Homebuying Articles

Equip yourself with the information you need to know throughout the homebuying process so you can make a house your home.

Learn About Buying A Home

From fixed interest rates to mortgage insurance to homeownership association fees, there are lots of variables in homebuying. Use these articles to break down each topic so you can confidently embark on your homebuying journey.

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What Are 30-Year FHA Mortgage Rates? If you are considering applying for an FHA loan to purchase a home, you may be wondering, “What are 30-year FHA mortgage rates?” If you want to find out what the current average 30-year FHA mortgage rates are, the most accurate way to find out is to visit your local First Bank and ask about our FHA mortgage loans. Determining 30-Year FHA Mortgage Rates Securing a good 30-year FHA mortgage rate depends on a few different factors, including: How much you can put forth as a down payment Whether the loan is fixed or adjustable-rate If the loan is adjustable-rate, your margin Your credit history and current finances What is an FHA Mortgage Loan? The recession experienced in the last decade caused a dip in the housing market. This downward trend of the housing market has led to an increasing popularity of FHA mortgage loans. But before you shop around for what all the current 30-year FHA mortgage rates are, it’s important to know exactly what FHA loans are. An FHA loan is a mortgage that is insured by a government agency called the Federal Housing Administration. By purchasing mortgage insurance, borrowers are often able to secure low interest rates under more flexible qualification requirements. A few key facts about FHA mortgages include: Down payments for an FHA loan can be as low as 3.5%. This is well below the traditional down payment of up to 20%. FHA loans allow for sellers, lenders or builders to contribute to the closing costs on the buyer’s behalf. The lender must be FHA-approved. First Bank is an example of an FHA-approved lender with 30-year FHA mortgage rates. Mortgage insurance is required. This protects the lender from loss as a result of a default and is what opens the door for low down payments and interest rates. Visit Your Local First Bank Today If you want to know what 30-year FHA mortgage rates are, contact your local First Bank representative. Use a loan officer finder to locate a First Bank loan specialist near you and set up a consultation. If there’s no First Bank loan officer near you, simply fill out our online application and a mortgage specialist will contact you to address your needs.* *Loans subject to credit approval. ——— 2 min read

15-Year North Carolina Mortgage Rates Looking for information and assistance in choosing a 15-year mortgage rate that suits your needs? First Bank has a North Carolina location nearby that can help you with your decision to invest in a 15-year mortgage. 15-year North Carolina mortgage rates can vary and depend on a number of factors with your application, but to get a rough idea of the current average rates check out the Mortgage News Daily. 15-Year North Carolina Mortgage Rates | First Bank First Bank offers conventional fixed-rate mortgages in terms of 15, 20, and 30 years. Our 15-year fixed-rate mortgages offer predictable monthly payments, as your interest rate and your total monthly payment of principal and interest will remain the same for the duration of the loan. Benefits include: Predictable monthly P&1 payments allow you to budget easily Protection from rising interest rates for the duration of the loan Overall interest paid on 15-year mortgages will be less than other longer-term loans Understanding Mortgage Rates in North Carolina One advantage of a 15-year mortgage rate is that it has a more competitive interest rate than that of its 30-year counterpart. A 15-year mortgage rate may allow the borrower to pay less interest over the duration of the mortgage and build equity more quickly. However, the disadvantage is that your monthly mortgage payments might be higher than that of a 30-year mortgage because you are essentially paying off the mortgage in half the amount of time. Mortgage rates come in the form of fixed or adjustable. The advantage of a fixed-rate mortgage is that your interest rate and mortgage payments will never change during the lifetime of your mortgage. Because of this stability, fixed-rate mortgages are the most popular kind of home mortgages. Adjustable rate mortgages (ARM) come with a fluctuation of interest rates from year to year that are dictated by and reflective of the market. Regardless of the type of the mortgage you choose, the payment of principal itself is only a portion of what’s included in a monthly mortgage payment. Borrowers also must pay the interest, and typically property tax, property insurance, and sometimes mortgage insurance. Compare 15-Year NC Mortgage Rates at First Bank First Bank has several convenient locations in North Carolina and offers mortgages of 3 min read

