot more in interest. 



The refinance is better if you opt for a short-term loan that can match the number of years left on your current mortgage. So, if you had a 30-year mortgage, paid 15, get a 15-year loan, which will likely come with lower interest rates and will not increase your monthly payment.



Only extend your loan if your finances aren’t great and you need a smaller monthly payment to make it through, and only if other options aren’t available to you.



Contact the Sean Z Team!



Navigating the world of mortgages and refinancing opportunities can be difficult to make. Still, a good loan advisor can sit down with you and help you make the right decision for you and your family.



If you’re interested in refinancing your home, contact our team now to find out more about how we can help.

### 3 Reasons to Refinance to a Shorter-Term Loan in 2021

Now is the time to get with your trusted advisors from Sean Z Mortgage to see how refinancing your home can benefit you in 2021.



You may be thinking that the time to refinance your mortgage in 2020 has passed for the new year. During the pandemic, many homeowners took advantage of the decreased rates that resulted from the economic shifts and variables. Many predict that mortgage rates will continue to stay between 2 and 3 percent for many years.



If you haven’t yet spoken to your mortgage broker or lender, don’t wait any longer. Now is the time to get with your trusted advisors from Better Rate Mortgage to see how refinancing your home can benefit you in 2021 – and beyond.







Whether you refinance your current 30-year mortgage or opt to switch to a 15-year mortgage, saving less than one percent on your current amount can be positive. Here are three reasons to reach out to the qualified team of Better Rate Mortgage in Missouri about your options today:



1. Save money on interest: If you can switch from a 3.6 percent interest rate over 30 years to a 15-year loan at 3 percent — depending on the size of the loan — a homeowner could potentially save hundreds of thousands of dollars in interest in a single swing.



2. Pay off your loan faster: A shorter-term loan can also help you pay off the debt fast. While monthly payments may increase since you’ll be paying for a shorter period of time, this can help you pay the total off sooner and help you put more in the bank afterward.



3. Build up your equity: Equity is built up over the years through principal repayment and price appreciation. This equity remains yours, no matter if you refinance, because it is associated with the value of the home itself, not the mortgage. However, home equity can help to manage your debt better.



You should be aware that depending on the type of loan you have and when you last refinanced, it can impact your rates change. However, if you have a decent credit score and credit history, have at least 20 percent home equity, a low debt-to-income ratio, and a loan-to-value ratio — you may be a prime candidate for refinancing in 2021.



Combined, all of these factors can help to determine your mortgage rate. A few minor adjustments can mean big benefits to your mortgage and pocketbook. Let the experienced mortgage professionals at Better Rate Mortgage in St. Louis serve you.

### Mortgage Rate Update 4/5/2021

Hello, hello, everyone. Sean Zalmanoff here with your Mortgage Rate Update for the week of April 5th.




https://youtu.be/Ot523QOfKqQ




Last Friday, Good Friday, it was a big day in the markets. Now, for those of you who are active in the markets, you're probably wondering, how could it be a big day because the stock market and the bond markets are closed the Friday before Easter? It doesn't stop the reports from coming out. The first Friday of the month is the jobs number, and it was a blow out number. They were expecting 614,000 new jobs to be created and over 916,000. When you actually look back, so there's always revisions to the jobs number, there were hundreds of thousands of jobs added from the previous two months. Over a million jobs that had been created, well, in the last several months, but a lot of them were just counted last week.



You're seeing the stock market on fire today. S&P, Dow and NASDAQ, which have not moved in much correlation recently are all up big. Usually, that comes at the expense of rates. We keep talking about inflation, and that is the archenemy of bonds. Well, the stock market going up and a really hot jobs number, I would think, it didn't happen today, but I would think that would actually have a negative consequence on rates. But what Jerome Powell, the head of the Fed, has been saying is, and they reiterated it last week as well too, that until the unemployment number reaches 3.5%, the pedal's on the metal, they're going to keep buying 120 billion plus dollars a month in mortgage backed securities in treasuries to keep rates down. Right now, although the numbers have been great, the unemployment just ticked down to 6% last Friday with those record setting numbers in employment gains and in revision.



It's one of these rare occurrences that's happening. Not always, but this time, it's a rare occurrence to where the unemployment numbers being strong have created a positive correlation to stock market and in the bond market, which is something we haven't seen lately. It was actually very interesting. Many of the accountants were predicting that a bad jobs number would actually be better for bonds. Anyway, we won't have to go into the science of it all. You just need to know that we are on top of it for you, for your clients. Hey, one thing that a lot of people been contacting us about recently. Yeah, rates have gone up a little bit. They're still really close to all time lows, you know that. We've been having some amazing conversations with people who have a little bit of extra equity in their house.



Based upon the time of the year, Christmas, just what last year brought to them. We also have a few more bills or home improvements, now that you've been in your house, locked in for the last 12 months, and some things that you want to get done. We have been doing quite a few cash out refinances for people these days to tap into that equity and still lock into these amazing low rates we have. Again, if you're buying, if you're selling, if you need to refinance, my team is here for you, and we'd love to earn your business. I'm Sean Zalmanoff, have an amazing week y'all. Peace out, and see you next week. Bye.

### Am I eligible for an FHA loan?

At the Better Rate Mortgage, we have experience helping out first-time buyers with FHA loans. Contact us now at (314) 361-9979 to get your homeownership journey started. 



If you’re thinking about buying a house for the first time, you may have heard of FHA loans. FHA loans are popular with first-time homeowners because they often require lower credit scores and down payments than other loans. This article will explain how FHA loans work and if they may be a fit for you.







Why do people get FHA loans?



“FHA” stands for “Federal Housing Administration.” FHA loans are government-backed mortgages that come in 15 and 30-year terms with fixed interest rates. FHA loans can be easier to get for new homeowners who may not have a solid credit score. However, they have a few features regular loans don’t.



FHA Mortgage Insurance Premiums



Typically, mortgage insurance is required if the down payment made is less than 20%. With FHA loans, it’s required regardless, and there are two different mortgage insurance premiums. There’s an upfront mortgage insurance premium you would pay when you get the loan. And there’s an annual mortgage insurance premium. These premiums protect the lending body if you default on your mortgage. FHA mortgage insurance premiums can potentially be canceled after 11 years if you have financed 90% or less of the property value and stayed current with your payments.



The down payment required can vary depending on your credit score. With a FICO score of 500-579, you might have to put 10% down. However, if your score is over 580, you might need to put only 3.5% down. The FHA will accept a smaller down payment if they judge you to be more reliable.



You will also have to provide past employment history for the previous two years, as well as proof of your current income. The FHA might ask to see bank stubs or W-2s. The loan must also be for a primary residence. There are a few other factors the FHA considers - FHA loans can be a complex topic.



Differences Between FHA and Regular Loans



There are a few other differences between FHA loans and regular loans. Conventional loans usually look for a higher credit score than FHA loans. FHA loans only come in 15 or 30-year terms - a normal loan could come in 10, 15, 20, or 30-year terms. You may also be able to get a variable interest rate with a normal loan. That won’t be an option with an FHA loan.



Specialty FHA Loans



The FHA also offers specialty loans for unique situations. These include FHA 203(k) loans, HECM loans, EEM loans, and section 245(a) loans. An experienced residential lender can discuss all options with you and help you find the best loan for your situation. 



At Better Rate Mortgage, we have experience helping out first-time buyers with FHA loans. Contact us now to get your homeownership journey started.

### Is 2021 the Right Year to Buy a House?

The fact is, a decision to purchase a home has more to do with your personal financial situation than it has with the economy as a whole.



When’s the right time to buy a house? It isn’t always easy to tell. Some people wouldn’t dare even think about it during the pandemic. In the beginning, millions of people were left out of work, which isn’t a situation you want to be in if you’re looking to purchase a house.



However, things aren’t completely terrible. For example, mortgage rates hit record lows earlier last year. Moreover, many people who’ve managed to keep their jobs also saved a lot of money in the last 12 months. The answer to this question is a complicated one.







Why Is Now a Good Time to Buy You a Home



The current situation may seem bleak initially; however, some people feel that this can be the right time to buy a home. Here are a couple of reasons for it:




Low Mortgage Rates - About a year ago, the Federal Reserve made a noticeable rate cut. Consequently, rates on 30- and 15-year mortgages dropped significantly. As luck would have it, mortgage rates have remained pretty low until now. From the look of things, they’ll stay low.





Working From Home - Ever since the pandemic started, many people have started working remotely. With more than 40% of Americans working from home, many people have discovered that they need larger living spaces to function properly. Depending on your situation, you may find that it’s time to stretch your legs in a brand-new home.





Moving is Easier - Moving is never easy. However, since you probably don’t have to deal with daily office commute taking up all of your time, you now have the time to plan everything out. That makes moving easier and, if you’re not moving to a new city, even quicker than it would normally be.




Is Buying a Home During an Ongoing Pandemic a Good Idea?



Of course, for some people buying a new house this year won’t be easy. If you work in an industry heavily impacted by the coronavirus, you probably had your hours cut. In that case, a better option would be to wait until you start working full time again.



The fact is, a decision to purchase a home has more to do with your personal financial situation than it has with the economy as a whole. Buying your first house in 2021 is a good idea if:




You’re earning a steady paycheck



Your employment is secure and dependable



Your credit score is in the 600 range



You have enough money saved up




Get the Right Mortgage Team to Help You



When you’re buying a home for the first time, you probably need some assistance. The Better Rate Mortgage specializes in making the home purchase process a seamless experience. If you need help, contact us today, and let our team help you understand your finance options.

### Mortgage Rate Update 3/22/2021

Hello, hello everybody. Facebook, YouTube, wherever else you may be watching us today. I am Sean Zalmanoff and this is your mortgage rate update for the week of March 22nd of 2021.




https://www.youtube.com/watch?v=d3PRdJiQPug




Hey, economists just put their revised GDP projections on the table and it's early. I've had a lot of coffee, but evidently not enough. 6.5% is the new mark that the breadth of economists are predicting for GDP growth. What does that actually mean? Only once in the last 50 years have we exceeded or met 6.5% GDP growth. Obviously we're coming off quite a year in 2020, but that's pretty epic growth. Just as you're thinking about whether you were not impacted or you were severely impacted, 48% of households in America last year had some sort of income loss. A you're thinking about your fellow man and what somebody is going through today and maybe their attitude or lack thereof a good one, just cut them a little bit of slack. Last year might've been hard for him and who knows, maybe this morning was too.



We've got eight weeks of COVID numbers moving in the right direction, which means down in reported cases. Also attributes to down in deaths. Great job America on getting vaccinated, man. I know I want to go to rock concerts and see Cardinals baseball games so if that means a shot in my arm, I'm all about it. If you don't want to, that's fine too. But I want to get back to normal. Hopefully, our spring breakers in Miami right now, evidently there's a revolt going on down there. They said, hey, everybody, come here. We want your money. And then they said, hey, everybody, don't party. Good luck. Hopefully, we don't see a spike in cases as they leave and come all the way back across the United States. It really will be a good sample size in how different areas that are heavily vaccinated and how that's working. There's nothing like on the job training or real-life science that we live to see the efficacy of what the vaccinations will do in real life for us.



That brings me to a couple things that that's good for GDP. Well, maybe the partying, but definitely people getting vaccinated and life returning to normal. It's good for housing. It's one of the reasons we keep seeing rates go up a little bit, or actually really a fair amount. Now today's a good day. The stock market's doing well. The bond markets have sold off because of, Turkey's doing some weird stuff. I'll just let you Google it to find out. They were the first to do some things about a decade ago and now they're the first to withdraw from those things. It's amazing what a regime change does but not moving in the right direction for the betterment of man or woman, specifically in this case.



This year, so in January of 2011, everybody keeps being like, "Sean, I know you keep saying house prices are going to be stable and I know you keep saying they're going to move up, but you're wrong." Well, I don't think I am and here's just one more stat for you. In January of 2011, 78,000 homes were foreclosed on in January of 2011. In January of 2021, 1,400 homes were foreclosed on. Guys, housing ended up pulling us out of the Great Recession. Housing has definitely mitigated and kept a lot of people in work during this COVID recession. It's going to continue to pull us back out of it. Again, there's more 33-year-old turning 33 for the next several years. Household formation is driven by families being created and more 33-year-olds create families than anybody else.



I think I might've told you this before, but somebody in the demographic of 30 to 39, single, 30% of y'all own a house. If you have a child, that jumps to 80%. If you have two children, it jumps to 82%. So these are just the things that are driving our housing and driving the economy. And seeing a lot of green shoots for the turnaround that we are experiencing. Again, I'm Sean Zalmanoff. My team is here to crush it for you. Go check us out, Google us. See what everybody else says about us and then give us a call and let us help you on your mortgage too. Appreciate you all. Have an amazing and awesome week. Peace.

### Why an FHA Loan Is Right for You

This type of loan can often help someone improve credit scores and build a safe, secure, and reliable lifestyle.



When it comes to buying a home, understanding and considering all the different types of loans and mortgages can be overwhelming. Many people begin looking for their dream home without fully understanding what they can afford or are approved to buy.



The team of Better Rate Mortgage helps St. Louis homebuyers plan for all of their housing needs. Our expert team can advise you on financing and mortgage options that suit your needs. One question we are frequently asked is about FHA loans.







The Federal Housing Administration (FHA) is trying to help those who may be considered “high risk” buyers by providing insurance to lenders willing to offer mortgages to help them secure a home. This could include individuals who have had financial problems, low credit scores, or little- to no-savings for a down payment. This type of loan can often help someone improve credit scores and build a safe, secure, and reliable lifestyle.



FHA Loans



There are two main types of FHA loans for potential St. Louis homebuyers, depending on the type of home you plan to purchase. These are the FHA 203B and the FHA 203K mortgages.



The FHA 203B is available for individuals who buy a move-in-ready home or do not need any repair work. This type of loan is perfect for those with poor credit history and low incomes. It is still very possible for buyers with a credit score of 580 to get approval for a mortgage with as little as 3.5 percent down. If you can put more money into the down payment, you may even be able to get approved with a lower score.



The FHA 203K, however, is for homes that specifically need repair work, demolition, or other construction services. In some cases, this type of loan can be given to those purchasing a foreclosed property. The loan would be based on the total project cost and a set down payment. In the St. Louis area, this type of loan is good for those looking to flip houses, start businesses and quickly turn a project into a profit.



FHA Condo Loan



In Missouri, individuals can also get FHA loans for approved condo communities. The advantages and requirements are similar to those of a homebuyer in terms of approval needs and rates. A condo is perfect for single couples or those who do not wish to maintain or care for every repair. Throughout the state, there are 17 cities with pre-approved FHA condo locations, with the most in St. Louis, as well as Kansas City and Ballwin.



Contact Better Rate Mortgage



As a homebuyer in St. Louis, let the team at Better Rate Mortgage help you land the home of your dreams. We are the experts in lending and mortgage needs. Call us at (314) 361-9979 to get started.

### Mortgage Rate Update 3/17/21

Hello, hello everybody. Happy Wednesday afternoon. Now I know what you're thinking. You're like, man, is it Groundhog's Day? Is it Monday? No, it's Wednesday afternoon. I know that these mortgage rate updates typically come your way Monday morning but there was a lot of news that was happening this week.




https://www.youtube.com/watch?v=gFz_1N5TEkc&t=2s




We wanted to make sure and get it to you after the biggest market moving data of, well at least the most important Fed statement of the last decade got released. The Fed just released their statement, oh, I don't know, 11 or 12 minutes ago. There's been a lot of move up in rates lately. We've been telling you that mortgage rates have been moving up because of this anticipated inflation in a hotter economy than it's been. Now again, depending on how vaccine roll outs and everything go, we do face potential headwinds, but the worry has been inflation is going to go too high.



Again, as I tell you every week, inflation is the arch enemy of bonds. If inflation goes up substantially or even more than expected, mortgage rates will move higher. It will not be a good thing for mortgage rates. And so the Fed just announced in their statement that they do see a higher inflation happening. They do think that it's on the forefront. Now, they also think that it's temporary. They did not change. They're still talking about not changing the federal funds rate, the overnight lending rate until 2023. This was important. A lot of people were pricing in thinking that that decision might be baked into a 2022 move. The rate on your credit cards, home equity lines, those things should be staying the same for the next few years. Of course, that doesn't mean your mortgage rates will because rates will start to move up if the economy heats up. They can also move back down if we hit some headwinds with it as well too.



The most important piece to the Fed statement is that they're going to continue asset purchases. Now at some point the Federal Reserve has to reduce their balance sheet. At some point the government has to stop spending money. I am not an economist. I just pretend to be one when I talk to you. I did take a few classes, maybe I even majored in it in college. The deal is in looking back in hindsight to what happened in 2009 and the Great Recession, Lehman brothers bailed out and then a few days later, a bunch of other banks were. In hindsight, the government would have bailed out Lehman brothers. They would still exist in some format today. They didn't do enough quick enough. And so, what the Federal Reserve and what they are trying to do right now with all the stimulus packages passed last year, the stimulus this year, and the Fed continuing these asset purchases is to make sure that they don't under shoot what's needed.



They are okay with overshooting a little bit, hitting some inflation, and pulling it back later because we had quite a few years during, after the Great Recession where the greatest concern was deflation. The greatest concern was goods being cheaper tomorrow. Not great for the world to be in that position. We don't want high inflation, but a little bit is healthy for the economy. That is what they are trying to do. Hey, if you got any questions, hit us up as always. Of course, if you know anybody who needs some mortgage advice, needs help with a loan, needs to buy, needs to refinance. Although rates have ticked up a little bit, it is still an amazing time to buy because prices appear to only be going up in the future and mortgage rates are still outside of the last few months at all time historic lows. I'm Sean Zalmanoff. My team is here to help you. We appreciate you. We appreciate your business, and we appreciate you tuning in to see us. Peace y'all, have a great rest of your day and week.

### Do I Need Private Mortgage Insurance? And How Do I Get Rid of It?

If you need help choosing the right mortgage and understanding the basics about your mortgage options, the team at Better Rate Mortgage is here for you.



PMI (Private Mortgage Insurance) can be useful for homeowners who can’t put down a 20% down payment but still want to purchase a home. But we know PMI can be a bit confusing, and most homeowners want to get rid of it as soon as they can. So in this blog, we’ll discuss the basics of PMI, why you may need it, and how to get rid of it once you’ve purchased your home.







What Is PMI and Why Would I Need It?



PMI, as mentioned above, is short for Private Mortgage Insurance. It may be required to take out a conventional loan and make a down payment of less than 20% of the home’s purchase price.



Basically, this is a type of mortgage insurance that protects your lender. If you fail to pay your mortgage (default), PMI will compensate your lender up to an agreed-upon amount. This helps them reduce the risk of lending to you, even if you can’t pay 20% as a down payment.



However, you pay the cost of this insurance, even though it compensates your lender. Usually, you’ll pay for PMI as a monthly payment that’s added to your mortgage payment. You may pay up to 2% of the loan value per year in PMI, though rates can be lower than this.



PMI Is Not Always Required If You Can’t Make a 20% Down Payment



If you can’t make a 20% down payment but want to avoid PMI, you have other options. FHA loans, for example, may allow you to buy a home with just a 3.5% down payment. VA loans for veterans do not require any down payments at all.



So if you can’t put down 20% and would like to avoid PMI, we recommend contacting the pros at Sean Zalmanoff – Better Rate Mortgage. We’ll help you explore all of your options to find the loan that’s the best for your own unique situation and your finances.



How Do I Get Rid of PMI?



If you are paying PMI because you didn’t make a big enough down payment, there’s only one way to get rid of it – reach 20% equity in your home.



Your PMI may stop automatically, but you can also send a written request to the insurance company as soon as you reach 20% equity to get them to cancel the policy. Refinancing will also let you drop PMI as long as the new loan balance is less than 80% of the home’s value.



Contact Sean Zalmanoff and Better Rate Mortgage To Learn More About Your Options



Buying a home is one of the biggest investments you’ll make in your life, so don’t go it alone. If you need help choosing the right mortgage and understanding the basics about your mortgage options, the team at Better Rate Mortgage is here for you. Contact us online to schedule a consultation in St. Louis today.

### Mortgage Rate Update 3/8/21

Hello, hello, everyone. Sean Zalmanoff here with this week's mortgage rate update. Man, another crazy week in the markets. I can't wait to come on here one Monday and tell you that things are just kind of the same as last week and that rates are moving back down again, but that might not be in the too-distant future.




https://www.youtube.com/watch?v=2C4Rkbr_obc&t=13s




Stimulus deal, $1.9 trillion, passed the Senate. It originally passed the House under some different language, went to the Senate. They have approved that, and now it's back to the House for the final vote. All but a foregone conclusion as it seems it's going directly along party lines, and there's more Democrats in the House than Republicans. So barring anything really crazy, this bill is done.



Is this going to cause inflation, is this not going to cause inflation? Well, it's hard pressed to imagine $1.9 trillion hitting our economy, that's on top of the $4 trillion that's been done in previous stimulus bills, and it not causing some sort of inflation. Now the big question is... There's several of them, actually. Is it priced in already? Again, remember I tell you this every week. Inflation is the archenemy of bonds. If we inflate the economy, although it's going to be good for some sectors and more people potentially are in the housing market because more people have jobs, that's going to make interest rates go up. For that reason, we are definitely against inflation. We are all for a good, healthy 2%-ish inflation a year. That seems to be really healthy for the economic engine to continue to run.



The question is, is this price in the interest rates already? The Fed has said, Jerome Powell has said that he's good with it running hotter for a little while. And what happens in fall and winter? Are we through all this stuff with the big part of COVID? Are we going to have many people vaccinated by then? Are the new variants going to be workable, or a booster shot with the vaccine? Are we going to get enough people to take the vaccine? There are so many questions that play into all of this, for what the end answers end up being in our world.



What does this mean for you? I like to follow... I like to follow a lot of economists. David Tepper is one of the economists I like to follow, and his opinion is that the rise that we've seen in bond yields is close to over for the time being. Now, it depends on how hot things continue to run. Last Friday, there was around 150,000 jobs expected to be created, and there were over 350,000 jobs created. Great for the economy, want to get people back to work, but those are the kinds of things that can cause inflation, more demand for goods, higher prices for goods.



This Wednesday, we have the consumer price index, the CPI. Now there's two big numbers reported every month. There's the CPI, consumer price index, and the PPI, the producer price index. The consumer price index is the month-over-month increase of what consumers pay on goods. The producer price index is what producers of goods, manufacturers, pay for goods and supplies. Sometimes these things are passed on to the consumer. Eventually they always are. Sometimes they're just minor blips along the way, and they're not passed on up or down.



You have the monthly readings that come out, and then there's an annual gauge that they try to target around 2% for core inflation. Man, there's a lot of economics today, guys. Core inflation is when you strip out food and energy, because food and energy are the most volatile. Obviously, we're in the time of year where it's cold outside. It's about to get a lot warmer, but it's still chilly, we're still running our furnaces, and so gas and things go up during this time of year. Summer electric goes up more. It's funny how that works when you have more demand in these things for us.



There's a lot ahead of us right now, but last Friday... Let's go back to that jobs number because the stock market ended up, I think like 600 points on Friday, 570 points. Don't hold me to that, but I'm pretty close. At one point, the markets were down almost that much. There was literally a 1000-point swing in the markets. Although that kind of volatility is not generally healthy, we had a huge sell-off to start the morning. Bonds were acting crazy on us, not in a good way, to start the morning. And so that sell, when stocks rebounded, mortgage-backed securities, bonds, treasuries, they didn't sell off. Yields didn't rise a ton. That was really good and promising.



As the stimulus bill got passed, the futures market was almost flat, but when it opened this morning, the stocks really popped for us. Bonds are again continuing to trend pretty flat. If we get rises in the stock market, signs of potential inflation without big jumps in yields, then a lot of this is priced in, and that will be good for some stability across our threshold.



Hey, if you got questions, if you got comments, leave them below. We'll answer them for ya. Hit us up on the DM. We are here to help you. We appreciate you. Have an awesome week, y'all. Again, I'm Sean Zalmanoff, the Sean Z Team. There's probably a number somewhere on here if you want to call us for any insights, questions, feedback, or just to say hello. Peace, y'all.

### Quick Ways to Build Up Credit and Get Approved for a Mortgage

If you consider applying for a St. Louis mortgage, do not hesitate to contact the Better Rate Mortgage Team to help make your mortgage experience completely painless.



When you consider applying for a St. Louis mortgage, there is always the elephant in the room: credit score. It can be a terrible feeling to get denied for a mortgage based on a low credit score. Although it feels unfair to judge a person’s trustworthiness based solely on one number, this is often a make-or-break factor when receiving a mortgage.



Here are some ways that you can quickly and easily bump up your credit score so that you can get approved on your next mortgage application:



Set All of Your Bills to Autopay



Maybe there were a few times when a gas or electric bill slipped your mind, and you forgot to pay. Manually paying your bills can be a chore, and it can often lead to bills getting forgotten. Setting all of your bills to autopay will ensure that you never forget to pay a bill again, and you can avoid needless demerits against your credit score.



Make Micropayments



If it is within your financial ability, do not choose to pay the minimum amount of your credit card bill each month. It would help if you strived to pay the total balance each month. The lower your credit card balance, the better off your credit score will be.



Another easy hack for improving your credit is to make frequent micropayments on your credit card bills throughout the month. Even more optimal is paying off the total amount of your bill sporadically throughout the month.



Take Advantage of Planned Purchases



If you have a planned purchase coming up that you know you will make, why not put it on a credit card. If you have plans to buy a new TV, for instance, and you know you have the money, try applying for a new credit card and placing the purchase on your new card. Immediately pay off the new credit card bill. Just like that, you will have a new line of credit that is fully paid off.



Credit Report Errors



A recent study by the Federal Trade Commission found that 5% of people identified a minimum of one error on their credit report. These errors can be massively costly to individual borrowers that now appear to be risky investments for lenders.



You should begin proactively checking your credit report and ensuring that there is no inaccurate information that is currently hampering your credit score. You should also know that generally, credit reports can only use the financial information that is less than 7 years old. If there is anything older than 7 years, you should immediately dispute this error with the credit report hotline.



If you consider applying for a St. Louis mortgage, do not hesitate to contact the Better Rate Mortgage Team to help make your mortgage experience completely painless.

### Mortgage Rate Update 3/1/21

Hello, hello everybody. Sean Zalmanoff here with this week's mortgage rate update.




https://youtu.be/h3EUo_yec8c




Oh gosh, lots of news last week. As we talk about often, rates go up quicker than they go down and man, we had a little bit of a jump last week. There was some stability in the market and we gained about a quarter point back on Friday. That's good news. Again, the market's just a little spooked about stimulus and about the economy potentially recovering faster, which would be a good thing, than previously expected. It'd be a really great thing for our small businesses as many just got another round of the PPP money and that would, if the economy does recover quicker, that would allow that money to get them through what they need to. Some of that's going to be at the expense of mortgage rates if that happens.



We'll see what happens this week. We got a lot of economic news, but first, hey, did you know, the last five years home prices have increased on a national average of 39%. For many of us, that is the largest retirement asset that we have. That is something that is really good, man. You're up 40% in the last year. Now, if you live in Idaho, you've increased 82 1/2%. If you live in North Dakota (music). Sorry, North Dakotans. Is it North Dakatans? I don't know. If you live in North Dakota, you're only up about 14%. I think there's a lot of oil in North Dakota and the shale mining, which I may or may not be right on, has possibly not treated you well. Fortunately, except for those of you who live in North Dakota, there aren't a lot of people that live in North Dakota.



But way to go Idaho. Oh, we have unemployment numbers this week. As always, the first week of the month, the first Friday of the month, when the first Friday is not the first day of the month, and since today is March 1st, the first Friday of the month is definitely not whatever I'm talking about here. Some the other big news this week... Before I get into that, the first week of March is always really a very special time because it is my birthday. I know, I don't need much, but I will take gifts from you if you want to send them my way.



For the unemployment numbers. I've had a lot of questions because I do talk about it because it is such a big market indicator. How in the world is the government calculate this thing? So 60,000 households are surveyed per month to determine the unemployment number. Now the labor participation rate, there's a lot of factors that go into this, if somebody is not actively looking for a job the unemployment number gets depressed. It gets better than it actually is because if you haven't looked for the job in the last 30 days, you're not involved in that. Roughly 297 million working people in the United States. And so 60,000 get surveyed, I think it's like one of every 2,000 or something like that actually gets surveyed. That's why you're going to see some variations of the number, you're going to see things changing. They try to get a good sample size and over time it's worked, but because it is a survey and because it's impossible to track everybody, fortunately, they can't track everybody every month. And there's some variance that goes into that as well too.



Hey, it's still an amazing real estate market. If you haven't taken advantage of these rates to refinance, got to tell you folks, you need to do it now. I'm not sure that they may ever be this low again. If the economy heats up, if we do get a little bit of inflation, and a little bit of inflation is not a bad thing. I know the media is telling you it is. It's not a bad thing. That means things are starting to heat up. That means people are spending more money. It means dollars are turning over. It means our businesses are back at work. Those are great things, but that'll happen at the expense of interest rates because as prices rise, as you know by now, one of my favorite things I'd tell you is inflation is the archenemy of bonds. If bond yields rise, interest rates rise. Take advantage of it now. If you're thinking about buying that house, take advantage of it.



Now give us a ring we'd love to help you. I'm Sean Zalmanoff for the Sean Z team. You all have an awesome week. Peace.

### Can You Get a Mortgage If You Have Variable Income?

If your income is variable and you are worried you may not be approved for your loan, get in touch with our team.



The gig economy is advancing at a fast pace. Experts estimate that gig workers will account for almost 80% of the workforce by 2030. And while some benefits of the gig economy are evident, such as more flexibility, save time and money on work commutes, and allowing people to specialize in what they do best, it's widely believed that gig workers rarely have a chance at getting a mortgage.



Is this assumption true? Can you get a mortgage and purchase a home if you have a variable income?







Establish Your Net Income



What lenders want to see before determining if you will get approved for a loan is two years of personal and business tax returns. Keep in mind that they will consider your net income, not the gross one, so you need to establish your base revenue. To do that, you need to take your total net income for the past two years and divide it by 24.



Be ready to explain the fluctuations in your income (if there are any.) If, for example, you took a few months off to learn a new skill, you should be ready to prove that to the lender.



Pay Attention to Your Debt to Income Ratio



Another thing lenders will be looking at is your debt to income ratio. In other words, the lender will look at how much money you own versus how much money you make every month. A good debt to income ratio should be less than 43%, so make sure to pay any consumer or business debt before applying for a mortgage.



Work on Your Credit Score



A variable income may make lenders warier of your ability to pay back your loan, so you need to be better prepared on other fronts. Try to improve your credit score and get it as high as 700, although you may be able to get an FHA loan with a credit score of 640.



Save for the Down Payment



Saving up enough money for a down payment to buy a house may be one of the biggest struggles for gig workers with a variable income.



The amount of down payment depends on the mortgage's size and the type of loan you are applying for. Putting 20% down on a home will increase your chances of getting approved at a decent rate, but loans like FHA require as little as a 3.5% down payment. So, you have a bit of room to wiggle even on a variable income.



Can We Help?



At Better Rate Mortgage, we specialize in making the home purchase or refinance process easier for everyone. If your income is variable and you are worried you may not be approved for your loan, get in touch with our team, and we will help you prepare your documents and guide you through this process.

### Mortgage Rate Update 2/22/2021

Hello and good morning, everybody. Sean Zalmanoff here with this week's mortgage rate updates. Snow and President's Day knocked us out last week, but we are back with a whole lot of news this week for you.




https://youtu.be/EnagBVtTPvY




We have a big week on the economic calendar, some treasury auctions that depending on the demand could really affect mortgage rates. A few weeks ago, we had a 20 year treasury auction that really hammered rates. They have not been moving in a direction that we want to since then. Again, you got to take all this with a grain of salt. If you look back on the history of mortgage rates, we're still that far off of an all-time low. So, we’re still, mortgage rates are great. Question is, will they come back or not? I've told you before, rates will go up quicker than they go down.



It's just the way that it works. I can't tell you exactly why except the sell offs in bonds happen at a greater speed typically than the buying of bonds happen. Another thing that we've talked about before, inflation is the arch enemy of bonds. It's the archenemy of mortgage-backed securities, which all the stimulus that's being talked about right now is concerned that that could overheat the economy. Now, the people, chairman Powell, Janet Yellen, their take is, is that it would be better to overheat than to underheat the economy, that they feel that they can taper and cool it down should it need to be. You know what? The only person that knows that is the genie in the lamp or somebody holding a crystal ball right now because it's impossible to tell. We have never been in times like this. I wanted to show you a chart real quick.



As we talk about rates moving up quicker than they go down. Here, you are looking at the last 90 days of mortgage-backed security trading. There’re a couple things on here. Again, as we talk about green is good, red is bad. The higher the price of the mortgage back security, the cheaper the rate. There is that inverse relationship that we talk about on here. You can see we were trending down. Then we had a couple of days, I believe this was the 20-year auction that caused the sell off. Then another one proceeded. And then we've since moved down a little bit further here to today. You can see we're trading right below resistance level. It'd be very nice if we could push above that. I also want to pay attention to this blue line here.



This is the 200-day moving average. In anything that you chart, the 200-day moving average is very significant. I'm going to just draw this out for a year timeframe. Of course, it doesn't want to. We're going to draw it out for a six-month timeframe. You can see that for the last six months, that the mortgage-backed securities have been trading significantly, or even when they did touch below, it bounced right back above that 200-day moving average. Typically, when stocks or bonds, in this case, move above or below, it takes quite a long time for them to go back above. Unless you just have this little blip happened in the middle of January where it dropped below, and then went right back above. You can also see these layers of resistance that we have to break through.



They're also called Fibonacci levels, something else you want to Google, if you want to, to see what we're up against. Again, overall, rates are still fantastic. It's a great time to buy a house. I mean, there's an old adage of the best day to plant a tree was 20 years ago. The second-best day is today. Gosh, I'm really feeling that in our housing market as well, too. Supply is so tight on the market. We just don't see that pressure easing at all. You have commodity prices, lumber. They're expecting this year that lumber could go up another 30%. If you're looking at composite decking right now, the synthetic stuff or lumber, I think that the cost of lumber and the cost of synthetic decking is roughly the same right now, which it's usually substantially more expensive for the composite stuff.



All of that said that these are going to continue to drive prices up, it's going to drive up new construction. If the price of new construction gets pulled up, that's going to pull up the price of existing homes as well, too. If you were thinking about buying, now is a great time. If you need to make some improvements in your house, you need to tap into some equity, now's a great time. We can help you with the construction loan. We can help you just pull cash out if you need to. As always, if you need anything, we're here for you. Let our team take care of you. If you just happen to need a referral to an electrician or something done in your house, we're always here for you for that, too. Reach out to us. We appreciate you. Again, I'm Sean Zalmanoff. Have an awesome day. Thank you all.

### Home Buying Process & What to Expect AFTER Your Offer Is Accepted

Have you found your house and submitted your offer but are wondering what happens next? In this video, I’m going to walk you through the post-offer stage of financing on the lending side of the real estate transaction. I’ll share what goes on behind the scenes and how we get you to the closing table and into your dream home.








https://youtu.be/0CsD5vCcoMQ




One Week Under Contract



If you've already completed our TBD approval process, then almost everything's done for you already. If you haven't, don't worry—we have you covered too. What many people don't realize is the amount of work that goes in behind the scenes on the lending side of a real estate transaction.



Week one under contract is where we start the paperwork. If you've already done our TBD approval process, there's very little left that we need from you aside from a few things that may need to be updated. The first week after you get your offer accepted is where you're going to put down your earnest money to take the property off the market for yourself. We are also going to discuss whether we should lock your rate or float your rate for a few more weeks. Lastly, we’ll determine the final loan product that best suits your needs and accomplishes your goals.



Week Two Under Contract



During the second week of the process, we'll order your title and appraisal. We’re also going to submit you to underwriting so the underwriter can check off everything we submitted. Just like my little boys like to say, "Teamwork makes the dream work." The quicker that you get everything turned around for us, the smoother your loan process will go, and the happier you'll be. Getting everything done faster can greatly reduce the amount of stress you feel.



Clear To Close



During the last few weeks of the process, there may be an item or two that needs to get updated. Don't stress when we ask you for it, because you’ll soon hear the three most magic and beautiful words in regards to your loan: Clear to close. That means the only thing left to do is just sign on your mortgage.



This is an awesome time where our team and your realtor get to celebrate all the hard work that we've all done to get you to the closing table. I hope our Client For Life Experience has helped you understand what it takes to get to the closing table once your offer is accepted. Don't forget, if you need a competent lending team, we're here for you. If you have any questions, please don't hesitate to reach out to us!

### The Top 5 Benefits of Being Pre-Approved For a Mortgage

It's not a 100% guarantee that you will get a mortgage for that amount, but it means that it’s very likely you will be approved for the loan once you find a home you’d like to buy and make a formal mortgage application.



Mortgage pre-approval is a very powerful tool, particularly for first-time home buyers. In this process, you’ll go to a bank or lender with all of your financial information, and they will “pre-approve” you for a loan for a certain amount of money.



While this does not 100% guarantee that you will get a mortgage for that amount, it means that it’s very likely you will be approved for the loan once you find a home you’d like to buy and make a formal mortgage application. Let's consider the top 5 benefits of a mortgage pre-approval.







1. You Can Shop Around Before You Start Looking For Homes



You can get pre-approved for a mortgage before you even start looking for a house. This means you can take your time, shop around with different lenders, and see what terms and rates are being offered.



You can take more time to make your decision and find a better deal than scrambling to find a lender after you make an offer on a house – and this can save you some serious cash in the long run.



2. You’ll Have a Set Budget to Work Within



Once you’re pre-approved, you’ll know exactly how much you can pay for a home. This helps you narrow down your search and avoid the heartbreak of falling in love with a home that’s outside of your price range.



3. It’s Easier to Negotiate With a Home Seller



Home sellers like to see pre-approved buyers because that means they have been vetted by a bank and are very likely to be approved for a mortgage. This can give you more negotiating leverage and ensure a smoother offer and counteroffer process.



4. You’ll Outcompete People Without Pre-Approval



Compared to a person without pre-approval, most home buyers will choose a pre-approved buyer, which can make your offer look more attractive – particularly in a very competitive real estate market.



5. Closing Will Be Faster & Easier



If you’re pre-approved for a loan from a particular lender, you can easily go back to that lender to get your mortgage when it’s time to buy. They may re-examine your finances a bit before your loan is issued – but since most of the work will be done during the pre-approval process, the process will be a lot faster and easier compared to applying for a mortgage from scratch. This leads to a faster overall closing!



Need To Get Pre-Approved?



Whether you’ve got questions about mortgage pre-approval or you’re ready to buy a house and want to be pre-approved, Better Rate Mortgage is here to help. Contact our team online or give us a call at (314) 361-9979 to get started right away and get all the information you need.

### Gift Money And Home Purchases – What You Need To Know

At Better Rate Mortgage, we can help you learn more about gift money, home purchases, applying for mortgages, and more.



If you’re lucky enough to have a family member or close friend who wants to give you money for a mortgage down payment, you may be wondering how this process works. Can you use gift money to buy a home? What steps do you need to take?







1. It is completely acceptable to use gifted funds for a down payment



First, let’s answer a common question. While it’s up to the mortgage lender to make the final decision, almost all lenders will let you use gifted funds as part of all of your down payment. This is a common practice, and most large lenders probably see applications that involve gifted funds every day.



2. Gift money can come from friends or family members



Only two groups of people can give you gift money to fund your down payment. First, government organizations can give you “gift money” as part of programs meant to help first-time homebuyers, but this is relatively uncommon.



In most cases, your gifted funds will come from a close friend or family member. However, you must prove that you have a long-standing relationship with this person. For a parent or other family member, that’s easy – you’re family.



However, you may need a little more proof if the funds are coming from a non-related person. Banks want to make sure this money really is a “gift” – not part of some mortgage fraud scheme.



3. You’ll need to provide a gift letter to your mortgage company



This letter is signed both by you and the person who gave you the money, which indicates that the gift money is a gift and is never expected to be repaid. You can find sample gift letters online and use these as a template.



4. It’s illegal to repay gift money



You cannot repay a gift. This is a type of mortgage fraud and is a criminal offense. Gift money must be freely given, and there must be no expectation of repayment. Otherwise, it’s a loan – which is much different and may disqualify you from mortgage approval.



5. Gift money has some tax implications



As of 2021, parents can contribute $15,000 each ($30,000 per child) for a down payment without filing a gift tax form with the IRS. Other family members each have a $15,000 lending limit.



If this limit is exceeded, the person gifting the money must file the gift on their tax return and either pay taxes on it or else count it toward the lifetime exemption, which is currently $11.58 million as of the 2020 tax season.



Also, there is no limit on what percentage of gift money can be used as part of a down payment for a primary residence, in most cases. But if you use a down payment to buy an investment property, you must pay at least 5% of your own money – the rest can be a gift.



More Questions or Need Guidance? Contact Our Team Today!



At Sean Zalmanoff: Better Rate Mortgage, we can help you learn more about gift money, home purchases, applying for mortgages, and more. Contact us online to schedule a consultation right away and get the help you need to find your new home in St. Louis.

### Mortgage Rate Update 2/1/2021

Hello, hello. What's up friends, Facebook, YouTube, wherever? Hey, maybe our website, wherever you happen to be watching us today. I'm Sean Zalmanoff and I'm here with your mortgage rate update and just sending a few cheers your way this morning.




https://youtu.be/-eOtbMfqB6o




The first week of the month is always a very potentially market-moving big week in both stocks and in mortgage bonds, which are why you're tuning in today. Of course, you're going to have a ... we're going to talk about GameStop in a little bit because we just wouldn't be any kind of financial advice or whatever we are today if we didn't talk about GameStop and how that's going to affect you. But first let's talk about jobs, jobs, and jobs.



The first Friday of every month, that does not fall on the actual first day of the month, so this Friday I think is the 5th of February, the Bureau of Labor Statistics will release both government and non-government Bureau of Labor Statistics farm and non-farm payrolls. And so we'll get those numbers on Friday. We'll get a little precursor to the private sector on Wednesday when ADP, the largest national payroll company, which is why people hinge on what they said they’ll release some stats. So those are things that are potentially market-moving.



Man, we had a crazy week in the stock market last week. As you guys probably saw, I think the whole world knows about GameStop now. That was a stock that was trading just like a month ago or a little short while ago for a couple bucks a share. Then it was like five. Then it was like 10. And at one point last week, that puppy was like $480 a share as a group of Reddit investors on a channel inside of there called WallStreetBets decided that they were going to put a squeeze on some institutional hedge funds that had a huge short position inside of there. They started buying a ton of the stock and then it forced the hedge funds to also then buy the stock to cover the short position.



What does that have to do with me? Well, there was a couple of days last week the stock market tanked. Because of that, we saw some improvements of rates, but that was in the midst of the $1.9 trillion economic stimulus plan that had been released that is being met with a lot of opposition, definitely by Republicans and by some Democrats too because of the size of the bill. I think as we are speaking right now or as I'm talking to you, Biden and 10 Republicans are meeting to propose or to work on a compromise and the Republicans have a proposed smaller stimulus bill in place. Regardless of the stimulus and exactly how you sit on that, the important thing for interest rates on that is the greater the stimulus bill, the higher the chance of inflation and the higher the chance of inflation as you know, as I love to say, inflation is the arch enemy of bonds. And so it's the archenemy of mortgage backed securities. If inflation goes up, rates will go up.



Selfishly, we want rates to stay low so you can refinance, you can purchase, you can do whatever it is that you need to do in your world to take advantage of incredibly inexpensive money. Hey, so I am Sean Zalmanoff. Myself, Gordon, Derek, Megan, Katie, Emily, Tasha, we're all here and, I don't think I left anybody out. Hey, if I left you out, just know you're still important to me, team. And hey, we're here for you though. We appreciate you all. Have an awesome Monday. See ya.

### 4 Factors That Impact Your Credit Score - And What You Can Do About It

You have many options available if you are careful about your credit score and better manage your outstanding debt.



Credit scores are checked for a variety of reasons. From credit card companies to auto dealers and even mortgage brokers, your credit score may be the key to whether or not you are eligible for certain services such as loans.



Here are 4 things that truly have an impact on your credit score, and what you can do about them:







1.Payment History



Your payment history gives lenders a better idea of whether you can be trusted to give back the funds if they approve your applications.



Bad payment history made up of late payments, or other negative events such as foreclosures or bankruptcies are a big red flag for lenders that giving you a loan may result in history repeating itself. If you have any loans, the best thing you can do to prevent this issue is to always make the payments on time.



2.How Much You Already Owe



If you make all your payments on time, the next thing a lender might consider is how much debt you still have and whether your finances can cover an additional loan.



In these cases, less is better, so the less money you owe lenders, the less affected your credit score is. You can postpone applying for financing opportunities until you’ve covered more of your outstanding debt.



3. Length of Credit History



The credit score also considers how long you’ve been using credit, such as how old your older account is or your accounts' average age.



