You will hear this kind of “temporary fix” situation from most lenders that look at your credit today and just want to close your loan.  In the past, some would try to convince you to accept a loan with prepayment penalties and fixed for only 2 or 3 years, then the rates increase or force you to refinance and pay closing costs all over again. 

At Churchill Mortgage, we were not satisfied with the limited options available.  So we did extensive research into how the Credit Scoring software actually works.  We then trained a team called the “Credit Score Improvement Team” whose purpose is to show our customers how to increase their credit scores quickly, and get approved for A+ interest rates.  We then found software that will actually show us exactly what moves you need to make to raise your scores, and exactly how many points it will increase. 

In many cases, we can even get A+ interest rates for those that may have No Credit Score because they have not used credit. If you do not have a Credit Score, please visit our What You Need To Know page to inform yourself on the ever-changing guidelines for borrowers with no credit score. 

If you are interested in Pre-Qualifying for a mortgage loan and need guidance regarding your credit score, give us a call at 1-888-562-6200.  You can also head to our website www.churchillmortgage.com to Request A Call Back and one of our Home Loan Specialist will contact you at a time that is convenient to you.

If you listen to the Dave Ramsey Show or have read any of his books, you know Dave strongly encourages people to put 20% down on a 15 year fixed rate mortgage – period!  Dave’s intention is to keep you out of future trouble by making sure you have prepared in advance to own a home by saving money, and have adequate income to pay off the home early by being able to qualify for a 15 year payment. 

Starting in 2008, we saw many casualties of the minimum down payment strategy across the country with record levels of foreclosures.  Many of those were caused when loan programs that required little or no money down were used to purchase homes with the intention of reselling in a few years.  But when home appreciation stopped or dropped, those people were unable to sell their homes for enough to cover the amount they owed.  In addition, there were thousands of homeowners that wanted to refinance, but were caught in the same situation – they didn’t have enough equity in the home to refinance out of their current loan.

All of these real situations suggest there is wisdom in having a greater equity position in your home from the start – and making efforts to pay off your loan early with extra payments when possible.  We are advocates of having a healthy emergency fund over and above your down payment and closing costs, as well as maintaining one throughout your financial life.  We do understand there are situations where when all options are weighed, it is best to put very little down – provided there is a plan to pay extra payments soon after the loan has closed.  Again, you need to look at both the payment options side-by-side as well as the 5 year ending balance to understand which option is best for you. 

If you are interested in purchasing a home and need advice on which program is right for you, Churchill Mortgage would be happy to assist.  Contact one of our Home Loan Specialist at 1-888-562-6200 or Request A Call Back on our website http://www.churchillmortgage.com/ and we will contact you at a time that is convenient for you. 

The U.S. Small Business Administration provides low interest disaster loans to homeowners and renters affected by the recent disasters in middle Tennessee. These programs are categorized into three programs:

1)       Home Loans - Loans are available to homeowners or renters to repair or replace disaster damaged real estate or personal property owned by the victim. Renters are eligible for their personal property losses, including automobiles.

2)       Refinancing - SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property), and (3) intends to repair the damage. Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, in some cases up to the amount of the loan for real estate repair or replacement.

3)       Relocation Loans - You may use your SBA disaster loan to relocate. The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily. 

The application process can start by going to http://disasterloan.sba.gov.

Their general information site is http://sba.gov/services/disasterassistance/index.html.

If you would prefer a face-to-face approach to this process you can visit the following Disaster Recovery Centers in our area:

Tennessee State University (Ford Community Center) - http://www.tnstate.edu/interior.asp?mid=7099&ptid=1

100 Oaks Mall - http://www.vanderbilt.edu/flood/resources/fema-100oaks/

Franklin City Hall - http://www.franklin-gov.com/index.aspx?page=656

For specific hours of operation and directions, please follow the link next to each location.

Please pass this information along to anyone you know of in need of a low interest disaster loan. Use the share button below to forward this to a friend or family member that may benefit!

When you see or hear commercials for mortgages, they usually focus on one thing – the rate.  But is the interest rate being offered all you need to consider?  Of course not.  You need to consider all the costs, as well as the effect the loan will have over time in reducing the amount you owe on the loan.  And of course, the interest rate is of little value if you are sold on a program that is not in your best interests or fails to accomplish your long-term goals.  So why is there so much focus on rate in advertisements?  That’s easy – most people will not take the time to really understand their mortgage and how it will impact their finances for years to come.  Rates are numbers and people will see lower as better– therefore, many lenders will quote the lowest rate possible to make the phones ring.  In our opinion, this is a very bad model because some loan officers and mortgage companies manipulate the rates they show by charging Points, Origination Fees, higher closing costs, and use non-traditional names for fees not charged by other lenders to make the rate look lower.  This results in a very low interest rate, but the upfront money it takes to pay these costs may be less beneficial than paying a slightly higher rate.  On a refinance, when those costs are added to the loan balance, a borrower may not see themselves breaking even on the cost of the loan for 5 years or more. 

What about A.P.R. (the Annual Percentage Rate)?  Can’t you just compare the A.P.R. to know which program has the lowest rates and fees?  Unfortunately, the A.P.R. is widely manipulated by charging Points or Origination Fees to make the A.P.R. number lower.  For instance, if you compare two loan programs and one has an A.P.R of 5.02% and the other has an A.P.R. of 4.867%, you might think the 4.867% offer is the best deal.  But if you took a closer look, you would discover you are paying $3,000 more for the lower rate for only a drop of .25% in your interest rate.  And on further examination you would find you owe more on the lower rate loan after 3 years than on the higher rate option.  When making such a big financial decision, you really want to work with someone you trust that will help you understand the details so you can make the best decision.

Churchill Mortgage can assist you and make sure you avoid making costly mistakes in obtaining your financing. Give us a call at 1-888-562-6200 or head to our website www.churchillmortgage.com to Request a Call Back and one of our Loan Specialists will contact you at a time that is convenient for you.