Mortgage Basics 101 Understanding mortgages can be difficult, which is why we’ve put together some information to guide you through the mortgage basics. You don’t need an advanced degree in economics to understand the financing of your home. A crash course in mortgage basics will suffice, and First Bank has the resources to help you learn the ins and outs of a mortgage. Mortgage Basics 101 What is a mortgage? According to Investopedia, at its most basic, a mortgage is a loan used to purchase a house. While this definition may seem simple enough, home loans are complex. There are many different types of home loans and each can have varying terms and interest rates. Types of mortgages. Mortgages can be broken down into two main categories—fixed-rate and adjustable-rate—and each category can include different loan types. Fixed-rate mortgages are popular because the interest rate stays the same throughout the life of the loan and they typically have less complicated terms. Adjustable-rate mortgages are loans in which the interest rate can change. Adjustable-rate mortgages typically have lower initial interest rates than fixed-rate mortgages, which means your initial monthly payments will be lower. Getting a mortgage. Before you apply for a mortgage, it helps to understand the types of mortgages available to you, how much house you can afford, and what you will need to apply. And one of the best ways to find out this information is to use mortgage tools from First Bank, from mortgage calculators to application help, we make the process of purchasing a home as simple as possible. Help from First Bank’s Mortgage Center By visiting our Mortgage Center, you can get the benefits of a crash course in mortgage basics through a host of services, including: Mortgage Know-How. This is a collection of blogs, articles, tips, and guides for first-time or experienced home buyers, builders, or refinancers. Calculators. Use these tools to calculate how much house you can afford, determine whether you should refinance or not, decide to buy or rent, or figure out how much you can save by increasing your mortgage payment. Application Help. We give you the opportunity to fill out a mortgage application online to expedite the process, but if you need help with the application, simply contact one of our home loan experts. Loan 3 min read

Calculate Your Monthly Mortgage Loan Payment (with Taxes and Insurance) A mortgage loan calculator with taxes and insurance can help prospective homeowners prepare for the financial responsibility of owning a home. Purchasing a home may be one of the biggest decisions you ever make, so it is important to know how much your mortgage payment will be each month after taxes and insurance are added, so you can know how much house you can afford. How Much House Can I Afford? First Bank* provides a mortgage loan calculator with taxes and insurance for potential homebuyers who want to estimate their monthly payments before applying for a loan. Before you use the calculator, you will need to gather the following information: Loan term in years Purchase price Percentage down Interest rate Annual tax Annual insurance Once you have all of the necessary information, you can click here to calculate your potential monthly mortgage payment.** Applying for a Home Loan Now that you’ve calculated how much house you can afford, you may be ready to apply for a mortgage loan. You can get the homebuying process started by visiting First Bank’s online Mortgage Center. Our Mortgage Center provides you with tools, tips, and tricks to help you find a loan that meets all of your needs. Whether you are a first-time home buyer or ready to build your vacation home, we can structure a loan to meet your needs. First Bank offers a variety of home loan options*** with competitive interest rates, including : Conventional loans Government loans Professional loans Jumbo loans Construction loans Dream It, Own It loans The path to quickly finding an affordable home loan starts at First Bank. When you’re ready to apply, all you have to do is start an online application or visit your local branch to speak with one of our home loan experts. *Member FDIC. Equal Housing Lender. NMLS #474504. **Determining exact rates and payments can be a complex process. Your exact rates and payment amounts will depend on a number of factors including geographical location and personal financial information. This tool provides you with an estimate of payments based on the information you put in but does not guarantee them. Loans are subject to credit and collateral approval. ***Loans subject to credit approval. 2 min read