Long credit history is a good sign, especially if you have no late payments and other negative events in your history. Short histories aren’t necessarily considered bad either, but a negative event here holds a lot more weight. Consider keeping your credit card account open even if you don’t use it anymore to boost your credit score.



4. Your New Credit



The credit score looks at how many new accounts you have, or when the last time you applied for one was. The more new accounts you have, the more of a credit risk you’re considered because it can look as if you are experiencing cash flow problems. Many people open new credit accounts to cover the old debt, which is not a good strategy.



If you’re struggling with covering your debt, the best thing you can do is to talk with a financial advisor to learn more about your options.



The Better Rate Mortgage Team



Bad credit doesn’t always prevent people from securing financing, such as home loans. Still, you have many options available if you are careful about your credit score and better manage your outstanding debt. If you need some assistance improving your score or finding the best financing opportunities for you, please reach out to a professional loan officer for additional support and guidance.

### Pre-Approval Vs Prequalified & 3 Loan Programs!

Did you know that there’s a huge difference between being pre-qualified and pre-approved? In this video, we’re going to share three reasons why making sure you’re pre-approved will help you get the best deal possible on your new home. We’ll also discuss how interest rates affect your monthly payment and explain the pros and cons of each loan program to see what’s best for you.




https://youtu.be/2m6AbCZ0Jks




Pre-Qualified vs Pre-Approved



An important part of getting a good deal on your home is getting your offer accepted. The most important part of getting your offer accepted is having your financing secured. If you’ve filled out a questionnaire on an app or website that tells you you’re pre-qualified, that doesn’t mean you’re good to go. Being pre-qualified is not the same thing as being pre-approved. There are three main reasons why you need to make sure you’re pre-approved and not just pre-qualified.



#1: A Pre-Qualification Letter Is Worthless



A pre-qualification letter is worth less than the paper it's printed on. It doesn't mean anything, and frankly, in this market, it's just not going to get your offer accepted. On the other hand, when you're pre-approved it means that you've submitted your income and your assets and they’ve been verified. It basically means that you're 99.99% guaranteed to get the loan on your home. 



#2: It’s Important For Your Budget



Reason number two to get pre-approved is that you need to have your budget dialed in. There may be things that you're not considering, like taxes, insurance, and mortgage insurance, that aren’t being calculated correctly. Even if you can be approved for the mortgage you want at those numbers, it may completely misalign with your financial goals. Getting pre-approved will allow you to shop with confidence, knowing exactly how your numbers break down and making sure you don't get in over your head. The last thing you want to do is make a poor financial choice.



#3: You’ll Have More Leverage



Third, a pre-approval will allow you to have more leverage. Imagine for a moment that you're the seller and you have two offers that come in on your house. Each offer looks exactly the same, but one has a pre-qualification or pre-approval letter and the other is from us with a $5,000 guarantee. Which one are you going to accept? 



Securing The Best Rate



As a home buyer, you—like us—are going to be concerned about your rate. Of course, I don't want you to be all consumed by what your rate is, as there are other important factors for us to discuss too. Before we get into this, let me share a scenario that happens with us every single month. 



We have a client that saved 10% to put down on their house. They also have some credit card debt that they're paying on with 12%, 13%, and 20% interest rates. When we look at their scenario and analyze that credit card debt, we are often able to show them how they can pay off those high-interest credit cards in cashflow substantially better every single month. This will set them up for more success. 



Obviously, the higher the rate that you pay, the more your monthly payment is going to be for the same loan amount. Most loans are amortized over 30 years at a fixed-rate. Even just 1/8th of a point means a change in your monthly payment. For every 1/8th of a point increase that you have on your mortgage per $100,000, your rate is going to go up by $7. And for every $10,000 you finance, your payment's going to go up by $50 per month.



If you were looking at putting down 10% on a $200,000 mortgage, that'd be $20,000 down payment. If you put down 5% versus 10%, the difference in your payment is $100 a month. When you’re dealing with a mortgage advisor, however, we’d explain to you that you can take that $10,000 and pay off other high-interest rate or high-payment debt. We could help you cash flow hundreds of dollars a month in your favor, making your home and your finances incredibly more affordable. I want to bring up these factors for you because I want to make sure that you don't lose out on your dream home over $50 a month. When you can pay $10,000 more—if that doesn't substantially move the needle for you—or if we can align your debts to pay off things in a more efficient way, that could save you more than that $50 a month in the longterm. And since 1/8th of a point per $100,000 is going to affect your monthly payment by $7, that’s just an extra $21 per month of a $300,000 loan.



Loan Program Options



Now that you know how interest rates affect your payment, let's talk a little bit more about the different types of loan programs. Buying a home is not difficult, but it can be confusing to break down and decide which of the three main loan programs are best for you. Those three loan programs are VA, FHA, and conventional mortgages. Each of those loan programs comes with their pros and their cons, and based on your financial situation, a mortgage advisor and a mortgage team like ours can make sure that you're in the right program for success and your financial goals.



#1: VA Loans



First, let's talk about VA loans. If you're a veteran, I first want to thank you for your time and service. Hands down, this is the best loan on the planet. You have to have served our country to qualify for this mortgage, and it’s one of the things that the government does incredibly well to make sure that our veterans are served. So if you a veteran or you know a veteran like my dad, we would be honored to work with them and to serve you. And again, we thank you for serving our country. 



#2: FHA Loans



FHA loans have a low down payment, generally at 3.5%, and they’re often used by first time home buyers or for buying multifamily homes. We also often couple FHA loans with renovation products as well too. FHA loans cater to people who want to make low down payments or have aspirations of being long-term landlords; you can buy a multi-family house at up to four units with just 3.5% down. Rates are extremely competitive on FHA loans, but there are some cons too. Mortgage insurance on FHA loans is generally more expensive than mortgage insurance on conventional loans, though we'll break down those numbers for you when you talk to our team. 



#3: Conventional Loans



Conventional loans generally require a 5% down payment, although there are quite a few instances where we can do it with 3%. Also, the mortgage insurance on conventional mortgages is a fair amount cheaper than the mortgage insurance on FHA loans, as we said. This does greatly depend on what your credit score is, though, which is why many people who are just starting to build their credit opt for the FHA loan as it can be cheaper in those circumstances. The biggest con for a conventional loan is simply qualifying. If you don't have a larger down payment or your credit score is not right, it's just not the right product for you. 



Preparing Ahead For The Best Deal



The truth is that it's never too early to start preparing for your home purchase. The earlier you start preparing, the more success you'll have when you start shopping. If you are looking for the risk or benefits versus locking or floating today, call us and we'll explain exactly what the market's doing.



I hope this has helped you understand rates, how they affect your payment, and the loan programs that you have at your fingertips so we can set you up for success. If you have any questions, feel free to reach out to our team at Better Rate Mortgage and we’ll be happy to connect. We are here to help you and we'd be honored to earn your business.

### Mortgage Rate Update 1/25/21

Hello, everybody. Happy Monday. Sean Zalmanoff here with this week's mortgage rate update. Hey, so we have news in the markets as we do every week. I'm going to show you some mortgage-backed security charts to show you we are back on our way up, which means rates are marginally moving down again. I just gave you this, so you know what to expect. Overall, you have to understand rates are great. Rates are going to continue to be pretty strong for a while, but I'm going to tell you what could affect it in the coming weeks here and this week too.




https://youtu.be/QmHWMKKhyHk




We've got the first full week of Joe Biden's administration underway, lots of things happening. The first 100 days of the presidency is always what they judge by, what gets accomplished in the first a 100 days. As you all know, probably the main thing out is a 100 million people vaccinated in the first 100 days. We can start to get our lives back to normal is what the big push is for. But in the mortgage world, what's going to affect rates right now and especially with the new administration.



There was talk and a proposal right at the beginning of a $1.9 trillion stimulus after I believe it was just the 900 billion that's passed. Will there be more stimulus? Won't there be more stimulus? There's definitely going to be more stimulus. It just depends on what the actual price tag of that is. There's a lot of bipartisan support to get the $600 payments that were sent to individuals up to 2000. And so, that we'll go through at some point in the next few weeks, few months, it's the government. It depends on how quick they move, but then what else is on top of that? Is it infrastructure? Is it student loan relief? These are all things that we don't know yet but are market movers.



The thing to pay attention to is the bigger the amount of stimulus that gets passed, the worst that it probably is for rates. I'm not saying it's bad for the economy, but the worst that it probably is for rates because the more stimulus, the more potential for inflation. As you know from listening to me, inflation is the arch enemy of bonds, which will make yields and rates rise. Let me show you, what's quickly just gone on in the last week here. All right. Here is what we love to share, so you can see what's going on in our markets. Remember green is good, red is bad when it comes to rates on mortgages.



As we move up the ladder here, rates get better and bond prices get worse. You saw right at the beginning of the year, we had the big sell off in mortgage-backed securities. Another thing to remember, rates always down or they always move up quicker than they move down, and you can see it. We lost about three eights of a point in a few days and we gained about half of that back or so since then, but we continue to move up here. We're sitting right on this black line that you see coming through here, which I have tracked in my graph as the 50-day moving average. And we are sitting right below that.



If we break above and close above that, a rule that we talk about in the financial world is yesterday's resistance becomes today's support. It also works the other way. If you close below something yesterday, support comes becomes today's resistance. You see if we do close above this mark, we have, Oh, another 50 or so basis points to run, which would be a positive impact on rates and roughly an eighth or a quarter point better than you even see them today is what you could be seeing in the market.



Interesting open to the market. The S&P's up, now the NASDAQ's up a fair amount and the Dow Industrials are down. That is what's going on in your world today. And so, that's all we got for you. Hey, if you are buying home, if you're refinancing home, if you know somebody who is, we would love to help them and take care of them so please send them our way. I'm Sean Zalmanoff. Appreciate, y'all. Have a great day.

### Mortgage Rate Update 1/18/21

Hello, everybody Sean Zalmanoff here with your mortgage rate update today. I am a little more casual than usual, supporting my Missouri pride here. Hey, before we get into rates as you all probably know today is Martin Luther King Day and this I'll be taking off early to go spend some time with my family and my boys. But I listened to his I have a dream speech this morning on my way into the office and I've listened to pieces of it before and maybe when I was really young I listened to the whole thing at once in class but it was a very good use of 17 minutes or so of my time this morning.




https://www.youtube.com/watch?v=2L6RDay4FGM&feature=youtu.be




I've been going down a history wormhole today of how he was inspired to write it and what people said he should or shouldn't say during it. In the times that we live in it's good to remember that there are people who care and that want to push the needle forward for all of us as humanity goes. Don't lose sight of that friends because it's easy to do today, just remember there are those that care.



Hey, the markets are closed today. I wanted to show you a little bit about what has been going on with mortgage rates in the last two weeks because we've had a little bit of a seesaw. As I mentioned last week, we finally weren't at the lowest that we'd ever been on mortgage rates because we'd been creeping lower and lower and lower for some time and then two weeks ago, as you can see here, we had a pretty decent sized sell off. Whenever you see these red candles here that means the price is getting worse and so that means that rates are moving up when you see those red candles.



One thing that you'll notice too is rates generally move up quicker than they go down. When they're going down we have a long, it's a gradual climb downwards. When they get worse it happens quick and it's just the way that the technicals trade on things. We saw a bearish sign here on January 4th and then had five or so not very good days in the market. Broke beneath another support level and then it's since rallied and you can see this as it's rallying it's rallying slower. We're in this little section right here so trading just below resistance. If rates pierce above that, if bond pricing rises above this, we can see rates breakout to the north and that would mean see bond prices breakout to the north and make rates drop for us to come back down again to the lows of the lows.



But hey, in general mortgage rates are still amazing right now. In almost any other time but outside of a few months in history we have the lowest rates in recorded history. If you're looking to buy, if you're looking to refinance, my team is here to help you. We want to make your process as smooth as possible. Make sure you're reaching out if you're in this home buying process. Don't reach out when you find that house. Call us two, three, six months in advance. Let's make sure everything's in line so we get the best loan for you and get you through our $5,000 guarantee process, which we'll get your offer accepted ahead of others. Again, I'm Sean Zalmanoff. Today is going to be an awesome day for you if you choose to make it one. I appreciate you all listening. See you later. Bye.

### 4 Questions to Expect From Your Loan Officer

If you need to take out a loan, a reputable lender can help guide you through the process to make the right financial decision. Contact us now for more information!



When you apply for any line of credit, you will have to sit through a few conversations with your loan officer, who will try to determine whether or not to approve your loan.



The process itself can be a bit stressful, especially if you’ve never gone through it before and have no idea what to expect. To put your mind at ease, here are 4 questions a loan officer will likely ask you:







1. How Much Money Do You Need?



First, your loan officer will want to know how much money you want to borrow and for what purposes. Lenders are very cautious about who they give money because this entire model is rather risky by nature.



Of course, if you’re interested in a personal loan, you won’t have to give the officer a complete overview of how you’ll spend the money, but you do need to have an answer prepared.



2. What Does Your Credit Score Look Like?



Your credit score can show the officer what type of borrower you might be in terms of:




What your current debt is



If you make on-time payments



If you’ve missed payments in the past



If you have any other negative events such as foreclosures or bankruptcies, etc.




The lender wants to know you can be trusted to pay the money back to them and not default on your payments.



3. What’s Your Salary and How Secure Is Your Job?



After they establish you can be trusted to pay the loan back, they’ll want to know if you have the means to do it as well. If you have a steady job with a good income, this shows the officer you can cover the monthly payments without problems, and the lender won’t have any surprises along the line.



Expect to be asked about your monthly expenses as well. A big salary on paper doesn’t mean a lot of your monthly expenses are very high. Again, they will not necessarily go into invasive details, but you can prepare by having a figure ready to present to them.



4. Will You Experience Any Financial Changes in the Future?



This can seem like a strange question, but certain financial changes are more or less predictable. For instance, a child going to college soon means you’ll have additional big expenses to cover, such as tuition or even housing.



These big changes may affect your ability to pay back the loan, so the officer will want to see whether you have a plan for such expenses, such as savings or other financing options.

### Second Mortgage or Home Equity Line of Credit: What is the Difference?

Deciding which type of loan is right for you largely depends on your needs and spending habits.



There is some confusion with regards to a second mortgage and home equity lines of credit. While both types of loans let you borrow against the equity in your home, they are not the same.



The Better Rate Mortgage team will help you understand the difference between the two and how to choose the type of loan right for you.



Second Mortgage



A second mortgage is a type of loan that uses your house as collateral. It's a way to borrow money against the equity in your house, which is calculated as the difference between what you own in your primary mortgage and the value you could sell your house for if you were to put it up for sale.



The process for obtaining a second mortgage is similar to the one you went through for your primary mortgage. You will have to apply to a qualified lender and provide all the paperwork regarding your income and financial situation.



You can use second mortgages for various reasons, such as financing home improvements and repairs or consolidating other debts you may have.



Home Equity Loans



Second mortgages came in different sizes and shapes, and one of them is the home equity line of credit (HELOC.)



With this type of loan, you open a line credit on the value of your home. The bank will offer the loan at a fixed interest rate on the amount you actually borrow. The main advantage of a home equity loan is that you can borrow smaller sums. However, in most cases, you will need to retain about 20% equity in your home to qualify for a HELOC.



Here's an example to help you understand this type of loan better. Let's imagine that your home is valued at $300,000, and the mortgage balance is 60% of the home's value ($180,000.) You need to retain 20% equity in your home, so that's $60,000. That means that the equity available for borrowing is 20% or $60,000.



Second Mortgage vs. Home Equity Loans: What Should You Choose?



Deciding which type of loan is right for you largely depends on your needs and spending habits. If you need money intermittently, then a HELOC might suit you best as it offers you ongoing access to funds for ten years. But, if you have bigger expenses, like home repairs, then a second mortgage might be the best option.



Remember that you should never borrow money to pay off debt because, in reality, you are just moving the debt from one loan to another.



Do You Need Help Finding the Right Financing Solution for You?



If you are looking for someone to help make the home purchase or refinancing process a bit less overwhelming, then the experts at Better Rate Mortgage in St. Louis are here to assist you.

### Mortgage Rate Update 1/11/21

Hello everybody. Sean Zalmanoff here with your Mortgage Rate Update for January 11th of 2021. We've got some different news today. For the first time in a while, we are not going to tell you that rates are at the best levels ever. Now, this doesn't mean that rates have moved very much higher, we've sold off slightly in some of this has to do with what's been going on in the stock market.




https://youtu.be/Ce2TED090Y8




The stock market's at record levels and so when we're talking about it, of course, the indices are at record levels. Some stocks in particular are trading close to all time highs, but one really important thing that can affect mortgage rates, mortgage bonds specifically, again, which of course affect mortgage rates is that the value of stocks of what they're trading at versus their future earnings is at record high levels. Now this doesn't mean that a stock sell off is imminent, but if a pullback happens, bonds and in effect mortgage rates would be the beneficiary of that. There's a lot of things that are fueling this record high stock momentum and movement right now though.One way with rates being so inexpensive there's very few places to put money. Not only are investors putting money in stocks because they can't get a return in the bond market, a lot of dividends stocks, a lot of income yielding stocks are being invested in because they're offering two, three, four percent dividends on what they returned. In addition to whatever appreciation there's money, that's paid out inside of those as well too. As you all know last week in the runoff election Democrats gained control, a very slim control it's 50-50 in the Senate now, but with Democrats being in control of our president's office, of the executive branch, as you all know from your history lessons the vice-president has the swing vote when it comes to ties in the Senate. If that was the case and things were partisan, oh my God like that would ever happen these days, that 50-50 tie would be broken and most likely go in favor of the Democrats with the 51st vote being that.What does that mean? Well, there is a pretty big bipartisan support right now for $2,000 stimulus checks. There's a lot of turmoil around that getting passed with the $600 checks, that I hope those of you that are eligible and needed it already have it in your pocket right now, I know there's been some delays on those. But there is a very strong likelihood in the first few days of Joe Biden's presidency that there's going to be a $2,000 stimulus passed in the house. There is bipartisan support in the Senate as well too. For those individuals making less than $75,000 you are going to get a large chunk of money here very soon. That means that people are buying stocks. People are going to spend more money and that could in turn keep the upward pressure on the markets sustained, especially with low rates.That is why, even though we're trading on some of these record levels, they could continue to stay to be here for quite some time. As always though, you know how to connect with us, we are here for you. If you need any mortgage needs, remember, we're like the walking yellow pages. Yellow pages does anybody even know what that is anymore, maybe if you're at least 40 years old like I am you do, but anybody else, [Katie 00:04:03], you know what the walking yellow pages is?Katie: I do.You can't see Katie, but she's off to the side here. She helps me with these every week. If you need anybody, service providers, we're here for you. As always, if you're buying, you're refinancing, anything, we're your guys. Peace y'all. Have a great week.

### Is A Big Down Payment Always A Good Idea?

People looking to buy a house often worry about the down payment with the infamous "20% take it or leave it" deal.



First, that 20% isn’t standard. According to the National Association of Realtors, the average downpayment for 2019 was 12%, and for first-time buyers, it went as low as 6%. But if you read up on the subject, you’ll see many benefits for both big and smaller down payments. 



It's important to find out which option is right for you. The Better Rate Mortgage team can help!







How Much Do You Need to Put Down on a House?



The figure depends on the type of mortgage you get. For instance, a conventional loan has down payments as low as 3.5%, while an FHA loan can even be lower, depending on the type of insurance you get.



Other types of loans, such as VA loans, don’t require any down payment at all, so you could finance your home with 100% of the money coming from the lender - though you’ll still have to cover some closing costs.



How Much Should You Put Down on a House?



So, should you pay the least amount possible, or the opposite, and put as much as you can? Well, the right amount to put in a down payment really depends on your financial situation.



If you have a lot of money saved and a good annual income, opting for a higher down payment isn’t that bad. You get started with more home equity, and your lifestyle isn’t all that affected by this big investment. The same goes if you have money saved, but your annual salary isn’t all the great. A bigger down payment reduces your monthly payment size, which can make it easier to navigate through your mortgage.



But if you don’t have anything saved up, it’s best to opt for a low down payment, even if you have a great annual salary. Mortgages are long-term deals, and if you have no financial safety net to fall back on, you can risk not being able to cover the monthly payments if you lose your job, for instance.



So take a closer look at your financial situation, and opt for the type of down payment that is comfortable to you and won’t create any money problems down the line. If you’re not sure how much to put down, consider speaking to a personal finance advisor who can help you crunch the numbers.



We Can Help with That!



The Better Rate Mortgage team completely understands that finding the right loan and downpayment can be difficult, especially for first-time buyers. But our team is here to guide you through the process and provide expert support to make sure you make the best decision for yourself and your family.

### Mortgage Rate Update 1/4/21

Hello, hello everybody, Sean Zalmanoff here, Better Rate Mortgage, Sean Z team. Happy 2021. I was just typing that this morning and that felt a little weird, but also great because as great at 2020 was in some aspects, definitely ready to move on and I think a lot of you are too.




https://youtu.be/RB1TzCafj94




Not a lot of news this week, but some huge news, of course, happening tomorrow. The Georgia runoff for the Senate happens tomorrow and the control of the Senate is in play based upon what happened. Interesting outcomes could present interesting things that happen in our market. Last week we talked about showing you some technical, so let's just get a little technical real quick and then send you on your way for the week.



Let's look at the most important thing that we need to show you today. Here is what's going on in the market. These things, again, that I like to track and advise you and your clients on when to lock in the rates are called candlesticks. Every candlestick represents a day of trading in the market. This pattern that we had back here on December 28th happens to be called the bullish engulfing pattern because it opened lower than the day before, and then closed higher than the day before. When that candle encompasses all that, it means rates are probably going to improve. As you can see here, the price of bonds went up. As you know from previously, when prices go up, yields drop and that means rates drop. Then we hit smack on this level of resistance that we have again, and that is causing us to stay right at this level. Which, if we just draw this picture out for even a little bit longer, the broken record of rates are once again at the best ever.



We are opening January of 2021 with, again, mortgage backed securities trading at the best they've ever been. If you thought you missed out on a refinance, if you thought you missed out on buying, time is still here, it's right on your side to be able to do this for you. And yes, you are not too late. As the beginning of March last year, there were almost $8 trillion in loans that could be refinanced. We refinanced about 2 trillion of those as an industry last year. So if you haven't taken advantage of these rates, call me, call my team and let us help you take advantage of that. If you're going to be buying soon, definitely let's get started on your processing. Get you pre-approved so we can get your offer accepted ahead of everybody else's here.



Once again, I am Sean Zalmanoff. As you know, my team's always here to help you and cheers to an amazing 2021. Have an awesome day and awesome week and see you next Monday. Peace, y'all.

### Mortgage Rate Update 12/28/20

What's up, everybody? Sean Zalmanoff up here with this Mortgage Rate Update. Hey, I hope you guys all had a great holiday. This is our last Mortgage Rate Update of the year and our very last one until next week. We will see you then.




https://youtu.be/_9f9q2FW4Y0




First of all, let's talk about fed news. The Federal Reserve who has been helping to lower mortgage rates by buying mortgage backed securities has said they were going to continue to buy about 40 billion in mortgage backed securities per month. 40 billion. Yeah, the numbers are just crazy, but to date so far, in December, they've bought 90 billion and that has not gotten this last week's reporting. They've consistently been buying for the last few months, close to a hundred billion. That means rates are going to stay pretty good for you.



We've also had an uptick the last couple of weeks in new claims for jobless numbers, which is just something to note as they had been falling for quite a few months.



We also got some big news late yesterday evening. The stimulus bill that we talked about that was passed last week is now signed and into law. Families are going to be able to get up to $2,400 in stimulus. If you are married and have two children is kind of how that maximum can work out for you. Individuals are getting $600. There is a lot of relief inside of that bill on the payment protection plan for small businesses, which is more important. Now, everything's important inside of this, but incredibly important as small businesses are the engine that make up our economy and have the least amount of deep pockets to be able to weather this financial storm. Fortunately, there's been some good relief for businesses.



Now, the House this week is going to be voting on a 2K or not 2K. Not Y2K as we had, well, gosh, 20 years ago today almost, but this is going to be whether to increase the direct payment stimulus from $600 to $2,000. This is likely to overwhelmingly passed the House and likely to die either a voted death or just a death that doesn't even get heard in the Senate. More to come on that, but we'll see. That's all we do at this point is wait and see what's going on.



These factors though, do perpetuate for us a good cycle of interest rates ahead of us. Like we talked about last week, when the financial crisis came through, there was that the great recession, 2007, 2008, there was about 3.4 million homes on the market. Today, that's less than half that. There's about 1.4 million homes on the market. Even with all of this craziness going on right now, there is still probably a strong, strong likelihood that prices are going to increase, which I believe Wednesday of this week, we'll see the Case-Shiller index. It's the national survey of 20 different cities in the United States to see what home prices are doing nationally. You know what? Next week, we will show you exactly what they're doing here in St. Louis. We have some pretty cool graphs that we can break down. Stay tuned for that.



Hey, if you need anything, call us. The numbers are below. You know how to reach us. We appreciate you. It has been an amazing year. We've been able to help a lot of people and have fortunately been one of the industries that that has done pretty darn well. If we can help you, if you need to save money on your mortgage, if you're buying a house, we're here for you for that, too. Sean Zalmanoff. We appreciate you all. Have an awesome and safe New Year. Bye, you all.

### Not All FHA Lenders Are The Same: How To Find The Right One For You

Before you opt for an FHA lender and sign the papers, check out Sean Z’s guide to choosing the right one for you!



An FHA loan is a loan issued by the Federal Housing Administration, an organization that enables lenders to offer very competitive interest rates on their loans. For you, the borrower, it works just like any other mortgage, except FHA loans charge upfront and monthly insurance premium.



Before you opt for an FHA lender and sign the papers, check out Sean Z’s 5-step guide to choosing the right one for you!







1. Consider Your Credit Score



FHA generally looks for borrowers with a credit score of around 500 - at least. And in some cases, the lenders themselves may look for an even higher score, so definitely consider this when looking for lenders.



Additionally, FHAs generally want a debt-to-income ratio of around 50%, but lenders can have more strict rules when it comes to it. Using these criteria can help you navigate through the entire sea of potential lenders and find those whose criteria you can meet.



2. Compare Multiple Lenders



Lenders don’t just have different criteria for giving out loans; they can also have greatly different FHA mortgage rates. So it’s a good idea to take your list of potential lenders and compare their rates to see the better deal.



Lenders price their loans on the current market conditions and can add interest rates to cover their operational costs and turn a profit. But since some lenders have higher costs than others, the rates themselves can differ greatly.



3. Consider the Lender Fees



There is a difference between the FHA mortgage insurance premiums and the lender fee. The premiums are the same regardless of the lender you choose, thanks to the FHA, but the fees tell a different story.



Lender A could have very different fees than Lender B, so when you’re comparing lenders, check out what their fees total to in the loan estimate to see how much you’ll be charged in the end.



4. Compare the Annual Percentage Rates



Lenders make their money by charging you fees and adding their profit to the interest rate you pay. After you check the bank’s fees, take a look at their APR? Sometimes, banks will not add anything to the interest rate and go with the money they get from the fees, but not all do so.



5. Consider Other Criteria You Need



You may have personal requirements for finding the right lender, such as being able to carry out the process online. Needless to say, not all lenders can accommodate the same sort of requirements, so factor them into your research!

### Should I Consolidate My Loan? 4 Factors To Consider

The terms "consolidation" and "refinancing" are often used interchangeably, but they are not the same. It’s helpful to understand the difference.



Consolidating a loan refers to taking multiple loans and merging them, while refinancing involves swapping a current interest rate for a lower one within the same loan. Consolidating can also eliminate the hassle of making multiple payments every month and reduces the likelihood of falling behind or missing a payment. 







However, consider these 4 factors before you consolidate your loan:



1. Your Income



If your total debt exceeds 40% of your gross income, consolidating may not be your best option. Consolidation isn’t a fix for all your debt problems and doesn’t answer the root cause of your financial troubles. For instance, if you are struggling with your debt because of overspending, consolidating won’t help with this issue. In fact, it may make it worse.



If your income can support it, and you can pretty much always have the cash flow to cover your monthly debt, then you may consider consolidation.



2. The Size of Your Debt



If you have a small loan, and you can pay it off in up to a year at your current pace, there’s really no point in going through consolidation since you won’t be saving that much money.



You’re better off going through different plans to pay off your debts, such as the snowball plan, where you start paying your debts from the lowest amount first and making minimum payments to the biggest.



3. The Additional Loan Period



Consolidating loans means benefiting from a lower interest rate; yes, it will most likely extend your loan by several years. This may mean that, in the long run, you end up paying a lot more than you initially borrowed.



And this means you need to take into account how stable your financial situation is. If you are comfortably paying off the loans now, will you be able to do so in a few years? Is your employment stable enough, or do you have sufficient savings to ensure you can pay off the loan if you’re unemployed?



4. The Interest Rates



Consolidation can help make budgeting easier for paying off your debt, but in the end, the most important factor you need to consider is the interest rate. Specifically, do you get a more convenient interest rate if you consolidate your debt? Or, do you need to pay any additional fees if you make this move?



Better Rate Mortgage Is Here to Help



If you’re still unsure if consolidating is the way to go, our team can provide expert advice to help you figure out what makes the most sense for your situation. Get in touch with us now, and let’s work together to find you the best financial solutions to your debt-paying needs!

### Mortgage Rate Update 12/21/20

Hey everybody, what's up? Sean Zalmanoff here with your mortgage rate update this week. Hey, Merry Christmas. We just finished Hanukkah last week. Happy Hanukkah. Happy holidays to everybody.




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It's been a year. We've been very blessed and fortunate in the mortgage and real estate world, and if you own a house, you probably have been too to some extent because of that.



Over the weekend, Congress finally passed a stimulus bill. If I was better with my little sound effects here, I'd be playing for you right now Under Pressure that Queen and David Bowie recorded. I don't know, I think we just looked it up; 1981 I believe. I know I work pretty well under pressure myself, but dang, I mean really Congress, it took you until things were expiring for you to take care of the rest of America. Sorry, I'll get off my political rant, but better late than never I guess. I really hope that if you're in need of the stimulus out here, that it benefits you and at least we are going to be helping some Americans who desperately need this help.



Speaking of Americans and help, one thing that the market is lacking right now is inventory. There are currently 1.42 million homes for sale right now. People ask me all the time. They're like, "Sean, hey prices are going up, rates are down, like when is this going to crash? It just is. It's going to crash. Of course it's going to crash." No, it's not. And let me tell you the single biggest reason why.



Again, I dabbled in quite a bit of economics during my college days. If you took any econ classes, you know we talked a lot about guns and butter. Well in 2007, at the peak of the real estate bubble, guess how many homes were listed for sale? 1.42 million now. Guess how many homes were listed for sale? Do you think it was double what it is right now? It's actually greater than double. 3.4 million homes were listed for sale in 2007. 13 years later as home prices are peaking, they are more expensive in many of our areas than we've ever been.



We talk about the home affordability index, and that is lower in a great way driven by rates because mortgage interest financing is the cheapest that it's ever been. But when you have such a shortage of supply of homes, you're not going to have a dip in pricing, not a sustainable one right now that we see happening in our market. Again, there's 2 million less homes for sale listed right now than there were 13 years ago at this time.



Hey friends, I know it's the end of the year. Man, I'm ready for 2021. I hope you're ready for 2021. If you need anything, our team is always here for you. We call ourselves the walking yellow pages. If you ever need any help, we are here for you to, for all of your needs. Sometimes buttons click and we do stuff, and sometimes they don't. Hey, our number is right down here below; (314) 361-9979. If you need any advice in the mortgage real estate world, you need a mortgage anywhere from coast to coast or a great realtor to work with, or just some advice on what things look like in your world, call us. If you're local in the St. Louis market, like I was mentioning, we're the walking yellow pages. If you need a plumber, an electrician, if you need an HVAC guy, somebody to help on your house, we have advice here to be able to help you.



We'll see you one more time before the end of the year. Hope you all have great holidays. I hope you get a few days off to enjoy time with our condensed families over this break. Peace y'all.

### 5 Things Not To Do When You're Searching For A Home

Have you been pre-approved and are ready to start your home search? In this video, I’m going to share 5 things not to do once you start shopping for your new home. As a mortgage advisor, my number one recommended advice is to make sure that you don't start shopping until you know exactly where you stand, what works for your budget, and what you're approved for.




https://youtu.be/7lw7lIh8cZk








Congrats—You’re Pre-Approved



Once you get your preapproval—hopefully with our $5,000 guarantee—it’s time to start shopping. As part of our Client For Life Experience, we’re going to make sure that you know what not to do once you start shopping for your home. I promise you that these tips are going to make your shopping experience substantially better if you follow them first. When you do start shopping, we want to let you know that we work with some amazing realtors. Depending on the area that you're shopping in, we'd love to set you up with one.



As you begin to see properties, you'll start understanding what you get for your money. It’s during this shopping process that you'll really understand what's most important to you.  Many buyers end up buying a home opposite of what they thought they were going to after they start shopping. I know that happened to me on my most recent home purchase. By following these 5 tips, you’ll keep an open mind and choose the home that’s best for you.



#1: Don’t Fall In Love With The House



It’s best not to fall in love with a house before considering whether it’s practical for you. You could end up buying the first home that you see, but make sure that you're making a rational decision that aligns with your financial goals. You also want to make sure the house would work best for you and your family. Additionally, you want to make sure you have representation.



As a buyer, the seller of the home pays the commissions. You're much better served to have your own realtor and your own representation so the listing agent doesn’t play on your emotions. Again, if you need a referral to an awesome realtor, we have someone who can help you.



#2: Don’t Lose Control



It’s important to remember that you are choosing your house. Your mom, dad, brother, sister, and uncle all have great advice. However, this is the house that you're going to live in for a substantial time. Trust your gut on what's best for you and make sure that you buy the house that you want, not the house that someone else wants for you.



#3: Don’t Be Indecisive



Indecisiveness can be one of your worst enemies. Make sure that if you're having some questions about a house, you sit down and go over the pros and cons. Is this the right home for you? Is this the right price? Is this the right location? Does it have the right amenities? You may need to reevaluate your priorities depending on the answers. If you're not sure this is your forever home, ask your realtor, "Mr. or Mrs. Realtor, are you going to be okay selling this house for me in five years if I find the need to move on?"



#4: Don’t Rush



One thing that’s a major don’t is falling prey to bad timing. I want everybody who wants to own a home to become a homeowner, but sometimes it just may not be the right time. So don't rush into a decision just to rush into a decision. Make sure that it aligns with your financial goals and that you've talked to a mortgage advisor. We make sure that the debts that you have will work well to set you up for success. If you have a financial advisor, talk to them and get us both talking to each other. Again, we’ll make sure that you're set up for success. We want this to be a home that you can live in and enjoy without it becoming a burden.



#5: Don’t Use Credit



This one is important: do not use your credit after you've been pre-approved for a loan—especially without talking to your mortgage advisor. I can’t tell you the number of times that someone's gotten pre-approved for a loan and we've said, "Hey, don't use your credit. Don't charge anything. Don't go buy a new car." And then they think, "Hey, I'm pre-approved. They don't need to check anything in the future." That is not true. We absolutely do have to check everything in the future. We also have to do a check on your credit report a few days before you close.



So if you go and buy a Ferrari that has a $1,000 payment on it, you may or may not be able to qualify for your house. Even if you just buy a nice, simple Toyota with a few hundred dollars payment—or you're going to the furniture store to buy some nice new pieces to put in this beautiful new home of yours—do not allow them to pull your credit. Don't purchase anything on credit until after you have closed. And if you must, please, please, please talk to us first. Even if you qualify, it can affect your closing and hold up the process of getting you into your new house.



Working With A Mortgage Advisor



I hope this has helped you understand some of the things you should not do once you start your home search—and after you've been pre-approved. When you work with a mortgage advisor, we’re always a few clicks or a phone call away to help you out. If you have any questions, feel free to reach out to Better Rate Mortgage. We can’t wait to help you!

### Mortgage Rate Update 12/14/20

Hello everybody, this is Sean Zalmanoff here with this week's mortgage rate update. Today is December 14th. Yes, it is definitely December 14th and pretty solid news in the bond front, rates are stable this week. We are once again, close to the all-time lows in mortgage rates, which is good for you. It's good for your home financing needs. It's good for your mortgage needs. It's good for your refinance needs. It's good for anything that you actually need when it comes to long-term financing.




https://youtu.be/ll4fB72Asd8




Last week we did have a 30 year bond auction on Thursday, and it was Treasury's not mortgage backed securities, but the bond auction was well-received by the markets. There's something called a bid-to-cover ratio. That bid-to-cover ratio is very strong as far as the dollars that we're bidding on the amount of bonds that were out there.It's a sign that people who are buying these bonds do have an appetite for the rates that are out there right now, even though they're low. That's a really good sign for us. Something else to consider that's just going on right now, the markets, almost every index of stocks that you look at is trading at close to or above the highest price earnings ratio that they've ever traded at before. Part of that is because of the stimulus that has been punted into the economy and the projection of the stimulus.Part of that is because rates are so low right now that there really isn't anything else for some people to do with money besides invest it into stocks. This is causing our PE ratios, the price to earnings ratio, the stock to trade close to all time highs. Now, what that means for the bond market is should there be any kind of sell off that happens that means that that money could likely flow into bonds.It would either flow into bonds or sit on the sidelines as cash. That would be good for rates and it flows into bonds. Price of the bond would go up, the yield would go down and so would your mortgage rate. It's kind of a light week in news that there aren't a lot of headlines. There's a lot of reports, but not a lot of market moving reports.What could be market moving is the stalemate that we still have in Congress in regards to stimulus and how much it's going to be and when it's going to come. That could impact our rates at some point, if our two fair political parties couldn't come together and make a decision on that for us. Hey guys, it's the holiday season and the Sean Z team, most of us here at USA mortgage, we've been really blessed. It's been just an amazing and awesome year.For those of you doing a mortgage with us, now, we thank you or any of our amazing past clients that this is the fourth, fifth or 10th loan that we've had the pleasure to deal with. Thank you as well.For anybody out there that you're just struggling right now, or it's tough to put meal on the table. Hey, we would love to help you if there's a holiday dinner or something that you're not going to be able to meet for your family, based upon whatever predicament that this crazy 2020 has dealt you, please reach out to us, let us know, and we will do anything that we can to help you.I'm Sean Zalmanoff with the Sean Z team here. I just appreciate you all, if you need anything, holler and have an amazing and awesome week.

### Preapproved For a Mortgage - How Long Do I Have Until It Expires?

What a lot of people don’t know is that mortgage pre-approvals come with an expiration date!



One of the most difficult and stressful parts of buying a new home isn’t finding the perfect place for you and your family to move into. For a lot of people, it’s the preapproval process.



Before a lender gives you that preapproval letter, you likely cannot even begin to look for a new home since you won’t know what your budget is! Once you do get pre-approved, however, a sigh of relief often follows, and you now think you have all the time in the world to find a perfect house. Except, you don’t. What a lot of people don’t know is that mortgage pre-approvals come with an expiration date!







Why Do Lenders Set Expiry Dates on Pre Approvals?



The short answer is: because of the market. The mortgage pre-approval means the lender has looked into your financial situation and has established you are a good candidate for a certain loan amount and a certain interest rate.



However, many issues could potentially throw off the market’s balances, such as a recession, a crisis, or even news the Federal Reserve is expected to raise rates. Not to mention, your financial situation could potentially change as well, like losing your employment or getting a pay cut. This can all drastically change your borrowing situation and affect your ability to pay back the loan with the amount you were initially approved for.



For these reasons, the mortgage pre-approval comes with a set expiration date, and it’s imperative to know it and keep it in mind when looking for homes.



How Long Does a Pre Approval Last?



The expiry date for a preapproval varies from lender to lender and may also be influenced by the market and your financial situation.



In most cases, mortgage pre-approvals expire within 30 to 180 days. For example, if the lender is not convinced of your job's stability, or you are borrowing in a volatile market, your timeline will be much shorter. If your job is stable, you may get the 180-day window.



A common timeframe, however, is 3 months. But a lot can happen in three months, so even if you do get pre-approved, it is not a guarantee that you will end up getting the loan at the initially-approved amount. Your file is re-evaluated before you are given the fund.



TBD Mortgage Approval Program



Navigating the process of getting a mortgage is not as straightforward as people may think, which is why it’s essential to work with a lender who takes the time to guide you through the different stages and can provide you with the best advice.



The Better Rate Mortgage team will not only take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind, but we also go further. Our mortgage underwriters will examine your credit history, employment history, debt ratios, down payment amount, reserves, and any other necessary documentation to get you approved for financing while your house is still “To Be Determined."

### When Is The Right Time To Refinance? Our Top Tips

Better Rate Mortgage will help you decide if refinancing your home now is the best financial path for you.



Wondering if you should refinance your home in St. Louis? Mortgage rates are near historic lows, so many people choose to refinance their homes with a new lender to get the most out of their money. But is it a good idea for you to do so? When is the right time to refinance?







When Mortgage Rates Fall At Least 1% Below Your Current Rate



As a rule of thumb, most lenders suggest that you refinance when mortgage rates are at least 1% below your current rate. The lower, the better – if you can refinance to a rate that’s 2% or more below your current rate, you’ll save even more money.



It’s important to remember, though, that you will usually spend about 2 to 5% of the amount of the loan in closing costs. You’ll need to determine your “break-even point” to make sure refinancing is worth it.



For example, if you spend $3,000 on closing costs and your monthly payment drops by $150, this means you’ll “break-even” after 15 months – and start saving money. But if you move or sell your home before this time is up, you’ll lose money when refinancing, so you should usually only refinance if you plan on staying in your home in St. Louis for a while.



When You Have Enough Equity To Remove PMI 



PMI is required when you don’t have enough money for a down payment of at least 20% of your home’s value. It can cost between 0.25% and 2% of your loan balance per year – which is quite significant.



But if you have at least 20% equity in your home, you can refinance your loan to remove PMI and save on this monthly cost. If you can also get a lower interest rate, you’ll save even more!



When Your Credit Score Has Improved Significantly



If you have had struggles with bad credit in the past, but your credit score has improved quite a bit in the past few years, it may be a good idea to try to refinance. You may be able to save a lot of money on interest since you’ll qualify for prime rates if you have a credit score over 700.



To Convert To A Fixed-Rate or Adjustable-Rate Mortgage



Both fixed-rate and adjustable-rate mortgages have their own pros and cons. If you currently have an adjustable-rate mortgage (ARM) or a fixed-rate mortgage and want to convert to a different type of loan, refinancing is a good option.



Contact Better Rate Mortgage To Learn More



If you think you could benefit from refinancing your home in St. Louis, Sean Zalmanoff: Better Rate Mortgage is here to help. Contact us online or give us a call at (314) 361-9979 to get the assistance you need and find out if refinancing makes sense for you and your family!

### Mortgage Rate Update 11/30/20

What's up, everybody, Sean Zalmanoff here with this mortgage rate update for... What week is this? This is November 30th. We are in the last month of the year. We are a day away from the last month of this year, wow. 2020 has brought some joy, some sorrow, but damn, it has been a year we are going to remember, that is for sure.




https://youtu.be/qh4EWGWrHuM




We do have some good news this morning. We've been talking a lot about vaccines, one, because it's important news, but two, because these really have potential to move the market. Moderna announced their final of their phase three study this morning, and the results were as good as was reported a few weeks ago, with the efficacy rate of over 94%. They are going to push today for emergency approval from the FDA, which means that our life should get back to normal a little more sooner than later, at least than what we thought a few months ago.As that happens, as people spend more money, as things go out in the economy that would inflate the economy, and as I've told you many, many times, inflation is the arch enemy of bonds, which is the arch enemy of any fixed rate security instrument, which means rates will probably go up a little bit at some point eventually in the future. Again, not a lot to worry about right now, because we are again at the lows of rates again, last Friday we ticked down and today we are still holding the lows that rates have really ever traded at. If you're thinking of buying, if you're thinking of refinancing, now is still an amazing time to do that.Let's see what else? Oh, big news this week. As happens every first Friday of the month, we have the Bureau of Labor Statistics releases the jobs report. They are expecting 500,000 new jobs to be created, expecting unemployment to tick down from 6.9 to 6.8%. Again, this is positive news. Nobody thought in May and June that we'd be at this point, but that still is a depressed number because of the labor participation rate and people not being in the market. And really, we all know a lot of people who are still hurt by what's going on out there.Speaking of people who are hurt, today's Cyber Monday. And so, you all are going online and finding your awesome, amazing deals. And that's great too, but you know who really needs you today? My team needs you. No, I'm just kidding, we're always here for you. Your local businesses need you. One of the great losers we know are restaurants, and the service industry has suffered so much during this pandemic. Another unfortunate, huge loser and one of the main driving forces for jobs in our economy is small businesses, all these stores that some of us are shopping at less, some of us have abandoned altogether for all the big-box realtors who, I'm not going to name their names because you already know them well. While you're looking online and while you're doing your Cyber Monday shopping, do the world a favor, do your local community a favor and go online and check out what they have going on.You know, maybe just go to their store and pay full price for something that they have. Really, they'll probably actually take it curbside right out to your car if you don't want to go in. If you do, you're helping your community, you're moving the needle for people that really matter. Those people are going to spend more dollars in your area, which will in turn, you're probably listening to this because you're interested in real estate, and it'll help support mortgages, and it'll help support values, and it'll make your community stronger. So please, on this Cyber Monday, which I think is now Cyber December, don't forget about your small businesses. Please help them out.I'm Sean Zalmanoff and we are here always to help you with your mortgage needs. If you've got some real estate questions, just reach out to us. We have a lot of tools, technology, and we just want to be here for you. Hope you have a great week, peace, y'all.

### Home Equity: What It Is and How To Build It?

For most people, the equity buildup in a home is the largest asset they have, so there is a huge incentive to increase their home equity to improve their finances.



Home equity is your interest in a home, which can increase over time if the property's value increases or if you pay down the mortgage loan balance.



In a sense, it’s the portion of the property you truly own that’s 100% yours. If you took out a mortgage to purchase a home, the lender has interest in the property until you can pay it off in full, even if legally you are considered the homeowner. Keep reading to understand how home equity works and what you can start doing right now to build it!







How Does Home Equity Work?



Let’s say you bought a home for $400,000 and made a 20% downpayment. You also took out a loan for the rest of $392,000. Given this scenario, your home equity is the 20% you paid for it out of your own pocket. So, even if you are the homeowner, you technically only bought 20% of it so far.



The lender does not own any portion of the house unless you have a shared equity mortgage, but that doesn’t happen in most cases. For most, the house is used as collateral for the loan, and the lender secures its interest by getting a lien on the property. The more money you pay back, the more of your home you own.



If the housing market is doing well and your home increases in value, your home equity increases, even if the loan amount stays the same. For instance, say the home is now worth $500,000. You still have to pay back $392,000, but now your home equity increased to 21.6% just because of the market change.



How to Start Building Home Equity



For most people, the equity buildup in a home is the largest asset they have, so there is a huge incentive to increase their home equity to improve their finances. Here are some of the top ways you can do that:




Make a large down payment - the more money you can afford to put into the downpayment, the more home equity you start with



Pay more on your mortgage - this can help shorten your loan term and help you steadily build equity.



Increase your home’s value - the value of the property is not only contingent on the market. Putting it into shape can also increase its value quite often, such as adding rooms or remodeling.



Watch the market trends - if you’re interested in building equity for a particular purpose (such as selling), you should also watch the real estate market closely to see when its value may increase.




Are you looking for a loan to buy a dream house? The Better Rate mortgage team is happy to be of service. Get in touch with us now to find out more.

### Mortgage Rate Update 11/16/20

Hey everybody, what's up. Sean Zalmanoff, here with your mortgage rate update this week.




https://youtu.be/fzumz0e-wLI




If you've turned on any news this morning, you know about the Moderna vaccine trial and their amazing results, 94.5% efficacy, so 94.5% effective. Last week, Pfizer came out, we discussed that theirs was 90% effective. For a vaccine to work, they say it needs to be 70% or higher. So both of these results really appear to show that light at the end of the tunnel. The most promising thing or the thing that I take the most from Moderna's results is theirs does not need to be stored at negative 100 degrees, which is what Pfizer's vaccine results or not vaccine results but the vaccine actually needs to be stored at.



Last week, when this is out, the stock market shot up, and bonds sold off. We saw some rates increase last Monday. Again, we just talked about that. It was basically back to levels that it was just before the election. We are still trading very, very close to all-time lows in mortgage rates. The great thing about the bond market today was that it did not have a selloff, actually. It's pretty flat on the day. Stocks are up 400ish points right now, Moderna's stock's up. I'm not licensed to sell stocks, just to help you with your mortgage. Don't go run out and buy this stock right now, though. This is more of a sell the news kind of thing. The stock's been on quite a tear as this has been going on right now, same thing you saw happen with Pfizer last week. The stock actually sold off a little bit after the initial upswing. Yeah. I'm not licensed to sell stocks. You're only here to get mortgage advice, but just in case you're like, oh my God, I got to own this thing.



Anyway, good news all around there. Some other good news in the housing market, you all keep reaching out to my team and saying, "Sean, I'm concerned that housing prices are going to fall." Well, Ivy Zelman, a big economic forecaster that I follow, just last week, just this weekend, actually, their team released a study, and we are currently building in the United States 16% less homes than what is required to meet demand. If you're not looking to buy new construction, this still matters to you. I just moved from St. Louis City into St. Louis County, we're not building a lot of new homes in the city or the county, and if they are building them, they're tearing them down and rebuilding that way. So not a lot of new construction to where they're adding to these numbers.



If supply is less than demand, then you're going to continue to see home prices appreciating. I've seen some posts of, "Oh, gee, I just can't wait until home prices are trading for pennies again, like they were during the great recession." That really doesn't appear that's going to happen. If it was legal to bet on this, I would bet the farm that home prices are going to be stable and continue to rise. I hope they don't rise massive amounts like they've been, but I do believe that they are going to continue to rise. Because as these vaccine results come through, and as people get a vaccine, and if it's 90 or 94% effective, like the trials have shown, and those trials are monitored by independent people. It's not just like Pfizer and Moderna saying, hey, we got these results, and here's where they are. You're going to continue to see demand in the housing market. Rates are probably low for the foreseeable future. That's going to spur more demand in the housing market.



If you're thinking of buying, if you're thinking of moving, now is a great time to contact my team of mortgage advisors. Speak with an advisor, speak with somebody who can make sure that you are in the best mortgage for your situation, not right now, but for what your goals lay in the future too. Hey, if you haven't refinanced yet, give us a holler. We want to help you. We want to make sure that you are in the right loan, again, for where you're at right now and where you need to be in the future. I'm Sean Zalmanoff. I appreciate you all listening and being with me this morning or this afternoon or tomorrow or whatever it is that you're watching this. If you need anything, holler at us. I don't know if my number's around anywhere, so let me just give it to you real quickly, 314-361-9979. We're here to help you. Peace out you all.

### Should I Get A “Jumbo Loan” For My Home Purchase? What You Should Know

Even though the requirements are more rigorous than standard loans, a jumbo loan is a perfectly viable way to purchase a home.



If you’re interested in buying a very large home in St. Louis, or you’re purchasing a home in a historic district or very upscale neighborhood, you may have heard of “jumbo loans,” and you might be wondering if it’s a good idea to buy your home with a jumbo loan. In this guide, we’ll discuss the basics of jumbo loans, how they work, and more. Read on, and learn more from the team at Better Rate Mortgage..







What Is A Jumbo Loan? Understanding Jumbo Mortgages



A jumbo loan, also known as a “jumbo mortgage,” is a type of home loan with a value that exceeds the Federal Housing Finance Agency (FHFA) limits. Basically, this type of mortgage is too large to be purchased or guaranteed by federal authorities like Fannie Mae and Freddie Mac.



In 2020, this limit was $510,400. Because your loan cannot be sold or managed by the government, this means that borrowers who get jumbo loans must have excellent credit and a low debt-to-income ratio (DTI) and must provide comprehensive financial information to their mortgage lender throughout the entire application process.



Can I Avoid A Jumbo Loan?



Because the requirements of a jumbo loan are more rigorous than those of a standard mortgage, you may be wondering if it’s possible to buy a more expensive property while avoiding a jumbo loan. The answer is yes.



For example, let’s say you wanted to buy a home worth $650,000 in St. Louis. Normally, you would need a jumbo loan for this – even if you make a 20% down payment ($130,000), the remaining balance will be $520,000, which is a jumbo mortgage.



But if you put down 25%, you’ll reduce your balance to $487,500 – which is low enough to qualify for a conventional mortgage. If you have the means to do so, putting down a larger down payment can help you avoid a jumbo loan.



Is It Worth Buying A Home With A Jumbo Loan?



Yes! Jumbo loans are not necessarily bad or more expensive than traditional loans. If you have good credit, the rates are quite similar to traditional mortgages. And, in fact, most jumbo loan providers don’t require a full 20% down payment. You can put down 10-15% in most cases – without having to buy Private Mortgage Insurance (PMI).



So if you are interested in a more expensive home in St. Louis, don’t let jumbo loans scare you away from the property. Even though the requirements are more rigorous than standard loans, a jumbo loan is a perfectly viable way to purchase a home.



Contact Sean Zalmanoff To Learn More About Your Options



If you’re ready to explore your options for purchasing a home in St. Louis, including jumbo loans, the Better Rate Mortgage team is here to help. Contact us online or call now at (314) 361-9979 to schedule your appointment right away and get the assistance you need as you buy your next home in St. Louis.

### Mortgage Rate Update 11/9/20

Hello, hello everybody. I am Sean Zalmanoff, and this is the Mortgage Rate Update coming to you today. What is today? Today is November 9th and this is your weekly rate update.




https://youtu.be/qqHEYB7ztrs




We had an amazing post-election bond rally last week. Rates, I think for the 12th time this year, it's at least the eighth time this year, take down to the lowest levels they had ever been. I'm a broken record saying that that is a broken record, but gosh, it happened again. But then something huge happened this morning. If you're looking at your 401k balances, if you're invested in the stock market, you are a happy camper today. Pfizer announced their first vaccine results for their phase III trial. They've been partnered with a company BioNTech, that they'd been working on a vaccine with. In the first round of injections with it, or the first doses, they were hoping to be greater than 70% success rate.



There's another dose that follows 21 days later, but after the first seven days, there was a 90% success rate, and somebody will still be given another dose after that. So really positive news long-term for us getting back to what normal is for us. We have Moderna, I believe it's on the 16th is going to release their prelim phase III study as well, too. Good signs for the market, good signs for the stock market, good signs for getting back to normal, but it's not as good for mortgage rates. The bonds are a flight to safety, a flight to quality, a flight to uncertainty, and because of this good news people have sold bonds this morning, which is making rates go up a little bit. Now just take that with a grain of salt, because there has been at least three or four times that I've told you this year, "Hey, rates are at an all time low," and then they've moved lower.



Well, they are still lower today than some of the old all-time lows. It's still a fantastic time to be locking into your mortgage refinancing, if you haven't, this may be a reason to actually get off the fence a little bit sooner than later, and still it's an amazing home market. One of the things that I keep talking about with our home market here is the home affordability index, which measures how far your dollar goes in purchasing a house, is still about as low as it's been since 2016. Even though home prices are up, rates being down is dramatically increasing the amount of house that somebody can buy and the affordability of it. I'm not saying that every house is affordable out there, and it's easy to buy one with the thin inventory in the market. But just some things to understand what's going on, what's happening in our market. Yep, I am Sean Zalmanoff, and my team of mortgage advisors is here to serve you and make sure that we put you in the best mortgage possible.



Hope you have an amazing and fantastic week, hope we continue to get great news about our overall health and in that return to normal, and yeah, just having a great and awesome week. I really appreciate y'all.

### 4 Tips To Follow Before Buying A Home During The Pandemic

If you are still on the market and looking to purchase a home right now, here are 4 tips to consider.



The COVID-19 pandemic’s effects are still unveiling, but chances are your life has significantly changed already.



If you worked in an office, you are likely working from home and have been for a while. If you had a vacation planned, those plans got pushed back indefinitely. If you were on the market looking for a home, however, what do you do now?







If you are still on the market and looking to purchase a home right now, here are 4 tips to consider.



Consider Your Gross Income



As a general rule, experts advise your monthly mortgage never to exceed 30% of your gross income, which is a pretty easy rule to remember. However, during the pandemic, which has caused rates to decline, some people may feel tempted to overlook this rule.



It really depends on how much you make and the money left in your account that you can count on for other expenses when the mortgage has been paid. You can easily spend even 40% of a monthly gross income of $60,000 and still be left with quite a lot of money. But if you earn only $10,000, that same rate may be too much to bear!



Have Some Money Saved



Apart from the 20%, you’ll need for the down payment, it’s best to have some additional savings (either currency or even assets) you can use as your cushion.



This pandemic presents some uncertain times, and when times are uncertain, the real estate market becomes even more volatile. You may feel very tempted to walk away from your newly-bought house if things get bad. But having some extra funds to rely on can prevent you from needing to sell your home when the market’s down.



Adjust Your Home Price Expectations



A quick way to figure out your price range when it comes to buying a home is to multiply your annual gross income by three. This prevents you from stretching your finances beyond what your pockets can realistically handle, so if you make around $200,000 a year, you can look for homes up to $600,000.



This can also prevent you from buying a home that comes attached with a very high property tax, something else you should consider when buying a home.



Start the Process Early



Buying in a rush isn’t really ideal during a pandemic - the market’s not in a stellar position right now. It’s best to take your time and start working with your lender early in the process so that you have all the information and can make good, informed decisions.

### How Much It Costs To Buy A House

https://youtu.be/ZS1W3OYxHOQ




Has anyone ever broken down the costs of purchasing a home for you? In this video, I’m going to walk you through common closing costs so you can be better prepared to buy a house. Because the good deals always go fast, knowing your numbers will allow you to score the best home at a price that works for your budget.



Common Buyer Closing Costs



The cheapest mortgage with the wrong strategy can cost you thousands of dollars. While purchasing a home is exciting, it’s vital to know your numbers to make the right decision. In essence, buying a house without knowing your closing costs is like painting it without knowing the color. When you work with a mortgage advisor, we can structure the best loan possible to meet your goals.



Additionally, even if you have 20% saved for your down payment, it doesn't mean you should put it down. We'll go over that in greater detail later, but it’s important to be aware of it. When we figure out what your closing costs will be, we’ll already know how we're going to structure your loan and can help you navigate your purchase.



Title & Loan Fees



First, you’ll have to pay fees to the title company, which is where you will close. The title company ensures that the property is free and clear of all liens when it's transferred to you. You’ll also have some loan fees that you'll pay to us, as the lender, since there is a lot of work that we do behind the scenes to get to the closing table. We keep ours extremely competitive, so they're not burdensome to you at all.



Appraisal Costs & Prepaids



You’ll need to account for appraisal costs, too. There are some additional miscellaneous costs, but these are the larger ones. There's another set of costs that can be paid by the seller, called prepaids. The largest of these prepaids is a year's worth of homeowner's insurance, which will be paid at the time you close.



Knowing the total closing costs and prepaids will help you be better prepared for what you need to bring at closing. Additionally, if you're going to ask for a seller concession, you'll know exactly what to ask for. Being prepared allows you to be very concise and clear, so there are no surprises for you at closing.



The Down Payment



The largest expense that you're going to have is your down payment. This isn't really an expense; you're taking money out of your bank account and putting it against the mortgage on your home. Either way, it’s money that you won't have access to after you close. A few thousand dollars added to the loan for the seller to pay your closing costs adds very little to your monthly payment. It can, however, have a dramatic impact on what you can afford. It will also make your life easier by having a little more cash in your pocket.



By now you're probably asking yourself: how much should I put down? Is there a 0% option? Should I put down 3, 5, 10, or 20%? This is going to differ from borrower to borrower and depending on your loan to best achieve your financial goals. This is why you need us as your mortgage advisor. Think of us as a debt manager; we use debt to help you create more wealth in your life.



For example, let's say that you came to me wanting to buy a $200,000 home with 10% down—which would be $20,000. Your $20,000 goes in and gives you the mortgage that you asked for. However, this may not be the best decision for you. If you put 5% down but took the other $10,000 and put it in an investment account, you could build your retirement. At an average rate of return of 7% per year over 30 years, that $10,000 would be worth about $76,000.



Down Payment Assistance And Mortgage Insurance



If that payment difference of $50 a month won’t create issues for you, you’ll be in a better position by working with a mortgage advisor who can set you up for your financial success. As a mortgage advisor, we need to educate you on the difference between what $50 a month does to your payment versus what $70—or $100,000 in retirement—will do for you in the future. This is what it's like to work with a mortgage advisor, and this is what you can count on us for.



What about receiving down payment assistance? Typically, these loans are reserved for first-time homebuyers. To be considered a first-time homebuyer, you can not have owned a property in the past three years. This means you could have owned one many years ago and still be considered a first-time home buyer again. There are grant programs that are typically done through your mortgage bank and in conjunction with the state, helping to get you in with a very low down payment.



One more cost that you'll need to consider is mortgage insurance on your home purchase. If you put down more than 20%, you won't have mortgage insurance on your loan. That doesn't mean, though, that you should put down 20%. As we discussed in the example above, taking that money and saving it for retirement may be the best-case scenario for you. Mortgage insurance varies between programs and will be greatly affected by your credit score on conventional loans. On FHA mortgages, mortgage insurance is the same across the board.



Working With A Mortgage Advisor



I could bore you with more details, but this is why you need to work with a mortgage advisor. We can weigh your down payment, closing costs, and all of your financial goals to make sure they align. We can then put you in the best position possible. My team and I are numbers guys. When it comes to mortgages, the numbers never lie. The better informed we make you, the better decision we'll both make. Quite frankly, my business is based on referrals, the better decision I help you make, the more people you're going to send our way.



I hope this helps you understand some of the costs that you're going to pay when buying a home, as well as the expenses that you will incur and the investment that you're going to make in your property. I’m sure you now understand why you need to work with a mortgage advisor like myself and my team. Regardless of the property you buy, knowing your numbers is the most important thing. If you’d like to learn more about the Better Rate Mortgage Client For Life Experience or have any questions, don't hesitate to reach out to us!

### Mortgage Rate Update 11/2/2020

Hello everybody. Sean Zalmanoff here with your mortgage rate update this week.




https://youtu.be/mooC4lj6WaE




Big news happening this week. This one thing that consistently happens every four years. We get to elect our next president of the United States, and that is potentially a market-moving, a big market-moving, an interest rate, moving announcement in most environments. Except this one, the macroeconomic factors that we are facing today with unemployment levels being elevated with COVID at record numbers of cases. I'm watching the stimulus package that still isn't on the way. Remember it won't be here this week either because Congress is on vacation because they have more important things to do, than help us out until at least November 9th. And then depending on what happens with the election, we may see a stimulus bill shortly after that, or it could be all the way until the early part of next year before that happens.Although we need a stimulus of some sorts and I'm hoping that happens sooner than later, if we don't get one, probably means stocks are going to sell-off. And that the bond rates, the bond market's going to get better and rates will improve some. Speaking of improvement, we expect to see an improvement this Friday in the unemployment numbers. On Friday of this week, the first Friday of every month, the Bureau of Labor Statistics releases the new numbers. We are expected to see a 0.3% decrease going from 7.9% to 7.6% in unemployment. You have got to take these numbers with a grain of salt. You really need to look at the jobs created. The expectation is for 600,000 new jobs to be created in our market, but you could see the unemployment rate move in a different direction, depending on the factor that I track the most. That factor is the labor participation rate. In order to be included in the unemployment numbers, you have to have been looking for a job in the last month. So, if people stop looking for a job, they get disenfranchised with the market. Unemployment can actually go down without unemployment really going down.



We also have another big meeting this week. The Fed meets Wednesday. The Fed's meeting this week and although they have talked about keeping short-term interest rates low till the end of at least 2021, there is the potential always for inflation to kick in. When the Fed keeps short-term interest rates low, those do not affect mortgage-backed securities, the bonds that we use to purchase in order to get people rates these days. Depending on the size of the stimulus that kicks in and when it kicks in, what happens in inflation, those are all things that move the market.Hey, let's talk about this market because I want to show you where mortgage-backed securities are trading, how they've been trading and what you should really be thinking about right now, as you're considering refinancing or purchasing your new home. This is going to show you, don't pay attention to the S&P, although it is interesting today to note that the stock markets are up big and interest rates are actually improving some. You see green going up and you probably think to yourself, well, the stock market going up, prices are higher. How does that correlate? The bond market will, yes, prices are higher in the bond market too. The higher the prices in the bond market, the less expensive rates are, which means the better mortgage rates are for you.As you can see over here, each of these little things is a Japanese candlestick. We've talked about the history of those in the past, but in general, green is good. You're up 16 basis points and it’s green that will naturally happen anytime, it's green. You can see the last 90 days, rates have been pretty darn stable. If you've been thinking about refinancing, "Hey, are rates are going to get better or are rates going to get worse?" They haven't gotten substantially better. You should probably think about locking in soon as the perpetual broken records, of rates are the best they've ever been.Just to give you a little longer timeframe, we're going to go out for the entire year. You're going to see, January 3rd, starting right here, and then this was when the pandemic really gripped the United States. We had moves in the bond market that I've never seen in my 20-year career. Then it started to flatten out and rates got a little bit better, but as you can see, as we move on down the line, they have been pretty stable. What that means to you, is that it's a great time to lock in, whether you're looking at purchasing, whether you're looking at refinancing, now is a really good time to take advantage of these interest rates. If you need some amazing mortgage advisors, reach out to us, my team is here to help. We just want to help. We want to be of service to you, and we want to make sure that your mortgage needs get taken care of. Give us a holler. We appreciate you. Have an awesome day, y'all. Bye.

### Breaking A Fixed-rate Home Loan? Here's How Much It Could Cost You

Breaching a fixed-rate home loan is a lengthy process that looks different depending on the specific procedures of your lender.



Choosing a fixed rate or a variable one when applying for a home loan is crucial, especially if you need to be more in control of your finances.



Both of these options have their pros and cons, but many borrowers end up taking the fixed-rate option because they want some degree of certainty, at least in the first few years of their loan. But what happens if you break this home loan?



What Is a Fixed-Rate Loan?



A fixed-rate loan indicates that you will be paying a fixed amount of interest on a loan for a particular period. When this period expires, you can enter another fixed-rate period, but you will not be charged at the same rate as before.



The loan is subjected to the new fixed-rate the lender is placing on new loans. When you first get this loan, the rate itself may be very convenient, but after the first period ends, your new rate may not be so affordable as before, which is why many borrowers think about breaking this contract.



What Does Breaking a Fixed-Rate Loan Mean?



Any action that would prevent you from carrying out the stipulations in your loan contract is considered a "break" from the deal. Breaking a fixed-rate loan can be:




Switching to another lender or another home-loan product



Refinancing your home loan with another deal



Making extra payments beyond what is stated in the contract



Repaying the loan in full before the end of the fixed term




In any of these cases, you are essentially breaching your fixed-rate contracts, in which case you are likely going to have to pay certain fees to your lender.



How Much Will It All Cost?



Breaching a fixed-rate home loan is a lengthy process that looks different depending on the specific procedures of your lender. Additionally, the cost of breaking the contract can also be different, depending on the lender.



The types of fees you may need to pay can include:




The break cost



Early exit fees



Early repayment fees



Some additional fees for processing paperwork




And the individual fees can vary. Banks will usually rely on a formula to calculate the break cost, for instance, and will usually calculate it by multiplying the loan amount to the remaining fixed term and the change in interest rates. This can even result in thousands of dollars in fees.



Can We Assist You?



Don’t make any loan breaking decisions before weighing your options. The team from Better Rate Mortgage will assess your situation and help you find the best solution for your home loan so that your finances are not affected.



Reach out to us today for more information about our services and find out how we can help you make better decisions regarding your home loan!

### How To Find A House Using The Buyer's Triangle

Are you thinking of buying a new home but are having a hard time deciding where to settle? In this video, I’m going to walk you through an exercise to narrow down your search and help you understand what you should consider when buying. Because there are so many things to consider when purchasing a new home, this exercise will help you avoid becoming overwhelmed and will get you into the house that’s right for you.




https://youtu.be/D8rB5VdLq8s




Understanding The Buyer’s Triangle



As a home buyer, I'm sure you have plenty of questions about where and what you should be purchasing as your next house. Should I be near work? Should I be near schools? What's the best area for my budget? All of these are completely normal questions to ask. To help you navigate the experience, I want to explain an exercise that we call the Buyer's Triangle. When you're buying a home, the best way to make a decision is to use the process of elimination regarding your needs and your wants.



Ultimately, there are three things to consider when buying a new home. The questions you should ask yourself are:




What are my ideal monthly payments?



What is the convenience of the location?



What features am I looking for in your new home?




Before you get started, it's important to understand that it's extremely difficult to get all three of these factors in one property—regardless of your budget. The goal of this exercise is to weigh all three options against each other so you can put down on paper what's most important to you. If you can get two out of three on your wishlist, that should be a win.



For example, let's say you find a home you want to buy. It's a great price in a great neighborhood, but the interior needs to be updated. What if you went $20,000 over budget but found a home in your dream neighborhood? What if you stayed under your purchase price and got everything you wanted in a home, but you sacrificed your location? As you begin to list your needs and wants, you'll start to narrow down potential locations so you can begin your house hunting. A good real estate agent will help you realize that as well and that's something that we can and help you with.



Finding The Right Property



I need to warn you that most people end up buying the opposite of what they come up with after doing this exercise. By doing this exercise, however, it helps you start thinking about the process so you can find the perfect home for you. We’ve found that by listing your needs and your wants concerning location, price, and amenities, you’ll be able to find the home that is the best investment for you.



I hope the Buyer’s Triangle exercise has narrowed down your search in finding out what's most important in your next home. Regardless of the property you're purchasing, knowing your numbers is the most important thing to understand in advance. I know some mortgage advisors who can help you, so please reach out if you have more questions!

### Mortgage Rate update 10/27/2020

Hello, Sean Zalmanoff here, with this week's mortgage rate updates.




https://youtu.be/kdYKpxKR224




Big news just released. It is November, but we just got August Case-Shiller's numbers and 5.7% increase year-over-year in home value. That is from August of 2019 to August of 2020. Just to break that down simply for you, if you purchased a house for $300,000 in August of 2019, you'd have accumulated roughly $17,000 of equity in your home purchase. You know, a lot of people put 5% down when they buy a house, so you would have already made all of your down payment money back in equity in your home. Just a little bit of food for thought for you to think about there. Now that is the national number. Some of our markets are going to vary a little bit, even here in St. Louis, where we have varying numbers from neighborhood to neighborhood.



We talked last week about this stimulus deal. Well, our great, amazing leaders, yes, I say that incredibly facetiously, have now adjourned Congress until after the election. They come back on November 9th. Well, we will not have a stimulus deal unless some miracle happens where they actually decide to go back and work for us to provide that to us and give stimulus. What does this mean for you? Well, one of the concerns that I mentioned last week that will happen when Congress comes back, and when stimulus is passed, we will have an increase in rates. It may not be significant, but there will be an increase in rates. I can tell you why because the stock market is going to go up when the stimulus deal is passed. It will be very good for the stock market. It will be good for jobs. It will be good for our economy.



Fixed-rate instruments like bonds, which mortgage-backed securities are wrapped up in there, will sell off, and as they sell-off, rates will move a little bit higher. The good news is, is if you're thinking about refinancing or buying, you probably have at least a good week to two weeks to lock into the rates right now without a lot of fluctuation. Now, I say that, and you have to take that with a grain of salt because a simple tweet or any big news could definitely shift that and make markets move. Don't you like that? I mean, everybody who always gives financial advice, they're like, "This is what's going to happen," but you know, it may not. To the best of my knowledge and the people I follow and what I've learned, this is what I believe right now.



Even when all this happens, this isn't you got to rush for the fences and find your house right now. Rates are still going to be great after this. We're still going to be trading near historic lows. It's my job to keep you updated, and I appreciate you all. Have a great day. Again, I'm Sean Zalmanoff with Better Rate Mortgage, and my team is always here to help you with your financial needs. Remember, when you're choosing a mortgage professional, you must choose an advisor. We will save you thousands of dollars by putting you in the right loan at the right time for your needs. That's all I got for you. Peace out, you all, have a great day.

### How Much "House" Can You Afford?

If you’re looking to start shopping for a new home but need help determining what you can afford, make sure to contact us, and we’ll be happy to help.



There are many factors involved in determining how much "house" you can afford. If you fill out a form online, you may easily get approved for a $500,000 loan. But does that mean you should spend that much money? Does it mean you can really afford that monthly payment?



By working with our mortgage team, we can help you determine what home price actually works best for your monthly payment. We will also ensure that you find a housing option that fits with your financial and future goals.







How to Calculate What You Can Afford



Our mortgage calculator estimates how much house you can afford by considering several factors:




Where you live



What your annual income is



How much you have for a down payment



What your monthly debts/spending are




This estimate will give you an overview of what you can afford when considering buying a home.



To get a more precise idea of what you can afford, go one step further by applying some of the advanced filters to include the costs associated with owning a home. The advanced options will include the mortgage interest rate, homeowners insurance, private mortgage insurance (if applicable), type of loan, and the property tax rate. The more variables you add to the calculator, the closer you will know how much you can afford.



Calculating Your Annual Income



To determine how much mortgage you can afford to pay each month, figure out how much you earn each year before taxes. This needs to include salary, tips, wages, commissions, etc. If your spouse or partner contributes to the monthly payment, include their earnings into the gross annual income for your household. Once you determine the amount, divide it by 12 to find your monthly income.



Follow the Debt-to-Income Rule



The 28/26 debt-to-income rule asserts that you don't want to spend more than 28% of your monthly income on housing-related expenses and not spend more than 36% of your income against all of your debts. This includes your new mortgage. If you keep within these parameters, you will have enough money left over for your monthly expenses and even have some left to save.



We Are Here to Help!



If you’re looking to start shopping for a new home but need help determining what you can afford, make sure to contact us, and we’ll be happy to help. Subscribe to our videos as well to begin your education on the home buying process.

### Getting Started In The Home Shopping Process

https://youtu.be/x3GRQAiOsmY




Did you know there are 3 common myths about the home buying process that can bring you a ton of added stress? While buying a home is exciting, it can also be nerve-wracking. While it’s normal to be confused and nervous about the mortgage process, I’m going to clear up some common misconceptions to put your mind at ease.



With over 20 years of helping thousands of buyers obtain financing for their homes, I know you likely have plenty of questions. You might be wondering:



How much do I need to put down on a home?What’s a good monthly payment to fit my budget?What is a good interest rate?Should I buy now, or wait?



All of these questions are valid concerns. After all, you’re spending hundreds of thousands of dollars on your new home. Instead of wasting your time Googling all the answers, I’m going to help clear up the confusion with these 3 common home buying myths.



Myth #1: You have to be ready to buy a home today



Since buying a home is a huge investment, you want to take your time and make sure you’re purchasing the right one. While your emotions are going to be involved, you don’t have to jump on the first house you see or have it all figured out right away. You want your new home to be the right investment for you.



What if your credit needs improvement?



Did you know that a 1% drop in your interest rate can save you hundreds of dollars per month, depending on your loan size? Additionally, the type of loan and mortgage insurance you choose can also have a huge impact. Because the good deals always go fast, you’ll want to work with a great Realtor who can jump into action for you when the right house hits the market.



Being prepared will keep you a step ahead of the game.  You can also take advantage of our TBD Approval Process, which puts your offer ahead of every other offer you submit on the homes you’re looking at.



Myth #2: You have to put down 20%



Putting down more money on a house can actually cost you thousands of dollars a month. This is because home values are appreciating. If it takes you 5, 6, or 7 years to save up enough money for a down payment of that size, rates and home prices will have likely increased. During that time, you’ll be paying someone else rent to live in their space when you could have been in your home, paying on a mortgage. You’ll also miss out on the advantage of building equity for yourself instead of for someone else.



When you work with a mortgage adviser, we can break down two costs: the cost of your mortgage, as well as the cost of waiting. This will enable you to see which option is best for you, setting you up for the most successful outcome possible.



Myth #3: I can’t afford to buy a house



How much home you can afford depends on a variety of factors. You can easily get approved online for $500,000—but that doesn’t mean you should spend that much. However, if you work with our team of mortgage advisers, we can help you determine what home price works best for you when it comes to your monthly payment. We’ll also ensure that you find a housing option that fits with your financial and future goals.



Of course, it’s easy to fill out a form online and get an answer right away. We love technology, and we know online applications, borrower experience apps, digital communication, and uploads help make the home buying process smoother. Having the right mortgage adviser will make sure your information is correct and the approval amount won’t include any surprises.



We’re Here To Help



Through our Client For Life experience, you’re going to learn how to make the most informed decision for your specific situation. By clicking the button next to the above video, you can set up a time to speak to me or one of the other advisers on my team. Once you do, we’ll help you to:



Get an idea of where you are in your ideal moving timeframeFigure out the kind of down payment you’re looking to makeCreate a step-by-step process for you to reach your goals that’s 100% freeGet your credit score to where it needs to be to secure the best rateUnderstand the process in simple terms



We know that an educated buyer makes the best decisions. Additionally, to earn your business, we offer a $5,000 guarantee to the seller when you submit your offer. This TBD Approval Process ensures your offer gets ahead of everyone else and has a greater chance of getting accepted. We’ll go into more detail on how this works in a future episode, but know that it's our way of backing up our claims as expert mortgage advisers. Many will claim to have your back, but few will put their money where their mouth is like we do.



So if you’re looking to start shopping for a new home, make sure to contact us and we’ll be happy to help. Be sure to subscribe to our videos as well to begin your education on the home buying process. If you have any questions, please don’t hesitate to reach out!

### Mortgage Rate Update 10/20/2020

Sean Zalmanoff here with this week's mortgage rate update. There is a lot going on in the world of finance and a lot going on in our government. We are two weeks, actually two weeks today away from an election. Our TVs are going to be ours again, and we will not be bombarded by political ads, so at least there's that to look forward to.




https://youtu.be/W_h1yoNbkfY




Pelosi and Mnuchin are meeting today to hopefully hammer out a stimulus deal. Now there's talks; is there going to be stimulus, is there not going to be stimulus? Listen, I guarantee you, if there's one thing that is an absolute for certain bet, there is going to be a stimulus package. Now what nobody knows is if this is going to happen today, is it going to happen tomorrow or is it not going to happen until after the presidential election? That's what nobody knows the answer to right now, and the details that our leaders are trying to figure out for us.



Let me just give you a couple of little tips and breakdowns on what the stimulus actually means to us. First of all, the economy needs it. There is something that has to be done for a large portion of workers who have not yet gone back to work in our service industries, and based upon the way things look right now, we're probably not going to go back until next spring at the earliest. There will be more stimulus that happens for these people. The size of the stimulus is in question and exactly how it gets distributed are the two main factors.



Now, as far as what that means for rates, eventually this is probably going to put some upward pressure on rates. We've talked about it before; inflation is the archenemy of bonds. The more that we do to stimulate the economy, the more inflation rises and the more bond rates rise as well, and bonds are directly correlated to mortgages and how they're sold. All that being said, right now rates are still about the best they have ever been. If you have not gotten off the fence to buy your house, you should really think about doing that. If you haven't refinanced yet, call us, let us help you.



I have a staggering stat that I don't know if this is the highest rate ever, but if you're wondering, "Well Sean, you're talking about the stimulus. Man, what happens if something goes wrong? What happens if it doesn't happen?" First of all, mark my words, it is going to happen.



New homes sold right now, but not started, is at 69% of the homes that are being produced in the market. We've had high permit numbers. We've had high buildings start numbers. I'm not going to share all those with you because this number is the most impactful for me. 69% of the homes that are being started today are sold before the ground is even broke. That is crazy. That number is high. Again, I don't know if it's a record, but it is really darn close if it's not.



What does this mean for you? You're like, "Hey, listen Sean. I live in St. Louis, man; we don't have a lot of new homes that are being built." Do you live in some other urban area where there are not a lot of new homes being built? How does this affect you? Well, the fact that there aren't new homes being built in our areas, you've seen it over the last six months, prices are increasing fairly to pretty dramatic in some areas. All this does is when they're saying all the homes that are being built out further are being sold before they're even started, it just puts more upward pressure on the price of homes.



It’s just simple math. It's supply and demand. There is not enough supply of homes. This goes all the way back to the great recession when there was an amazing amount of oversupply. Then the decade happened afterwards, where we never started to build enough homes again. Now that we have this amazing housing boom with these really low rates, that is causing pressure and it's causing home prices to rise.



Now the great thing about it is home affordability, even though home prices are close to record highs, home affordability, remember we talked about this too, it's at the best level that it's been since 2016 because of rates being so inexpensive right now. The homes are costing a little bit more; it's still the cheapest it's been in four years to buy a home.



Hey, we would love to help you. I'm Sean Zalmanoff, Better Rate Mortgage. My team is here to make your life better and provide you updates on what's going on in the world. I appreciate you. Have an awesome day y'all.

### Can You Buy A Home With Poor Credit? Here Are Your Options

If you want to know the specifics, based on the credit score you are dealing with, the Better Rate Mortgage team is happy to help all potential St. Louis homebuyers find a suitable loan option for them.



Poor credit creates many financial difficulties for Americans, especially those hoping to become homeowners. But is it really true that if you have bad credit, you can say goodbye to the possibility of a loan?



Not exactly. Here are the main loan options for poor credit:



Conventional Loans



A conventional loan is a type of loan that is not backed by any federal program. With these types of loans, you’ll not meet such strict requirements about your income, down payment, or even credit score.



However, it’s not to say there are no requirements at all. Typically, conventional loan lenders will ask for a credit score of at least 620 to qualify, but if you have a higher income, you may be approved for one even with a score a bit below that.



FHA Loans



The Federal Housing Administration insures an FHA loan. If you are a first-time homebuyer or have not purchased a home in the last 3 years, you may qualify for these types of loans even with a less than stellar credit score.



FHA lenders can usually ask for a credit score of around 580, but if you can make a 10% down payment, the score can go as down as 500!



VA Loans



VA loans are reserved for veterans or active-duty members of the armed forces. If that applies to you, you could qualify for a VA loan backed by the Department of Veterans Affairs. Surviving spouses can also apply for these types of loans.



These types of loans require no down payments and are usually more welcoming of bad credit scores to a certain extent. However, it greatly depends on the lender.



USDA Loans



Another government-backed program, the USDA loan, comes courtesy of the US Department of Agriculture. They are meant to help people purchase homes in qualifying rural areas and require no down payment. However, most lenders will require at least a 640 credit score to qualify for this type of loan.



What If Your Score Is Really Bad?



If your credit score is around 600, you can likely find a lender, especially if you also have a good income. However, if you are experiencing a bad credit score, the harsh truth is that your options are greatly reduced. You may be able to find a suitable FHA loan, but it really depends on the level of "bad" we’re talking about.



Still, if you want to know the specifics, based on the credit score you are dealing with, the Better Rate Mortgage team is happy to help all potential St. Louis homebuyers find a suitable loan option for them. Contact us or call us at (314) 361-9979 right now, and let’s start figuring out what sort of loan is best for you.

### 7 Things To Consider Before Refinancing Your Mortgage

The decision shouldn’t necessarily be based on what the rates are, but more on your personal financial situation.



Many Missouri homeowners may consider refinancing their mortgage when they look at the market and see low-interest rates. However, this decision shouldn’t necessarily be based on what the rates are, but more on your personal financial situation.



Interest rates can be quite convenient today but completely change in a short time! This is why such decisions must be weighed more in-depth. Here are 7 things to consider before you refinance your mortgage:








The Cost of Refinancing - Refinancing a home costs money - usually around 3% of even 6% of the total loan amount. These costs can be reduced or even added to the actual loan, but you should still consider these costs before refinancing your mortgage.



Your Debt-to-Income Ratio - Lenders have stringent requirements when it comes to debt-to-income ratios. They will not offer a loan unless they are sure you have the necessary income funds to cover the payments, and a lot of them prefer to keep these payments at around 30% of your monthly income.



Your Home Equity - Refinancing with little or no equity is not always possible with traditional lenders such as banks. Hence, you need to check your home equity and find a suitable program. There are some government funds available for this purpose, but you’ll need to see if you meet their requirements.



Your Credit Score - Just like the debt-to-income ratio, lenders are strict about homeowner’s credit scores. Banks usually want to see a 760 or higher credit score to approve loans for their lowest mortgage rates.



The Difference Between Rates and Term - As a borrower, you may focus your search on the interest rates, but the term is also significant. For instance, if you want to pay as little as possible monthly, you need to look for a loan with the lowest rate over the longest term.



Refinancing Points - Additionally, you also need to consider the points on top of the interest rates. Points are often paid to bring down the rates and are paid at the closing or added to the new loan, so be sure to calculate how much these points total up to!



Your Taxes - Your mortgage interest deduction reduces your federal income tax bill, but your tax deduction may be lower if you refinance and pay less in interest. While not everyone sees this as a reason to postpone their refinancing plans, it’s still something to consider.




SeanzTeam Can Help!



If you’re looking for options to refinance your St. Louis mortgage, have a team of professionals help you weigh your options and make a better, informed decision! Reach out to Better Rate Mortgage now to find out more about how we can assist you to make the right financial choice when it comes to mortgage refinancing.

### Is Your Student Loan in Forbearance? How to Get a Mortgage Approval

If you have student loans in forbearance, you may have difficulty qualifying for a home loan. However, we can help!



The Coronavirus Aid, Relief, and Economic Security Act was created to give financial aid to Americans during the coronavirus pandemic. The Senate passed the CARES Act in March, and one of its defining features was an automatic forbearance on federal student loan payments until the end of September. The suspension of payments has dramatically assisted many people, but for others, it has brought about unforeseen problems. This is especially true for would-be homebuyers who are interested in taking advantage of the record-low mortgage rates.







If you have student loans in forbearance, you may have difficulty qualifying for a home loan. However, the Sean Zalmanoff Mortgage Team can show you what you need to do so that you can get approved.



How Forbearance Affects Your DTI



Your DTI, or debt-to-income ratio, is one of the primary factors lenders consider when deciding whether or not to preapprove a mortgage. Your DTI measures how much money you owe versus how much income you make each month. So it's not surprising that your federal loan payments will factor into this equation.



When a mortgage lender gathers information on your monthly payments, and you have a loan in forbearance, the payment information is often not reported. When this occurs, the lender will usually use 1% of the outstanding loan balance as an estimated payment. If your student loan debt is high and you're on an income-driven repayment plan, you may end up having an estimated payment amount that is higher than what you pay each month.



When this situation occurs, the higher payment amount could raise your DTI so much that you cannot get preapproved for a loan, or you could get approved for a much lower loan amount that you would otherwise have been able to get.



How to Get Preapproved for a Home Loan



If this is your situation, don't lose hope. There are some things that you can do to clear up the confusion your student loan forbearance has created. First, you can call your lender and ask them to remove the forbearance. In this case, you would continue paying your loan as and this would allow the lender to access your actual payment information.



However, if this is not the right option for you, you can shop around until you find a lender that is willing to work with your situation. When given the right paperwork, another lender may be able to recalculate the DTI with the correct student loan amount.



Better Rate Mortgage, with Sean Zalmanoff



If you are ready to buy a home but have a student loan in forbearance, give us a call. We will not only take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind, but we also go further. Our mortgage underwriters will examine your credit history, employment history, debt ratios, down payment amount, reserves, and any other necessary documentation to get you approved for financing while your house is still "To Be Determined."

### Current VA Loan Requirements for 2020

We have over a decade of experience helping St. Louis veterans get approved for VA loans in St. Louis.



Each year, thousands of veterans and military service members are assisted by VA loans, loans that are backed by the Department of Veterans Affairs. While these types of loans do not require a down payment, an applicant will still need to have a decent credit score and sufficient income to qualify.



If you are a potential VA homebuyer, the Better Rate Mortgage team can help! We will sit down with you to discuss specific income and other current qualifying requirements.







Benefits of a VA Loan



The VA Loan program is designed to assist Servicemembers, Veterans, and eligible surviving spouses to become homeowners. VA Home Loans are provided by private lenders, like banks and mortgage companies. The Department of Veterans Affairs guarantees a portion of the loan, enabling the lender to provide you with more beneficial terms.



Some of the other benefits of a VA Loan include:




No down payment is required



No monthly mortgage insurance premiums are required



Limitations of the buyer's closing costs



Lower than average interest rates



No prepayment penalties



You may be able to have someone take over your mortgage payment



Foreclosure avoidance advocacy from the VA loan program




The VA mortgage offers 100% financing to veterans and their spouses for the purchase of owner-occupied homes. Something some people don’t realize is that they can use their VA benefits to buy up to a 4-family unit. You could live in one unit and have three other people pay your mortgage, even with no down payment!



Current Requirements of a VA Loan



There are a few basic requirements that must be met to qualify for a VA Loan. Some of these include:




Have to have served 90 consecutive days of active service during wartime, or



Served 181 days of active days during peacetime, or



Served 6 years in the National Guard or Reserves, or



The spouse of a service member who died in the line of duty or as a result of a service-related disability




Contact the St. Louis VA Loan Professionals



Sean Zalmanoff with Better Rate Mortgage in St. Louis. brings over a decade of experience helping St. Louis veterans get approved for VA loans in St. Louis. He can APPROVE your mortgage before finding your new home with his one of a kind “TBD Mortgage Approval Program,” so you can shop with confidence. If you would like to find out what VA mortgage you are eligible for, call Sean at (314) 361-9979 or contact us online today!

### What is the CARES Act, and Can it Affect My Loan Approval?

We are committed to making sure that you can receive the funding you need to make your purchase or refinance possible.



In one way or another, we have all been affected by the Coronavirus pandemic. As a result, the Senate passed the CARES Act, which provides direct and fast economic assistance for American workers. However, you may still not completely understand what the CARES Act is and how it may be affecting your finances. This may be especially true if you are hoping to qualify for a home loan or refinance.