Home Mortgage Calculator from First Bank A home mortgage calculator can help you determine your monthly mortgage payments. This will help you financially prepare for that future purchase, whether you are a first-time homebuyer or seeking a vacation home. You can even discover how much money you might save by increasing your mortgage payment with a calculator. Home Mortgage Calculators from First Bank Whether you simply want to know how much of a house payment you can afford or you are trying to determine if you should rent a home or buy one, First Bank has a home mortgage calculator that can help. With our home mortgage calculators you can: Determine How Much House You Can Afford – Home Mortgage Calculator What you’ll need to know: Term in years Purchase price Percentage down Interest rate Annual tax Annual insurance Decide Between Refinancing or Keeping Your Current Loan – Home Mortgage Calculator What you’ll need to know: Loan amount Annual property taxes and insurance Term in years Interest rate Determine Whether You Should Rent or Buy – Home Mortgage Calculator What you’ll need to know: Monthly rent Yearly rent increase Home purchase price Loan amount Term Find Out How Much Money You Can Save by Increasing Your Mortgage Payment – Home Mortgage Calculator What you’ll need to know: Principal balance Interest rate Monthly payment Additional monthly payment Mortgages from First Bank First Bank offers a variety of home mortgage options,** including: Conventional loans—Fixed or adjustable rates. Jumbo loans—For higher property values. Government loans—Lower rates and closing costs. Professional loans—For physicians, CPAs, dentists, and attorneys. Construction loans—For land, construction, and home mortgage. To learn more about our home loan options or how one of our home mortgage calculators can help you prepare for the future, contact or visit your local First Bank branch. *Member FDIC. Equal Housing Lender. NMLS #474504. **Loans subject to credit approval. ——— Sources: Investopedia: http://www.investopedia.com/terms/i/interest.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186 2 min read

Where To Get 20 Year Mortgage Rates When you’re ready to buy a house, it’s easy to get caught up in all of the excitement of shopping and forget about the financial part. Once you’ve found the perfect house, the first thing you may be wondering is where to get 20-year mortgage rates. First Bank can help you determine what type of mortgage works best for you, and help structure a loan that meets your individual needs. What are 20-Year Mortgage Rates? 20-year mortgages are typically offered as fixed-rate mortgages, meaning your interest rate—and your total monthly payment of principal and interest—will stay the same for the entire term of the loan. A fixed-rate mortgage offers a predictable monthly payment, making it easier for you to follow your budget. With fixed-rate mortgages, you also have the option to take them out in 15 or 30-year terms. While a 20-year mortgage helps you pay off your home faster and build equity quicker than longer-term fixed-rate mortgages, a 15-year mortgage will help you pay it off even faster, and pay less interest. However, 15-year mortgages have higher payments than other longer-term mortgages. Additionally, 30-year fixed-rate mortgages allow you to pay off your loan with lower monthly payments, but since the life of the loan is longer, you’ll pay more interest and build equity slower than you would with a shorter-term loan. Visit Your Local First Bank First Bank offers conventional fixed-rate mortgages in 15, 20, and 30-year terms, and we also offer adjustable-rate mortgages. To learn more about our loan options, or if you’re still wondering where to get 20-year mortgage rates, visit your local First Bank branch. Our loan experts will be happy to teach you more about mortgage loans and rates, or help you structure a loan* that meets your needs. *Loans subject to credit approval. ——— Sources: Investopedia: http://www.investopedia.com/terms/f/fixed-rate_mortgage.asp 2 min read

30-Year Mortgage Rate Forecast Tips A great way to lock in the best mortgage interest rate is to shop around. By learning how to read a 30-year mortgage rate forecast, homeowners can pinpoint an ideal loan. Here are some useful tips for understanding mortgage forecasts to take advantage of the current lending climate. Tips for Analyzing a 30-Year Mortgage Rate Forecast 30-year mortgages offer multiple benefits for home buyers, including lower monthly payments and fixed interest rates. Because it is a long-term investment, it is important to lock in a good rate. Here are some tips for interpreting the current climate of 30-year mortgage rates. Track Rates Over a Few Months A mortgage forecast is a collection of data from a period of time, usually a few months or a week. There are often forecasts for the year in January, but because the market is subject to change, it can be difficult to predict the lending climate. So, in order to find an ideal rate, it is best to track 30-year mortgage rate forecasts over a period of time (a few months) to determine if you should lock in your rate now or wait until later. Your First Bank mortgage advisor can provide informed advice on this issue as well, as they follow the fluctuations of mortgage rates and are trained to predict market behavior. Know What Affects Interest Rates There are a few factors that impact the lending climate in the United States: The Federal Reserve (responsible for adjusting the amount of money put into circulation) 10-Year Treasury Yield (the anticipated return on government investment and assets) Housing Market Climate (the supply and demand for financed housing) Lending Market (current credit rating averages and requirements for loans) Inflation (rising inflation correlates with rising mortgage rates) The combination of these factors changes mortgage rates day-to-day, depending on the economy. In the past few years, for example, economic factors caused mortgage rates to significantly drop. Now that the economy is growing again, interests rates are projected to rise. Current Forecasts Currently, 30-year mortgage forecasts are fluctuating between 3% and 5%. If you are hoping to buy or refinance a home this year in South Carolina or North Carolina, First Bank can help you lock in a 3 min read

Mortgage Q&A: What Are Current FHA Rates? What are FHA mortgage rates? They’re the rates associated with an FHA mortgage. FHA mortgage rates will vary based on a number of factors. There are fixed rates and adjustable rates, down payments, credit scores of all levels and other factors that will affect the interest rates. The best thing to do is contact First Bank where one of our loan specialists can help answer what current FHA mortgage rates are available to you. What are FHA Mortgages? Before you explore current FHA rates, it is important to understand what FHA mortgages are. To start, FHA stands for Federal Housing Administration. According to the U.S. Department of Housing and Urban Development, “FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans.” What are FHA Mortgage Loan Requirements? Although some requirements can vary, FHA requirements usually include: A decent credit score. To receive a FHA mortgage, applicants should have a credit score of at least 580. Applicants with a credit score below 580 may still be eligible for a FHA loan, but will most likely be required to put down a 10 percent down payment. Verifiable income. According to FHA.com, “FHA loan rules for income have more to do with stability of income, the ratio of monthly financial obligations compared to that income, and the reliability of the paychecks rather than scrutinizing the amount itself.” Why Get a FHA Mortgage? In general, FHA mortgages are easier to qualify for than conventional loans, require smaller down payments, and have lower interest rates. For buyers who have decent credit, and who do not have a lot of money to put down, an FHA mortgage can provide the chance to buy a home — a chance that many may otherwise lack. Call First Bank Today Now that you have a basic understanding of FHA mortgages, you can inquire with First Bank about what the current FHA rates are. We have representatives who are available by phone Monday through Friday to assist you. Give us a call today to get started. ———- Sources: HUD: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory FHA: http://www.fha.com/fha_credit_requirements 2 min read

Conventional Mortgage Loans Applying for a home loan can be a strenuous process, especially if you’re unsure which type of loan is the best fit for your financial situation. Before you apply, it is important to understand the two types of loans available to you: conventional mortgage loans and a government-backed loans. In this article, we’ll break down the basics of conventional loans. What are Conventional Mortgages? Conventional loans can have fixed or variable interest rates, which can be impacted by your credit score. Qualifications for conventional loans are usually stricter than government-backed loans because they carry a higher risk for banks and private lenders. If the borrower defaults on the loan, the banks and private lenders are not protected. These kinds of loans are not insured by the federal government, but they are still required to follow guidelines set by the Federal National Mortgage Association—a.k.a. Fannie Mae and Freddie Mac. A Conventional Loan to Meet Your Needs If you live in North Carolina or South Carolina and are looking for a flexible and affordable conventional loan,* look no further than your local First Bank. We offer both adjustable-rate and fixed-rate mortgages with a range of features and benefits that are sure to fit your specific financial needs. Conventional Adjustable-Rate Mortgages This kind of mortgage loan changes periodically depending on shifts in the corresponding financial index associated with the loan. ARMs generally have a lower initial interest rate than fixed-rate mortgages. Both your interest rate and your P&I (monthly principal and interest) payments will stay the same for an initial period of 3, 5 or 7 years. After that it will adjust periodically. Interest rate caps set a limit on how high your interest rate can go for your P&I payment for each adjustment and over the life of the loan. Loans are available for 30-year amortization schedules. Conventional Fixed-Rate Mortgages Your interest rate and P&I payments stay the same for the life of your loan. That predictability for your monthly P&I payments enables you to budget more easily. This kind of loan is available in a variety of loan term options, and it protects you from rising interest rates no matter how high they fluctuate. This option is good for individuals or 3 min read