If you are looking to refinance your home loan or hoping to qualify for a mortgage, the SeanZ Team can help!







What is the CARES Act?



In response to the economic fallout due to the COVID-19 pandemic, the President signed a $2.2 trillion stimulus bill on March 27, 2020. The spending was divided up, some of it in one-time cash payments to individual Americans, some to increased unemployment benefits, some to small businesses and large corporations, and finally some to local and state governments.



Additional Provisions of the CARES Act



There are some additional provisions of the CARES Act. For those with student loans issued by the federal government, they have an automatic six-month stay, which extends until September 3oth. This provision excludes borrowers with Federal Family Education Loans and those who have privately held student loans.



For 2020, retirees are no longer mandated to take the required minimum distributions. This may prevent 'locked in losses' for individuals who can let their investments sit to let them recover. If you have already taken your required minimum distribution, you have the option of putting it back within 60 days of the issuance.



How the CARES Act Can Affect Your Loan



If you have a federal student loan that is in forbearance, you may have a more dificult time qualifying for a home loan. When a mortgage lender gathers information on your monthly payments, and you have a loan in forbearance, the payment information is often not reported. When this occurs, the lender will usually use 1% of the outstanding loan balance as an estimated payment. If your student loan debt is high and you’re on an income-driven repayment plan, you may end up having an estimated payment amount that is higher than what you pay each month.



When this situation occurs, the higher payment amount could raise your DTI so much that you cannot get preapproved for a loan, or you could get approved for a much lower loan amount that you would otherwise have been able to get.



Contact the Better Rate Mortgage team



If you are hoping to qualify for a home loan or refinance and have questions, contact Better Rate Mortgage. During these uncertain times, even the home loan process has been somewhat affected. But we will help you navigate any situation. Ask your mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you can receive the funding you need.

### How to Qualify for a Mortgage After You've Retired

Qualifying for a mortgage after retiring can pose some unique challenges, but they can be overcome, and we can help!



After retirement, many couples decide that they need to downsize or relocate. Perhaps their current house is too big or has too many stairs, or they want to move to be closer to their grandkids. Whatever the reason, if you're retired and want to buy a new home, qualifying can pose some unique challenges. But these can be overcome, and we can help!



Whether you're 29 or 99, mortgage lenders still consider the same factors as anyone else when determining whether or not you have the ability to repay your mortgage. So you may discover that qualifying for a loan is a little different from the last time you bought a home. 



Using Different Types of Retirement Income



For those who have retired, it can be frustrating because you can have a significant amount of money but show very little income. You may be getting income from Social Security, or you may be receiving IRA distributions, a pension, or a combination of all three. Understanding how these different forms of income can be used to assist in qualifying for a mortgage, as well as the documents required to qualify, will help when it comes time to apply.




Social Security - Once you start receiving these benefits, you can use this income to qualify. You just need to receive your first check before closing. Also, you will need to save a copy of your Social Security award letter and present copies of the most recent pay stubs. If your Social Security is sent via direct deposit, you will need to provide your two most recent bank statements.





Retirement Income and Pension - Be sure to keep a copy of your retirement award letter. This can be used to verify the beginning date for your income and how long it will last. Again, you'll need to provide your most current bank statements and your 1099's for the last two years.





401k, IRA, and Keogh retirement distributions - A mortgage lender will typically want to see a two-year history of receiving income if you have started taking distributions of retirement income. They will also want to verify that you have enough of a balance remaining to continue receiving this income for up to three years. Also, you will need to provide proof of receiving the payment for at least the past two months and the last two years of your 1099's.





Disability income - A lender will want to verify the status of your disability, as well as confirm that this income will continue for at least three years. If you have a disability award letter or anything else that attests to the fact that your disability is either permanent or temporary, you should provide copies to the lender.




You may have other forms of income that can be used when applying for a mortgage. Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you can receive the funding you need.

### Is the FHA Streamline Refinance Right for You?

The FHA Streamline should be your first choice if you currently have an FHA home loan and want to refinance at a lower rate.



If the FHA insures your mortgage, you may be able to apply for an FHA Streamline Refinance. Like any other mortgage product, you have to meet specific requirements to qualify, and it, therefore, helps to understand what to expect before you get started.



What is an FHA Streamline Refinance?



This program is designed to help homeowners save time and money during the refinancing process. Unlike a traditional refinance, the FHA streamline program does not require as much documentation, and the underwriting process generally takes less time. A homeowner doesn't have to verify their income or employment and credit scores aren't typically taken into consideration. One other difference is that a home appraisal is not necessary.



There are a number of benefits of the FHA Streamline program, some of them include:




Low refinance rates



Lower MIP rates



MIP refunds



No appraisal necessary



No verification of income



No credit check




While it’s easy to qualify for, this program does not allow you to roll closing costs into the amount of the loan. In addition, with an FHA Streamline, you cannot do a cash-out refinance.



Qualifications for a Streamline Refinance



Like all mortgage products, there are a few basic requirements a homeowner must meet to qualify for the streamline refinance. Some of these requirements include:




You must have an existing FHA loan



You can't be late on a mortgage payment



Have to have had the mortgage for at least 210 days



It must make sense financially



Usually, you have to lower your rate by at least 0.50%




The FHA Streamline should be your first choice if you currently have an FHA home loan and want to refinance at a lower rate. There are no other products that match its benefits.



Is This the Right Refinance Product for You?



Ask your Better Rate Mortgage expert for more details about the FHA Streamline Refinance program. Our group of mortgage professionals is proud to be able to offer a full line of FHA loans to St. Louis homebuyers.

### What is the HomeReady Mortgage, and Do You Qualify?

If you are facing some of these challenges, our mortgage experts can explain this new loan program to help you determine if it’s the right fit for your financial needs.



One of the most important decisions you will make during the home buying process is finding the right mortgage product to finance your home. However, many homebuyers face financial challenges that make homeownership seem impossible. Some can't afford a large down payment, others may have multiple student loans, while others may rely on income from non-traditional sources.



The SeanZ Team understands these challenges you may be facing and we're here to help!



What is the HomeReady™ Mortgage?



Fannie Mae created this affordable loan, which is designed to meet the diverse financial needs of low-income and low-credit-score buyers. The HomeReady mortgage is a conventional loan that offers lower mortgage insurance requirements and down payment options.



Some of the benefits of HomeReady include:




Ability to accept money from family or friends to put towards your down payment



Ability to cancel mortgage insurance once 20% of the home's value is paid down



Lower down payment requirements - as little as 3% of the home's value



Allows use of alternative credit to help you qualify



Use HomeReady to refinance your current loan




Who Qualifies for a HomeReady Loan?



To quality for HomeReady, you will need to meet these three main requirements:




A minimum credit score of 620 - Your income can be on the low-end, but you will still need to have a minimum credit score of 620. Other conventional loan products have higher credit score requirements, so the reduced minimum score can help you get the financing you need. It also allows alternative credit history to be considered to meet this qualification.



Cannot own any other residences - While you don't need to be a first-time homeowner to qualify, you cannot currently own a home with this type of mortgage.



Homeownership education courses - You will need to attend these courses, which will help you prepare for the financial challenges of owning a home. HomeReady requires 4-6 hours of approved courses.




Ask the Better Rate Mortgage team



The HomeReady mortgage is designed with today’s homebuyers in mind. It was created by Fannie Mae for buyers facing financial challenges and offers lower mortgage rates than other conventional loans.



If you are facing some of these challenges, our mortgage experts can explain this new loan program to help you determine if it’s the right fit for your financial needs.

### Mortgage Rate Update 08/06/2020

Sean Zalmanoff here with this week's mortgage rate update for you. Hey man, I'm coming to you a little bit late in the week. It is busy in the mortgage where there are a lot of people buying houses. They're already a lot of people refinancing. Rates are amazing right now, so make sure that you're taking advantage of this yourself. There is one thing that I want to show you in the market quickly this morning.




https://youtu.be/VXHVR8uYcfY




This is a graph of mortgage backed securities that we follow on a daily basis for you. I follow this so you don't have to, you can just come here to get your news. In general, green is good and red is bad. As prices go up, rates go down. Is it you're looking at this chart and wondering, what would that mean? Rates are going up. If you just look at the last three days, we have tiny little red marks on the last three days, no major concern long term. These good rates are here to stay for a little while, but it does look like we may have hit some resistance and there's a certain candlestick pattern forming there. That means that we could have some selling pressure and rates could move up slightly.



So, if you've got a loan that you're about to close on, you want to lock in these rates right now. It would be a good time to consider doing that just in case there's any market move again, nothing big, maybe an eighth, maybe a quarter, not a big deal for you. But want to make sure that you are protected and that you take advantage of this.



So, we got news for you. Today, 1.186 million new initial jobless claims hit the floors, hit the markets today. In general, and any other time, this is a terrible number, one point anything million people who are now unemployed or who are fresh on the jobless market is never something we want to see. Although, this is the lowest initial jobless claims number that we've seen weekly since COVID-19 struck us all. So, it is a glimmer of hope and some good news that could happen there for us.



The ADP number yesterday was announced, it missed big for the month of July. It's always trailing a month. But May and June revising and going higher. So, the balance out, actually the stock market, if you saw a rally, is pretty good yesterday actually on that news, but it's like, what's to come next? And that is something that we obviously don't know, and that we need to be concerned about, of course, for your real estate needs, your mortgage needs and just your friends and family in general as how this recovery is really going to take hold. Congress is trying to work through the next stimulus package right now. So, hopefully we get that in the hands of the people who really need it as soon as possible.



The BLS number comes out tomorrow. So the Bureau of Labor Statistics, say that five times fast, the Bureau of Labor Statistics. So, this is the government report. So, ADP that I was mentioning that came out yesterday is the private sector report. The Bureau Labor Statistics is the government report, this will report private and private and government jobs. And so this is a huge number. This always comes out on the first Friday of the month unless it happens to be that the first Friday of the month is the first day of the month. Don't worry about it. It comes out one of the very first few Fridays of the month.



This number's big. This number is market moving. And a very strong number. How it relates to you in the mortgage world, it's going to make rates go up. A weak number is going to signal more weakness in the economy and it is going to make rates drop. Another reason that it may make sense to walk today ahead of that. Again, no cause for concern, these rates are great. Like really, it's almost like we're giving money away these days.



Hey, if you need somebody amazing to help you with your loan, my team is here, and we would love to help you. Of course, we're based here in St. Louis, Missouri, but we do loans in about 40 States throughout the country. And if we can't help you, I know somebody who can. Thank you all for your time. Have a great day, peace out y'all.

### Get Your Offer Accepted - Have Your Pre-Approval Ready!

To ensure that your offer is the one the seller accepts, you need to differentiate yourself from the other potential buyers. The SeanZ Team can help you do this!



Are you ready to buy a house? You may be thinking that you won't have any problem getting your offer accepted because you have a high credit score, and you're buying a home that is well within your means. Well, so is the other person making an offer on your dream home!













To ensure that your offer is the one the seller accepts, you need to differentiate yourself from the other potential buyers. The SeanZ Team can help you do this!



What is a Pre-Approved Mortgage?



A pre-approval is when you submit all of your information upfront to your lender so that they can complete the process and verify your loan before you get your offer accepted. Once you are pre-approved, you will get a letter that you'll be able to show the sellers. This letter lets the sellers know that you have already begun the process of working with a lender and that the lender is prepared to work with you. This will give the sellers peace of mind knowing that they won't be wasting their time, and this gives you a significant advantage over other potential buyers.



The TBD Mortgage Process



Many buyers think they need to find a house to buy before getting the mortgage paperwork done. However, in the mortgage world, 95% of what we do has nothing to do with the house.



The first step is to fill out the application and provide several disclosures. Then we can submit everything to underwriting. Once this is done, you have six months before you would have to have a home under contract.



There are several documents you will need to give to your lender. These include:



Driver's license or U.S. passportSocial security number or cardA copy of the front and back of your green card, if you're not a U.S. citizenCredit historyEmployment verificationRecent pay stubsW-2 forms for the last 2 yearsProof of additional incomePrevious 2 years of personal federal income tax returnsPrevious 2 years of business federal income tax returns, if applicable.Bank statements showing you have enough to make the down payment and closing costsLast quarterly statements for any asset accounts you may have



We can do the entire process online. Once you have filled out the application, we can figure out whether the paperwork needs to be e-signed or if they need to have a real signature, depending on the loan product. So we literally can do almost your entire loan without you having a house under contract.



Sean Zalmanoff Mortgage



You need to differentiate yourself from the other offers, and we can do that for you! Not only do we call the listing agent and let them know how great your offer looks, but the number one thing that we do that separates us from everyone else is we give the seller a $5,000 guarantee when you submit an offer on their house. We put our money where our mouth is, and my team would LOVE to earn your business.

### Mortgage Rate Update 07/27/2020

What’s up you all? So hey, we have got news and more mortgage rate news for you today. First of all, lets recap last week. By the way, I’m Sean Zalmanoff and I’m here to make your life easier and your rate shopping decisions of knowing when to lock more informed and better. So, we have been talking weekly about the initial jobless claims report which comes out every Thursday. Last Thursday it peaked a little bit higher than expected at 1.4 million. In normal times this is not a number to pay attention to but in times that we are in now, it is definitely worth noting. The higher the claims number, the more we are likely to see rates dip, so you know what that means for you. 




https://youtu.be/9_sQvnetmds




Gold is approaching a record high right now and many economists think we are going to shoot through $2000. Now it’s important for many reasons. One, it’s an inflationary prediction, it’s a risk aversion asset when people are concerned about what’s going on in the market, they buy gold. When people are concerned interest rates may go up, they buy gold. It is a flight to quality and there has been nothing that has stood the test of time, even our great great great great great times 10 ancestors the way that gold has stood the test of time. 



We do have some good news coming though our way. Moderna, today, this Monday just started injecting…that’s kind of weird to say, but 30,000 people with phase three of their vaccine. A couple things that are good about this, one if this vaccine comes to the market soon and the tests go well, they will get two treatments of this vaccine and that will be spread out differently according to how the testing is done. Obviously the quicker the vaccine comes to the market the better for our economy and Moderna is actually a really unique company that is using technology more than anybody else to sequence RNA in order to be able to bring vaccines to the market. If this works this could hold a lot of great things for us in the future in speeding vaccines to the market with scientific computers, AI, doing much of it for us. 



And last but not least, something to be concerned about from a stock market perspective but I want to explain what it means and rates for you. So, the stock market has not been valued as high, and when people are talking about valued as high, we are discussing the price to earnings ratio. What a stock is trading at versus future earnings, so it is at the highest that it’s been in some sectors, since the .com era and we know that that didn’t end well for stocks. As we are seeing what is happening with the stimulus package that’s being haggled about in congress this week, and as we see what’s going on in the stock market so if the market continues to perform at the levels it is, there is a lot of concern. You know we don’t have a vaccine yet; we have jobless claims that are still high. That is probably going to make interest rates stay about where they are. Now, if the market does get a little bubbly and then sells off some, that would actually although not be good for our 401k’s and we don’t wish that on anybody, it would be good for interest rates and we would probably see interest rates move another leg lower. 



We want to keep you abreast of all the pertinent information when it comes to your interest rate needs. I appreciate you, I’m Sean Zalmanoff and anything that we can do to help you, we are here for you. Have an awesome week!

### Your Questions Answered about Buying a Home During the COVID-19 Pandemic

We specialize in making the home purchase or refinance process a great experience, and right now, that means doing everything online and electronically.



Dealing with the COVID-19 pandemic has put the financial plans of millions of people in turmoil, and this includes those wanting to buy a home.













If you were planning on purchasing a property during this time, you likely have many questions about whether it's a good idea to buy a home right now. If you are wondering what's happening with open houses, home prices, financing, or have any other questions, the SeanZ Team can help you find the answers.



Here are answers to some of the most common questions many people have right now:



Is buying a house right now possible?



Buying a home right now is a little more challenging due to economic and health concerns, but it is definitely possible! According to the U.S Department of Homeland Security, real estate services are considered an essential service and have remained open and available during the pandemic.



In addition, the real estate industry has quickly adapted to the necessary changes to help buyers and sellers stay safe. There are certain aspects of the home-buying process that have changed, but they are no less effective. For instance, everything regarding the financing process can be done online and electronically. We can screen share, jot down all the information and lay out the numbers, and answer any questions you may have. You can go through the entire process of financing and never have to meet the lender in person!



Is now a good time to buy a house financially?



There are some advantages to purchasing a home right now from a financial perspective. The first reason is that mortgage rates are historically low, which means that your monthly payment will also be more economical. Putting a contract on a house right now, locking in a low-interest rate, will give you as a buyer more control than renting where the cost to rent may go up.



Another factor to consider is that there is less competition out there right now. COVID-19 has dissuaded some buyers from shopping for a home, so those who do set out to purchase a house face less competition, which may put them in a better position to negotiate with the sellers.



How have home prices been affected during coronavirus?



While COVID-19 has the world economy in turmoil, in most real estate markets, home inventory has remained stable. While some sellers have pulled their listing to wait for better conditions, most don't have the luxury of time. So a buyer may have the upper hand when it comes to sellers that need to sell. 



Is it safe to buy a house right now?



It is not possible to completely guarantee safety. However, the real estate industry has worked hard to protect both the seller and buyer by eliminating personal interactions. Technology allows almost the entire process to be done remotely. Video chats and virtual tours have become the norm.



The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience, and right now, that means doing everything online and electronically.



How does the appraisal process work?



Another positive change due to the pandemic is the appraisal process. Typically, for an appraiser to do his appraising, they must enter the home to view and assess it. Now, they can do all of that by doing a drive-by and utilizing the databases and online photos to keep buyers and sellers safe. This also includes most refinancing situations.

### Mortgage Rate Update 07/20/2020

66,000…Yelp just released a study and said 66,000 businesses may not reopen after things get back to “normal” and Harvard just released a study themselves and they said 110,000 businesses may not reopen after we get back to our new normal. 




https://youtu.be/wODTUoNWmD0




Pretty staggering numbers as small businesses are the lifeblood of our economic engine. But there are a lot of variables going into this and the housing market even with those very dire numbers still look incredibly good long term for us. It goes back to simple economics and it goes back to supply and demand. There is an amazing amount more demand in our market for homes then there is supply and were just not building fast enough in really any of our neighborhoods, communities, areas, or anywhere that we live. 



The Radian also just released some stats for us this week. The Radian is one of the national mortgage insurance companies. Year over year, so from June of last year to June of 2020, home prices increased by 8.1%. Just in this year alone, from January of this year until June, stats are trailing you know we are just in July right now, that increase has been 6.3%. So, another way to look at it, of that 8.1%, 6.3 of that has happened just in this year alone. Man, home prices are not going to be going down anytime soon. The demand is there, rates again as we have been telling y’all, they are at an all-time low. If you’ve been thinking about buying, you should go ahead and call us now.



Get prequalified for your loan, get our $5,000 guarantee so when you submit your offer it gets accepted ahead of others. We want to make sure that you are set up for success, and of course, rates are at this all-time low, if you have not taken advantage of refinancing yet if you did a loan in January, February, March you really should consider calling us as well too. Let us analyze your situation let us see where you’re at and make sure that you’re in the best position to achieve your financial goals. I’m Sean Zalmanoff with Better Rate Mortgage we are here to help you. This is our weekly rate update, have a great week y’all! Bye.

### Mortgage Rate Update 07/20/2020

66,000…Yelp just released a study and said 66,000 businesses may not reopen after things get back to “normal” and Harvard just released a study themselves and they said 110,000 businesses may not reopen after we get back to our new normal. Pretty staggering numbers as small businesses are the lifeblood of our economic engine. But there is a lot of variables going into this and the housing market even with those very dire numbers still look incredibly good long term for us. . It goes back to simple economics and it goes back to supply and demand. There is an amazing amount more demand in our market for homes then there is supply and were just not building fast enough in really any of our neighborhoods, communities, areas or anywhere that we live. The Radian also just released some stats for us this week. The Radian is one of the national mortgage insurance companies. Year over year, so from June of last year to June of 2020, home prices increased by 8.1%. Just in this year alone, from January of this year until June, stats are trailing you know we are just in July right now, that increase has been 6.3%. So, another way to look at it, of that 8.1%, 6.3 of that has happened just in this year alone. Man, home prices are not going to be going down anytime soon. The demand is there, rates again as we have been telling y’all, they are at an all time low. If you’ve been thinking about buying, you should go ahead and call us now. Get prequalified for your loan, get our $5,000 guarantee so when you submit your offer it gets accepted ahead of others. We want to make sure that you’re set up for success, and of course, rates are at this all time low, if you have not taken advantage of refinancing yet if you did a loan in January, February, March you really should consider calling us as well too. Let us analyze your situation let us see where you’re at and make sure that you’re in the best position to achieve your financial goals. I’m Sean Zalmanoff with Better Rate Mortgage we are here to help you. This is our weekly rate update, have a great week y’all! Bye.

### First-Time Home Buyer in St. Louis? Here's What You Need to Know

Our mortgage professionals are here to help you choose the plan that is right for you and help guide you through the process to make it as smooth as possible.



If you are a first-time home buyer in the St. Louis area, there are many programs available to help you achieve your dream of owning a home. The MHDC, Missouri Housing Development Commission, offers several mortgage programs, with and without down payment assistance. You can qualify as a first-time home buyer as long as you haven't owned a primary residence within the last three years.



First-Time Home Buyer Programs



As a first-time home buyer, you can take advantage of several programs offered to you. Our mortgage professionals at Better Rate Mortgage are here to help you choose the plan that is right for you and help guide you through the process to make it as smooth as possible.




Conventional Mortgages - With as little as 3% down, a first-time home buyer can get a conventional loan as long as the mortgage meets the requirements set out by Fannie Mae and Freddie Mac. If you can put 20% or more down, you will not have to pay mortgage insurance. Most lenders typically require a minimum credit score of 620. 





FHA Loans - For first-time buyers with lower credit scores, this is a popular program. The FHA, or Federal Housing Administration, allows down payments as low as 3.5% for buyers with credit scores of 580 or higher. This program will insure loans for buyers with credit scores as low as 500 but requires a 10% down payment.





USDA Loans - The most appealing part of the USDA home loan for a buyer is the 100% financing. The U.S. Department of Agriculture issues USDA loans through the USDA Rural Development Guaranteed Housing Loan Program and is an incredible opportunity to qualified buyers living in rural communities. These guaranteed loans have already assisted thousands of home buyers across the nation by catering to lower income families with lower interest rates and loan terms.





VA Loans - The VA mortgage offers 100% financing to veterans and their spouses for the purchase of owner-occupied homes. Something some people don’t realize is that they can use their VA benefits to buy up to a 4-family unit. You could live in one unit and have three other people pay your mortgage, even with no down payment! In addition to there being no down payment, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.





Homestyle Renovation Mortgage - This Fannie Mae loan package combines the cost of your new home with up to 50% of its post-construction value, making it possible for a St. Louis home buyer to purchase a house that requires repair. So long as the funds are used to increase the value of the property with fixed structures and repairs, the Homestyle Renovation mortgage is the perfect solution for the homebuyer who likes a house and wants to turn it into a home that he loves.





FHA 203B - To promote homeownership, the Federal Housing Administration will provide the insurance needed to help high-risk buyers secure a mortgage. With less than 5% down, an FHA loan benefits people who have had financial problems in the past and want a second chance at homeownership while at the same time building up their credit scores. The FHA 203B is available for single-family home purchases that will be owner-occupied.





FHA 203K - The FHA 203K works like the FHA 203B, except additional funding of up to $35,000 may be added to the mortgage amount to help with any major repairs or renovations a house may need. This construction loan alleviates the need for a home buyer to seek additional funding through home equity loans or lines of credit.

### Mortgage Rate Update 07/15/2020

Hey friends, Sean Zalmanoff here with this week’s mortgage rate update. The markets have been on fire this week, the stock market that is.



Moderna came out with this incredibly positive vaccine news on the latter half of their stage one trial.  All 45 people tested with all three vaccine levels showed significant increases in their antibodies so the phase three is green-lighted, they are actually picking the 100mg dose the one in the middle, if you care to know those details.




https://youtu.be/Zm7kpDY061U




What this all means for you and the market, rates have continued to stay steady. I am going to show you where that is at, we have been in a long channel of rates being awesome as we were talking about last week. Still kind of the broken record of the best rates ever. They have been getting slightly better as we go but really just a great channel for you to consider locking in, we’ve had such amazing gains this year. Let me show you what that breaks down like. So, as you can see, this is a three-month chart, this right here goes back to April 22nd all the way as of today. 



If this is the first time you are looking at a candlestick chart, the general things that you need to know is green is good and red is bad. As rates improve, as bond prices go up, rates go down. So you can see over the last three months we have been fairly flat just as if you go back to a full six month period you can see the craziness that happened when the markets were struck with COVID and they just bounced around something crazy. 



So, we’ve had a lot of stability, we’ve had great price increases, which means that again it is a great time to lock it’s a good time to lock into your refinance and into your home purchase. Again, we have jobless claims that will come out on Thursday of this week, there’s the Philly Fed index, there’s a few other market-moving things that could happen. One of the big disconnects that the economists are talking about in the market right now is the 10yr treasury in the overall market. With the stocks surging as much as they have, you would expect that the 10yr treasury would be substantially higher than .6% yield, which has some correlation, not a direct, but some correlation to mortgage-backed securities that we track here and that they would also be lower. Which again, would make rates higher. Those things should make rates go up, but there is a lot of uncertainty still ahead. Stimulus could be running out to an extent soon. There may be more by the government but with that uncertainty and mortgage rates are just staying fantastic. And like we said, it’s a great time to lock in it’s a great time to take advantage of where we are at right now. If you have any questions, my team is here for you! Have a great day y'all.  

### St Louis Mortgage Rates Update 07/06/20

Sean Zalmanoff with Better Rate Mortgage in St. Louis discusses mortgage rates.




https://youtu.be/-xvKZCPaBKQ




Hey everybody Sean Zalmanoff here with your mortgage rate update for the week. A little bit of a quiet week in the market regarding news. 



Now generally when you see a spike in the stock market like we had today of almost a 400 point climb you would see mortgage rates get a little bit worse, but as we’ve seen what’s going on in the market these days they are not moving in the same fashion that they are and so rates, I know it sounds like a little bit of a broken record but they are once again at an all time low. I feel like every year we say that, and then every other year they go lower. 



So the things to look out for, we’ve had a spike as you all know in Coronavirus cases across the country, the number that you need to be paying attention to as far as how it will affect our rates, is the number of hospitalizations. Unfortunately, the more hospitalizations that we have, the better that rates will probably get as fears stoke the market. 



If there is one number that you are paying attention to this week, it’s Thursday and it’s the initial jobless claims number. There is a projection for about 1.4 million new people hitting the unemployment line. Now a few months ago, I mean that spiked to almost 10 million in the craziest of weeks that we had, but we are still experiencing over a million people a week, fresh new people hitting the unemployment line. Just for a frame of reference that’s about 7 times as high as we typically get on a week to week basis. So there's still a lot of people hitting the unemployment line, stimulus may or may not be running out. 



The bottom line is rates right now are pretty darn awesome if you’re looking at locking into your home loan it’s a good time to do it now. If you haven’t captured these rates on a refi, once again, amazing timing for you all to do it right now. I’m Sean Zalmanoff with Better Rate Mortgage and if you have any questions, you know how to reach out to us. Have an awesome day!

### Pre-Qualification Vs. Pre-Approval

Want to know a question that we get asked all the time? What is the difference between a pre-qualification and a pre-approval?



Here is the deal: Pre-qualification and pre-approval mean different things to different lenders but what YOU need to understand is that they are vastly different. Let’s talk about the difference between the two. 




https://youtu.be/ft1j-tto0qs




Pre-qualification is when you call a lender, they take your application, they don’t usually verify much, and usually just tell you to reach back out once you find a home. Once you find a home is when you go through the process of getting your income, assets, etc. documented in order to get your loan. 



Let me tell you, THAT is trash! 



Let me tell you what we do! A pre-approval is when you submit all of your information upfront to your lender so that they can complete the process and verify your loan before you get your offer accepted. You may be wondering why any lender would do that? It’s because we have a serpent’s heart and we want to make sure that you get your offer accepted before anyone else! If you just have a generic paper such as the pre-qualification we talked about earlier, you are most likely not going to get your offer accepted. Somebody else who came prepared and did the work is the offer that will get accepted and we want that to be your offer!



You may be thinking that you won’t have a problem getting your offer accepted because you have a great credit score or you are buying a home well within your means. Well, guess what, so is the other person making an offer on your dream home!



You need to differentiate yourself from the other offers and we can do that for you. Not only do we call the listing agent and let them know how great your offer looks but the number one thing that we do that separates us from everyone else is we give the seller a $5,000 guarantee when you submit an offer on their house. We put our money where our mouth is and my team would LOVE to earn your business. 



Thanks for watching and I hope this helped in differentiating between a pre-qualification and a pre-approval. I’m Sean Zalmanoff with Better Rate Mortgage. Please feel free to reach out with any questions!

### How to Finance a Home During Covid-19

Are you thinking about buying a home but don't know how Covid-19 has affected the real estate market? Believe it or not, people are still buying homes during this pandemic!



In this video, I will tell you all you need to know about financing a home during this time.




https://www.youtube.com/watch?v=s1Shi8GimJU




Are you thinking about buying a home but don't know how Covid-19 has affected the real estate market? Believe it or not, people are still buying homes during this pandemic! In this video, I will tell you all you need to know about financing a home during this time. 



Is living in St. Louis right for you?? Find all you need to know about living in St. Louis right here on my page!! 



The Coronavirus has undoubtedly changed the way we go about everything in life, and there is no question about that. Believe it or not, though, people are still buying homes. In fact, with policies changing and new assistance being implemented in light of the pandemic, buying/financing a home might be easier now than ever before! 



Over the past few months, I have been receiving a lot of questions regarding the home buying process during COVID-19, so I wanted to take some time to walk you through a little bit of what has changed to make it more clear. 



The Entire Process Done Electronically 



The question I am asked most frequently is, do we still have to meet in person? The simple answer is NO! Every single thing can be done online and electronically. The only downside is that there are no in-person handshakes. There is nothing about online meetings that are different than in-person except for the fact that we can get down to business in the comfort of our own homes and the warmth of our PJs! We can screen share, jot down all the information and lay out the numbers, and answer any questions you may have. You can go through the entire process of financing and never have to meet the lender in person! 



The Appraisal Process



Another positive change due to the pandemic is the appraisal process. Typically, for an appraiser to do his appraising, they must enter the home to view and assess it. Now, they can do all of that by doing a drive-by and utilizing the databases and online photos to keep buyers and sellers safe. This also includes most refinancing situations. On most refinance transactions, appraisers don’t need to go in the home unless you are taking out money to pay bills, etc.

### Derek's in a Vintage "League of his Own" This Week!

Hello, everyone! Here's the SZ Team's TIP OF THE WEEK and fun things to do in the Lou this weekend.

### Presenting Gordon & Derek, the Magnificent!

This week's video is a Pot of fun. I mean, it's Harry funny. Oh never mind... just watch the magic!

The Sean Z Team has details for some fun events in St. Louis this weekend along with a household tip of the week.

### Time For a New Toothbrush

Happy St. Patrick's Day! The Sean Z Team at Better Rate Mortgage has weekend events, the tip of the week and more! Watch the video for details.

### Gordon and Derek Spring Forward

Gordon and Derek from The Sean Z Team at Better Rate Mortgage are ready to spring forward, are you? Watch the video to spring forward, learn about weekend events in St. Louis, find out how you can win a Visa gift card and more!

### Bananas and Eggs with Derek and Gordon

Watch the latest video from the Sean Z Team for Bananas and Eggs with Derek and Gordon, weekend events, your chance to win a gift card and more.
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### Save Your Chips

The Sean Z Team at Better Rate Mortgage has weekend events in St. Louis to share as well as the tip of the week and your chance to win a Visa gift card! Watch the video for details.

afterwards >>>

### Icepocalypse

Looking for fun things to do this weekend in St. Louis? Need a great tip of the week? Want to win a Visa gift card? Watch the video from The Sean Z Team at Better Rate Mortgage for details.

afterwards >>>

### Why You Need Egg Cartons and Plastic Cups for the New Year

Egg cartons and plastic cups? Watch this video from The Sean Z Team at Better Rate Mortgage to find out why, weekend events and more.

### Derek Rings in 2017

The Sean Z Team at Better Rate Mortgage says goodbye to 2016 and hello to 2017. Watch the video for weekend events and please donate to our team's Make a Wish Foundation page! Happy New Year.

### Make Avery's Wish a Reality

Want to ice skate under The Arch? See half a million holiday lights? Enjoy free music? Celebrate the holidays? AND Make a little girl's wish come true? Join The Sean Z Team at Better Rate Mortgage for all of that and more, watch the video for details.

### Get to Know Sean and the Team at Better Rate Mortgage

My name is Sean Zalmanoff. I'm the manager here at Better Rate Mortgage. Everyday when I wake up in the morning, my goal is really just to help as many people as possible. I'm a family guy. I have a two-year-old son and a son that just turned five months. We love making breakfast together in the mornings.

When it all comes down to it, mortgage process; people think of it as this big arduous process that you go through, and really I like to refer to it as a paint-by-number process. I've built an amazing team of people that extend far beyond the staff at our branch. The most important part of our extended team includes realtors all over the St. Louis area that are here to help you.

As you can tell, when you look around the office here and see all of our Cardinals memorabilia everywhere; there's a lot of little bobble heads that we have. Since my wife doesn't like those at the house they get to be displayed here. What we're going to do is we're going to make the mortgage process, for you, simple. There's nothing more rewarding than having somebody buy their home, you know. Whether it's their first home, they're trading up, it's going to be a house that they raise their family in, or maybe they're planning on living there forever. That is such a rewarding experience. We are just incredibly highly refined in what we do. We have a TBD mortgage approval process, and so we literally are allowing our buyers to shop as close to the cash buyer as possible. The offer that you're putting in is hands down the absolute best offer that they're getting on the house that day.

We have a saying that, you know, the relationships with our clients really begin after we close. I have one of the most amazing teams on the planet, if not the most amazing team on the planet, so we pride ourselves on being a walking Yellow Pages. If you need a referral to make your life easier we have you covered. We want our clients to have a great easy life, and I want everybody in the office to as well too. We like to hang out together. We have barbecues together pretty often, and this is just really like one big family. We just want to be that resource for somebody, and we just want to help as many people as we possibly can.

### St. Louis Mortgage Checklist - Information Needed For the Loan Process

Our St. Louis mortgage experts are here to make the home loan process easy and simple for you!
Whether you are buying a home or refinancing a property, there are a lot of steps in the process. It can seem overwhelming but our team is here to help. The following information will help keep you on track.
Mortgage Checklist
You want your mortgage application process to go smoothly, and so do we! You will need to gather certain information during the home loan process.

The following information is generally required:

 	Social Security number
 	Current pay stubs or tax returns for the past 2 years if self employed
 	Two months of bank statements
 	Two months of investment account statements
 	Life insurance policy (if applicable)
 	Two months of retirement account statements (if applicable)
 	Make and model of the cars you own
 	Auto loan information
 	Credit card information
 	Any personal loan information

If you already own real estate, you will need:

 	Mortgage account info
 	Home insurance information
 	Information on home equity account (if applicable)

The Better Rate Mortgage Team prides itself on making the home loan process simple, straightforward and fast in the St. Louis area. Our highly experienced team of mortgage experts can help you take the first step toward the best financial solution for you and your family.


St. Louis Mortgage Experts
We study current interest trends daily so that we are always up-to-date not just with what's happening now, but with what may be happening 6 months from now. Our goal is to get you locked into the best mortgage rate available for the loan that is right for your needs.

For all of your refinancing questions and concerns, trust our team! Call us today at (314) 361-9979 or fill out our online contact form.

### St. Louis Home Refinance - Reasons to Refinance Your Home Loan

The Sean Z Team is on your side to walk you through the St. Louis home refinance process from beginning to end!


Are you thinking about refinancing your home loan? Are you trying to decide if refinancing your home now is the best financial path for you and your family? Our team will work with you to determine what your goals are and help you meet all of your needs.
3 Reasons to Refinance Your Home Loan
There are basically 3 reasons why you should refinance your home loan:

 	You want a lower interest rate: Because interest rates are continuing to dance around all-time lows, it doesn't make sense to borrow money at a rate that is more expensive.
 	Get rid of one of your mortgages: If you have two mortgages on your home - now is a good time to refinance your home equity line of credit and consolidate the loans so that you'll only have one payment.
 	Get a fixed-rate loan: You can get rid of your adjustable-rate mortgage and ensure the safer option of having a fixed-rate. It is a good choice when the interest rates are low.

If your monthly mortgage payment is leaving your wallet a little low every month, refinancing can definitely be helpful. Refinancing your home loan isn't a complicated process when you enlist the help of Sean Z and his team of St. Louis mortgage experts.
When is a Good Time to Refinance?
When the value of your home rises or the interest rates drop is the ideal time to refinance your mortgage. You may also consider refinancing if the value of your house has made a significant increase.

When done right, refinancing your mortgage can lower your monthly payments, reduce the total amount owed to the bank or make good use of the equity you have built into your home. Sean Z will discuss all of your refinancing options and help you determine what is the right choice for you.

St. Louis Mortgage Experts
We study current interest trends daily so that we are always up-to-date not just with what's happening now, but with what may be happening 6 months from now. Our goal is to get you locked into the best mortgage rate available for the loan that is right for your needs.

For all of your refinancing questions and concerns, trust our team! Call us today at (314) 361-9979 or fill out our online contact form.

### First Time Home Buyers in St. Louis - Mortgages Made Simple

If you are a first time home buyer in St. Louis, getting a mortgage doesn't have to be intimidating. Better Rate Mortgage is here to help!
For most first time home buyers, buying a home is a dream come true. However, there can also be potential problems and pitfalls that trap an unprepared buyer.

Our team wants to make this dream of yours a reality. We know all there is to know about obtaining financing for this major purchase and are more than happy to pass our knowledge onto you.
What is the TBD Mortgage Approval Program?
If you are trying to buy your first home without a mortgage approval, it is essentially the same as putting the cart in front of the horse. You are being led around to homes that you may not be able to afford, or that are significantly under your budget. With our TBD mortgage approval program you have the freedom to search for that perfect house without fear of being rejected by the bank later.

Don’t let yourself be surprised at the end of your search to find out that you can’t qualify for the home of your dreams that you have invested months looking for. We offer a variety of different mortgage programs aimed at first time home buyers and with our “TBD Mortgage Approval Program” you can be confident that you qualify before the search even begins.
First Time Home Buyers - Mortgage Options
Some of the first time home buyer mortgage options include:

 	Conventional Mortgage - With only 5% down, this Fannie Mae mortgage is a huge benefit for first time home buyers who have little capital to start with.
 	VA Loan - No down payment, no private mortgage insurance, and a competitive interest rate for men and women who have served their country.
 	FHA 203B - With less than 5% down, an FHA loan benefits people who have had financial problems in the past and want a second chance at home ownership while at the same time building up their credit scores.
 	FHA 203K - This works like the 203B, except it has additional funding of up to $35,000 that may be added to the mortgage amount to help with any major repairs or renovations a house may need.
 	USDA Home Loans - Available to buyers looking for home ownership in rural parts of the state, this USDA backed loan is specifically targeted towards low and median income households.
 	Homestyle Renovation Mortgage - This Fannie Mae loan package combines the cost of your new home with up to 50% of its post construction value making it possible for a St. Louis home buyer to purchase a house that is in need of repair.
 	Fixed Rate Mortgage - The interest percentage you locked into at closing will be the same after 5, 10 even 25 years.
 	Adjustable Rate Mortgage - It will remain steady for the first 5 or 7 years depending on your terms, but will then change to reflect current interest rates.

At Better Rate Mortgage, we will take the time to find the right mortgage with a payment that you are able to afford. There is more than just a monthly mortgage payment to consider and we want you to be well aware of that long before you set your sights on a home that is out of your budget. When helping you figure out your monthly budget, our team is going to look not only at the payment and interest, but also property taxes, insurance, utilities and the possibility of home owner association fees. Our team of professionals is going to make sure that you start your hunt fully armed, knowing how much home you can really afford.
Get Started Today!
We are just as excited about your new home purchase as you are. We are proud to be a part of such a monumental milestone in your life and are dedicated to ensuring that it is the enjoyable experience for you that it should be.

Call us today at (314) 361-9976 or fill out our online contact form, to start making those first steps to buying that first home you have always dreamed of!

### Mortgage Rates: How to Get a Low Mortgage Rate

The question on every home buyers mind is, how do I get a low mortgage rate?
First of all, St. Louis home buyers can stay up-to-date and informed on everything mortgage related when they have Better Rate Mortgage by their side. We study current interest trends daily to keep abreast of not just what is happening now, but what may be happening 6 months from now.
Mortgage Rate Shopping
It seems like an easy task: simply compare rates and pick the lowest one. But after you begin the process, you discover that comparing lenders is a difficult task. Some lenders are not properly trained and will give you either the wrong information or not enough.

When comparing what the different brokers and lenders are charging, make sure you're comparing the rates on the same day. Why? Well, rates change from day to day based on the bond market. The bond market changes daily and sometimes more than once in the same day.

Another challenge, different lenders seem to have their own way of expressing the costs. So, make sure you compare the total costs to get the loan. Get the grand total of all the costs and then compare the interest rates.

Our mission is to get you locked into the best mortgage rate available for the mortgage loan that is right for your needs. We will guide you through the process and give you tips on the steps that you need to take in order to lock in at the lowest possible interest rate.
Secure a Better Mortgage Rate
The absolute best way to secure a good mortgage rate is with Better Rate Mortgage. With expert knowledge on all things mortgage related he and his team are able to find the perfect loan program for you with the lowest possible mortgage rate.

The less risky you look on paper, the lower the mortgage rate. There are a few things you can do that will help lower points on your interest rate:

 	Clean up your credit.
 	How much debt you have is a key factor in determining not just the amount of the loan, but also the interest rate. Try consolidating debt if you have outstanding balances on multiple credit cards and be sure you are making timely payments on them.
 	Secure cash for a down payment. The more you are able to put down on a home, the lower your mortgage rate will be. Interest rates are all about securing risks. If you have a personal investment in the property up front, the risk is lower.

Contact a Reputable Lender
Consult a reputable lender with a proven track record of success like the team at Better Rate Mortgage. As approved lenders for Fannie Mae, Freddie Mac and HUD endorsed loans, we can secure you a competitive rate that other lenders may not even be able to match.

Call us today at (314) 361-9979, or fill out our online contact form, to get all of the latest St. Louis housing information right here and let our team of mortgage pro’s help you to understand your options.

### It's Important to Have a Home Inspection Before Buying a House!

Buying a home is one of the biggest decisions you will ever make, having the house inspected is an inexpensive way to find out the overall condition of the home!
Some home buyers think that skipping the inspection process is a way to save money. But this couldn't be farther from the truth.

Take the case of a young couple, buying their very first home. They have found the St. Louis home of their dreams, but wisely, before they buy the house, they have it inspected by a certified home inspector. The inspector discovers a crack in the plumbing stack, which the owner must fix before the couple agrees to buy. So, the small inspector's fee ended up saving the couple thousands of dollars that they would have otherwise had to spend.
Why a Home Inspection is So Important
The situation above perfectly illustrates the value of a home inspector. Having an inspection done generally happens at the time of the sale of the home. This is important because an inspection helps the buyer to avoid a costly mistake by buying a home that needs major repairs.

A good home inspector will assist the buyer by helping them understand what they are acquiring. A house may look like it is ready for the buyers to move in, but an inspector will look at the features of a home and see issues that the buyers couldn't notice.

There are a number of different types of inspections that can be performed. First and foremost, a general inspection is done. They will assess the plumbing, electrical wiring, roofing, insulation, HVAC, ventilation, and the overall structure of the home. After it is completed, the inspector will give the buyers a report with suggestions as to what needs to be repaired, replaced, or improved upon. There may be things that need to be brought up to the current standards.

Another type is a radon inspection. Radon is a radioactive gas that is colorless, tasteless, and odorless. It is a gas that occurs naturally as a decay product of radium. According to the Surgeon General, radon is the second largest leading cause of lung cancer in the U.S. There are no safe levels of radon gas, so it is important to know if the house you are about to purchase is dangerous to occupy.
First Time Home Buyer St. Louis
In the end, you will be glad that you had a home inspection completed. It will give you peace of mind knowing that your new home is safe and in good shape.

The Better Rate Mortgage Team are just as excited about your new home purchase as you are. We are proud to be a part of such a monumental milestone in your life and are dedicated to ensuring that it is the enjoyable experience for you that it should be. Call us today at (314) 361-9979 or fill out our online contact form.

### What should I know about the St. Louis USDA Home Loan?

Also known as the USDA Rural Development Guaranteed Housing Loan Program, it is a mortgage loan that is offered to rural property owners who qualify.
This unique program works with local lending agencies to extend 100% financing to qualified buyers living in rural communities.

Thousands of home buyers across the nation have already been assisted by these guaranteed loans. The loan caters to lower income families by offering lower interest rates and loan terms.

Better Rate Mortgage wants to ensure that low or moderate income homebuyers in the rural sections of Missouri can achieve their dream of owning a home.
USDA Home Loans
A USDA home loan is so appealing because of the 100% financing! A buyer does not have to come up with money for a down payment, as long as the amount of the loan does not exceed the appraised value of the home. It may also be possible to roll other fees into the mortgage.

It is a program that is specifically meant for families with low incomes. Therefore, traditional credit scores may not be counted against those who qualify.

The USDA home loan program looks for homeowners that have no more than 41% debt ratio, and they even sometimes make exceptions to that rule.

It is good to know that this is a fixed rate mortgage. We can assure you that the rates will not suddenly skyrocket in the next  years. When you and the lender agree on an interest rate and it will stay there for the life of the loan. So, when there are changes in the housing market or interest rates, neither will have any affect on your monthly payments.
Contact the St. Louis Mortgage Experts
If you enjoy the peaceful life of a rural setting, don’t let the opportunity to get this type of loan slip away. The professionals at Better Rate Mortgage will be more than happy to help you secure the funds to get you and your family into the house of your dreams.

Call us today at (314) 361-9979 or fill out our online contact form.

### What's Going on Next Door?

Find out weekend events, the tip of the week and more from the Better Rate Mortgage team. Watch the video below for details. 



https://www.youtube.com/watch?v=jolsib89SN8

### Do I Need a Real Estate Agent? The Importance of a St. Louis Realtor

Finding the right home for you and your family is not as easy as it looks. You need the assistance of an experienced real estate agent!
We live in a very “do-it-yourself” society. There is a whole cable channel devoted to DIY home projects. What was once someone's area of expertise, is now reduced to watching how to do it yourself on a YouTube video.

What about when it comes to buying a home – should you do it yourself? It is a valid question since there is a recent proliferation of services that can help you complete your own real estate transactions. And after-all, couldn't you save yourself the commission rates that most realtor's ask?

Well, it may surprise you but going solo may end up costing you more than those commission fees do. The fact is, finding the right home for you and your family is not as easy as it looks. You need the assistance of an experienced real estate agent!
Reasons Why You Still Need a Real Estate Agent
The St. Louis metro area is loaded with magnificent homes, excellent school districts, sporting events, beautiful parks and unique dining experiences. It is important to find a home in the right neighborhood that lets you conveniently experience this great city. There is a lot more to a home than just the price! Having an expert realtor’s input and experience is invaluable.

Here are a few reasons why this is one project you don't want to do yourself:

 	They have easy access to all the properties in the right areas.
 	They are experts at finding the homes that meet your criteria, getting in touch with the sellers' agents, and making the appointments for you.
 	They do all the negotiating for you.
 	They handle contracts on a regular basis. They know which ones should be used, when they can be removed safely, and how to use them to protect you.

Work with an Expert Realtor in St. Louis
The Better Rate Mortgage Team has spent over 10 years nurturing relationship with the best real estate agents in St. Louis. They are able to help you identify the homes that you can afford in the right neighborhoods. A good realtor will represent you through negotiating offers, accepting the real estate contract, understanding home inspections and appraisals, any title work issues, and all the way up to the closing table.

As your mortgage experts, we will be there to make sure all of your questions are answered. Our goal is to have made the home buying process as surprise and stress free as possible. Call us today at (314) 361-9979 or fill out our online contact form!

### Duck Duck Goose

Want to know what's going in St. Louis this weekend? Want to win our next drawing? Want to learn a great tip of the week? Watch this video from the team at Better Rate Mortgage for all of that and more.



https://www.youtube.com/watch?v=lF8vOHWy7v0

### St. Louis Mortgage Expert Explains the Home Loan Process

We will make it easy for you by helping you understand the entire home loan process, starting from the beginning!
Whether you're buying your first home or you have bought a number of times, going through the home loan process is an experience. The St. Louis metro area is loaded with magnificent homes, excellent school districts, sporting events, beautiful parks and unique dining experiences. There are many opportunities to purchase excellent homes at a great value.

At Better Rate Mortgage, we want to help make your home buying experience positive! We will make it easy for you by helping you understand the entire process, starting from the beginning.
The Home Loan Process
There are basically 6 steps to the home loan process. They are:

 	Prequalification
 	Applying for Your Loan
 	Processing Your Loan
 	Appraising Your Home
 	Underwriting
 	Closing

The prequalification helps you determine how much of a loan you can afford. This generally takes less than 5 minutes.

Applying for your loan is easy too. You can make an appointment with us to do this in person, or we can do this over the phone. It usually takes less than 15 minutes to complete.

Processing your loan may be better described as verifying your information. You will typically need 3 items: your last 2 pay check stubs, your last 2 W-2 forms, and your last 2 checking or saving account statements. While this information is being gathered, your credit report will be ordered and the appraisal on the property.

Appraising your home will initially take about 15 minutes to explore the property that is to be financed. Then, the appraiser will take time to research comparable homes in the area that have sold within the last 6 months.

After these steps your loan is sent to underwriting. An underwriter will determine if the loan is approved or rejected. If the loan is not initially approved, then if possible, a counter offer is made.

Finally, the closing. This term speaks for itself!
The TBD Mortgage Process
Many buyers think that they need to first find a house to buy before getting the paperwork done. However, 95% of what we do has nothing to do with the house. The first step is to fill out the application and provide a number of disclosures. Then we can submit everything to underwriting. Once this is done, you have 6 months before you would have to have a home under contract.

This entire process can begin online. The TBD Mortgage Approval Program can give you the confidence of a cash buyer while buying a house in St. Louis.
Contact the St. Louis Mortgage Experts!
Not only will we help make your home buying experience a good one, but we will take the time to match you with the best mortgage loan product available. Our mortgage underwriters will examine your credit history, employment history, debt ratios, down payment amount, reserves and any other necessary documentation to get you approved for financing while your house is still “To Be Determined."

Call us today at (314) 361-9979 or apply online.

### VA Home Loan: Do I Qualify for a VA Loan?

Because of their dedicated service, veterans qualify for a number of benefits, among them is the ability to take part in the VA home loan program.
The VA loan program is specifically designed for the men and women who have served their country. In order to qualify for a VA home loan there is a requirement of specific service conditions that they must meet. The Sean Z mortgage team has over a decade of experience helping St. Louis veterans get approved for VA loans in St. Louis.

If you are a veteran and are interested in taking advantage of the VA home loan program, you may be wondering if you qualify.
Am I Eligible for a VA Home Loan?
You may be able to obtain a VA loan if you meet one or more of the following:

 	Have served 90 consecutive days of active service during wartime
 	Have served 181 days of active service during a time of peace
 	Have at least 6 years of service in the Reserves or National Guard
 	You are the spouse of a member who died while in the line of duty or was disabled as the result of a service related injury

You will need to obtain your certificate of eligibility, however, if you have your DD-214 form, we can order your Certificate of Eligibility for you. This is the only additional paperwork you will need to provide us with in order to process your loan.
Benefits of the VA Loan Program
There are a number of benefits to the VA Home Loan program, but the 3 primary ones are:

 	No Down Payment
 	No Private Mortgage Insurance
 	Competitive Interest Rates

The VA mortgage offers 100% financing to veterans and their spouses for the purchase of owner occupied homes. In addition to there being no down payment, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.
The St. Louis VA Loan Professionals
If you are eligible for a VA loan, contact the St. Louis VA loan professionals at Better Rate Mortgage today. We can APPROVE your mortgage prior to finding your new home with our one of a kind “TBD Mortgage Approval Program”, so you can shop with confidence. If you would like to find out what VA mortgage you are eligible for, call Sean Zalmanoff at (314) 361-9979 or apply online today!

### Guide for a First Time Home Buyer in St. Louis

Start making those first steps to putting rent payments behind you and buying that first home you have always dreamed of.
There are so many benefits to owning your own home! As a homeowner, you will experience the security of owning the house that you live in. You'll no longer be wasting money each month on rent payments. You will be able to create a home that meets your needs and desires.

In addition, you will be able to take advantage of tax benefits, while building home equity and creating a stronger credit history.

Buying your own home is likely to be the single largest investment you will make in your lifetime and this can seem like a daunting task. The Better Rate Mortgage team knows that this is an event you have been dreaming of for years and wants to make it as enjoyable for you as possible. We know all there is to know about obtaining financing for this major purchase and are more than happy to pass our knowledge onto you.
First Time Home Buyer
Many first time home buyers end up being surprised at the end of their search to find out that they can't qualify for the home of their dreams that they have spent months looking for. They think they need to find a house to buy before getting the mortgage paperwork done. Don't let this happen to you.

In order to avoid this scenario, we offer a variety of different mortgage programs aimed at first time home buyers and with our “TBD Mortgage Approval Program” you can be confident that you qualify before the search even begins.
What is the TBD Mortgage Approval Program?
In the mortgage world 95% of what we do has nothing to do with the house. All we need to do is get an appraisal and the title work and, as long as the house you choose appraises and the title is clean, you will be able to get a loan.

The process typically goes as follows:

 	Fill out the application.
 	We submit this to underwriting.
 	Once approved, you'll have 6 months before you have to have a house under contract.
 	Search for a new home with the confidence of a "Cash Buyer"

So we literally can do almost your entire loan without you having a house under contract.
First Time Home Buyer Mortgage Options
There are a wide variety of mortgage options out there for first time home buyers. At Better Rate Mortgage, we will take the time to find the right mortgage with a payment that you can afford. Some of the options include:

 	VA Loan
 	FHA 203B
 	FHA 203K
 	USDA Home Loans
 	Homestyle Renovation Mortgage
 	Fixed Rate Mortgage
 	Adjustable Rate Mortgage

Call the St. Louis Mortgage Experts
The Better Rate Mortgage team is proud to be a part of such a monumental milestone in your life and are dedicated to ensuring that it is the enjoyable experience for you that it should be.

Call us today at (314) 361-9976 or fill out our online contact form.

### Bonds Have The Luck Of The Irish Today

Yesterday the Fed trimmed backed their forecast for rate increases for the year from 4 to2. The bond and stock markets both liked it.  It was good to see some carry through this am and see yesterday’s resistance become today’s support. We then had a gap open (technical term, very bullish), but bonds have sold off since then because of some better than expected economic data.  Mortgage Backed are between resistance and support and the crystal ball is cloudy. Rates are probably an 1/8th of a point better than yesterday, maybe more. People could float, but 2 days ago they would have been happy with where rates are today.

### Are You Our St Patrick's Day Winner?!

Watch The video from The Sean Z Team to see if you are the latest Visa gift card winner, see what is going on around St. Louis and more.

### Get a HomeStyle Renovation Loan for Your New St. Louis Home Renovation

We can help you get the extra funding that you need to turn your new fixer-upper into the home of your dreams!
In today's home market, many of the houses that are for sale are fixer-uppers. Some homes need major renovations to pass inspections. Others houses need only a little updating and some need style changes to suit the buyer's needs.

Are you needing to renovate your new St. Louis home? Does the siding need to be replaced, appliances need updating or broken pipes need repairing? If so, you'll be glad to know that Fannie Mae has introduced the HomeStyle Renovation Loan to help homeowners turn their likable fixer-upper into the home of their dreams.
What it is the HomeStyle Renovation Loan?
In the past, a St. Louis homeowner would use a home equity loan or a line of credit to make the needed repairs and renovations on a new home - but those days are gone. Due to the current housing market of low home values and no equity, Fannie Mae came up with a program that can get the home buyer the financing they need, all included in the price of the mortgage. One loan, one closing.

The HomeStyle Renovation mortgage allows the borrower to obtain the money they need for the purchase of a new home, along with the cash to pay for the cost of any repair, remodel or renovation. You can even use the money to add energy efficiency improvements to the house like skylights.

The only requirements by Fannie Mae is that the construction be a permanent fixture to the home and that it increases the property value. If it is an energy efficiency upgrade, the borrower will need to get an energy report highlighting the approximate savings that the improvement gives.

The HomeStyle Renovation loan lets the buyer combine the purchase of their house with the financing needed to make repairs or upgrades. There is no second approval process, extra set of paperwork or two closings. Everything you need to turn a house into your dream home is put together into one loan package.
How Better Rate Mortgage Can Help
We know that investing in a fixer-upper can be a scary undertaking. The house you have in mind may need major repairs or just a little updating. Large or small, our team will work with you to get the funding you need.

Call us today about a HomeStyle Renovation Mortgage for your new home or existing home, at (314) 361-9979 or fill out our online contact form. Our level of service and lending power is second to none in St. Louis.

### St. Louis Mortgage Expert Answers: What is Mortgage Insurance?

For many St. Louis home buyers, the biggest obstacle to owning a home is the down payment. Understanding what mortgage insurance is can be of great benefit!
You may have heard the term "mortgage insurance" but what is it? Do you need it and how can you get it?
What is Mortgage Insurance?
Simply put, mortgage insurance is an insurance policy that protects the lender against losses should the borrower, or homeowner, default on their mortgage payments.

It is typical for lenders to require mortgage insurance for loans that have a down payment of less than 20%. This gives them a financial guarantee should the home loan go into foreclosure. With mortgage insurance, many lenders will not require a 20% down payment.

However, most mortgage insurance companies have very strict guidelines for a lender to follow making it difficult for people with a less than stellar credit score to secure funding.
A St. Louis FHA Loan
The FHA, or the Federal Housing Administration is not a lending institution. Rather, they provide insurance to lenders who are willing to grant mortgages to high risk buyers. So, a St. Louis home buyer that has a below average credit score has a real opportunity of owning their own home!

An FHA loan promotes home ownership by overlooking some of the flaws a potential buyer may have when they approve a mortgage. What this does is gives the lender the peace of mind to move ahead with the application because they have the reassurance that it is backed by the FHA.

The buyer will be required to make an initial payment toward the mortgage insurance, which is about 1.75% of the loan amount. In addition to this, there will be a monthly premium, or MIP, on the mortgage statement each month. The amount of the mortgage insurance is directly related to how much of a down payment a person is able to make towards the purchase of their new home.

In the event that a person is not able to continue making their loan payments, the funds that have been collected through the insurance payments will be used by the FHA. A lender is more willing to work with a buyer that has this kind of security behind them, even if their are flaws in their credit history.
Ask a Better Rate Mortgage Expert!
The FHA offers a variety of options for St. Louis home buyers, the most popular being the FHA 203B mortgage and FHA 203K mortgage. Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you are able to receive the funding you need, whether for a home in mint condition or one that needs extensive renovations.

Call us today at (314) 362-9979 or fill out our online contact form. We are proud to be able to offer a full line of FHA loans to St. Louis home buyers.

### When Should I Refinance My St. Louis Home Mortgage?

Deciding when to refinance your St. Louis home doesn't have to be complicated. The team at Better Rate Mortgage will help you decide if refinancing your home now is the best financial path for you.
We hear the word "refinance" used often. If you own a home, you have no doubt thought about refinancing your mortgage at one point or another. Figuring out when to refinance can seem tricky. However, the Better Rate Mortgage team will help you decide if refinancing your home now is the best financial path for you. We will work with you to determine what your goals are and help you choose which refinance mortgage will help you meet your needs.
Understanding the Mortgage Refinance Process
Simply put, refinancing your home mortgage means that you have come across a better deal on a home loan, and you want to use the new terms to pay off your existing mortgage.

So, when is a good time to refinance? When the value of your home rises or when interest rates drop, are the ideal times to refinance.

When it is done correctly, the refinance of your home mortgage can lower your monthly payments, reduce the amount of money you owe the bank and/or make good use of the equity you have built into your home.

So then the questions are, how do I know when the value of my home rises or how can I know when mortgage rates drop?

The basic answer is, you should have a counted on source for your St. Louis housing information.
Where to Get All the Latest St. Louis Housing Information?
Get all of the latest St. Louis housing information right here and let our team of mortgage pro’s help you to understand your options.

When you start looking into when and how to refinance your mortgage, you're going to hear a lot of words and terms that may seem confusing. At Better Rate Mortgage, we do not want you to feel that way! Our goal is to make sure that you are completely informed and up-to-date.

We study the current interest trends daily so that we're always abreast of not just what is happening now, but of what may be happening 6 months from now. Our goal is to get you locked into the best mortgage rate available for the mortgage that is just right for your needs. We will guide you through the entire process and will give you tips on the steps that you need to take in order to lock in the lowest rate.

Call us today at (314) 361-9979 or fill out our online contact form.

### What to Look for When Buying a House in St. Louis

If you're in the market for buying a home, you may be overwhelmed by all of the options you have and the decisions you have to make.
If you're in the market for buying a home, you may be overwhelmed by all of the options you have and the decisions you have to make. You are not alone! Almost everyone that sets out to look for a house to buy, faces these issues.

If you are looking to buy a brand new home, you may think the process will be easier. However, new homes can be just a troublesome as old ones. Because they haven't been tested by years of use, they can have potential problems that go unseen prior to purchase. This can be especially true if the builder used shoddy materials or methods. Hiring a house inspector before you buy a new home is one way to guard against expensive surprises.

While hiring an inspector is very important before you purchase a home, you may waste time and money by unnecessarily hiring one for a home that turns out to have noticeable issues. For instance, if you end up buying the home that was inspected, you will have spent your money well. On the other hand, if you do not purchase the home because the inspector found major issues, you may have been able to spot some of these things yourself and have saved yourself the hassle and cost!
What to Look for When Buying a House
If you do a little leg work upfront, you may be able to answer some of these questions yourself:

 	The Roof - is it old or new? Are there shingles missing or look like it wasn't applied properly?
 	Structure - step back and look at the house. Are the walls flat and plumb? On the inside, do any walls bow or lean? What about the floor - does it flex if you jump in the middle of a room, or does is feel solid?
 	Water Control - is there any water damage, inside or outside? Does the ground slope away from the home? Will the homes gutters and drains carry rain water away from it effectively?
 	Kitchen & Bath - do all of the fixtures work? Is the water pressure strong when you turn on the tap or flush the toilet? Have the appliances been well taken care of?
 	Furnace & Air Conditioner - are these relatively new? Find out what the average utility bills are for the home, if they are more costly, maybe the systems are not efficient as they could be.
 	Details - Check the windows, are they in good condition? Is there quality in the workmanship of the moldings, paint, tiling and hardware?

What you are able to determine on your own may be able to save you time and money.
How to Get Pre Approved for a Mortgage
Even before you find your perfect St. Louis home, you can have the confidence of a “Cash Buyer” by getting pre approved for financing!

Our TBD Mortgage Approval relieves much of the anxiety surrounding buying a house. My team will go over an entire set of “To Be Determined” loan documents with you before you even start your search for the perfect home. We will be able to process and underwrite your entire loan file with a property address of “To Be Determined”.

Contact Better Rate Mortgage today at (314) 361-9979 or fill out our online contact form to get started!

### How to Get a Pre Approved Home Loan in St. Louis

Many home buyers think they need to find a house before getting the mortgage paperwork done. However, in the mortgage world, 95% of what we do has nothing to do with the house.
The St. Louis home market is off to a good start in 2016. Home values are going up and the amount of non-distressed home sales have increased as well.

With this in mind, many potential home buyers are starting the process of looking to buy a house. Yet, many buyers think they need to find a house to buy before getting the home loan paperwork done.
How to Get Pre Approved for a Mortgage
In order to get pre-approved for a mortgage, you will need to give detailed information about your assets and income. These will then be reviewed by the lender's underwriters. If you are approved, the lender will give you a commitment for a specific loan amount.

Getting preapproved for a mortgage shows that you have the resources to make the purchase of a new home. From a sellers perspective, a buyer that is pre-approved for a mortgage is more attractive than someone that only has their word to be able to back up their offer.

At Better Rate Mortgage, we can help you will the entire home loan pre-approval process. The more time we have, the more beneficial it can potentially be for you. This gives us time to examine your credit, income, and assets.
The TBD Mortgage Process
The TBD mortgage approval program, means that our mortgage underwriters will examine your credit history, employment history, debt ratios, down payment amount, reserves and any other necessary documentation to get you approved for financing while your house is still “To Be Determined".

The first step is to fill out the application and provide a number of disclosures. Then we can submit everything to underwriting. Once this is done, you have 6 months before you would have to have a home under contract.

For your convenience, we can start the entire process online. All we need to do is get an appraisal and the title work and, as long as your house appraises and the title is clean, you will be able to get a loan. The more time we have, the more beneficial it can potentially be for you. This gives us time to examine your credit, income, and assets.
Contact the Sean Z Team Today!
Call us today at (314) 361-9979 or fill out our online contact form.  “The TDB Mortgage Approval Program” gives home buyers, sellers, and real estate agents the confidence that comes from knowing Better Rate Mortgage is standing behind them.

### What is a Reverse Mortgage - How Does a Reverse Mortgage Work?

It's called a reverse mortgage because, instead of you making payments to the lender, the lender makes payments to you!
With your traditional mortgage, monthly payments are made by you to the lender. A reverse mortgage has the lender paying you. It is a special type of loan that allows the qualifying homeowner to borrow against the equity that is in their home. These monies will not have to be paid back for so long as you live in the home. The loan can be paid back when you sell the house, pass away or move to another permanent residence.
Who Qualify for a Reverse Mortgage?
Not everyone is eligible for a reverse mortgage. There are certain qualifications that the homeowners must meet:

 	You must be at least 62 years of age.
 	The home must be your primary residence.
 	You need to have paid off most, or all, of your traditional mortgage.

Generally, if you still owe money on your traditional mortgage, you will be required to use part of the money from the reverse mortgage to pay it off. Since there are limits on how much you are able to borrow, you may not qualify if you still owe a considerable amount on your traditional mortgage.

Most reverse mortgages are insured by the FHA, through its HECM, or Home Equity Conversion Mortgage. Through this program, you are required to meet with a reverse mortgage specialist to find out how a reverse mortgage works and to discuss how much it will cost and what your options are.

Sean Z knows the specifics of all reverse mortgages and will go over all the details of your options to make sure you get the reverse mortgage that works best for your situation.
How Will I Get My Money From an HECM?
The amount you will be approved for with an HECM depends largely on the amount of equity you have in your home. Basically what that means is they will look at the value of the property versus what you owe on your existing mortgage. The more equity you have, the more money they will be willing to loan you.

To receive your funds, the HECM gives you a number of payments to choose from.

 	you can opt for a term loan, which are fixed monthly payments for a specified period of time
 	a tenure, which is also a fixed monthly payment but for as long as you are living in the house
 	a third option is a line of credit that allows you to draw funds from the loan as you need them for as much or little as you choose until it has been used up.

What you plan on using the proceeds for weighs heavily on how to you decide to be paid. Sean Z can help you go over the options to figure out which one will be most beneficial for your goals.
Reverse Mortgage Pros and Cons
It is important to consider the positive and negative aspects to a reverse mortgage before making a decision. While this is a perfect plan for many St. Louis residents, it may not benefit every candidate.

 	The funds you receive from your reverse mortgage should not have to be claimed as income on your tax return, and should have no bearing on any federal benefits you may receive such as Medicare or Social Security. Consult your tax adviser about this.
 	When you tap into your homes equity with a reverse mortgage, you are not signing away ownership. You still retain the title to the house.
 	Unlike a home equity loan, there are no monthly payments with a reverse mortgage. The terms of the loan are that it will be paid in full when you pass away or sell the home.
 	Interest is being charged to you from the lender. This means that the amount you owe is actually growing monthly. Since you are not paying that interest through monthly mortgage payments, you will not be able to claim it on your taxes like you can with interest paid on a typical home mortgage until the entire debt has been cleared.
 	Most reverse mortgages are at a variable rate, not a fixed rate. That means the interest charged on your loan will change as the financial climate does. Depending on how much you borrowed versus the equity of your home, you could end up owing more to the lender than what your home is worth.

Contact a St. Louis Reverse Mortgage Specialist
Ask your Better Rate Mortgage expert for more details about which loan will work best for your circumstances. We are committed to making sure that you are able to receive the funding you need, whether for a home in mint condition or one that needs extensive renovations. Call us today at (314) 361-9979 or fill out our online contact form.

### Are You a First Time Home Buyer in St. Louis?

Trying to buy your first home without a mortgage approval is the equivalent of putting the cart in front of the horse.
 
For many first time home buyers, having the funds available for a down payment is one of the biggest obstacles to purchasing a new home.
There is good news because first time home buyers have many options and with our TBD mortgage approval program you have the freedom to search for that perfect house without fear of being rejected by the bank later.
There are mortgage options that require low down payments. There are also programs and resources that may be able to help you fund the down payment on your new home.
The TBD Mortgage Approval Program
Many first time buyers think that they need to find the home they want to buy before getting the mortgage paperwork done. However, the majority of getting approved for a loan has nothing to do with the house you're going to buy. In fact, all we need to do is get an appraisal and the title work and, as long as your house appraises and the title is clean, you will be able to get a loan.
Low Down Payment Mortgages
Recently, Fannie Mae announced a 3% down payment mortgage option that is designed to help first time home buyers who are not able to fund a large down payment but who are otherwise are able to qualify for a loan. Any first-time home buyer interested in this program should contact the Sean Z Mortgage Team.
Other first time home buyer programs include:

FHA loans (Federal Housing Administration)
VA loans (Department of Veteran Affairs)
USDA loans (US Department of Agriculture)
Conventional

Our team knows that buying your first home is an event you have been dreaming of for years and we want to make it as enjoyable for you as possible. We know all there is to know about obtaining financing for this major purchase and are more than happy to pass our knowledge onto you.
Contact the team at Better Rate Mortgage
Every St. Louis resident deserves the opportunity to live in the home of their dreams. Let us help make buying your first home possible. Call us today at (314) 361-9979 or complete our online contact form.

### St. Louis Veterans: How to Take Advantage of a VA Home Loan

One of the ways in which the U.S. Government thanks it servicemen and servicewomen is by offering them a direct path to home ownership.
The time you spend in the U.S. Military forces gives you special access to the Veterans Affair (VA) loan. This mortgage gives you the opportunity to buy a home, taking into consideration the special needs you may have after spending years serving the country.
Who Qualifies for a VA Home Loan?
In order to qualify for the VA home loan you must meet one of the following:

 	Be a veteran of one of the U.S. military forces. This includes the National Guard and Reserve so long as you were called to active duty at some point in your career.
 	Be an active member of one of the U.S. Military forces.
 	Currently be a member of the National Guard or Reserve, and have held that position for at least six months.
 	Be a surviving spouse of a member of the U.S. Military. Certain other conditions will have to be met in this case which Sean Z and his team can help you clarify.
 	Be a commissioned officer of the Public Health Service or the National Oceanic and Atmospheric Administration or a discharged veteran.
 	Have been discharged from Military service honorably. Certain dishonorable discharges may be considered at the discretion of Veterans Affairs.

If you have a question about your eligibility, a home loan expert such as Sean Z from Better Rate Mortgage can help clear them up. Call him today at (314) 361-9979 or fill out the online contact form.
What Will You Need to Apply for a VA Home Loan?
In order to begin the application process for a VA home loan, you are going to need a valid Certificate of Eligibility (COE). The easiest way to obtain this is through your home mortgage agency. They can use the Automated Certificate of Eligibility (ACE) program to help you get your COE.

You can also try using the Veteran Affairs website and going through eBenefits to obtain your COE. This can be done online or you can download a form, fill it out and mail it to eligibility center. This is a lot of extra work that you can avoid by using a home loan service such as the one offered by Sean Z.
What’s Next?
Once it has been determined that you qualify for a VA home loan, you and Sean Z will go over your finances and submit the paperwork for approval. Once you have gotten your TBD mortgage approval you can start searching for your perfect home in St. Louis.
What are the Benefits of a VA Home Loan?
With a VA home loan, you can buy a home, condo, co-op or even a manufactured home. You can also use this to refinance an existing home loan. The interest rate will be competitive, there is usually no down payment required, and the PMI is waived. This is a great way for a veteran to get his family into a home without worrying about spending years saving up for a down payment.

After you find that perfect St. Louis home, the final paperwork will be submitted by Sean Zalmanoff and after the typical home inspections are finished, the deal will be closed and the house is yours.

Ask about this option if you are a Veteran and are trying to find a way to purchase a home for you and your family. This is a great offer from the U.S. Government that has assisted thousands of your brothers in arms from all over the country.

### Mortgage Rates 7/8/2015

Stocks are down sharply this am, like yesterday morning.  The difference is Mortgage Backed Securities were up sharply when stocks opened down.  Today they are hovering above resistance.  I’m cautiously floating to start the day as Greece and China could have an interesting effect on our market.   Should they cause the S&P 500 to dip much lower we could see a little rally in bonds.  Overall my bias is still towards locking.

### How Will the Mortgage Insurance Reduction Affect You?

Homeowners may save thousands of dollars on their home mortgages!


In January, the Federal Housing Administration (FHA) announced a policy change that could save homeowners thousands of dollars on their home mortgages. The annual personal mortgage insurance (PMI) premiums will be reduced by 50 points.
What is Personal Mortgage Insurance?
Personal Mortgage Insurance (PMI) is an added safeguard for financial institutions who loan money for housing with little investment from the buyer. Generally, PMI is required when the down payment amount is less than 20% of the property value. The insurance premium is added to the base value of the mortgage and paid monthly along with the premium and interest.

In an effort to ensure responsible lending to creditworthy borrowers, the annual rate for PMI will drop to 0.85% from 1.35%. This may also be beneficial for renters to find housing at a lower monthly fee. For the typical first time home buyer, the reduction in PMI could mean as much as a $900 savings each year.
Will This Change In PMI Policy Affect Those Who Already Have a Mortgage?
For those homeowners who have recently obtained an FHA, they will see an immediate change in their monthly mortgage payments. The savings will amount to $41.67 per every $100,000 borrowed. When you consider that amount applied to the number of months a homeowner is obligated to make the PMI payments, the savings from the reduction are significant. Speak with Better Rate Mortgage today to find out if refinancing your existing mortgage will give you access to the reduced PMI rates.

This reduction is not only a positive move for the homeowner with an FHA loan, it is an excellent move to help in stimulating the housing market. The one criticism that these types of loans have traditionally received was the high insurance premiums that came with the advantage of a low down payment. With this reduction in rates, a home owner can put down 5% or 10% and not have to pay for that benefit with high insurance premiums.
Can This Change Help You Become a Missouri Homeowner?
If you have been making plans to buy a home in Missouri but do not think you are financially ready, bring your concerns to the Better Rate Mortgage who can help you make a viable plan to home ownership and even help you decide if you are ready now. There are a variety of FHA loans available and you may qualify for one right now.

With some FHA loans, you can be approved with a deposit as low as 3.5% and a credit score of 580. That is a big difference from the 640 or better that many banks insist on. Closing costs are also a concern with a first-time home buyer, but with some FHA loans, the seller is allowed to pay up to 6% of that cost. This could give the buyer extra money to cover the costs of moving and setting up a new home.
This is big news for homeowners and the real estate market! By lowering this premium payment, having a house of your own may finally seem like an attainable goal. Call Better Rate Mortgage today at (314) 361-9979!

### Mortgage Rates Update 2/24/2015

Yellen ain’t Yelling…
Quite the contrary, she commented today that nothing would lead the markets to believe there would be a June rate hike.  MBS have responded nicely, but are bumping up against resistance, so you should see some gains this afternoon, but it may be wise to lock into those.  The 10 year treasury has also dropped below 2.02, it would be great to see it close below that level.  Lots of data yet to come this week that could be market moving.

### Mortgage Rates Update 2/18/2015

I’m starting the day very cautiously floating; a lot of technical damage has been done in both the Mortgage Backed Security and Treasury markets.  Several very key support levels have been blown through.  We are sitting on the next level of support at the 100 Day Moving Average.  You can see the next support level below the 100 DMA is over 100 basis points below current level.  There is a saying in the financial world, “don’t catch a falling knife.”  A falling knife can rebound quickly, but also further even faster should sentiment and momentum continue.  The Producer Price Index was tame this morning and housing starts missed by a little, this will all take a back seat to the technical trading picture.  I have been in a locking bias for several weeks and although rates are off the historic lows they are still absolutely fantastic.

### 5 Ways to Use Your Retirement

The equity in your home can contribute significantly to boost your retirement savings and to improve your spending ability.


There are five ways to tap into your home equity; however, each method has its own pros and cons. It is, therefore, essential that you have a complete understanding of each method before you venture further.
Paying Off Your Mortgage
Living in a mortgage-free home after retirement is an ideal situation where you save quite a lot on your monthly bills. The bills that you will have to pay include taxes, insurance costs, and maintenance costs; however, you will be free from a mortgage payment. Having a mortgage-free home can be a big advantage while living on a limited income.
Down Paymentsizing Your House
You may consider selling your home and moving to a smaller and less expensive house. This helps in increasing your retirement savings and also reduces your monthly expenses. Property taxes, insurance, maintenance, and utility bills are directly proportional to the size of the house; moving to a less expensive house reduces these bills as well.
Relocate
When you are working, you may prefer to live near your workplace so that your commute is reduced. The same reason works for parents of school-age children who live near the school their children attend. When you are retired or your children have moved out of your home, the requirement of staying near the workplace or school district does not exist anymore. Now is the time to choose a location close to recreational facilities, suitable medical care, and affordable transportation that will suit retirement life. You may even chose a place close to family or a place with good weather and scenery.
Reverse Mortgage
A reverse mortgage is available for homeowners who are 62 years of age and older. A reverse mortgage allows a homeowner to receive a payment against the value of their house while they continue to live in the same house. A reverse mortgage payout can be received as a lump sum amount, monthly payments for a certain duration, or as a line of credit. The downside is that there are expenses attached with a reverse mortgage such as an origination fee, mortgage insurance, and service charges.
Become a Renter
When you become a renter after selling your house, you may have the advantage of increasing your retirement savings. As a renter you can always call your landlord for essential and emergency repairs. You will also save yourself the trouble of household chores like mowing the grass or shoveling the snow.

Better Rate Mortgage can help you review your options to decide which one will be the most beneficial for your goals and needs. Call us today at (314) 361-9979.

### Mortgage Rates Update 2/11/2015

A pivotal day - I’m showing a chart of the 10 year treasury instead of the Mortgage Backed Securities, MBS are what drive our rates, but they have a solid correlation to the treasuries, the 10 year in particular.  All of the curved lines you see are Daily Moving Averages, the most important today is the 50 DMA, the black line.  You can see it intersects with the 10 year treasury at 2.02.  There is a 10 year auction today and 2.02 is pivotal, the 10 year is currently at 2.00.  You can see that past week rates have been on the climb.  If the auction results are poor, rates have a lot of move to run up as the 100 DMA is the next support line and 2.22 are far above current levels.  If the yields rise then it would take mortgage rates up with them.  Rates will still be fantastic, they just won’t be quite as low.  Conversely as you see over the last 6 months the 50 DMA has been rarely traded above it, so a good auction could see a reversal in the recent rate climb.  If you are happy where things are it couldn't hurt to lock, but if you can stomach a little volatility you could be handsomely rewarded.

### Mortgage Rates 2/6/2015 Update

The jobs numbers SOAR!

Mortgage rates are up this am as the recent trend continues.  It is imperative to take advantage of these low rates now.  Mortgage Backed Securities and thus mortgage rates are at pivotal cross roads, you can see on the chart that they are sitting at support, but as I am typing this they have already dropped below.  The catalyst behind today’s move was an amazing jobs numbers which only beat the estimate by 27,000, but the previous 2 months were revised a combined 147,000 higher. 

### Mortgage Rates 1/27/2015 Update

The stock market is getting hammered this morning by a much weaker than expected durable goods number.  Mortgage Backed Securities and Mortgage Rates though are capped and have been for a while due to overhead resistance, those red lines at top of the graph.  Since the MBS are having a tough time breaking through this dual layer of resistance there is more risk of rates rising than actually falling right now.  As always I’ll keep you posted, but it makes sense to lock in at these historically low mortgage rates.

### Pros and Cons of a Reverse Mortgage

A reverse mortgage is a financial product that allows a homeowner to convert home equity into cash.


A reverse mortgage is an option available to homeowners who are at least 62 years old. A reverse mortgage offers them a good way to finance their retirement. They can use this money to cover healthcare expenses, pay for home improvement, or pay off an existing mortgage. A reverse mortgage provides a line of credit or fixed monthly payments without the need to repay a loan each month. However, before choosing this option, it is important to understand the pros and cons. What can a reverse mortgage do for you?
How a Reverse Mortgage Works
In a traditional mortgage, you borrow money from a lender and repay it in monthly payments while you gradually build up equity in your home. On the other hand, in a reverse mortgage, a lender pays you a monthly sum and gradually purchases the equity in your home. You retain the title to the property and it acts as a security for the loan. The loan is repaid when the owner passes away, sells the home, or the home is no longer the primary residence.
Pros of a Reverse Mortgage

 	You choose how you receive the cash, for example, a regular monthly installment, a single lump sum, a line of credit, or a combination of any of these methods.
 	Irrespective of how you receive the cash, you do not make payments as long as you live in the home as your principal residence.
 	There is no minimum income to qualify.
 	According to the Federal Trade Commission, if you receive more cash than what your home is actually worth, you will not owe anything more than the value of your home.
 	Cash advances are non-taxable.
 	You remain the owner of the home.
 	Cash advances have no affect on Medicare or social security benefits.
 	After lender fees are paid and the home is sold, the owner receives any equity left in the home.

Cons of a Reverse Mortgage

 	You need to be 62 years or older more to qualify.
 	You must go through compulsory mortgage counseling and you will have to pay for it.
 	Closing costs and loan origination fees can be quite high.
 	You may have to pay monthly servicing fees for the term of the loan.
 	Reverse mortgages are usually variable interest rate loans.
 	The debt increases with time as interest is added to the balance.
 	There are limits on the amount you can borrow during the first year.
 	There are limits on the mortgage you can qualify for.
 	If you fail to pay homeowner’s insurance, taxes, or any other expenses, the loan can become due.
 	With a reverse mortgage, you lose the equity in your home and you are left with fewer assets.

The decision on whether you should apply for a reverse mortgage should be made after considering the pros and cons carefully. Better Rate Mortgage can help you weigh all the factors before committing to a reverse mortgage. If the terms of a reverse mortgage does not fit with your needs, we can help you with other options. Call Better Rate Mortgage at (314) 361-9979.

### 4 Things Every Home Buyer Should Be Asking Themselves

Purchasing your first home can be both an exhilarating and daunting experience.


Even though here are professionals to help you make the right decision, you will need to do some homework before you actually go house hunting. In this post, we will discuss the basics of preparing for a first-time home purchase. These tips will come in handy and will help make your life simpler when you begin the decision-making process.
What Are Your Long-Term Goals?
A first-time home buyer will need to determine their long-term goals and how owning a home fits into those plans. Some homebuyers may want to stop paying rent and instead pay a mortgage for their own home, while others may decide to buy a home for independence and enjoy becoming a property owner. Consider these questions to narrow down your homeownership goals.
What Type of Home Will Suit Your Needs the Best?
When you decide to purchase a residential property, you will have several options to choose from, such as a townhouse, a single-family home, a multi-family building, or a condo. Each of these options has its own pros and cons and a buyer can make a choice depending on their homeownership goals. A fixer-upper may be a great choice if someone wants to save money on the purchase price and has the time and money to complete the renovations to turn the house into a dream home.
What Specific Features Are You Looking for in Your Ideal Home?
Your home will be one of the biggest investments you will ever make. Make sure that you get the most out of the money you invest. Make a list of the specific features you want in a home. Include your basic desires such as the neighborhood, size, and even details such as the kitchen and bathroom layouts and appliances you would like in your home.
What Can You Afford?
Before you go searching for your new home, it is important that you have an idea of how much mortgage you qualify for. Better Rate Mortgage can help you decide how much you qualify for based on your income, credit history, and other factors. Your monthly installment payments are not the only cost associated with a home purchase. You will also need to include the cost for a down payment, property taxes, insurance costs, closing costs, and repair and maintenance costs.

Better Rate Mortgage looks forward to helping you own your first home. We work with top-rated real estate agents who will help you find and choose a home. Our unique "TBD Mortgage Approval Program" will help you budget for a mortage loan and complete the paperwork, even before you start shopping for your home. We will guide you through the entire process and save you from any potential pitfalls. Call us today at (314) 361-9979!

### Mortgage Rates 1/5/2015 Update

Mortgage Rates are Great Today!

The chart I am showing is a 6 month view rather the typical 3 month view that I share to show a longer perspective.  Mortgage Rates are starting the year at close to the best levels in the past 365 days.  Oil is once again fallings, great for all of us who consume it, but it is leading stocks lower.  Thus bonds, like mortgage backed securities, MBS, are benefiting from this.  Last week we closed above a key level of resistance and have crossed through another this morning.  This is all good news for mortgage rates, but a reversal in oil and/or a stock market rally could change this.  Should this pattern hold, MBS do have some room to rally more!

### Mortgage Rates 12/15/2014 Update

Mortgage Rates are up slightly as Mortgage Backed Securities were lower this morning due to the rise in stock market and oil, but both have slipped into negative territory.  Although the rally in MBS have not followed, I would expect them to if the losses in the stock market and oil continue to mount.  Technically, MBS are battling a dual layer of resistance that could be shattered if the S&P drops below 1980 (it is currently trading at 1994).

### 5 Things Required for Pre-Approval

A pre-approval letter by a lender is one of the most beneficial documents that will help you in your quest for buying a home.


When you meet with Better Rate Mortgage, you can discuss loan options and budgeting structure. We will be able to check your credit rating and inform you of any potential problems. Our unique "TBD Mortgage Approval Program" will give you confidence while looking for your dream home in St. Louis.
Obtaining a Pre-Approval Letter
As a home buyer, you should first of all be comfortable with the repayment structure of the loan you are applying for. You should never aim for the top of your spending limit from the very beginning. Many home sellers look for a pre-approval letter from the lender of the prospective buyer, since this document proves your ability to finance the purchase. The five documents that your lender requires prior to issuing a pre-approval letter are given below:
1. Proof of Income
Gone are the days when loans were sanctioned without any verification or documentation. Proof of income can be provided by your W-2 statement of the past two years which include your payment statements, additional income statements like income from alimony or bonuses, and your tax return statements of the past two years.
2. Proof of Assets
A lender will require your bank statements and investment statements to ascertain that you have the required capital to make the down payment and closing costs plus some funds in reserve. FHA loans require a down payment of just about 3.5 percent of the total cost, whereas down payment for a conventional loan is generally 10 – 20 percent. If you receive funds from a friend or a relative for helping you in making the down payment, you should also have a gift letter from the friend or relative stating that the said amount is a gift and not a loan.
3. Good Credit Score
The borrowers with the highest credit scores get loans at the lowest interest rates. A credit score of 740 or above gets you the lowest rate of interest on your home loan. Borrowers with a credit score of 580 and below are often required to pay a higher amount as down-payment. A credit score of 620 is preferred for an approval of an FHA loan.
4. Verification of Employment
Lenders are not always satisfied by the pay stubs provided by you. They may also call your employer to confirm your employment and what is your salary package. Borrowers with stable income are generally preferred by lenders as they are sure to recover their capital.
5. Documentation
A copy of your drivers’ license and social security number along with your signatures will be required to pull up your credit report. You should be prepared to provide any additional paperwork that may be required for a smooth mortgage process. So keep these documents ready before you go shopping for a mortgage.
Call Better Rate Mortgage at (314) 361-9979 today!

### Mortgage Rates 12/10/14 Update

Mortgage Rates are moving lower and could be heading for another dip.  Mortgage Backed Securities and the treasury market are benefitting from the selloff in stock.  We are seeing a flight to quality.  Treasuries have dipped below the 2.2% mark, if that holds you could see them test 2% and thus mortgage rates improve.

### Top Things Every Couple Should Consider Before Investing in a House

Purchasing a property should be a well thought out decision for a couple.


Better Rate Mortgage knows that buying a home is an event you have been dreaming of for years and we want to make it as enjoyable for you as possible. We know all there is to know about obtaining financing for this major purchase and are more than happy to pass our knowledge onto you. Here are some key considerations.
Pick the Right Mortgage
Today, choosing a mortgage is easier than it was a few years back, because the high risk mortgages that catered to unqualified borrowers are not available anymore. The choice available for borrowers today is between an adjustable and fixed-rate mortgages, choosing the right one based on their financial circumstances. With our “TBD Mortgage Approval Program”, you can be confident that you qualify before the search even begins.

Couples with dual incomes may secure a mortgage more easily. If a couple is looking at a low risk mortgage, then a fixed rate mortgage is the best option as the interest rate will remain constant throughout the duration of the loan. On the other hand, in case of an adjustable rate mortgage, the rates tend to fluctuate with the market conditions, and you may expect your monthly payouts to be low; however, it is likely that the rate would increase over time. So, your present and potential future earnings should be the key deciding factor while choosing between mortgages.
Location and Development
Your home is one of the biggest investments that you will ever make in your life, so it is important that you choose a property whose value is expected to appreciate over time. In deciding the value appreciation, location plays a huge role. If the demand is high in a particular area, but the available houses are few, then your investment may be secure.

Another important consideration is whether there is any scope of development or expansion of the home as an individual property. If you buy a house that meets both these criteria then you can expect to fetch a good price if you wish to sell it in the future.
Practical Considerations for the Future
Even though choosing the right mortgage type and good location are two extremely important considerations for home buyers, there are other important things that cannot be overlooked. Today, you might be a couple spending most of your time at work, but a few years down the line you may plan a family and you will need space for a growing family. You will need schools and play areas in close proximity to your home. So, while making a decision today, you must keep one eye on your future needs as well.

The Bottom Line
Couples have certain advantages over individual buyers when it comes to purchasing a home and securing a mortgage. However, it is extremely important to consider your financial circumstances and future plans when making this decision.
Call Better Rate Mortgage at (314) 361-9979 today!

### Lending Rules Are Easing as Housing Recovery Delays

Many Americans desire the security of home ownership. Hopefully with these new changes, that opportunity can become a reality for more Americans.


In the early days of the housing crisis, a proposal was drafted that would make lenders hold a stake in the loans that they sold. This specifically applied to mortgages that had a down payment that was less than 20 percent. The idea that the government maintained was that this would encourage more cautious lending.

However, this plan was opposed by both the industry and the housing advocates. Both sides felt that this plan would lock too many people out of the housing market because lenders would be forced to raise interest rates and fees on loans with low down payments.
A New Proposal
In October of this year, a milder version of the plan was decided on by six different agencies. These changes are in response to the fact that the housing recovery has taken a lot longer than it was expected to. It has been acknowledged that the tough regulations were forcing lenders to only lend to those that had exceptionally good credit. This new proposal will hopefully encourage lending to a wider population of borrowers.
In light of this new proposal, both Freddie Mac and Fannie Mae have said they may lower the down payment requirements to 3 percent. The FHA may also be on board to lower the fees that they charge borrowers.

This also means that banks will not be required to hold a stake in the loans that have less than 20 percent down. They will only have to do so on loans where the borrower has a high debt-to-income ratio. While these changes will take effect in about a year, they will not apply to Fannie Mae, Freddie Mac, or the FHA. This plan affects loans that have been sold to private sectors, agencies that do not have government backing.
Owning a Home in St. Louis
The history of home ownership in America is rich. Prior to the Great Depression, a minimum of 50 percent was required as a down payment. However, after WWII, the government wanted to encourage home buying by significantly lowering the down payment requirements. They dropped to as little as 5 percent down for certain loans that qualified. The amount of people who could now qualify and own a home soared. This trend lasted for many decades.

Owning a home is still something desired by many Americans. Hopefully with these new changes, that can become a reality for more Americans.

Better Rate Mortgage has always made every possible effort to secure loans for St. Louis residents that they could afford. Having these new guidelines in place only solidifies our standard practices and gives borrowers more incentive to seek our TBA mortgage approval program. Call us today at (314) 361-9979.

### Mortgage Rates Update 12/2/2014

Mortgage rates are again approaching the best levels of the year. The last time they were this low it lasted for only half a day, but that was due more to the Ebola scare than the market signal they are following today.  If stocks make a significant move down you could see rates get better, but it if you are in the middle of a purchase or need to refinance it is hard to not lock into these great rates today.

### How to Shop For the Best Mortgage Rate

Every home buyer wants to know - how do I get the best mortgage rate?


A home is probably the most expensive thing that you will ever buy in your life, and due to the huge price tag it comes with, you will certainly require a mortgage. This makes it necessary for potential homeowners to evaluate the different kinds of mortgages available and look for the best mortgage rates. The following steps from Better Rate Mortgage can be used to find the best mortgage to purchase a house.
1. Improve Your Credit Score
A credit score is used to determine whether a potential homeowner is qualified for a loan or not. A high credit score can get a potential homeowner a better mortgage rate. It is essential that you monitor your credit score properly.
2. Consider Various Types of Mortgages
The different kinds of mortgages available are as follows:

 	Fixed-rate mortgages have a fixed interest rate for the entire duration of the loan. This allows potential homeowners to forecast their total expenses across the term of the loan.
 	Adjustable-rate mortgages are mortgages where the interest rate constantly changes. The initial interest rate is normally low; however, it may increase over time. It is best for homeowners who intend to pay off their loan before the start adjustment period or for those who anticipate the interest rates to come down in the future.
 	First-time home buyers may qualify for FHA loans. These loans feature low down payments and strict borrowing requirements. FHA-financed homes require the borrower to live in the house and not offer it for rent.

3. Getting In Touch With a Lender
A number of lenders offer mortgages to potential homeowners. Since interest rates keep fluctuating, lenders may offer promotions for some loan products. Potential homeowners should consult and compare the rates offered by various lenders. They should also compare the rate differences in short-term and long-term loans. Better Rate Mortgage offers a unique TBD Mortgage Approval Program. We will take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind.
4. Consider Other Expenses
Loans with the lowest rates may carry high loan fees, so they do not always make the best choice. It is essential to evaluate all associated fees so as to obtain the best deal for the house you aim to purchase. Points are fees that the buyer normally pays to a lender and are linked to the interest rate. As the number of points increase, the interest rate will decrease. People aiming to stay in their homes for a long time may consider points to get a lower interest rate on their loans.
Call Better Rate Mortgage at (314) 361-9979 to start your search today!

### VA Loans Do a Great Job of Serving Those Who Have Served Us!

VA loans continue to provide cost-effective and accessible loans to military men and women and their spouses.


In today’s market there are many obstacles for a home buyer when it comes to applying for a mortgage. Many potential home buyers have been pushed out of the market altogether because of the stricter credit and income requirements. However, throughout the housing market meltdown, the VA loan program has done a great job of serving those who have served us! It has continued to provide cost-effective and accessible loans to military men and women and their spouses. Understanding how a VA loan works is the first step toward getting into your dream home. Equally important is understanding what qualifications you need to meet to be eligible for a VA loan.
Know the Benefits
Knowing what the benefits are of a VA loan is the first step. These types of loans are unique in that they do not have certain restrictions that most people have with conventional loans. Here are 3 major benefits:

 	No down payment
 	No PMI (Private Mortgage Insurance)
 	Competitive mortgage rates

The VA mortgage offers 100% financing to veterans and their spouses. In addition, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.
Because the VA mortgage gives lenders a greater degree of flexibility and safety, it offers more competitive rates than non-VA loans.
How to Qualify
Military men and women can qualify for a wide range of benefits and chief among these is an opportunity to take part in the Veterans Affairs Home Loan Program. While it is designed specifically for those who have served their country, there are a few requirements that they must meet. One of the following conditions must be met:

 	Served 90 consecutive days of service during wartime.
 	Served 181 days during peacetime.
 	More than 6 years in the National Guards or Reserves.
 	A spouse of a service member who died while in the line of duty.


Where to Start
Better Rate Mortgage has over a decade of experience helping St. Louis veterans get approved for VA mortgages in St. Louis. They can approve your mortgage prior to finding your new home with his one of a kind “TBD Mortgage Approval Program”, so you can shop with confidence. If you would like to find out what VA loan you are eligible for, call Better Rate Mortgage at (314) 361-9979 or apply online today!

### Mortgage Rates 11/10/14 Update

Mortgage rates have been pretty steady for a couple of weeks, since we had the one day dip.  Mortgage Backed Security, MBS, Pricing has seen pricing erode a little, almost, every day, except for last Friday when we say some price appreciation from the jobs report.  When MBS appreciate in price rates get better, they are a bond and follow the inverse trading relationship.  The markets are closed tomorrow, we have several treasury auctions and this Friday brings Retail Sales and Consumer sentiment numbers, these all could impact rates.  You can see from the graph that MBS are trading just above support.  With rates still being close to year lows it is not a bad idea to lock into these.

### Five Alternatives to a Reverse Mortgage

What mortgage options are available in addition to a reverse mortgage?


Homeowners who are at least 62 years of age can convert home equity into cash through a reverse mortgage. This allows homeowners to use the equity from their home to obtain a credit line or a fixed monthly payout. Repayment starts once the person moves out, sells the home, is delinquent in paying insurance or taxes, or passes away. Repayment is also deferred unless the house is in bad condition. The house is sold and excess funds after repayment go to the homeowner or the heirs. Are there options in addition to a reverse mortgage to help generate income for older homeowners? The following are alternatives homeowners can use instead of a reverse mortgage.
Refinance the Existing Mortgage
An existing mortgage can be refinanced to reduce the monthly payment and interest rate. Refinancing may also help in building equity for the home quickly and allows the homeowner to retain the house as an asset.
Get a Home Equity Loan
Homeowners can borrow money using the equity on their home through a home equity loan or a second mortgage. The interest is normally tax-deductible for loans of up to $100,000. Since these are fixed-rate loans, the interest may be higher compared to other types of loans. Refinancing allows homeowners to retain the house as an asset.
A Home Equity Line of Credit (HELOC)
A home equity line of credit allows homeowners to borrow an amount to the approved credit limit. Payments are limited to the amount withdrawn by the homeowner. HELOCs can be adjusted and monthly payments are determined by fluctuating interest rates. Interest is normally tax-deductible for loans of up to $100,000. The home continues to be an asset to the homeowner.
Sell the House
The house can be sold so the homeowner can access the equity it created. This is a good option for people who find their existing home to be too big or costly to maintain. The proceeds can be used for purchasing a smaller house and the extra money can be invested or placed in the bank.
Sell the House to Children
Homeowners can sell the house to their children and the proceeds can be used to rent it back from the children. The children also benefit as they receive rental income. A private reverse mortgage can also be used so fees and interest rates stay in the family. The children make the payments for the house and they can recover their investment when they sell the house. However, this situation has some effects on tax and estate planning, and you would require the help of a tax specialist or lawyer.

St. Louis Mortgage Professionals
Homeowners who are short of cash can use a reverse mortgage to generate income. It may be a good choice for people who have a good amount of home equity, but do not earn enough for their retirement.

Call Better Rate Mortgage at (314) 361-9979 to speak with a mortgage specialist.

### Who Benefits From PMI Insurance?

Private mortgage insurance was designed to protect the lender; however, there are also benefits for the home buyer.
Private mortgage insurance (PMI) is an insurance designed primarily to protect the lender in the event that a home loan is defaulted on. In most cases it is mandatory that PMI be part of the mortgage package if the buyer puts less than 20% of the value of the home as a down payment. As a borrower, it is important to understand how PMI insurance can benefit you when you want to secure a home loan.
When Is PMI Insurance Required?
Many lenders will insist on PMI when a low down payment is made on a house. The PMI premium will be built into the monthly payment as part of the mortgage. As a borrower builds equity in the home, they can eventually have the PMI premium removed as part of the monthly payment.

While the insurance is designed to protect the lender, it is also allowing borrowers to buy a home that they would not be able to afford. It is not easy to come up with 20% of a home’s value, but with PMI insurance, it is possible to buy a home with less money down. When you consider the low monthly premium you are subject to for the privilege of owning your home with less money down, the PMI insurance premium makes sense.
Asking for PMI to be Removed
PMI remains on most FHA loans until the mortgage is paid off or refinanced. On conventional mortgages you have the right to ask that PMI insurance be removed once you have at least 20% equity in your home. This could come as the result of timely payments, or if a renovation has changed your home’s value. Once you have reached 22% equity in your home, the lender is required to allow you to remove the PMI insurance.

So many people are fixated on having today's lowest interest rates when the more important question to ask is "What are the PMI cost?" because an .125% increase to the rate is only about $7 per 100k, while PMI could be $100's per month!


Better Rate Mortgage is dedicated to educating every home buyer to be set up for success. In addition to seeking the best mortgages rates available, we also look for the lowest PMI premiums. Our mortgage clients have the best loan options available in St. Louis. If you are a first time home buyer, it is important to work with an experienced professional that you can trust.


Call us today at (314) 361-9979!

### What Can a Reverse Mortgage Do For You?

Take advantage of all of the hard work you have put into your home.


A reverse mortgage allows you to tap into the equity of the home you have worked hard for and use the money for repairs, medical expenses, or even a trip around the world.
What Is a Reverse Mortgage?
With a typical mortgage, monthly payments are made to the lender to pay the loan back. With a reverse mortgage, there is no obligation to pay the money back until you no longer live in the home. The money you receive is tax free and there are typically no income restrictions. The amount you receive is entirely dependent on the value of the property. A Home Equity Conversion Mortgage (HECM) is part of a federally insured reverse mortgage program that is backed by the U.S. Department of Housing and Urban Development (HUD). These loans are widely available and have no income or medical requirements.
Qualifying For a Reverse Mortgage
To qualify you will first be asked to meet with a financial counselor from an independently operated, yet government-approved, housing counseling agency. The cost of the loan and its financial implications will be explained to you in detail. Follow this link for FAQ's about reverse mortgages. You will also be shown other types of mortgage products to help you understand the differences in structure and cost. If you choose an HECM mortgage, you will be given four options to choose from.

 	Term loan - This allows you a fixed cash amount for a specific amount of time.
 	Tenure loan - Fixed monthly cash advances for as long as you are living in the home.
 	Line of credit - This gives you more flexibility as you can withdraw the amount you want anytime you want. This is a good option if you plan on using the loan to fund a trip or make renovations on your home.
 	You may also choose a combination of the two.

How to Use the Funds From a Reverse Mortgage
No matter which form of payment you decide on, the money is yours to spend however you see fit. The amount you receive is based on how much your home is worth minus any existing mortgages you may still be paying on it. The amount you receive is not taxable and will have no bearing on any aid you receive, such as social security or medicare. The title to the house remains in your name and there is no obligation to make any repayments. The full amount you borrowed will be paid once you no longer use the home as your primary residence.

A mortgage representative from Better Rate Mortgage can help you go over all of the points to make sure that this is the best option in your circumstance. Many Missouri homeowners use this as a way to supplement their income after retirement in order to continue with the quality of life they are accustomed to. You have spent many years working on building equity into your home. Now is the time to let your hard work pay off for you!
Call Better Rate Mortgage at (314) 361-9979!

### Is Now a Good Time to Refinance Your Mortgage?

Refinancing an existing mortgage is not a decision to be made lightly.
While it may seem like a convenient way to ease some of your financial burdens at the present time, you need to carefully consider how it will affect you financially in the future. Before jumping into a new home loan with new terms, review all of your options with a qualified St. Louis mortgage broker like Better Rate Mortgage to make sure this is the solution that will meet your current needs and your future plans.
Why Should You Refinance?
There are a number of reasons why people consider refinancing their current mortgage. One main reason to refinance is to get a lower interest rate. A basic refinance to a lower rate where you are not cashing out any of the equity you have built into the home will lower your monthly payments. This makes available to you more cash to pay other bills.

When home values fell, the cost of the existing mortgage became more than what the home was worth. These homeowners are left with two choices - either stick it out and continue with their high monthly payments until the home regains value or sell the home at a loss. What many of these homeowners are not realizing is that home values are slowly climbing, and what the assessed value of their home was two years ago may be drastically different than what it is today. If you fit into this scenario then you should be talking with a broker like Better Rate Mortgage to find out if the tide has finally turned in your favor.
Refinancing to Consolidate
Homeowners who realize that they have built equity into their home may sometimes look at refinancing as a way to consolidate other high interest debts they may have, such as credit cards, into their home mortgage. Talk this over with a mortgage expert like Better Rate Mortgage first. While seemingly a good idea at first glance, you have to consider that even though the rate is considerably lower, you are now adding that debt into a 30-year commitment. You may be better off to refinance just the home and use the extra monthly cash to pay those other debts off faster.
Schedule an appointment with Better Rate Mortgage to discuss your options. You might have more equity in your home than you thought, allowing you to finally break free from high interest mortgage terms into rates that you can live with.
Call Better Rate Mortgage at (314) 361-9979 today!

### 4 Compelling Reasons To Be Pre-Approved For Your Mortgage

Why will a pre-approved mortgage help you successfully buy the home of your dreams?


Would you go to the supermarket to buy groceries without knowing how much money you had on your debit card to spend? Shopping for a new home without first knowing how much you will be able to borrow is doing the same thing. If you are on the fence about looking into Better Rate Mortgage’s "TBD Mortgage Approval Program", here are five reasons to help you reconsider.
Save Time!
Use your valuable time wisely; avoid looking at homes that you can not afford. With a TBD approval, you can be very specific with your realtor about the type of home you can afford, and insist that he or she save you time by only showing you homes inside of that price range.
Avoid Disappointment!
Use your TBD mortgage approval to make sure that you do not fall in love with a home that you simply cannot afford to buy. Instead, prepare for success by looking at a potential home that will turn into a realty!
Increase Your Negotiating Power!
You look better to a seller who is deciding between various offers when you have a Better Rate Mortgage "TBD Mortgage Approval Program." They know that the offer is not conditional based on financing since you already have it. Many home sellers in St. Louis have lost thousands of dollars waiting for a closing that never happens because the buyer can not get a loan approval. Use this to your advantage and make it a selling point when putting in your offer.
Save Money!
It just makes more sense to have your mortgage pre-approved before you start looking at houses. The stressful part of finding a loan is behind you and now you can enjoy the entire house hunting experience with peace of mind. You get to choose the right home already knowing it is at the right price.

The majority of the criteria needed for a home loan approval is dependent on the borrower, and their financial status rather than the house itself. Use this to your advantage by establishing a good credit history, saving money towards a down payment, and getting your Better Rate Mortgage TBD mortgage approval before you begin searching for the new home of your dreams.
Call us today at (314) 361-9979!

### How to Make an Old House Brand New

Build the dream house you have always wanted!  It may be easier than you think!


The dream of building a home from the ground up exists for many St. Louis residents, but to actually make that happen can be very difficult. An alternative is to buy a home in need of repairs and renovate it into the house of your dreams. The Fannie Mae HomeStyle Renovation Loan is the home mortgage that can make that happen.
Finding Money to Renovate an Older Home
The St. Louis housing market is abundant with homes that are sitting on nice sized lots in desirable areas of the city. Unfortunately, they may go unnoticed by home buyers who assume that a mortgage and the money to fix them up is unattainable. What many do not realize is that the majority of those homes are being offered at a discounted rate and that Fannie Mae will help fund the renovations.

The unique HomeStyle Renovation Loan allows you to make a purchase based on what the value of the home will be after your renovations are made. You make a 5% down payment on this assumed value and get the funding you need not only to buy the property, but to bring it up to that standard.
Qualified Renovations and Repairs
The Fannie Mae HomeStyle Renovation Loan has very few limitations on the type of renovation or repair that the money can be used for. The biggest stipulation is that the work done must be a permanent addition to the home. This includes a new roof, HVAC system, new floors, or anything else that brings value to the property. It even allows for what many would consider luxury items. The cost of swimming pools, upgraded patios, and even a hot tub can be factored into the loan allowing you to create the house you have always dreamed of.

Taking into consideration that you may not be able to live inside of the home until repairs are complete, Fannie Mae will even include up to six months worth of your monthly mortgage payments into the loan package so that your payments are covered while the renovations are underway. This allows you the time to make those repairs and settle your existing home loan. You can live in and pay for your existing home while your new mortgage is paying for the repairs and mortgage payments of the new one.
Using the HomeStyle Loan to Refinance
For those who are in love with their existing home but know it needs some work are also able to apply for the Fannie Mae HomeStyle Renovation Loan as a refinance. This can help you update your current home and bring its value closer to what you know it to be worth. Add energy efficient features like solar skylights or new appliances, or make additions to accommodate a growing family. The choices are endless.

Unlike home equity loans or lines of credit, there is no second loan or second interest rate to consider with the HomeStyle Renovation Loan. All of your needs are consolidated into one convenient loan package, making it a snap to convert an existing home into the one of your dreams. If there’s a house on your list that would be perfect if not for a few modifications, don’t dismiss it. Instead, apply for a HomeStyle Renovation Loan and make that house the home you want.
Call Better Rate Mortgage today at (314) 361-9979!

### Success Tips For the First-Time Home Buyer

Take the first steps toward home ownership in St. Louis with confidence!
You are about to embark on a journey that is exhilarating! Having that special home to call your own is a long-time dream for many. When you start the process on the right path, you can make the entire experience a joyful one.
Have Your Finances In Order
First, start off right by getting your finances in order. Work towards paying off any credit card debts and build a savings account for a down payment. You are also going to want to have cash on hand to help you when it comes time to turn your new house into your home.

Once your financial situation is in order, make an appointment with Better Rate Mortgage. You will want to see us first to find out how much house you can afford before you start making appointments for open houses. Our "TBD Mortgage Approval Program" will keep you focused only on those St. Louis homes that fit into your budget. Better Rate Mortgage will make sure to find the right product to suit your needs. There are special loan packages for certain circumstances, such as veterans, that you may qualify for.
Happy House Hunting
When you have your pre-approval in place you can begin the house hunt. Do your research to find out which St. Louis neighborhoods appeal to you and will likely work with your budget. Take into account schools, local taxes, and location in relation to your job. When speaking with a real estate agent be honest about your desires and the price range you are looking at. Nothing dampens the house hunting joy quicker than falling in love with a home that you find out you cannot afford.
Better Rate Mortgage
The experience for a first-time home buyer does not need to fraught with stress and disappointment if you follow the steps in the right order. With a "TBD Mortgage Approval Program" you can eliminate the stress and enjoy the process of getting to pick out the home you have been dreaming of.
Better Rate Mortgage at (314) 361-9979 today!

### Choosing the Right Time to Refinance Your Mortgage

Learn about the advantages of refinancing your mortgage.


Many St. Louis home owner's have refinanced their mortgage as interest rates slowly tumbled downwards. This can be a money saving option. What are the advantages of refinancing your mortgage? When is the right time to refinance your mortgage?
Refinance Your Mortgage When Interest Rates Are Low
Refinancing your mortgage can lower the interest rate and therefore the monthly payments. You will reduce your monthly expenses and potentially save money on the life of the loan. To gain the most financial benefit of refinancing, consider changing the terms of the loan, such as a 15 or 20 year term. This will allow you to still finish paying off your home in the time projected and get the benefit that a lower interest rate will offer you.
Refinance Your Mortgage When the Value of Your Home Rises
When your home's value increases, the equity can be used to fund major home renovations. It may be easier to budget one loan instead of two. Refinancing to improve your home and increase its value may make sense, especially when interest rates are considerably lower. You may then be able to recoup the costs when it comes time to sell the home.
Working With Better Rate Mortgage
There are several options to consider when it comes to refinancing your home loan. Speak with Better Rate Mortgage about your short-term and long-term financial goals. We will help you have a clear understanding of your options, making sure you get the loan that is going to work best with your needs.
Call Better Rate Mortgage at (314) 361-9979 today!

### A First Time Home Buyers Guide to Closing Costs

Be confident purchasing your first home in St. Louis with this guide to closing costs.







Better Rate Mortgage is dedicated to educating potential first-time home buyers in St. Louis to be set up for success. This includes making sure you understand each step of the home buying process. For example, there are a number of fees to be paid when you are at the closing for your new home. These fees cover a variety of inspections, legal costs, and document generation. Once you apply for a mortgage, the lender is required to supply you with a Good Faith Estimate (GFE) of what these costs will be at your closing. This is an estimate and is a good guide to help you understand what you can expect. There are three different categories of items you will find in the closing costs of your new home.



Mortgage Fees



Mortgage fees are the charges to you by the mortgage company financing your home.




Lender fees and points - This is an upfront charge for obtaining and then processing the loan on your behalf. This fee is measured in points, with one point reflective of one percent of your loan. The more money you are borrowing, the more you may be paying in points.



Loan origination fee - This is payable to the lender for the work in evaluating your loan qualifications and preparing the necessary documentation for your loan.



Application fee -  This is a separate charge for obtaining your current credit report and processing your loan application.



Appraisal fee -  An appraiser will be retained to evaluate the value of the home you are purchasing. This third party charge will be included in the fees you are required to pay.



Property survey - A separate independent report is needed by a firm who will survey the property you are purchasing to ensure that any permanent structures on it are in compliance with St. Louis and Missouri laws and that the boundaries of the property are where the seller claims them to be.



Private mortgage insurance (PMI) -  A type of mortgage insurance that protects a lender when less than 20% of the homes value is given as a down payment. The initial cost of this insurance will be payable at closing and monthly charges are added to your mortgage payments. You have the right to have this insurance removed once you have gained 20% equity in the home.



Homeowners insurance - As a mortgage holder you will be required to obtain homeowners insurance for the property. This protects the home and its contents in the event of a tragedy.




Transfer of Ownership Fees



There are separate fees that will cover the cost of a title search and insurance. This is done to ensure that the home you are buying is in fact owned by the seller. Along with the search, there also may be a charge for title insurance. This protects the lender and new owner in the event that something was missed during the search. The transfer of title is a legal process which may include separate attorney and document fees.



Government Fees



You may also be responsible to pay the local government for the transfer of ownership along with the local and state taxes on the property. In many cases you can ask that the property tax be included as part of your monthly mortgage payment, allowing the lender to be responsible for seeing that it is paid on time.



It can be hard work to try and sort through all of the charges associated with the closing of your new home.  Better Rate Mortgage's “TBD Mortgage Approval Program” will take the stress out of buying your first home in St. Louis!



Get Started Today! Call (314) 361-9976 Now!

### Paving the Way For a Smooth Road to Home Ownership

Simple planning and saving tips for St. Louis first-time home buyers.


Purchasing your first home is a huge investment; it is also one of the most rewarding ones you can make. If home ownership is part of your future plans, it is never too soon to start planning ahead.
Start a Savings Account
Once you have a time frame in mind for when you think you will be ready for home ownership, open up a savings account. Consider opening a short-term investment account such as a CD. The nice thing about this type of term account is that you are discouraged by withdrawing any funds early by penalty charges.

If you are hesitant, thinking you may need some access to your money, there are other higher interest savings accounts to consider. The important thing is that you are putting money aside for a down payment. Not only will this save you money on PMI insurance when you are shopping for a mortgage, it will make you a more desirable applicant.
Watch Your Credit History
Your credit report is going to make a big difference in the type of mortgage you may qualify for. Pay your bills on time and avoid having multiple forms of credit with high limits. Some of your utilities can also show up on a credit report so make sure you are paying those on time as well.

Another thing about a credit report that many people don’t realize is that a high number of inquiries will also bring your score down. Only apply for credit that you actually need and will use, and keep your balances at less than a third than what is available to you. Lenders generally do not like a borrower who quickly maxes out all of their available credit. On the other hand, no credit may be just as worrisome to a lender as bad credit, so you will want to establish a history; just make sure that it is a good one.
Know Your Budget Before You Shop
Once you have a substantial amount of savings and your credit history looks good, you can begin to shop for your mortgage. Shopping for the house first makes no sense if you have no idea how much credit a mortgage broker will offer you. Bring all of your information to a qualified broker like Better Rate Mortgage to find out not only how much house you can afford, but what kind of mortgage options you have.  The “TBD Mortgage Approval Program” can give you the confidence of a “Cash Buyer” while buying a house in St. Louis.

If you prepare ahead of time and call Better Rate Mortgage, owning your first home will be a reality! Call us today at (314) 361-9979.

### Do I Really Need a Real Estate Agent to Buy A Home?

Carefully consider how you will handle one of the largest, complex financial decisions you will ever make.
Purchasing a home is one of the largest financial decisions a person will make in their lifetime. Therefore, as a future homeowner, you will need to carefully consider the best way to go about buying your home. Generally it is not a legal requirement to use a real estate agent to purchase or sell a home. However, there are reasons to consider using a real estate agent.
Buying a House Is a Complex Transaction
Buying a house involves many different types of transactions. For example, you will be required to obtain a home inspection, a home appraisal, and you will need to work with a mortgage lender to obtain financing. There are many negotiations to be made with the buyer, for example, date of possession and any repairs or upgrades to appliances are settled on between you and the buyer. A real estate agent is familiar with all of the many transactions, how they fit together, and can easily facilitate communication with the various people involved.
Drowning In Paperwork
To purchase a home, there may be up to 300-600 pages of forms to complete. For example, the purchase contract may be about 200 pages long, including any contract addendums, disclosures, and disclaimers. Other documents required to purchase a house are the mortgage loan application, title insurance and property insurance documents. Any of these documents may be anywhere from 20-200 pages in length, depending on the complexity of the purchase.
Working With Dependable and Honest People
One you are aware of the many details of buying a house, you will then realize you will need to find reputable vendors to do business with.  Connecting with the team at Better Rate Mortgage will put you in touch with the dependable people you need. In addition,  a TBD mortgage approval program can help you determine how much house you can truly afford, before you start shopping around.

A real estate agent is usually paid on a commission basis, after the sell of the house is completed at closing. Typically, the seller will pay the commission fee, which will then be split between the seller's and the buyer's agent. When you a purchasing your home, you will want a person who will be looking out for your interests. Call Better Rate Mortgage at (314) 361-9979. We will connect you with some of the top real estate professionals in the St. Louis area.

### St. Louis Foreclosures and Short Sales Decline

Refinance options are opening up to St. Louis homeowners who previously had lost value on their home during the housing crises.
The St. Louis housing market continues to improve. The owners of properties whose mortgage value is still greater than the home value are deciding to wait for the housing market to improve. A look at national numbers show the same trend, with a 15% decrease over all of the number of foreclosed homes for sale.
Reassessing the Value of Your Home
Distressed homes are those that are either facing foreclosure or being sold in a short sale. A short sale is when a homeowner makes an agreement to sell their home for a price that is not sufficient to pay off the balance of their mortgage. For those homeowners who were able to keep their home, now is a good time to have the value of it reassessed.
Home Values On the Rise
With a housing market that is favoring sellers due to a decrease in available property, home values are on the rise. The homeowners who are still holding the deed to a distressed property may now find themselves able to break even or even make a small profit on their home. Now is a good time to talk with a lender like Better Rate Mortgage to see which financing options are now open to purchase a new home.
TBD Mortgage Approval Program
If a potential St. Louis home buyer is unsure how much home they can actually afford, programs like Better Rate Mortgage’s TBD mortgage approval program will give them an idea of what type of home they should be looking at in their price range. More importantly, with a TBD approval, the buyer is able to make an offer immediately, without having to wait for bank approval.

Expect to see short sales and foreclosures in St. Louis continue to diminish as more and more homeowners who chose to ride out the storm are now able to reap the benefits of an improved housing market. Mortgage rates are still low, but are predicted to continue to rise, making now the optimal time for homeowners to look at the value of their property again to see if it has risen above their mortgage balance allowing them to finally sell without a major loss.

Call the team at Better Rate Mortgage at (314) 361-9979 today.

### Home Buyers Protected with New Mortgage Guidelines

Mortgage lenders are now required to prove one simple question, before lending money to a home buyer: "Can you really afford the mortgage payment?"
New mortgage guidelines protect home buyers.

St. Louis residents who have been dragging their feet about locking into a mortgage rate can finally throw their fears aside and take advantage of Better Rate Mortgage’s TBD mortgage approval program. The Consumer Financial Protection Bureau recently put into effect new mortgage regulations that give homebuyers new rights and protections as a potential future mortgage holder. This change comes at a great time, seeing as mortgage rates are expected to continue to rise into the next year. It may be years before we see rates as low as the 4.3% average we have now.
Can You Really Afford the Mortgage Payment?
The main change that has taken effect just this month is that lenders must make a more thorough evaluation of whether or not the borrower can continue to make payments over the long-term. This is nothing new for Better Rate Mortgage, who have already recognized the buyer’s role as being more important than the value of the home. That’s what the TBD mortgage program is all about. Making sure you get into a home that you can afford.

Qualified mortgages backed by Fannie Mae are there to help protect the consumer from those high risk loans that destroyed the housing market in 2008. With these new rules, a lender has to assess and document a multitude of components regarding a buyer before a mortgage can be offered. If those criteria are not met, the loan will not be considered a qualified mortgage.

 	Terms cannot go beyond 30 years.
 	No interest-only, amortization or balloon payment loans.
 	A loan exceeding $100,000 cannot include points and fees that are more than 3% of the loan.
 	For adjustable rate loans, the borrower’s assessment will be based on the possible highest rate, not the initial low teaser rate.
 	The debt to income ratio must be 43% or less for the borrower.

A lender still has the right to allow some leeway when approving a loan application, so long as they have the documentation to prove why they believe a borrower can pay.
Correspondence Between Lenders and Borrowers
Lenders are also now required to be more clear in their correspondence with their borrowers:

 	Monthly statements must be sent to the borrower that break down the payments into interest, principal, escrow, and fees.
 	Borrower's questions must be handled quickly and mistakes corrected immediately.
 	Payments will have to be credited on the day that they are received.
 	Give plenty of advance notice to borrowers with adjustable rate mortgages that the rate is going to change.
 	Get in touch with any borrower who is late 36 days or more on their payment.
 	Discuss refinance options and payment deferment with borrowers who fall behind as alternatives to foreclosure.

In addition, foreclosure proceedings cannot be initiated until the borrower is more than 120 days behind on payments. This should allow enough time to explore other options. A foreclosure cannot be initiated if the borrower has applied for help and all other avenues have been thoroughly explored.

Better Rate Mortgage has always made every possible effort to secure loans for St. Louis residents that they could afford. Having these new guidelines in place only solidifies our standard practices and gives borrowers more incentive to seek our TBA mortgage approval program. Call us today.
Better Rate Mortgage
(314) 361-9979

### A Sellers Market in St. Louis and What It Means For You

The St. Louis real estate market is on the upswing, boosting home values and making it possible for homeowners to reassess the value of their home.
Home values are increasing here in St. Louis, Missouri.

Because of  a shortage of homes on the market, St. Louis home buyers are facing limited choices. 2013 saw the best rise in home sales since 2008 and that momentum has continued into this year. If you are still battling with an unbalanced mortgage, now is a good time to have its worth reassessed.
Home Buyers Entering the St. Louis Real Estate Market
With a steadily rising stock market and a mortgage rate of 4.3% that promises to raise, home buyers are steadily entering into the St. Louis market. By using services such as the Better Rate Mortgage TBD mortgage approval program, potential St. Louis home buyers are entering the market with confidence, knowing beforehand exactly how much house they are able to afford. This also gives home sellers some peace of mind, knowing that buyers viewing their home have already been screened for pre-approval. No last minute back-outs due to an unforeseen bank denial.

The media is reporting that the St. Louis real estate market is steadily gaining strength, especially in areas like St. Louis where new job opportunities on the horizon are giving buyers the confidence to commit to a mortgage. This imbalance of supply versus demand is creating a market where one home is receiving multiple offers, driving the home values in the area upwards.
St. Louis Sellers Market Boosts Home Values
As the threat of an increasing mortgage rate continues to loom around the corner, more and more potential buyers are attempting to lock in now at a rate that is still historically low on a 30-year fixed loan. Home sales are rising in all price ranges, offering more opportunities to buyers who are pre-qualified by TBD programs like the Better Rate Mortgage approval program.

This type of news is most advantageous to those St. Louis home owners still tied down to a mortgage value that is greater than their homes worth. A sellers market such as this one boosts home values, making it feasible that you can sell your home for a price that will cover the remainder of your mortgage. It has now become commonplace in St. Louis to see bidding wars on for sale homes, where the owner is able to accept offers above his original asking price.
A Stronger Economy and Low Interest Rates
Excited by the news of a strengthening economy and low interest rates on fixed loans, potential buyers are once again entering the real estate market. Talk with a qualified lender like Better Rate Mortgage first and get your approval before you start looking at homes. You will be better equipped to make offers with confidence when you have the mortgage approval part of the process already nailed down. Contact Better Rate Mortgage today. Call us at (314) 361-9979.

### Some Metro St. Louis Homeowners Still in the Red

The city of St. Louis is still plagued with a large number of homeowners whose mortgage value exceeds the property value.
Most of these distressed homeowners are victims of poor mortgage terms, where they were locked in at a low rate which rapidly increased after just a few years.
The St. Louis Areas Most Affected
The St. Louis areas affected most by these homes are Bellefontaine Neighbors, Berkeley, Spanish Lake, and Jennings, where it is being estimated that over half of the mortgages held by homeowners in those neighborhoods are higher than the home’s value. What the study also showed is that many are sticking it out in hopes of being able to pull out ahead as home prices continue to rise.
An Effort to Raise Home Values
One misconception is that these homes are not being well kept or maintained by the owners, where in fact in many cases the opposite is true. These homeowners are anxious to see property values in their neighborhoods rise in order to take advantage of refinance options with lenders like Better Rate Mortgage. To do so, you will find that they are making additions to their homes and upgrades in a concerted effort to bring up home values.

These efforts seem to be paying off. Since March, property values in most of these areas has risen, giving the distressed home owner hope that they will soon be in the clear. Those who have waited out the storm and had no plans on moving will benefit the most as the prices continue to rise and they can finally qualify for a refinance. For those that will want to move, obtaining a Better Rate Mortgage TBD mortgage will be made easier without the black mark of a foreclosure or short sale on their credit report. They will not only at least break even from the sale of their formerly distressed home, they will be able to pre-qualify for a mortgage with terms that are easier to live with.
Access to Refinancing Options
With access to FHA and Fannie Mae mortgages, Better Rate Mortgage can help these homeowners who have been living with the consequences of difficult mortgage terms. We are able to provide refinancing services with fixed rates and both 15 and 30 year terms as well as secure monies for new home purchases through the Better Rate Mortgage TBD mortgage program. What is great about these loans is that you are approved based on your ability to pay, not on the value of the house. This allows you to enjoy the pleasure of new home shopping without the worry of denial with the lending company.

While the news of so many homes still under water in the St. Louis metro area may be disturbing, there is continued hope that those numbers will soon begin to decline. With new employment opportunities coming to the city and a continued trend in rising home values, these homeowners may soon receive their just reward for sticking it out. Call Better Rate Mortgage at (314) 361-9979 for more information.

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### The Benefits of One on One Service in Lending

With a decrease in loan volume still looming over mortgage brokers, there is becoming a need to change marketing strategies in order to gain new clients.
It is easy for a lender to try and change their business plan to compensate for a decrease in revenue. This problem is stemming from homeowners shying away from refinancing. Those who have purchased homes in the last few years see no benefit to re-financing now at a possible higher interest rate, while those who are still locked in at a high interest rate have not yet gained the home value they need to qualify for one.
Personalized Lending
Instead of using mass marketing techniques to lure in new borrowers, personalized lending such as what you receive with Better Rate Mortgage is a better way to entice new business. Instead of focusing only on output, getting to know the customer and providing personalized service is the better way for lenders to do business.

A counted on lender like Better Rate Mortgage has a strong referral base, thanks to on-going relationships with satisfied prior clients. What you should be looking for when shopping for a mortgage is a broker who is open to sharing referrals with you and is able to communicate effectively how they were able to assist these customers in getting the financing they needed. Another indicator of a good lender in St. Louis is what the real estate brokers have to say about them. The relationship between the agent and lender is usually a close one, and yours should only direct you to someone they know to be efficient and counted on as a broker.
Listening to the Homebuyer
Flashy advertising techniques are not going to help a homebuyer when it comes time to qualify for a loan. They need someone who is willing to listen to their concerns and assess their situation in order to ensure they receive the best possible terms. The great thing about brokers like Better Rate Mortgage is that they are willing to offer you those terms before you choose a home. Their assessment is based on what you can afford as opposed to what the house you are interested in is worth.
TBD Mortgage Programs
The incentive of TBD mortgage programs is a better draw for new clients than a loan officer who is only interested in the value of the home. This allows the buyer the freedom to shop for a house that they already know they can afford. This also allows the lender to talk with a potential homebuyer about the pros and cons of home ownership and how their personal needs are going to be looked after before the borrower falls in love with a house. This is a big decision to be made, and the borrower needs to feel confident that the lender who they will be having a relationship with for the next 30 years is one who has their best interest in mind.

The housing market in St. Louis has undergone some major fluctuations over the last few years, and it may be frightening to consider jumping into a new home. For someone considering making a move now, the best way to do it is with a lender who is able to offer one-on-one communication and ease your concerns, not one who is too busy focusing on the bottom line to care about your needs.

Call Better Rate Mortgage at (314) 361-9979 for more information.

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### Signs That the St. Louis Housing Market Is On the Rise

The National Association of Realtors revealed that there was an influx of new homes entering the market.
This is great news for buyers who had been experiencing limited choices in new homes since this past January. Although still down 5.2 percent from the same period last year, pending home sales showed a jump of 6.1 percent. The onset of warmer weather has finally put St. Louis homeowners back to the business of selling their properties. This trend is being noted not only in St. Louis, but all across the nation.
An Ideal Sellers Market
Thanks to a lagging market in the earlier part of the year, a shortage of houses on the market made for an ideal sellers market for St. Louis residents. House hunters are reporting that homes are being bought in only a few days. With multiple offers being made and actual bidding contests taking place for ownership, some have resorted to offering cash as an incentive in order to entice the seller to choose them.

This is not making things easy for a house hunter and it is being suggested that in order to make themselves just as appealing to a seller they should be getting pre-approved for a mortgage. This is a sign to the seller that your offer is serious and that it won’t fall through later for lack of funding.
Pre-Approval Before House Hunting
Most home buyers do not realize that they have this option. Having your TBD Approval in hand before the hunt not only makes you more attractive to a seller who is getting multiple offers, it saves you the time and heartache of looking at homes that are not in your budget.
How Lenders Qualify Borrowers
Traditionally, more value was placed on the value of a home than on the borrower’s ability to pay the monthly mortgage premiums. Recent economic events have taught lenders to look harder at the borrower then on the assets of the home. This should not scare you away from looking for a house. There are a variety of loan packages available that are backed by Fannie Mae and the FHA that are helpful for first-time homebuyers and those whose credit is less than perfect.

Before meeting with a real estate agent, meet with a reputable lender like Better Rate Mortgage, who will work on helping you determine how much house you can afford. We will get busy on getting your pre-approval so that you can get busy on the hunt for the perfect home. A good lender knows that there is more to the job than collecting data and running it through a formula. Better Rate Mortgage will go over with you your personal and financial situation to find you the perfect loan package that can fit all of your needs.

Be ready for this strong seller’s market that has taken over the St. Louis real estate market by getting prepared beforehand. The better you look financially to a seller with options the better the odds that they will pick you. Call Better Rate Mortgage at (314) 361-9979.

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### Home Loan FAQs

Getting financing is the most important piece in the path to home ownership.
Before contacting a real estate agent, your first call should be to a qualified lender to find out what types of loan options are available, which ones you qualify for, and most importantly, to find out how much house you can afford. During this time you should also be learning some mortgage fundamentals.
What Is a Mortgage?
A mortgage is a loan that is using property or a home as collateral. It is absolutely necessary unless you have the cash for the full purchase price. You essentially are promising the lender that you will be making small monthly payments to help pay that loan back. If you fail to do this, they have the right to seize the collateral, which is the house. That is what is known as a foreclosure.
How Much Will the Monthly Payment Be?
That depends entirely on the amount of the home loan and the terms that you secured; expect it to consist of four separate things:

 	The principal, which is the amount of money that you borrowed.
 	Interest payments, which are the fees charged to you by the lender for allowing you to borrow the money.
 	The yearly property taxes that are charged to the home. Lenders will insist on collecting this; defaulting on your taxes could cause you to lose the house to local authorities, an event that they cannot intervene with.
 	Monthly insurance payments that are paid on the home in the event of a fire, flooding, or roof damage. This is collected by the lender as well to ensure payments are made. You may also be required to pay a PMI which is an additional insurance for your lender if you are making a down payment of less than 20% of the home’s value.

What Is the Difference Between a Fixed and Adjustable Rate Mortgage?
With a fixed rate mortgage, the interest rate applied at the closing of the loan will remain consistent for the life of the loan, as opposed to the adjustable rate mortgage, which can fluctuate with the interest rate. The terms for an adjustable rate review are usually applied every 3, 5, or 7 years.
What Is APR?
APR, or annual interest rate, is a compilation of all the fees your monthly payments will be covering, including the interest. Closing costs, insurance fees, and taxes are all considered when determining APR.
What Is TBD?
TBD financing is securing a loan before choosing a house. To be determined programs allow you to start the house hunting program with the confidence of knowing how much credit will be extended to you.

Better Rate Mortgage’s TBD mortgage program is helping thousands of St. Louis residents find the affordable house of their dreams as opposed to the unaffordable. It helps tremendously in making the process of buying a home as enjoyable and stress free as possible. Stop by our office today and get started on your right path to being a home owner.
Better Rate Mortgage - (314) 361-9979
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### Is It Time You Reversed Your Mortgage?

A reverse mortgage can be a viable option for seniors who would like to supplement their social security income.
Is a reverse mortgage right for your circumstances?

Reputable lenders, like Better Rate Mortgage, will make sure that you understand the benefits and risks of a reverse mortgage, and help you decide if it is right for your situation, before you sign on for one.
How Does a Reverse Mortgage Work?
As a responsible home owner, you have been making timely mortgage payments on your house for years, possibly decades. This has allowed you to build up equity in your home. Equity simply means that you now have value in the property above what is owed on it. A reverse mortgage allows you to tap into that equity to finance other things.

At first glance that seems like a home equity loan, and in some ways it is similar. The major difference though, is that as a senior, you are receiving monthly payments on that equity instead of making them for the loan. With a reverse mortgage, the borrower has the option of receiving one large lump sum of cash, monthly payments for so long as the borrower is living at the address, a line of credit or any combination of the three. Many seniors like to do a small lump sum cash advance to finance a big expense and then take the rest as monthly payments to supplement their income.
Who Qualifies For a Reverse Mortgage?
Any homeowner must be at least 62 years old to qualify for a reverse mortgage. In most cases, credit scores are not taken into consideration. What does make a difference is the amount of equity in the home and its condition.
How Much Can Be Borrowed?
The borrower’s age and the equity in the property impact the amount that can be borrowed. The loan must first be used to pay off the balance of any mortgage or lien on the property. What is left after that is the available cash. Both Fannie Mae and the U.S. Department of Housing and Urban Development offer special reverse mortgage backing to seniors.
What Can the Money Be Used For?
Typically, how the money obtained by the homeowner with a reverse mortgage is spent is at their discretion. Many will use it to help cover unexpected medical bills and treatments, while others may use it to finance a special vacation or other large purpose. The vast majority of seniors though are using the monthly payment option and using the funds as a second source of income to help pay monthly expenses.
When Do I Have to Start Paying the Loan Back?
A reverse mortgage is paid back when the home is sold. Until that time, you still retain ownership and hold the deed. Talk with a lending expert like Better Rate Mortgage to help you decide if a reverse mortgage will work in your circumstances. This is a great way for a senior citizen to be rewarded for all the years spent keeping up with their home and the mortgage payments. Call Better Rate Mortgage at (314) 361-9979 for more information.

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### Avoid These Common Mistakes When Buying Your First Home

Buying a first home is a major milestone in a person’s life.
While this is supposed to be an exciting time, it is often fraught with undue stress. Do not let your lack of experience ruin what should be one of your proudest moments. Avoid these common mistakes and you will find that the first-time home buying experience really is a joyful time.
Consider Your Finances
Be realistic about your finances. There is more to owning a home than making monthly mortgage payments. You also have to consider property tax, insurance, HOA fees, increased utility bills, and maintenance. All of these are often overlooked when budgeting for a first home. To avoid this potential financial trap, talk with a mortgage lender before you start house hunting.

There are many government backed loans that offer special incentives to first-time home buyers. You can also look into a To Be Determined, or TBD loan. This type of approval process is based on your income, not on the value of the house. Getting approval will give you an excellent idea of how much house you can afford. Once you do have your approval from your lender, you can then budget in those additional expenses to give you a clear idea of the price range you should be looking in.
Avoid Emotional Buying Decisions
A first time home buyer may be overly excited about their imminent purchase, and tend to base their home buying decisions on emotions. This is a big financial decision you are about to make. Looking at homes before you know how much you can afford is a backwards approach. Get pre-qualified first with a TBD mortgage and you are going to make better choices for your future.
Working With a Real Estate Agent
Choosing a real estate agent you can count on is essential. While some people will try and avoid fees by dealing with listing agents themselves, this is a big mistake. Listing agents are contracted by the seller and will not have your best interest in mind. You need to have your own buying agent to help you negotiate price and terms.
How Much Down Payment Should You Make?
You may have been saving money for years in order to make a down payment on your first home. A big mistake a first time home buyer may make is using all of those pennies and not leaving any cash on hand. While this may help keep monthly mortgage payments down by eliminating PMI insurance, it won’t be worth it in the end if you suddenly need cash to fix a broken appliance in your new home. Talk with your lender about mortgage programs that offer little money down to first time home buyers as a part of their terms.

The last thing to remember during the home hunt is not to do any big shopping before your closing date. Some home buyers get excited and start going on furniture shopping sprees but this is a mistake. Lenders will sometimes do one last credit check before they close and if they see a sudden big change in your debt to income ratio they can deny the loan. Wait until all the paperwork is signed before starting to furnish your new home.

If you follow these few simple steps then you will quickly be on your way to home ownership. Call the Better Rate Mortgage Team at (314) 361-9979 to get you started.

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### Applying For a VA Loan: Less Red Tape Than You Think

If you have sacrificed a portion of your life to ensure that the rest of us can continue to live freely in ours, then you are entitled to a few perks.
Especially when it comes to securing a home for you and your family in the country you fought so hard for. A VA loan is remarkably easier to apply for and to get approved for than most veterans realize. Take advantage of this program and allow yourself the joy of home ownership.
How Easy Is Applying For a VA Loan?
The idea of a ton of paperwork could be what is holding you back from applying for a VA loan, but once you start the process you will be amazed at how simple it is. It is even easier than applying for a traditional loan. First of all, there is no down payment requirement for a VA loan, nor is there any requirement for PMI insurance. This type of insurance is usually applied to loans where the buyer has put little or no money down on the house first. Not having that insurance will save you thousands of dollars in fees over the life of your loan.

Another benefit to a VA loan is that you are still entitled to competitive mortgage rates. This is not a bait and switch program where you are lured in by incentives only to realize that your rate will be significantly higher than on a traditional mortgage. With a VA loan, you are entitled to shop around for the best deal on an interest rate.
How To Apply For a VA Loan
There are five basic steps to follow if you wish to take advantage of the VA mortgage:

 	Obtain a certificate of eligibility. This is easily done by filling out VA Form 26-1880, which should be readily available at your local VA office or even online. This certificate lets your lender know what you are entitled to as a veteran.
 	Choose the perfect home for your family and sign a purchase agreement.
 	Ask for an appraisal on the home from the VA. The lender will often take care of this for you.
 	Apply for your mortgage through the lender. This can be going on simultaneously with the home appraisal to help expedite the process. If the lender is VA approved like Better Rate Mortgage, then the loan can be approved before the VA has a chance to review the loan application so long as the appraisal is complete.
 	Close on the home and move your family in.

In addition to the perks mentioned above, a VA loan can be up to 100% of the assessed value of the home. In addition, there is generally a limit on how much of the closing costs the buyer may assume.

A VA loan is simply a guarantee to a lender that the loan is protected by them in the event that the buyer is unable to make payments. It is a win-win mortgage for everyone involved and one that should be used by all of those brave men and women who are entitled to it. Call Better Rate Mortgage at (314) 361-9979 for more information.

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### Pave a Path To Your New Home Using Fannie Mae's HomePath Program

While the allure of the low price of a foreclosed home is appealing to homebuyers, getting approval for them is not always easy.
Many buyers look towards a home that has been foreclosed as an inexpensive path towards home ownership. The bank holding the deeds to these properties are usually anxious to have you take them off of their hands and have dropped the price drastically to encourage that. The trouble is, some lenders are reluctant to shell out money for a home that may have been left in need of repair.
The Fannie Mae HomePath Program
This is where HomePath comes in. Fannie Mae is the owner of many of the foreclosed homes in St. Louis. In order to assist a buyer, they have put into effect a mortgage program that does not require a home inspection, PMI insurance, or an appraisal. The only catch is that the property must be owned by them. This program began in 2009 to help Fannie Mae unload the thousands of properties it suddenly held the keys to.

As with all Fannie Mae loans, a HomePath loan is not financed by them. They are simply offering insurance to your lender as an incentive to get them to finance for you. What they do is set the guidelines for the mortgage broker. In the case of HomePath, this means as little as 3% down for a buyer who is interested in living on the property and ten for an investor.

In addition, HomePath can also authorize a loan that fits in the monies needed to make repairs on the property. This is a slightly more complicated process that involves an appraisal of the property based on its value after the renovations are complete. A home buyer may receive up to 97% of the estimated home value as cash to fix the house up.
How To Find a Foreclosed Home
Shopping for a home through HomePath requires that the buyer choose only from the homes listed on the HomePath website. This list is constantly being updated, so if you don’t find the home of your dreams today, just check back again in a few days. Purchasing a home this way eliminates the need for a real estate agent and their subsequent fees.
The Mortgage Loan Process
Not every lender is approved to offer loans through HomePath the way Better Rate Mortgage is. With his vast experience with this type of loan, him and his team will be able to walk you through the entire process. The first 15 days of a home’s listing is for people who are interested in being owner occupants only. This allows them to bid on homes without having to compete with the deep pockets of investors.

This is truly a unique program that benefits all sides of the sale and even the neighbors of these homes who are possibly losing home value as an empty, foreclosed home sits next to theirs. Talk to Better Rate Mortgage at (314) 361-9979 today to see how you can work this program for yourself.

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### How Information From the Fannie Mae Survey Can Help Save the Economy

According to a recent survey conducted by Fannie Mae, the majority of respondents still believe that the economy has not fully recovered.
This belief is having an adverse effect on home sales in St. Louis and across the nation. Springtime is usually greeted by an influx of anxious consumers wanting to buy a home. Despite low interest rates, that trend has been significantly lower this year than in the past. The Fannie Mae survey shows that people are still reluctant to buy a home, citing the lagging economy and a decrease in household income. Only 21% of those surveyed were able to say that they are making more money now than they were this time last year.
Fluctuations In the Economy Still a Huge Concern
Chief economist and senior vice president of Fannie Mae, Doug Duncan, was quoted as saying that it is these concerns over economic stability and income growth are taking its toll on what should be the busiest time of year for a St. Louis real estate agent. Despite a trend in lower interest rates over the last two years, the Fannie Mae survey shows that fluctuations in the economy are still a huge concern for St. Louis residents and that it is these concerns that are holding them back from buying and selling homes.
National Housing Survey
Each month, Fannie Mae puts out a National Housing Survey to gauge consumer’s feelings about housing and the state of the economy. Since most of the questions are geared towards real estate, homebuilders use the information to ascertain their risk at the present time and mortgage REITs will use the data to forecast prepayment speeds and the effect consumer sentiment will have on the economy. The monthly phone survey polls 1,000 random Americans and asks them over 100 questions whose answers are used to track changes in consumers attitudes.

It is surveys such as these that aide realtors and lenders both to bring in potential homebuyers and help give the housing market in St. Louis the boost it desperately needs. Knowing the fears and concerns of the average consumer allows lenders like Better Rate Mortgage to make provisions and ease the minds of their clients before the application process even begins.
Will Housing Prices Go Down Payment?
For example, this month’s survey shows an increase in the amount of people who believe that house prices will go down over the next few months. In knowing that this feeling could be the cause of a consumer’s reluctance, the lender can take steps to show that the low interest rates being offered right now will offset any possible savings they could receive if they wait those twelve months for home values in St. Louis to drop again.

Professional lenders and real estate agents are looking over this information carefully to find ways in which to entice new consumers into home ownership. One of the best ways to help stimulate the economy is with home purchases; meanwhile, the lagging economy is what is causing consumers to shy away from buying right now. For more information, call Better Rate Mortgage at (314) 361-9979.

Photo credit: Bradley Gordon via Flickr

### Decline in Down Payment Requirements is Good News for St. Louis

Lower down payment requirements may make it easier for potential new homeowners to qualify for a mortgage.
First-time home buyers find it easier with a lower down payment.

Growing concerns over what appears to be a nationwide decline in home sales, both for existing and new homes, has lending companies and banks scrambling to find ways, such as lower down payment requirements, to lure potential buyers into a mortgage. If mortgage companies and banks can entice new business, there will be a boom of home sales that will benefit everyone.
Current Mortgage Rates
With current mortgage rates for St. Louis homeowners still hovering below 4.5 percent, now is still a great time to get locked into a mortgage. The Federal Reserve has already announced its intention to slow down its acquisition of mortgage bonds, meaning it is very unlikely that we will see mortgage rates fall any lower than that. Talk with Better Rate Mortgage to get your approval for the TBD mortgage program now, before those rates begin their expected ride upwards.

The low mortgage rates currently being offered by lenders should be enough to encourage new home ownership, but St. Louis residents are still dragging their feet. Housing is affordable right now; the lenders just need to figure out how to sell more mortgages.
Lower Down Payment Requirements
The acceptable amount for a down payment on a 30 year fixed rate mortgage is generally supposed to be 20 percent. The trend now has lenders accepting as little as 15 percent as an incentive to encourage St. Louis residents to buy homes. With the current low mortgage rate, and this new low down payment plan, lenders are hoping more potential buyers will be encouraged to start looking for a new home.

The downside to this is that it has the potential to suck the economy right back down, if not monitored carefully. Lenders and borrowers both should be concerned about the homebuyer’s ability to make payments on the loan before they close on a new house. That’s the beauty of a program like the Better Rate Mortgage TBD mortgage plan. The fatal flaw that brought the housing industry to its knees, was the lending companies concern over the value of the house over the borrower's means to make payments.
The TBD Mortgage Program
The TBD mortgage program shifts the focus away from the home and onto the borrower where it belongs. It does not really matter what the home is worth, if the new home owner cannot make the monthly payments. If the current trend of lower down payments continues and is coupled with approvals based on the borrower, disaster can be averted and more St. Louis residents can benefit from home ownership.

The trend for lower down payments is nationwide, with some states reporting banks asking for less than 13 percent of a home’s value as a down payment. So long as the buyers are also being qualified, the housing industry should continue to see growth.
Call Better Rate Mortgage at (314) 361-9979.
Photo credit: Diana Parkhouse via Flickr

### Good News For First-Time Home Buyers

First-time home buyers have new opportunities for home ownership.
This May, the new regulator for Fannie Mae and Freddie Mac plus the secretary for HUD made announcements that they are going to make some policy changes so that first-time home buyers will find credit more attainable. This is in response to the recent housing recovery coming to a sudden and inexplicable halt after months of tremendous strides forward.
The Decrease in First-Time Home Buyers
Some professionals are blaming the halt on a tight and over-priced mortgage market while others point the finger at the decrease in first-time home buyers. Whatever is to blame, these government agencies are thankfully looking for ways to amend the problem. Mel Watt, the new director of the Federal Housing Finance Agency, has already announced that the maximum loan amounts for Fannie and Freddie will stand at the current $417,000 despite rumors that there were plans to lower it. Mr. Watt, who is in charge of overseeing the workings of the two major mortgage lenders, is attempting to ease the minds of banks who still feel leery when dealing with Fannie Mae and Freddie Mac products. This is in direct contrast with the purpose of the programs, which is to make funds for housing more accessible to consumers.
Reducing Mortgage Insurance Premiums
Meanwhile, HUD secretary Shaun Donovan is proposing changes aimed directly at the first-time home buyer market. This fall, the FHA will start a 4-year pilot program that allows first-time home buyers a reduction in the insurance premiums on their loans if they commit to credit counseling. The average FHA loan balance is roughly $180,000. With this trial program, a first-time home buyer could potentially save $10,000 over the course of the mortgage just by taking classes in money management skills.

As home prices continue to rise, being able to afford a home has become a concern for potential home buyers. With these reductions in mortgage prices, they can offset the increased price of the home with a better priced mortgage package. The best way for a new home buyer to take advantage of these changes is by utilizing a service like Better Rate Mortgage’s TBD mortgage program. To be determined lending looks at the borrowers history as opposed to the value of the home they are interested in. A first-time home buyer can be approved through this TBD program first, find out how much house they can afford, and then start looking for one that falls into their criteria.
A Better Opportunity to Buy a Home
By easing the mortgage pricing, first-time home buyers are going to find that they can afford more house than they thought possible. With luck, this will spark a growth in home sales as this lagging portion of the housing market is given better opportunities to buy a house. The FHA is realizing that the loss of the first-time home buyer has a great deal to do with the sudden slowing down of the housing market. By targeting this group and encouraging new homeownership we should start to see more growth.

If you are considering buying your first home, now is the time and Better Rate Mortgage is the one lender who can help you. With him, gain the confidence you may need to start your homeownership journey by finding out first what your spending limit is. Call Better Rate Mortgage at (314) 361-9979.

Photo credit: are you my rik? via Flickr

### Why the St. Louis Housing Market May Be Stagnant

Home sales for St. Louis were up for 2013, but have since leveled off over the last few months.
There are many factors affecting the number of homes that are being sold, including a significant drop in the number of first time home buyers to the market.Professionals are predicting that 2014 will not see any drastic changes in the St. Louis housing market as there are major positives, like a growing job market taking place in the area, being thwarted by the fear of raising interest rates.
A Growing Job Market
The St. Louis job market is looking good for 2014 and beyond, partially thanks to the Swiss-based company, IKEA, choosing all local contractors to build their new superstore in downtown St. Louis. The highly popular retail store is expected to break ground in just a few months and plans on being ready to open by the fall of 2015. That opening will lead to hundreds of new jobs available to St. Louis residents.

A rising job market is great news for the real estate industry, which should see benefits as St. Louis residents gain more personal financial security. Unfortunately, they are still fearful of the rising interest rates which are expected to continue to go up into the new year. Now would be the right time to lock in at a rate before interest rates continue this upward trend.
A Decrease In New Housing Construction
Another factor being cited as the reason for a lagging home sales market is a decrease in new housing construction. Smaller construction companies are being held back by difficulties in securing loans, meaning contractors are not able to break ground on new homes. With any luck the credit will begin to flow again, adding new jobs to the St. Louis area as well as new homes. Once there is an increase in economic activity, there will naturally be an increase in home sales.
An Increase in Property Values
The rate of home sales is of special interest to those St. Louis home owners who are still strapped with a mortgage that is greater than the value of their home. Once St. Louis residents feel the financial security of steady jobs and begin to invade the home buyers market, those property values should increase, allowing home owners to take advantage of low interest rates now to refinance high interest loans before they hit their expected peak at the end of the year.

As of right now, the market remains stagnant as St. Louis residents wait for new jobs to arrive and mortgage interest rates to drop. Unfortunately, what they do not realize is that right now they are probably at the lowest they will be for the rest of this year.
If you are considering a new home purchase for 2014, now is the best time to lock in on an interest rate. Call Better Rate Mortgage at (314) 361-9979. With guaranteed financing given before you find a home, like the Better Rate Mortgage TBA home mortgage program, you can get a good mortgage rate now, and take your time finding the right house to fit your budget.

Photo credit: Ron Reiring via Flickr

### Paying For College: Refinance Your Home or Use Student Loans?

Graduation season is just around the corner, and if you are the parent of a senior, then you may already be worrying about the expense of college.
If you have managed to build up equity in your home over the years, then it might make sense for you to tap into it to help with the cost of college. This is not a decision to be made lightly, as you are using an investment that you have worked hard for to now invest in the future of your child.
Explore All Your Options
Before looking at refinancing your home or taking out a home equity loan against it, make sure all other options have been exhausted. Some students may qualify for financial aid or scholarship programs. With the high cost of a college education, even an added boost of $500 a month will be a big help. Ensure that your child has gone over all possibilities of student aid programs with their high school guidance counselor when it comes to paying for higher education.
Federal Student Loans
Federal student loans are also another path you and your family can pursue. Compared with a private student loan, a federally backed loan will usually come with a lower fixed interest rate. In addition, repayment is based on their income and they will have options to postpone payments if necessary without damaging their credit score. You can use this type of loan to cover a portion of the cost and make up the difference from a refinance loan on your house. In this way the debt is split between you and your child, hopefully giving them more incentive to do well in school. Private student loans are not nearly as forgiving and may leave your child with a debt they cannot afford after graduation.

Once you have secured as much funding from outside sources as you can, you can start to consider your homes' equity to secure the difference. With interest rates still hovering around 4.5% and lower, now is a good time for a refinance loan. All indicators are pointing to that number rising about 4% before the end of 2014.
Refinance, Home Equity Loan, or Home Equity Line of Credit
A cash out first mortgage refinance is the better choice over a home equity loan or a home equity line of credit. The interest rate may be a bit higher than refinancing with no cash out, but it will be significantly lower than a home equity loan. Plus, remember the added benefit of being able to use the interest paid on a refinance as a tax write-off. A home equity line of credit may have an appealing low interest rate, plus the ability to draw from the money as needed, but this type of loan is adjustable. That means that if things go as predicted, your interest rate on that line of credit will jump substantially over the next few years.

This is not a decision to be made lightly, which is why you should be considering your options now before you even see the high school diploma. You can begin taking some steps to further improve on the value of your house, increasing your odds of securing a loan at a reasonable rate. Remember, if you are able to do it, there is no other investment opportunity that is nearly as rewarding as the one you can make in your own child’s future. Call Better Rate Mortgage at (314) 361-9979.

Photo credit: Chris Campbell via Flickr

### Freddie Mac is Making His Way Back

Homebuyers today are intrigued by the TBD Mortgage Approval Programs being offered by reputable lenders like Better Rate Mortgage.
Since his 2008 slap on the wrist and placement into the Federal Housing Finance Agency (FHFA), Freddie Mac has slowly been redeeming himself, recently reporting an annual profit of $48.7 billion for the year 2013.
Who is Freddie Mac?
You could say that Freddie Mac is Fannie Mae’s little brother. Fannie Mae started as a government sponsored enterprise that offered secured insurance to mortgage lenders. When the program became a private corporation in 1968, Congress established the Federal Home Loan Mortgage Corporation, whose nickname became Freddie Mac. Its purpose was to increase the availability of monies to help finance mortgages and encourage home ownership. It accomplishes this by buying mortgages from banks and other lenders.

In 1989 the U.S. Department of Housing and Urban Development (HUD) was directed by the government to oversee the activities of Freddie Mac. In 2004, HUD implied that Freddie Mac was not holding up to its promises of stimulating home ownership and suggested that they improve on their programs. With little improvement noted over the next four years, the Federal Government intervened and placed Freddie Mac, along with Fannie Mae under conservatorship with the FHFA being directed to take over operations. This was considered a necessary step to avoid the devastation that would have occurred to the financial system had the two entities gone under. This move was the largest of its kind ever seen in US financial history.
What Does Freddie Mac Do Now?
Freddie Mac has a lot to do now with the growing increase of home sales. Homebuyers today are intrigued by the TBA Mortgage Approval Programs being offered by reputable lenders like Better Rate Mortgage. These programs allow a potential homeowner to obtain approval for a mortgage before a home has been decided on. Freddie Mac makes its money by purchasing higher risk loans like these for a fee. The lenders are happy to relinquish this money for the security of knowing that Freddie Mac is backing the loan.

Freddie Mac and Fannie Mae own or guarantee at least 60% of the home mortgages held in the United States.  This is giving potential home owners more opportunities to secure funding through programs like the TBA Mortgage Approval and the FHA 203B loan.  As a result, home sales continue to rise steadily while the rate of foreclosed on homes has dropped dramatically.

The record profit that Freddie Mac recently reported has already started investors to take a renewed interest in buying shares of the entity, which are now the highest they have been before the conservatorship started.
From their substantial annual profit, Freddie Mac will deposit $10.4 billion into the U.S. treasury as it continues to pay down its debt to the federal government.  Once Fannie Mae deposits its $7.2 billion into the treasury from its last year’s profits, American taxpayers will finally be ahead on its bailout costs.

The speed at which Freddie Mac was able to recover is a good sign for the American economy.  The fact that after only a few short years, they are able to show a profit means that the housing crisis is finally coming to a close.

photo credit via Flickr.com: roberthuffstutter

### How the Sudden Lack of First Time Home Buyers is Hurting the Real Estate Market

Are home sales down because of higher interest rates, or are interest rates higher because of a slowing market?
The number of homes sold in St. Louis in 2013 was up 10% over the prior year, and the highest they have been since 2007.  The trend slowed down at the end of the year, and to the real estate industry’s dismay, has not yet picked up that momentum again.

The drop in sales could be attributed to a number of homes that are being offered on the market right now.  According to some professionals, there should be at least a thousand more listings for homes in the St. Louis area.  This means that more St. Louis residents are choosing to stay where they are instead of investing in new property.

Meanwhile, last year’s mortgage interest rates at this time hovered right around 3.52% while today we are looking at mortgage interest rates around 4.3%.

When you look at the lack of homes for sale and the increased mortgage interest rate, you have to wonder which factor is driving the trend.  Are home sales down because of higher interest rates, or are interest rates higher because of a slowing market?

The answer may be neither of the two. While home values in St. Louis are continuing to grow, this is being seen mostly in higher priced homes.  So even though the median sale price is up 14% for a single family St. Louis house, that percentage is being driven up by the sale of homes in the $350,000 to $500,000 range.  Homeowners of medium sized and smaller homes are still struggling with the value of their house.

Almost 24% of St. Louis homeowners hold mortgages that are worth more than the appraised value of their house.  This means selling is not an option for them unless they are able to pay the difference. Instead, they have to wait patiently for rising home values to have a positive effect on their house.
A Decrease in First Time Home Buyers
There is a solution to this problem that has nothing to do with interest rates or lack of houses for sale.  Across the nation, and in St. Louis, there has been a significant decrease in the number of first time homeowners.  Typically a first time homeowner makes up 40% of sales nationwide.  That number has dropped down to 27%.  This is devastating news, both to realtors and mortgage lenders.

First time homeowners make a huge difference in the housing market.  They enter it without adding to it.  In other words, their presence creates a higher demand for houses but is not increasing the availability of homes for sale, since they are not offering one.  This creates a market ideal for increasing home values.  The demand is high, while the supply is consistent.

This is why federally back loans like Fannie Mae’s Homepath and the FHA 203B cater to first time homeowners by accepting low down payments and less than ideal credit histories.  They know that these important buyers help drive the market and could potentially pull that 24% of homeowners out of the red with their existing mortgage.

photo credit via Flickr.com: Ian Muttoo

### Why Now Is The Time To Buy a House In St. Louis

While parts of the country are still reeling from the economic crisis, St. Louis has been on the road to recovery.
With the recent rise in downtown construction projects came a surge in the economy that puts St. Louis residents at an advantage over other cities.

Last week, the Federal Reserve, which is a key player in determining mortgage rates, announced that starting in April it will be reducing the amount of money spent on treasury securities.  This will directly affect the current interest rates by driving them up again.

There is no way to tell exactly when or by how much mortgage rates are going to be affected by this move, but you can bet it is going to be sooner rather than later.  Stop dragging your feet hoping that rates fall below 4% and get to a reputable mortgage broker now to secure yourself a rate at the current 4.3%.

If you think 4.3% is too high, think again.  You are forgetting the days of yore, when an average mortgage rate was around 8.5%.  That’s right.  The true 40 year average for interest on a 30 year fixed rate mortgage is 8.55 according to Freddie Mac.  That’s almost double what it is now.  So when you look at things that way, you realize what is being offered out there now is pretty cheap.  Take advantage of that now before the Federal Reserve’s changes start to make an impact.

But what if I haven’t picked out a new house yet?  With the right lender, that won’t make a difference.  If banks have learned anything from past mistakes, it is that the value of a home has very little to do with a mortgage payment.  What matters more is the person whose name is on that loan.  With a lender like Better Rate Mortgage, you can get approved for a mortgage before you find the house.
To Be Determined Mortgage
That actually makes more sense when you give it some thought.  How was it that we used to go house hunting with no idea of how much house we could afford?  With a plan like the TBD Mortgage Approval Program any obstacles that could stand in the way of a mortgage approval can be addressed before you fall in love with a home.  No disappointments down the road when your loan application isn’t approved.

That’s not even the best part.  Once you are approved through the TBD Mortgage Approval Program you have six months to find the house.  That should give you plenty of time to look around and still take advantage of today’s interest rates before they go up from the Federal Reserves news.

St. Louis residents should be taking advantage of the cities recent improvements in its economy as well as the low interest rates being offered to jump on the home buying band wagon.  Let a reputable lender like Better Rate Mortgage take you under their wing and secure you that great rate now so you can benefit from low monthly mortgage payments later.

photo credit via Flickr.com: shock264

### The Fixed Rate Mortgage:  Interest Charges 101

When you see mortgage rates displayed, there are always two numbers.
Lenders may display their interest rates with pride, but don’t explain what they mean.  For a home buyer this makes coming to a practical decision about a home loan difficult.

When you see mortgage rates displayed, there are always two numbers. The first one is your interest rate and will be used to figure out what your monthly mortgage payment will be. The second is the APR or annual percentage rate. That is the rate the mortgage would be charged if all of the costs associated with obtaining a loan were factored in as interest. Since most of the costs, such as application fees and origination fees are paid by you upfront, that APR has little bearing. It is helpful when trying to compare loans side by side, but won’t have anything to do with your monthly payments.
Understanding Interest Rates
The interest rate displayed is a yearly rate, so in order to factor it in with your principal payment it needs to be divided by 12.  The principal payment is the amount that you are paying towards the actual loan, before interest is added.  So let’s say for example you locked in a 6% interest rate on your $100,000 mortgage.  6 divided by 12 comes out to .5 %.  So every month you will be charged .5% interest on the balance of your loan.

What we have found to be confusing over the years for many St. Louis home buyers is why the actual interest amount decreases each month even though the percentage doesn’t.  That’s an understandable question, with a complicated answer.  To keep your monthly mortgage payment consistent, banks use what is called an amortization formula.  In our example the monthly payment is $600. Since the interest is applied to the total amount you owe, your first payments interest, .5% of $100,000 is $500.  That means $100 went towards the principal.

For the next month, your new principal balance is $99,900.  Apply your .5% interest rate to that amount and you get $499.50.  Now $100.50 went towards your principal.  The payments continue like that throughout the life of the loan, with the interest payments getting steadily smaller, while your principal payments steadily increase. With the mortgage payments structured this way the interest on the loan is always paid off first, with the homeowner making very little headway with the principal balance for the first few years of the loan.

A very simplistic example was used, just to give you a basic understanding of a complicated math formula.  When applied in real life, other factors may possibly be weighed in, such as mortgage insurance, homeowners insurance and property taxes.
Best Thing For a Homeowner
One of the best things a new homeowner can do to increase their equity faster and decrease the amount of interest they pay is to make additional principal payments with each month’s mortgage.  Even a small amount each month can go a long way towards saving you thousands on interest.  Plus you are building equity with your home, which could give you better loan opportunities in the future.

Finding your way through the mortgage process is not easy, even for experienced home buyers. Ask Better Rate Mortgage for more details about which loan will work best for your circumstances. Call us today at (314) 361-997 or fill out our instant contact form.

photo credit via Flickr: 401k Limits

### Is Now The Right Time to Refinance Your Mortgage?

The goal with refinancing your existing mortgage is to obtain a better loan with better terms or lower interest rates.
With spring in the air your thoughts may be turning to making some renovations on your home, or installing that pool the kids have been asking for. If you are considering tapping into your homes equity to fund the project, now is a good time for St. Louis home owners.

The goal with refinancing your existing mortgage is to obtain a better loan with better terms or lower interest rates.  As of March 22nd, interest rates in St. Louis for 30 year fixed rate loans and 15 year fixed rate loans have dropped. If the interest rate on your current loan is at 5% or more, then you will benefit by refinancing to the current 4.45%.
Check Your Current Mortgage and Credit
Now before you run out and start buying floaties, check the state of your current mortgage.  Is it in good standing?  Make sure you know what the terms are and what the exact interest rate is.  Some mortgages include a penalty if you pay them off prematurely, so check the fine print on your mortgage loan payment to see if that would apply in your case.

It is recommended that you try and clean up your credit before applying for a refinance mortgage.  If you can manage to pay down some of your existing debt you stand a better chance of getting approved for a new loan.  Also consider working with a St. Louis mortgage broker to help you with the paperwork.  They deal with lenders all of the time and will know how to make your application look more appealing to them.
Cash-Out Refinance
The type of refinance you are looking for is what is known as a cash-out refinance, and one of the more difficult loans to receive approval for unless your home has dramatically increased in value since your closing of the original mortgage.  Otherwise, you are taking out a new mortgage on the house that is more than what you owe on the original, and taking the difference as cash.  Expect that the interest rate offered may be slightly higher than the prime being offered in St. Louis at the time since the lender is assuming a bigger risk.

There are two things you can do with the cash you get out of your new mortgage that will be beneficial in the long run.  You could use the money to consolidate high interest credit card debt, thus freeing up more cash for your monthly budget.  You should then try and take at least a portion of that extra money and apply it to your mortgage payment each month.  With the lower interest rate you will find that bringing down the new balance on your mortgage is much easier than paying off the credit card would have been.

If the cash out mortgage is for home improvements, make sure they are ones that will increase the value of the home.  Many St. Louis homeowners will assume a new mortgage of this type if they know that they will be selling the house in the not so distant future and would like to increase its value and selling appeal before-hand.  If you make the right renovations and additions you could substantially increase the value, and thus your profit, before putting the home on the market.  That pool you are considering will give you a few years of backyard fun, and then may be a great selling feature when it comes time to market the home.
Contact Better Rate Mortgage
Every St. Louis resident deserves the opportunity to live in the home of their dreams. Let Better Rate Mortgage help you secure the funding to make that possible. Call us today at (314) 361-997 or fill out our instant contact form.

photo credit via Flickr.com: 401(K) 2013

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### Getting Started In The Home Buying Process

Have you decided to buy a new home but are feeling nervous about the process? In this video, we’re going to break the home buying process down for you to answer all of your questions. We’ll also squash 3 common myths about buying a home to ease your mind and make sure you have all the information you need.



It's Normal To Be Nervous



Getting a home is exciting, but it’s also a little nerve-wracking. After all, it's not every day that you get to spend hundreds and thousands of dollars on one purchase. It’s 100% normal to feel a little bit nervous about the home buying experience, whether you're buying your first or fifth house. There is a lot that goes into the process, which is why we're going to break it down simply for you in our Client For Life experience.



There are so many questions you’re likely already thinking about. How much do I have to put down? What are my monthly payments? What rate should I be at? How much can I afford? Since turning to Google for all your answers can be an extremely frustrating experience, let me be your numbers guy and take care of this for you. We've put everything together at your fingertips now to make this process pretty easy for you.



3 Common Myths Of The Home Buying Process



After 20 years of helping home buyers just like you, there are three common myths that I hear come up over and over again. We’ll go through each one and debunk the rumors.



#1: You have to be ready to buy a home today. One thing that I see in common with a lot of wealthy people is that they're pretty calculated in their decisions. They take time, they plan, and they make sure that they have the right investment for them. Buying a home is one of your biggest investments, and we need to make sure this is the right investment for you. What if your credit needs some improvement? Did you know that a 1% drop in your rate can save you hundreds of dollars a month in your payment? It can also reduce your mortgage insurance expense too.



Working with a mortgage advisor like us can put thousands of dollars a year back in your pocket. The good deals always go fast, so working with a great realtor who can help you jump as soon as the right home hits the market is something that will benefit you tenfold. When you work with us, you’ll find out more about our TBD approval process that puts your offer ahead of every other offer submitted on the homes you're looking at.



#2: You have to put 20% down. This myth can cost you thousands of dollars a month in payments. This is because home prices are appreciating. If it takes you five, six, or seven years to save for a down payment, rates could go up. Home prices are more than likely going to be up a fair amount in that time. Therefore, you'll be out of a lot of money and will spend excess time continuing to pay somebody else's mortgage and not building your own equity.



My brother, aunts, and uncles all told me the same thing: that I needed to wait and I needed to save. But when you work with a mortgage advisor, we will be able to break down the costs you're going to have each month as well as the cost of waiting to set you up for the most success possible.



#3: What you’re preapproved for is how much you can afford to spend. You can go to a website and easily get preapproved for $500,000. While that may well be what you can afford, working with our team of mortgage advisors will help you ensure that the price is right. Additionally, we’ll also make sure that you're achieving the financial goals that you want in your future.



Your credit score and debt-to-income ratio will definitely have the biggest impact in determining how much you can afford. However, savings and other items on your credit report will also be a big factor. While it's super convenient to fill out forms online—and you will with us, too—there’s more to the process than getting answers right away. Working with mortgage advisors like us will make sure that you’re approved for your house and that the inputs you've made into the system are correct. This allows you to be approved for what you want and will help eliminate most of the surprises that come up—especially the ones that technology misses.



The Client For Life Experience



While we need technology to help us, the TLC of the human touch is something that just can't be missed inside of our business. Through our Client For Life experience, you’re going to learn exactly what it takes to be a first-time homeowner or upgrade to the new house that you want. You’ll also learn how to make the most informed decision for yourself, a vital asset as a house can be the biggest and largest financial transaction you make in your entire life.



We don't send our kids off to school to learn math and science on their own. Rather, we send them to school so they have teachers to assist them. Similarly, we use our knowledge as mortgage advisors to assist you in making the best financial decision that you can. It's never too early to start the process, and that is exactly why we created the Client For Life experience for you.



So, here's how it works. You can click here to set up a time to speak to me or one of the advisors on my team so we can get things rolling for you. We’ll get an idea of where you are in your ideal moving timeframe, what kind of down payment you're looking to make, and then we may make a few suggestions based upon your financial goals. Next, we will create a step by step process for you that's 100% free. We will assist you in getting your credit score where it needs to be to get you the best rate possible. And most importantly, we'll make it as simple as possible for you to understand. We know for a fact that an educated buyer makes the best decisions. We want to earn your business.



Our TBD Approval Process



We have exclusively developed a TBD approval process. What we provide is a $5,000 guarantee for the seller when you submit your offer. This puts your offer ahead of everyone else's. Just imagine: they have a whole list of contracts that have just come in on their house. Yours is going to be the only one that guarantees them $5,000 if we don't close. This is what we've done and set up to earn your business, and this is how we will get your offer accepted ahead of everyone else's.



My parents taught me something when I was a young child: "You put your money where your mouth is." That's exactly what we're doing for you. Many people will claim to be a mortgage advisor, but there are few like us who will actually do so for you.



So whether you're ready to talk to us yet or not, do yourself one favor: continue to watch our videos and read our blogs so you can get yourself educated. Regardless of what you're buying, knowing your numbers is the most important part of the process. If you have any questions, please feel free to reach out to us and we’d be happy to connect!

### What Happens In Your Transaction Post-Offer

Have you found your house and submitted your offer but are wondering what happens next? In this video, I’m going to walk you through the post-offer stage of financing on the lending side of the real estate transaction. I’ll share what goes on behind the scenes and how we get you to the closing table and into your dream home.



One Week Under Contract



If you've already completed our TBD approval process, then almost everything's done for you already. If you haven't, don't worry—we have you covered too. What many people don't realize is the amount of work that goes in behind the scenes on the lending side of a real estate transaction.



Week one under contract is where we start the paperwork. If you've already done our TBD approval process, there's very little left that we need from you aside from a few things that may need to be updated. The first week after you get your offer accepted is where you're going to put down your earnest money to take the property off the market for yourself. We are also going to discuss whether we should lock your rate or float your rate for a few more weeks. Lastly, we’ll determine the final loan product that best suits your needs and accomplishes your goals.



Week Two Under Contract



During the second week of the process, we'll order your title and appraisal. We’re also going to submit you to underwriting so the underwriter can check off everything we submitted. Just like my little boys like to say, "Teamwork makes the dream work." The quicker that you get everything turned around for us, the smoother your loan process will go, and the happier you'll be. Getting everything done faster can greatly reduce the amount of stress you feel.



Clear To Close



During the last few weeks of the process, there may be an item or two that needs to get updated. Don't stress when we ask you for it, because you’ll soon hear the three most magic and beautiful words in regards to your loan: Clear to close. That means the only thing left to do is just sign on your mortgage.



This is an awesome time where our team and your realtor get to celebrate all the hard work that we've all done to get you to the closing table. I hope our Client For Life Experience has helped you understand what it takes to get to the closing table once your offer is accepted. Don't forget, if you need a competent lending team, we're here for you. If you have any questions, please don't hesitate to reach out to us!

### The Importance Of Getting Pre-Approved

Did you know that there’s a huge difference between being pre-qualified and pre-approved? In this video, we’re going to share three reasons why making sure you’re pre-approved will help you get the best deal possible on your new home. We’ll also discuss how interest rates affect your monthly payment and explain the pros and cons of each loan program to see what’s best for you.



Pre-Qualified vs Pre-Approved



An important part of getting a good deal on your home is getting your offer accepted. The most important part of getting your offer accepted is having your financing secured. If you’ve filled out a questionnaire on an app or website that tells you you’re pre-qualified, that doesn’t mean you’re good to go. Being pre-qualified is not the same thing as being pre-approved. There are three main reasons why you need to make sure you’re pre-approved and not just pre-qualified.



#1: A Pre-Qualification Letter Is Worthless



A pre-qualification letter is worth less than the paper it's printed on. It doesn't mean anything, and frankly, in this market, it's just not going to get your offer accepted. On the other hand, when you're pre-approved it means that you've submitted your income and your assets and they’ve been verified. It basically means that you're 99.99% guaranteed to get the loan on your home.



#2: It’s Important For Your Budget



Reason number two to get pre-approved is that you need to have your budget dialed in. There may be things that you're not considering, like taxes, insurance, and mortgage insurance, that aren’t being calculated correctly. Even if you can be approved for the mortgage you want at those numbers, it may completely misalign with your financial goals. Getting pre-approved will allow you to shop with confidence, knowing exactly how your numbers break down and making sure you don't get in over your head. The last thing you want to do is make a poor financial choice.



#3: You’ll Have More Leverage



Third, a pre-approval will allow you to have more leverage. Imagine for a moment that you're the seller and you have two offers that come in on your house. Each offer looks exactly the same, but one has a pre-qualification or pre-approval letter and the other is from us with a $5,000 guarantee. Which one are you going to accept?



Securing The Best Rate



As a home buyer, you—like us—are going to be concerned about your rate. Of course, I don't want you to be all consumed by what your rate is, as there are other important factors for us to discuss too. Before we get into this, let me share a scenario that happens with us every single month.



We have a client that saved 10% to put down on their house. They also have some credit card debt that they're paying on with 12%, 13%, and 20% interest rates. When we look at their scenario and analyze that credit card debt, we are often able to show them how they can pay off those high-interest credit cards in cashflow substantially better every single month. This will set them up for more success.



Obviously, the higher the rate that you pay, the more your monthly payment is going to be for the same loan amount. Most loans are amortized over 30 years at a fixed-rate. Even just 1/8th of a point means a change in your monthly payment. For every 1/8th of a point increase that you have on your mortgage per $100,000, your rate is going to go up by $7. And for every $10,000 you finance, your payment's going to go up by $50 per month.



If you were looking at putting down 10% on a $200,000 mortgage, that'd be $20,000 down payment. If you put down 5% versus 10%, the difference in your payment is $100 a month. When you’re dealing with a mortgage advisor, however, we’d explain to you that you can take that $10,000 and pay off other high-interest rate or high-payment debt. We could help you cash flow hundreds of dollars a month in your favor, making your home and your finances incredibly more affordable. 



I want to bring up these factors for you because I want to make sure that you don't lose out on your dream home over $50 a month. When you can pay $10,000 more—if that doesn't substantially move the needle for you—or if we can align your debts to pay off things in a more efficient way, that could save you more than that $50 a month in the longterm. And since 1/8th of a point per $100,000 is going to affect your monthly payment by $7, that’s just an extra $21 per month of a $300,000 loan.



Loan Program Options



Now that you know how interest rates affect your payment, let's talk a little bit more about the different types of loan programs. Buying a home is not difficult, but it can be confusing to break down and decide which of the three main loan programs are best for you. Those three loan programs are VA, FHA, and conventional mortgages. Each of those loan programs comes with their pros and their cons, and based on your financial situation, a mortgage advisor and a mortgage team like ours can make sure that you're in the right program for success and your financial goals.



#1: VA Loans



First, let's talk about VA loans. If you're a veteran, I first want to thank you for your time and service. Hands down, this is the best loan on the planet. You have to have served our country to qualify for this mortgage, and it’s one of the things that the government does incredibly well to make sure that our veterans are served. So if you a veteran or you know a veteran like my dad, we would be honored to work with them and to serve you. And again, we thank you for serving our country.



#2: FHA Loans



FHA loans have a low down payment, generally at 3.5%, and they’re often used by first time home buyers or for buying multifamily homes. We also often couple FHA loans with renovation products as well too. FHA loans cater to people who want to make low down payments or have aspirations of being long-term landlords; you can buy a multi-family house at up to four units with just 3.5% down. Rates are extremely competitive on FHA loans, but there are some cons too. Mortgage insurance on FHA loans is generally more expensive than mortgage insurance on conventional loans, though we'll break down those numbers for you when you talk to our team.



#3: Conventional Loans



Conventional loans generally require a 5% down payment, although there are quite a few instances where we can do it with 3%. Also, the mortgage insurance on conventional mortgages is a fair amount cheaper than the mortgage insurance on FHA loans, as we said. This does greatly depend on what your credit score is, though, which is why many people who are just starting to build their credit opt for the FHA loan as it can be cheaper in those circumstances. The biggest con for a conventional loan is simply qualifying. If you don't have a larger down payment or your credit score is not right, it's just not the right product for you.



Preparing Ahead For The Best Deal



The truth is that it's never too early to start preparing for your home purchase. The earlier you start preparing, the more success you'll have when you start shopping. If you are looking for the risk or benefits versus locking or floating today, call us and we'll explain exactly what the market's doing.



I hope this has helped you understand rates, how they affect your payment, and the loan programs that you have at your fingertips so we can set you up for success. If you have any questions, feel free to reach out to us and we’ll be happy to connect. We are here to help you and we'd be honored to earn your business.

### Mortgage Rate Update 08/06/2020

Sean Zalmanoff with Better Rate Mortgage has an update on mortgage rates. Watch the video and read below for details. 



Sean Zalmanoff here with this week's mortgage rate update for you. Hey man, I'm coming to you a little bit late in the week. It is busy in the mortgage where there are a lot of people buying houses. They're already a lot of people refinancing. Rates are amazing right now, so make sure that you're taking advantage of this yourself. There is one thing that I want to show you in the market quickly this morning.



This is a graph of mortgage backed securities that we follow on a daily basis for you. I follow this so you don't have to, you can just come here to get your news. In general, green is good and red is bad. As prices go up, rates go down. Is it you're looking at this chart and wondering, what would that mean? Rates are going up. If you just look at the last three days, we have tiny little red marks on the last three days, no major concern long term. These good rates are here to stay for a little while, but it does look like we may have hit some resistance and there's a certain candlestick pattern forming there. That means that we could have some selling pressure and rates could move up slightly.



So, if you've got a loan that you're about to close on, you want to lock in these rates right now. It would be a good time to consider doing that just in case there's any market move again, nothing big, maybe an eighth, maybe a quarter, not a big deal for you. But want to make sure that you are protected and that you take advantage of this.



So, we got news for you. Today, 1.186 million new initial jobless claims hit the floors, hit the markets today. In general, and any other time, this is a terrible number, one point anything million people who are now unemployed or who are fresh on the jobless market is never something we want to see. Although, this is the lowest initial jobless claims number that we've seen weekly since COVID-19 struck us all. So, it is a glimmer of hope and some good news that could happen there for us.



The ADP number yesterday was announced, it missed big for the month of July. It's always trailing a month. But May and June revising and going higher. So, the balance out, actually the stock market, if you saw a rally, is pretty good yesterday actually on that news, but it's like, what's to come next? And that is something that we obviously don't know, and that we need to be concerned about, of course, for your real estate needs, your mortgage needs and just your friends and family in general as how this recovery is really going to take hold. Congress is trying to work through the next stimulus package right now. So, hopefully we get that in the hands of the people who really need it as soon as possible.



The BLS number comes out tomorrow. So the Bureau of Labor Statistics, say that five times fast, the Bureau of Labor Statistics. So, this is the government report. So, ADP that I was mentioning that came out yesterday is the private sector report. The Bureau Labor Statistics is the government report, this will report private and private and government jobs. And so this is a huge number. This always comes out on the first Friday of the month unless it happens to be that the first Friday of the month is the first day of the month. Don't worry about it. It comes out one of the very first few Fridays of the month.



This number's big. This number is market moving. And a very strong number. How it relates to you in the mortgage world, it's going to make rates go up. A weak number is going to signal more weakness in the economy and it is going to make rates drop. Another reason that it may make sense to walk today ahead of that. Again, no cause for concern, these rates are great. Like really, it's almost like we're giving money away these days.



Hey, if you need somebody amazing to help you with your loan, my team is here, and we would love to help you. Of course, we're based here in St. Louis, Missouri, but we do loans in about 40 States throughout the country. And if we can't help you, I know somebody who can. Thank you all for your time. Have a great day, peace out y'all.







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### 5 Money Saving Reasons Why Now is the Time to Refinance

Homeowners who have recently refinanced will save a combined total of $5 billion in interest.
Freddie Mac has released its 2014 data on refinance loans and it appears that the market has taken an upswing. In the next few years, homeowners who refinanced in 2014 are going to save a combined total of $5 billion in interest. By cutting mortgage rates by almost a 1/4th, borrowers are able to save a substantial amount of money both monthly and over the life of the loan. If you are thinking about a refinance right now consider the following.
Benefits to Refinancing Right Now
• Interest rates are still at an all-time low, meaning you can get the same benefits in savings that borrowers got in 2014. Check today's mortgage rates and if your current rate is higher than that then a refinance may give you significant savings.

• If you are concerned about extending the terms of your home loan with a refinance you can ask Better Rate Mortgage about a 15-year fixed rate loan. The combined low interest rate with shorter loan terms can give you a considerable savings.

• The reduction in personal mortgage insurance (PMI) rates also applies for a refinance loan. If you are concerned that you will not have enough equity in your home to avoid PMI, know that PMI rates were recently reduced. With this reduction, homeowners who have not yet built sufficient equity in their house will save thousands of dollars in fees.

• If you are at that financial turning point when kids are looking into college, refinancing now to help pay the tuition is a money saving option. Student loan interest rates are rising, and even government subsidized loans can be over 6% APR. This may be double what you will pay in interest when you refinance your home. If you have built in equity in your home, using it to help fund college is now a viable option.

• This is also a great opportunity to increase the value of your home with a remodel project. If you refinance and use some of the money towards updating a kitchen for example, you are increasing your home’s value. Additions, new kitchens, and new baths are all upgrades which will give you an excellent return on your investment when it comes time to sell your home. If you refinance and remodel now at these low rates, that return will be even higher.
What About the Closing Costs For Refinancing?
While you are responsible for certain closing costs when refinancing, with interest rates this low the benefit far outweighs the cost. Your closing costs may quickly be recouped in the savings you see on your monthly mortgage statement. If you have questions about refinancing and whether it is right for you, Better Rate Mortgage will help you. Call us today at (314) 361-9979 to make sure that you are benefiting from the maximum savings possible!

### The Benefits of Being Prequalified for a Home Loan

Buying a new home or refinancing your existing mortgage involves a lot of paperwork. There are credit requirements to be satisfied, negotiations for the best deal, and finally, you should be able to understand the good faith estimate of the closing costs provided by the lender.
Home sellers generally prefer prequalified or preapproved buyers and a prequalified buyer will have leverage to negotiate with the seller. Most importantly, the prequalified buyer will know how much mortgage he or she can afford and will not spend time trying to purchase a home that he or she cannot afford.
To prequalify for a mortgage loan you will need to provide the details of your income, assets, credits, and debts to the lender. The lender will use these details to estimate the mortgage that you can afford. The information given to you will include the maximum amount of loan available, the loan terms, and the monthly installment payments that fit into your budget. Prequalification is not binding to the lender as the estimate is based on the information provided by you has not yet been verified.
Sellers are usually happy to deal with a pre-qualified buyer; they know that the prospective buyer has the means of putting together the money and is not wasting the seller’s time. The seller is able to count on the buyer to back up the offer provided.
Pre-approval is one step ahead of pre-qualification. When you apply for pre-approval loan, you provide information about your job, your income, credits, and debts. The lender, after receiving this information, contacts your employer to verify your employment details, your bank for the income, credits and debts, and other agencies to verify your assets. After completing the verification, the lender issues a letter to the prospective buyer stating the amount for which mortgage is approved and the duration for which the pre-approval offer is valid. The pre-approval process has a small fee attached which is generally refunded during closing.
There are twofold benefits for prospective home buyers to be preapproved. First, you will be more attractive as a buyer for the lenders as they will not be worried about your loan getting turned down after they accept your offer. Secondly, the closing time for the loan will be much shorter as the initial survey and paperwork towards you creditworthiness and your ability to pay the mortgage have already been worked out by the lender.
One thing that buyers should note is that in case your financial situation changes before closing, i.e. you lose your job, or your pay is reduced, you should contact the lender and make him or her aware of the situation as the pre-qualification and pre-approval will not be valid anymore.

### 4 Things to Know About Fixed-Rate Mortgages

There are many opportunities in Saint Louis to purchase an excellent home at a great value. Is a fixed-rate mortgage the right mortgage for you?
Fixed-rate mortgages are loans with a set interest rate that remains the same until the end of the loan. It is normally used in financing home purchases and is normally the first choice of people seeking a home mortgage.
Advantages
The main advantage of a fixed-rate FHA mortgage is that the interest rate remains the same; homebuyers will not have to deal with any changes in mortgage payments when interest rates increase. Fixed-rate mortgages are simple loans with easily-manageable payment schedules. The key components of the loan are the principal of the loan and the interest paid to the lender who provides the loan. These are paid on a monthly basis.

A borrower will have an idea of the effect a loan will have on their monthly expenses once the monthly payment is calculated. Many of these loans allow borrowers to make additional payments in order to reduce the payment period. Some loan programs also allow lump-sum payments to end the loan early without prepayment fees.
Long-Term versus Short-Term Loans
Long-term loans have bigger interest payments while short-term loans have bigger monthly payments. Some non-traditional fixed rate mortgages allow borrowers to pay for the interest for a certain period before they start to pay for principal along with the remaining interest associated with the loan. These types of loans have become popular recently and they allow homeowners to acquire a high-priced home at moderately affordable payments at the start of the payment period.
Refinancing a Fixed-Rate Mortgage
While a fixed-rate mortgage will provide a borrower with a fixed monthly payment, the borrower will continue to pay at the same rate even if interest rates go down. Refinancing the loan can be done to pay the lower interest rate, but it may require additional expenses. Calculating the payback period allows borrowers to decide whether or not they should refinance their loan as they may end up paying more if their loan is refinanced.

Call Better Rate Mortgage at (314) 361-9979 today! We will help you decide which mortgage product is best for you to make homeownership a reality.

### Document Checklist for Refinancing

Be prepared in advanced to refinance your home with this simple checklist of documents you will need.
Now that you have decided to refinance your mortgage, it is time to get prepared. You will be required to gather certain documents to support the loan application. It is important to stay organized from the beginning so that the entire process goes smoothly. Better Rate Mortgage has provided a checklist of documents that will be required for the loan process. This checklist will help you be well prepared.
Account Statements
Statements (monthly and quarterly) from the last 2-3 months from various asset accounts such as checking, investment, retirement plan funds, and savings accounts will be required. Most banks allow their customers to download and print monthly statements directly from their websites.
Photo ID
A document to confirm your identity, name, and address. Your passport or driver’s license will work as a photo ID.
Paystubs
You will need your paystubs from the last 30 days. The paystubs should show income details such as your name, employer’s name, and total yearly earnings.
Tax Forms
A person who earns commission, owns rental property, or is self-employed will need to produce tax forms for at least the last two consecutive years. If you are an employee, a W-2 tax form will be required.
Documentation of Deposits
You will be required to furnish documentation to show a source of any other deposits other than payroll. This is used by the lender to determine if you have adequate funds for reserves and closing costs.
Phone Bill
You will need to provide a copy of your recent phone bill showing your name and billing address. Some lenders use this document to confirm that your home is your principal residence.
A Copy of Original Promissory Note
This is a document that helps lenders determine if the refinance offers a legitimate benefit or not. Some lenders may require a copy of the mortgage statement, but some others may request the promissory note as well. Your loan servicer will be able to provide you a copy of this document.
Divorce Decree
If the borrower has been divorced in the last two years, or wants to use child support or alimony payments towards qualifying income, a copy of the divorce decree will be required.
Proof of Attendance
All first-time homebuyers who have taken advantage of county or state homebuyer assistance programs are required to attend mandatory education classes for first-time homebuyers. The borrower will have to furnish proof of attendance.

You may be curious about the advantages of refinancing your home, or be ready to get locked into a rate. Either way, Better Rate Mortgage will be by your side to walk you through the process from beginning to end. Call us today at (314) 361-9979!

### Four Steps to Acquiring a Mortgage

 

The first thing anyone who aims to purchase a home should do is to clear up his or her credit. The credit report should be checked and all liabilities should be paid. After this, one should look for a good mortgage. This article provides the steps in acquiring a mortgage and checking out the different types of lenders in the market.
Pre-Qualification
Pre-qualification requires meeting with the lender and providing income, asset. and liability information. The lender will provide an estimate on the money a home buyer can borrow using the information provided. The process will be informal and no verification, fees, or formal agreements for approving a mortgage are made.

While loan approval is not guaranteed by the pre-qualification process, home buyers will have an idea on the amount they can borrow. It gives them an idea on the kind of properties they are qualified to acquire.
Pre-Approval
The pre-approval process entails checking the credit history of a home buyer. The lender will verify the employment and financial information of the home buyer. The lender will also confirm whether a home buyer is qualified for a mortgage or not. Sellers usually accept offers from pre-approved buyers since they have the capability of purchasing a house.
Selecting a Lender
Mortgages can be acquired through different sources, each having its own advantages and disadvantages. Homeowners can seek services of mortgage brokers to facilitate the acquisition of loans. Their services are especially beneficial for homebuyers with poor credit ratings. However, homebuyers should bear in mind that the fees collected by mortgage brokers can be quite high, which means they should look for the best one before they commit to an agreement with the mortgage broker.

Funding for mortgages is offered by banks as well. They provide attractive terms and decent interest rates. However, mortgage programs offered by banks are normally limited, and they are not flexible when it comes to the fees they charge.

Real-estate agents can also connect homebuyers to lenders as they are in the business sale of houses, and have contacts within the mortgage industry. However, lenders suggested by real-estate agents may charge higher fees and you may only get to choose from a limited selection of vendors.
Online Lending
With the increasing popularity of online shopping, potential homebuyers can look for lenders from the comfort of their homes. They can easily compare loans and terms offered by different vendors. However, due to the impersonal nature of online shopping, there is a possibility that you can inadvertently end up hurting your credit rating. A huge number of credit checks can also have a negative effect on the credit rating of the homebuyer. Due to this, it is essential to limit online shopping to just one time.
Borrowers Can Choose Where To Get Their Mortgage
Homebuyers have a huge number of loans, vendors and shopping methods to select from. Ultimately, they will have to make a choice on the best mortgage when they are ready to purchase a house. Some homebuyers may opt for low-price programs while others prefer convenience. Specific loan requirements and personal experience may also matter to some homebuyers. But, in the end, the homebuyer will decide where he or she will get the mortgage to purchase a brand-new house.

### Is Now a Good Time to Refinance Your Home Loan?

Is Now a Good Time to Refinance Your Home Loan?
Refinancing an existing mortgage is not a decision to be made lightly. While it may seem like a convenient way to ease some of your financial burdens at the present time, you need to carefully consider what it will do to you financially in the future. Before jumping into a new home loan with new terms go over all of your options with a qualified mortgage broker like Better Rate Mortgage to make sure this is the solution that will meet your current needs and your future plans.
Why Refinance?
There are a number of reasons why people consider refinancing their current mortgage. The most obvious of course being to get a lower interest rate. A basic refinance to a lower rate where you are not cashing out any of the equity you have built into the home will lower your monthly payments. This makes available to you more cash to pay other bills and make your monthly purchases.
What is holding back many St. Louis homeowners who would benefit from refinancing their homes is its value. As home values fell the cost of their existing mortgage became more then what the home was worth. These homeowners are left with two choices, either stick it out and continue with their high monthly payments until the home regains value or sell the home at a loss. There is of course the third unfavorable option of walking away and letting the bank foreclose on it.
What many of these homeowners are not realizing is that home values are slowly climbing, and what the assessed value of their home was two years ago may be drastically different than what it is today. If you fit into this scenario then you should be talking with a broker like Better Rate Mortgage now to find out if the tide has finally turned in your favor.
The Fixed Rate
The biggest advantage to refinancing a home loan is getting out of the unpredictable adjustable rate loans that the majority of these home owners have. Rates are low now in comparison to what they are predicted to be this time next year, so locking in right now will ensure that you are not facing even higher monthly payments the next time your mortgage is adjusted. Refinancing to a fixed rate loan gives you the stability you need to manage your finances on a month to month basis.
Refinancing to Consolidate
Homeowners who realize that they have built equity into their home may sometimes look at refinancing as a way to consolidate other high interest debts they may have, such as credit cards, into their home mortgage. Talk this over with a mortgage expert like Better Rate Mortgage first. While seemingly a good idea at first glance, you have to consider that even though the rate is considerably lower, you are now adding that debt into a 30 year commitment. You may be better off to refinance just the home and use the extra monthly cash to pay those other debts off faster.
With interest rates on home loans still low, set up an appointment with Better Rate Mortgage to discuss your options. You might have more equity in your home than you thought, allowing you to finally break free from high interest mortgage terms into rates that you can live with.


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We called our company Better Rate Mortgage because that’s our focus. Our small team is committed to helping people get the best possible rates on their mortgages.



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If you're working with sellers,



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ConventionalDo you have a high credit score? This could be the loan for you.




Conventional loans are a good fit for most people with good credit. You’ll get some of the best rates on the market, and if you’re putting down less than 20%, your mortgage insurance will be less expensive.



Keep in mind that if you’re a veteran or buying a multifamily dwelling, there may be better options.




Conventional First-Time Home Buyer (FTHB)If you haven’t owned a home in three years, take a look at this opportunity.
Conventional FTHB loans come with more flexible credit score guidelines than other loans. Plus, you can buy a home for just 3% down. If you’re buying a multifamily dwelling, you can put 5% down, freeing up cash for future real estate investments if that’s your thing.



Conventional FTHB loans do have some income requirements—call us for details.




FHAPurchase with just 3.5% down and the most flexible credit guidelines of any loan product.
Contrary to popular belief, FHA loans are not restricted to first-time home buyers. You can purchase a single-family home or even a two-, three- or four-family home with one low down payment. Contact us for specific requirements about this popular loan.









Where are you at in the homebuying process?











Researching



Wondering how much you can afford? Tell us a little, and we’ll tell you a lot.















House Hunting



Armed with a preapproval from Better Rate Mortgage, your offers can open more doors, faster than ever.















Ready to Buy



Let’s go! Our team is ready to make your mortgage process fast and easy.







or call us at  314-361-9979









A better mortgage process, from beginning to end.













Backed by$5,000guarantee.













Before you shop, get preapproved.



We’ll make it easy to set your budget—and then upload your documents. It’s all online and easy. Doing this ahead of time makes it faster once you find that perfect house.











Make a guaranteed offer.



Your preapproved offer is backed by our $5,000 guarantee—which makes sellers take notice.











Sign and celebrate.



Once your offer’s accepted, we’ll do the heavy lifting, and let you know what you need to do next.











Close, well, better.



Congratulations! We’ll do everything you need for a quick, comfortable closing process. You’ve reached the end of the adventure—or is it just the beginning?







Wait, what’s that about a $5,000 guarantee?



If you’re preapproved with our guarantee, we’ll back your offer to sellers with a guarantee. If financing falls through, we’ll pay them $5,000. It sweetens your offer, reassures them it’s solid and can put you ahead in this competitive market. How’s that for a better experience?











Meet the team that makes the magic happen.



Your home search is personal—so your mortgage should be, too. Get to know the real people behind Better Rate Mortgage.











or call us at  314-361-9979













Our customers say the nicest things.



We couldn’t have said it better ourselves.





5

























385 Google Reviews









Buy a Home



It’s time for abetter mortgage experience.



It’s time for Better Rate Mortgage. Ready to go?















No-Hassle







Better mortgages start with Better Rate Mortgage.



Of course, there’s more to a mortgage than a better rate. But when it comes right down to it, you can’t do better than Better Rate Mortgage.













Lower rates.



Rates change all the time, but we know our lower costs can get you a better rate.











Fewer fees.



Apply now with no upfront appraisal or credit report fees.











Stronger offers.



Ready to make an offer? Get preapproved and you’ll be backed by our $5,000 guarantee.













Friendlier service.



When you call us, you’ll talk to a real person who knows your loan inside and out.











Faster closing.



Need to close quicky? Let us know, and we can move faster than the big guys.











Fewer hassles.



It really is easier to work with us. From preapproval through close, we’re there with you.







Working with someone else?



That’s OK. But we don’t want to you leave money on the table. With a little information, and no hit on your credit, we can make sure you’re getting the best mortgage rate.

























What type of loan do you need?



Not sure? The information on this page can help. Our loan experts are also ready to help you find the loan that fits you. Call our team at 314-361-9979, and we’ll talk you through it.








ConventionalDo you have a high credit score? This could be the loan for you.
About Conventional Refinance Loans



Chances are, if you’ve owned your home for a while and have been making regular payments, this is the best loan for you. Heads up: you don’t have to be in a conventional loan now to refinance to one.




Conventional



Conventional



Conventional



Conventional








Your mortgage made easy.

















Do you know what your home is worth?



Get a FREE personalized report.















Free Report













Rates



A custom approach to rates.



We don't want to mislead you by publishing rates on our site. Rates change all the time, and they can depend so much on your specific situation. Tell us a little about yourself and get your FREE rate quote.







or call us at  314-361-9979







Calculate your mortgage.



We open the door to a better mortgage experience for home buyers, sellers and realtors.

























About Us



Why should you trust Better Rate Mortgage for your dream home?









5

























385 Google Reviews















Anyone can sell you a mortgage.



And many will try. But here in St. Louis, only Better Rate Mortgage opens the door to a truly better mortgage experience.What is a “better mortgage experience”? Well, it’s one focused on helping you get into your dream home, not selling you a product.That’s why Better Rate Mortgage is here. Our entire team has a long history in the mortgage business. But we were tired of doing it the old way.We wanted to get back to helping people. That sounds cheesy, we know. But it’s true. And if you call us (we sincerely hope you do), you’ll feel it right away. That’s our promise to you.





/

### Rate Check

Rate Check



Let's talk rates. 



We don’t want to you leave money on the table. With a little information, and no hit on your credit, we can make sure you’re getting the best mortgage rate.
















Our customers say the nicest things.



We couldn’t have said it better ourselves.





5

























385 Google Reviews









                  Sharne’ B  2025-08-25    I just closed on my first home with Better Rate Mortgage, and I couldn’t be happier with the experience! As a first-time homebuyer, I had a lot of questions and nerves, but their team made the entire process smooth and stress-free. They were incredibly knowledgeable, patient, and always available to explain things in detail. Communication was excellent from start to finish, and I truly felt supported every step of the way.

Most importantly, they helped me make a smart financial decision that I feel confident about long-term. I’m so grateful for their guidance and professionalism, and I would highly recommend Better Rate Mortgage to anyone looking to buy a home—especially first-time buyers!              Silvia Dadian-Smith  2025-08-14    Communication with the better rate team was excellent. Super responsive, very knowledgeable and so helpful. We will refer family and friends to them. Highly recommend.              Olivia Wiktor  2025-08-14    Sean and I had a great conversation about the realities of a home loan. He explained all the numbers, went over different options and gave me a good understanding of where I stand. I am not ready to purchase just yet, but I’ll be back to talk Sean and his team when I am!              Nathan O'Rando  2025-08-07    Better Rate Mortgage was the best possible choice for this process. Sean and Megan are so supportive and dedicated to making the whole process go smoothly! Can’t recommend them enough!              Amber  2025-08-07    Sean and Megan made buying our first home a super easy process! We loved working with both of them and will 100% be using them again in the future              Justin Harcharic  2025-08-07    Sean Zalmanoff was thorough, responsive, and transparent with me throughout the whole loan application process. He kept me updated, made time to answer all my mortgage questions, and made sure I was informed on every detail all the way up to closing my loan and securing my home.  Both Sean and Megan made the process smooth and seamless for me.  Highly recommend using Better Rate Mortgage!              Parker Timbs  2025-07-18    I needed to be pre approved quickly on a weekend, and wasn't getting timely responses from a different company. Sean was able to get me pre approved over a holiday weekend. He has always gone above and beyond to help us through our home buying process, and has made it as stress free as possible. Thank you!              Abby Brennan  2025-07-15    Sean & Megan were amazing during our process as first-time home buyers - prompt, professional, and really knowledgeable!              David Gorrell  2025-07-01    Sean was an amazing help in our first time homebuyer journey! He helped answer all our questions, got us onto programs to save us money, and got us a great rate even in a very tumultuous economy. I highly recommend him and will definitely use his services again!

### Contact

Contact



Our door is always open. 



As strange as it may sound, we love talking to people about mortgages. Do you have a question about how it all works? Check out our blog or drop us a question down below.Remember–don’t include any personal financial details in this form.







Better Rate Mortgage



 1118 Hampton Ave



St. Louis, MO 63139



314-361-9979

### Calculator

What's next?



The rates and payments you see here are an estimate, but we’d love to talk real numbers with you. We can save you time and money with a preapproval.











or call us at  314-361-9979














Our customers say the nicest things.



We couldn’t have said it better ourselves.





5

























385 Google Reviews









                  Sharne’ B  2025-08-25    I just closed on my first home with Better Rate Mortgage, and I couldn’t be happier with the experience! As a first-time homebuyer, I had a lot of questions and nerves, but their team made the entire process smooth and stress-free. They were incredibly knowledgeable, patient, and always available to explain things in detail. Communication was excellent from start to finish, and I truly felt supported every step of the way.

Most importantly, they helped me make a smart financial decision that I feel confident about long-term. I’m so grateful for their guidance and professionalism, and I would highly recommend Better Rate Mortgage to anyone looking to buy a home—especially first-time buyers!              Silvia Dadian-Smith  2025-08-14    Communication with the better rate team was excellent. Super responsive, very knowledgeable and so helpful. We will refer family and friends to them. Highly recommend.              Olivia Wiktor  2025-08-14    Sean and I had a great conversation about the realities of a home loan. He explained all the numbers, went over different options and gave me a good understanding of where I stand. I am not ready to purchase just yet, but I’ll be back to talk Sean and his team when I am!              Nathan O'Rando  2025-08-07    Better Rate Mortgage was the best possible choice for this process. Sean and Megan are so supportive and dedicated to making the whole process go smoothly! Can’t recommend them enough!              Amber  2025-08-07    Sean and Megan made buying our first home a super easy process! We loved working with both of them and will 100% be using them again in the future              Justin Harcharic  2025-08-07    Sean Zalmanoff was thorough, responsive, and transparent with me throughout the whole loan application process. He kept me updated, made time to answer all my mortgage questions, and made sure I was informed on every detail all the way up to closing my loan and securing my home.  Both Sean and Megan made the process smooth and seamless for me.  Highly recommend using Better Rate Mortgage!              Parker Timbs  2025-07-18    I needed to be pre approved quickly on a weekend, and wasn't getting timely responses from a different company. Sean was able to get me pre approved over a holiday weekend. He has always gone above and beyond to help us through our home buying process, and has made it as stress free as possible. Thank you!              Abby Brennan  2025-07-15    Sean & Megan were amazing during our process as first-time home buyers - prompt, professional, and really knowledgeable!              David Gorrell  2025-07-01    Sean was an amazing help in our first time homebuyer journey! He helped answer all our questions, got us onto programs to save us money, and got us a great rate even in a very tumultuous economy. I highly recommend him and will definitely use his services again!

### Apply



### About

About Us



Why should you trust Better Rate Mortgage for your dream home?









5

























385 Google Reviews















Anyone can sell you a mortgage.



And many will try. But here in St. Louis, only Better Rate Mortgage opens the door to a truly better mortgage experience.What is a “better mortgage experience”? Well, it’s one focused on helping you get into your dream home, not selling you a product.That’s why Better Rate Mortgage is here. Our entire team has a long history in the mortgage business. But we were tired of doing it the old way.We wanted to get back to helping people. That sounds cheesy, we know. But it’s true. And if you call us (we sincerely hope you do), you’ll feel it right away. That’s our promise to you.







Right at home in St. Louis.



We’re thrilled to call St. Louis home. And it’s not just the Arch and the Cardinals. It’s the people and the communities that make up this great region.



That’s why it gives us so much joy to help so many people across the St. Louis metro area open the doors to their dreams. And it’s why we’re committed to giving back, lending our time and talent to make our region stronger.



We hope you’ll join us in our belief that, together, we can all make St. Louis proud.















Meet the dreamers who make it happen.













Sean Zalmanoff



Founder and Chief Loan Officer



I love helping people and making friends! After 21 years in the industry, it was just time to do something different, to do something better. I was tired of seeing mortgage companies operate inefficiently and cost borrowers thousands of unnecessary dollars. That is why I founded Better Rate Mortgage. Let us open the door to more for you and see the difference. By the way, don’t just take my word for it, check out our reviews on Google too!













Megan Reel



Operations Manager and Loan Program Guru



From the moment you start your loan application to the closing table, I am your dependable guide. With my meticulous attention to detail, I will ensure that all the "i's" are dotted, and "t's" are crossed for your loan. It brings me immense joy to assist people in achieving their home ownership aspirations.











Deborah Fenton



Office Manager and Processor



My role involves guaranteeing that we acquire all the essential documents to facilitate the closure of your loan. Additionally, I lend a hand with the development of marketing materials, and I enjoy providing support to our team as a go-to person in the office.













Emily Dilthey



Management Assistant



As a versatile team member, I assist with a range of day-to-day tasks, including the creation of marketing materials, accounting and assisting the chief loan officer. I wear multiple hats for the team and enjoy being a behind the scenes go-to person.





















Our pledge to you.



Here's what makes us different.













A commitment to lead.



You’ve never worked with a mortgage broker like us. Our tight-knit team combines the latest technology and with the best service to create a faster, easier mortgage experience











A promise to serve.



We know the mortgage process inside and out, and we use that knowledge to open the door to your home ownership dreams.











A chance to grow.



We’re always looking beyond today, setting you up with the vision and knowledge to achieve today’s goals—and tomorrow’s.











An invitation to dream.



Helping make your dreams come true is our dream, too. We pledge to bring a smile to every phone call, every email—and pledge to help you leave with one, too.

### Rates

Rates



A custom approach to rates.



Rates change all the time, and they can depend so much on your specific situation. Tell us a little about yourself and get your FREE rate quote.







or call us at  314-361-9979







Calculate your mortgage.



We open the door to a better mortgage experience for home buyers, sellers and realtors.


























Join a community of happy homeowners.





5

























385 Google Reviews









                  Sharne’ B  2025-08-25    I just closed on my first home with Better Rate Mortgage, and I couldn’t be happier with the experience! As a first-time homebuyer, I had a lot of questions and nerves, but their team made the entire process smooth and stress-free. They were incredibly knowledgeable, patient, and always available to explain things in detail. Communication was excellent from start to finish, and I truly felt supported every step of the way.

Most importantly, they helped me make a smart financial decision that I feel confident about long-term. I’m so grateful for their guidance and professionalism, and I would highly recommend Better Rate Mortgage to anyone looking to buy a home—especially first-time buyers!              Silvia Dadian-Smith  2025-08-14    Communication with the better rate team was excellent. Super responsive, very knowledgeable and so helpful. We will refer family and friends to them. Highly recommend.              Olivia Wiktor  2025-08-14    Sean and I had a great conversation about the realities of a home loan. He explained all the numbers, went over different options and gave me a good understanding of where I stand. I am not ready to purchase just yet, but I’ll be back to talk Sean and his team when I am!              Nathan O'Rando  2025-08-07    Better Rate Mortgage was the best possible choice for this process. Sean and Megan are so supportive and dedicated to making the whole process go smoothly! Can’t recommend them enough!              Amber  2025-08-07    Sean and Megan made buying our first home a super easy process! We loved working with both of them and will 100% be using them again in the future              Justin Harcharic  2025-08-07    Sean Zalmanoff was thorough, responsive, and transparent with me throughout the whole loan application process. He kept me updated, made time to answer all my mortgage questions, and made sure I was informed on every detail all the way up to closing my loan and securing my home.  Both Sean and Megan made the process smooth and seamless for me.  Highly recommend using Better Rate Mortgage!              Parker Timbs  2025-07-18    I needed to be pre approved quickly on a weekend, and wasn't getting timely responses from a different company. Sean was able to get me pre approved over a holiday weekend. He has always gone above and beyond to help us through our home buying process, and has made it as stress free as possible. Thank you!              Abby Brennan  2025-07-15    Sean & Megan were amazing during our process as first-time home buyers - prompt, professional, and really knowledgeable!              David Gorrell  2025-07-01    Sean was an amazing help in our first time homebuyer journey! He helped answer all our questions, got us onto programs to save us money, and got us a great rate even in a very tumultuous economy. I highly recommend him and will definitely use his services again!

### Refinance Your Home

Refinance Your Home



It’s time for abetter mortgage experience.





There’s money in your current home loan—and Better Rate Mortgage can help you make the most of it.













Let's talk refinance. 





Our team is ready to help you find the right way to refinance to make your dreams come true. 















Reduce your rate of term.



Have mortgage rates dropped since your last mortgage? Reduce your monthly payment—or reduce the time it will take to pay off your loan.











Consolidate debt.



Gain financial independence by using the equity in your home to help reduce your debt. 











Improve your home—or buy another.



Dreaming of a new kitchen, bath, or basement remodel? Ready to finish your basement, or even buy that vacation home? The cash to do so may already be in your current home.











Dream big.



We open the door to a better mortgage experience for home buyers, sellers and realtors.







What type of loan do you need?



Not sure? The information on this page can help. Our loan experts are also ready to help you find the loan that fits you. Call our team at 314-361-9979, and we’ll talk you through it.








Conventional RefinanceIf you have a high credit score, a conventional refinance may the best fit.
Chances are, if you’ve owned your home for a while and have been making regular payments, this is the best loan for you. Heads up: you don’t have to be in a conventional loan now to refinance to one.




FHA RefinanceThe streamlined FHA refinancing plan may be a fit if you meet certain income requirements and have made consistent payments for 12 months.
You may be able to acquire an FHA refinance loan with very little documentation. The streamlined process makes it easier than ever to get cash out of your home. However, keep in mind that if you’re currently in an FHA loan, you may be able to get a lower rate with a conventional refinance.



Unsure? Get in touch with us, and we’ll get the answer you need.




VA Interest Rate Reduction LoanIf you’re a veteran, you may be able to refinance with a VA Interest Rate Reduction Loan (IRRL) with very little documentation.
Refinancing has never been easier through VA IRRL loans. However, before you apply, let’s check and see if we can help you get an even better rate through a conventional refinance.




USDA RefinanceHistorically, USDA mortgages and refinances have been quite complex—but documentation requirements have been eased for refinances.
If you live in a rural area and have 12 months of on-time payments, we may be able to help you refinance with a USDA loan. Of course, maps for eligible areas change all the time. Check to see if your property or region is eligible for USDA loans here.




Jumbo RefinanceIf you’re currently in a jumbo mortgage and need to refinance, chances are you’ll need another.
The guidelines and limits for conventional and jumbo mortgages changes often and can depend on how much equity you have in your home. Don’t worry—we can help you sort out the details.




Reverse MortgagesIf you are over 62 years old, you may be able to tap the equity in your home to cover expenses.
You’ve seen the headlines, but here’s the truth: Reverse mortgages can be a good fit for some people. Talk to us, and we’ll help you find the best solution.









Your mortgage made easy.

















Get a FREE personalized report.







 











Free Report

### Buy a Home

Buy a Home



It’s time for abetter mortgage experience.



It’s time for Better Rate Mortgage. Ready to go?















No-Hassle







Better mortgages start with Better Rate Mortgage.



Of course, there’s more to a mortgage than a better rate. But when it comes right down to it, you can’t do better than Better Rate Mortgage.













Lower rates.



Rates change all the time, but we know our lower costs can get you a better rate.











Fewer fees.



Apply now with no upfront appraisal or credit report fees.











Stronger offers.



Ready to make an offer? Get preapproved and you’ll be backed by our $5,000 guarantee.













Friendlier service.



When you call us, you’ll talk to a real person who knows your loan inside and out.











Faster closing.



Need to close quicky? Let us know, and we can move faster than the big guys.











Fewer hassles.



It really is easier to work with us. From preapproval through close, we’re there with you.











Where are you in the homebuying process?











Researching



Wondering how much you can afford? Tell us a little, and we’ll tell you a lot.















House Hunting



Armed with a preapproval from Better Rate Mortgage, your offers can open more doors, faster than ever.















Ready to Buy



Let’s go! Our team is ready to make your mortgage process fast and easy.







or call us at  314-361-9979









Working with someone else?



That’s OK. But we don’t want to you leave money on the table. With a little information, and no hit on your credit, we can make sure you’re getting the best mortgage rate.

























What type of loan do you need?



Not sure? The information on this page can help. Our loan experts are also ready to help you find the loan that fits you. Call our team at 314-361-9979, and we’ll talk you through it.








ConventionalDo you have a high credit score? This could be the loan for you.




Conventional loans are a good fit for most people with good credit. You’ll get some of the best rates on the market, and if you’re putting down less than 20%, your mortgage insurance will be less expensive.



Keep in mind that if you’re a veteran or buying a multifamily dwelling, there may be better options.




Conventional First-Time Home Buyer (FTHB)If you haven’t owned a home in three years, take a look at this opportunity.
Conventional FTHB loans come with more flexible credit score guidelines than other loans. Plus, you can buy a home for just 3% down. If you’re buying a multifamily dwelling, you can put 5% down, freeing up cash for future real estate investments if that’s your thing.



Conventional FTHB loans do have some income requirements—call us for details.




FHAPurchase with just 3.5% down and the most flexible credit guidelines of any loan product.
Contrary to popular belief, FHA loans are not restricted to first-time home buyers. You can purchase a single-family home or even a two-, three- or four-family home with one low down payment. Contact us for specific requirements about this popular loan.




VAExclusively for veterans and their immediate families, this loan offers great rates, low mortgage insurance and no down payment options.
We’d love to talk to you about this tremendous opportunity. Remember—if you’re a veteran, you can use a VA loan more than once. We’ve even worked with some buyers who have two VA loans at the same time.




USDAIf you’re looking to purchase in a rural area, USDA loans have a no down payment option.
This isn’t about steak—it’s all about the sizzle. Of course, the maps for eligible rural areas change all the time. Check to see if your property or region is eligible for USDA loans here.




JumboNeed a loan for more than $726,200? The Jumbo loan might be a good fit.
Guidelines change often and may depend on your down payment percentage. Don’t worry—we can help you sort out the details, no matter what happens.




Reverse MortgageIf you are over 62 years old, you may be able to tap the equity in your home to cover expenses.
You’ve seen the headlines, but here’s the truth: Reverse mortgages can be a good fit for some people. Talk to us, and we’ll help you find the best solution.









Your mortgage made easy.

















Let's get moving.



The door’s open, and we’re ready to help youwith a better mortgage experience.











or call us at  314-361-9979

### Insights



### Home

A better rate is just the beginning.





Everyone in St. Louis promises a better mortgage rate—but what you really need to turn that perfect house into your dream home is a better mortgage. At Better Rate Mortgage, we open the door to so much more. Come on in, and we'll show you how.











or call us at  314-361-9979





5

























385 Google Reviews































"Wow!"











































“It was the smoothest loan process I have ever experienced.”

















Where are you in the homebuying process?











Researching



Wondering how much you can afford? Tell us a little, and we’ll tell you a lot.















House Hunting



Armed with a preapproval from Better Rate Mortgage, your offers can open more doors, faster than ever.















Ready to Buy



Let’s go! Our team is ready to make your mortgage process fast and easy.







or call us at  314-361-9979









A better mortgage process, from beginning to end.













Backed by$5,000guarantee.













Before you shop, get preapproved.



We’ll make it simple to set your budget—and then upload your documents. It’s all online and easy. Doing this ahead of time makes it faster once you find that perfect house.











Make a guaranteed offer.



Your preapproved offer is backed by our $5,000 guarantee—which makes sellers take notice.











Sign and celebrate.



Once your offer’s accepted, we’ll do the heavy lifting, and let you know what you need to do next.











Close, well, better.



Congratulations! We’ll do everything you need for a quick, comfortable closing process. You’ve reached the end of the adventure—or is it just the beginning?







Wait, what’s that about a $5,000 guarantee?



If you’re preapproved with our guarantee, we’ll back your offer to sellers with a guarantee. If financing falls through, we’ll pay them $5,000. It sweetens your offer, reassures them it’s solid and can put you ahead in this competitive market. How’s that for a better experience?















Meet the team that makes the magic happen.



Your home search is personal—so your mortgage should be, too. Get to know the real people behind Better Rate Mortgage.











or call us at  314-361-9979

### Privacy Policy

Terms



By accessing this web site, you are agreeing to be bound by these web site Terms and Conditions of Use, all applicable laws and regulations, and agree that you are responsible for compliance with any applicable local laws. If you do not agree with any of these terms, you are prohibited from using or accessing this site. The materials contained in this web site are protected by applicable copyright and trade mark law.



Use License



Permission is granted to temporarily download one copy of the materials (information or software) on Better Rate Mortgage Company’s web site for personal, non-commercial transitory viewing only. This is the grant of a license, not a transfer of title, and under this license you may not:




modify or copy the materials;



use the materials for any commercial purpose, or for any public display (commercial or non-commercial);



attempt to decompile or reverse engineer any software contained on Better Rate Mortgage Company’s web site;



remove any copyright or other proprietary notations from the materials; or



transfer the materials to another person or “mirror” the materials on any other server.




This license shall automatically terminate if you violate any of these restrictions and may be terminated by Better Rate Mortgage Company at any time. Upon terminating your viewing of these materials or upon the termination of this license, you must destroy any downloaded materials in your possession whether in electronic or printed format.



Disclaimer



The materials on Better Rate Mortgage Company’s web site are provided “as is”. Better Rate Mortgage Company makes no warranties, expressed or implied, and hereby disclaims and negates all other warranties, including without limitation, implied warranties or conditions of merchantability, fitness for a particular purpose, or non-infringement of intellectual property or other violation of rights. Further, Better Rate Mortgage Company does not warrant or make any representations concerning the accuracy, likely results, or reliability of the use of the materials on its Internet web site or otherwise relating to such materials or on any sites linked to this site.



Limitations



In no event shall Better Rate Mortgage Company or its suppliers be liable for any damages (including, without limitation, damages for loss of data or profit, or due to business interruption,) arising out of the use or inability to use the materials on Better Rate Mortgage Company’s Internet site, even if Better Rate Mortgage Company or a Better Rate Mortgage Company authorized representative has been notified orally or in writing of the possibility of such damage. Because some jurisdictions do not allow limitations on implied warranties, or limitations of liability for consequential or incidental damages, these limitations may not apply to you.



Revisions and Errata



The materials appearing on Better Rate Mortgage Company’s web site could include technical, typographical, or photographic errors. Better Rate Mortgage Company does not warrant that any of the materials on its web site are accurate, complete, or current. Better Rate Mortgage Company may make changes to the materials contained on its web site at any time without notice. Better Rate Mortgage Company does not, however, make any commitment to update the materials.



Links



Better Rate Mortgage Company has not reviewed all of the sites linked to its Internet web site and is not responsible for the contents of any such linked site. The inclusion of any link does not imply endorsement by Better Rate Mortgage Company of the site. Use of any such linked web site is at the user’s own risk.



Site Terms of Use Modifications



Better Rate Mortgage Company may revise these terms of use for its web site at any time without notice. By using this web site you are agreeing to be bound by the then current version of these Terms and Conditions of Use.



Governing Law



Any claim relating to Better Rate Mortgage Company’s web site shall be governed by the laws of the State of Misosuri without regard to its conflict of law provisions.



General Terms and Conditions applicable to Use of a Web Site.



Privacy Statement



We are committed to safeguarding your privacy. Please read the following policy to understand how your personal information will be treated as you use our services. This policy is provided to you as required by the federal Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801 et seq.) and the appropriate regulations and guidelines thereunder.



The Security We Use to Protect Your Information



We use SSL (Secure Sockets Layer) technology to protect all data transmitted between browsers and our servers. In order to use the site, users are required to be running an SSL-capable browser.



What Information We Collect From You



We collect various types of personal information about you during the normal course of offering and providing real estate and/or mortgage services. This includes but is not limited to: Information you provide in order to purchase a home and/or obtain a home loan including your name, phone number, address, social security number, email address, employer’s name and address, income, assets, liabilities, and answers to questions of both personal and financial matters; communications from you regarding your loan(s) such as a change of employment; information obtained from third parties such as consumer reporting agencies or credit bureaus, employers, depository institutions and others, that we use to evaluate a loan application; information that we may gather in compliance with certain laws and regulations, such as the Home Mortgage Disclosure Act.



Sharing of the Information Gathered on This Site



We will never disclose your personal information or data to third parties without your consent. However, with your permission, we do share personal information about you, as required or permitted by law, with third parties, such as service providers who assist us in the day to day operations of our company in the administration, processing, servicing and sale of your loan. These third parties include among others, title companies, appraisers, insurance companies, underwriting services, processing services, printing companies, software providers, marketing services and purchasers of loans. Our policy is to require third party service providers to enter into confidentiality agreements with us, prohibiting them from using any personal information they obtain for any other purpose other than those for which they were retained or as required by law. We may also disclose information about you, when necessary or required, in legal and arbitration proceedings and to government agencies.



What Cookies Are and How They Are Used



A cookie is a small amount of data that is sent to your browser from a web server and stored on your computer’s hard drive. Our site has programs that use cookies to maintain session information to remember who you are as you go from page to page. To protect your privacy we do not use cookies to store or transmit any personal information about you on the Internet.



External Links



This site contains external links (links to other sites). We are not responsible for the privacy practices or the content of such web sites. If you have any questions about this privacy statement, the practices of this site, or your dealings with this web site, please contact us.



Updating or Deleting Your Information, Including Demographic and Profile Data



You may update or delete your information at any time prior to completing an online data form. Once your online form is completed and submitted, you will not be able to change any of the information online. You will need to contact us via email, phone or postal mail to request that we update or delete your information.



Demographic and Profile Data



We may share certain aggregated demographic and profile data with government agencies. Aggregate data excludes information that would enable any individual to be identified. We also collect certain data (including your IP address) about your visit to our web site in our log files to enable us analyze site traffic and gather broad demographic data. The data in our log files are not linked to personally identifiable information.



Contacting Us



If you have any questions about this privacy policy, please write us by mail here:



Sean Zalmanoff: Better Rate Mortgage1118 Hampton AveSt. Louis, MO 63139