Bank Owned Homes – Find Bank Owned Homes for Sale in Your Area If you’re in the market for a great deal on a home, a bank-owned home could be just the thing for you! With First Bank, you can easily search through a list of our bank-owned properties for sale. Bank-owned properties typically make great investments for first-time home buyers or for new business opportunities. Click here to see a list of First Bank’s available properties. About Bank Owned Homes (REO Properties) – Learn More Before You Buy A bank-owned home or real estate owned (REO) home is a home that has been foreclosed on be the mortgage lender. When you purchase a bank-owned property, you go directly through the bank, so you won’t have to deal with any homeowners. Once the mortgage lender or bank owns the property, they can evict the current residents, pay off any necessary tax liens, and make any necessary repairs. In today’s market, buying a home can be pretty expensive—especially when you add in extra costs and potential upgrades or home repairs—so if you are looking to purchase a home, but don’t have a lot of money to spend, a bank-owned home could be a good option. Bank-owned properties make great investments for first-time home buyers or anyone looking for new business opportunities. Advantages of Buying a Bank-Owned Home Bank-owned homes give real estate investors and homebuyers opportunities that are not available in the pre-foreclosure and auction phase of the foreclosure process. Some other advantages of buying bank-owned homes include: Bank-owned properties are typically cheaper than newer homes and often offer great terms like low down payments and low interest rates. Buying bank-owned homes can involve less risk and less competition than traditional markets. Bank-owned properties are typically clear of any liens against the property. The bank that owns the foreclosed property is usually the mortgage lender, so it might be easier to negotiate closing costs. Bank owned properties are typically vacant, which can save you from having to evict its current residents. For more information on bank owned homes, check out our article on how to shop for bank-owned properties. ——— Sources: Investopedia: http://www.investopedia.com/terms/f/foreclosure.asp Investopedia: http://www.investopedia.com/terms/t/taxlien.asp 2 min read

Where to Get 15-Year Mortgage Rates If you’re ready to buy a home, you’re probably wondering where to get 15-year mortgage rates, or you may just be wondering what a mortgage is. First Bank will go over your options with you and help you determine what type of home loan is best, whether that be a 15-year mortgage, or a 3/3 adjustable rate mortgage. Types of Loans at First Bank Before we tell you how and where to get 15-year mortgage rates, we’ll go over some of First Bank’s mortgage options. We offer: Conventional loans Jumbo loans Government loans VA loans Construction loans Dream It, Own It If you are a first time home buyer, you’re probably looking for a conventional loan. We offer two types of conventional loans: fixed-rate and adjustable-rate. Adjustable-Rate Mortgages vs. Fixed-Rate Mortgages Conventional adjustable-rate mortgages (ARMs) have interest rates that will change periodically depending on shifts in a corresponding financial index that’s associated with the loan. This basically means that your rate will change, causing your monthly payment to increase or decrease. ARMs can be beneficial for some home buyers because they typically have lower initial interest rates than fixed-mortgages, and they provide homeowners flexibility. Conventional fixed-rate mortgages offer a more straightforward approach to home buying. With a fixed-rate mortgage, your monthly interest rate never changes, making it easier for you to set a monthly budget. A lot of people prefer fixed-rate mortgages because they offer protection from rising interest rates for the life of the loan. Secure a Mortgage with First Bank We hope you feel a little more prepared to take on a mortgage and buy the house of your dreams. If you’re ready to apply for a mortgage loan*, visit your local First Bank, or contact our mortgage loan experts. *Loans subject to credit approval. ———— Sources: Investopedia: http://www.investopedia.com/terms/a/arm.asp 2 min read

5 Mortgage Tips to Help You Get the Best Deal Applying for a home loan can be a confusing and sometimes frustrating experience for prospective home buyers, but it doesn’t have to be. By keeping these mortgage tips in mind, you can make the home-buying process easier and ensure you are getting a loan that meets your budget and needs. 5 Tips for Getting the Best Mortgage Loan 1. Check your credit. Finding out your credit score should be the first thing you do before considering your home buying options. Your credit score will impact the types of loans you are eligible for, how much money you can borrow and your interest rate. 2. Set a budget. Use a mortgage calculator to determine how much house you can afford and stick to it. You should also keep in mind how much you will have to pay in property taxes, homeowner’s insurance, maintenance costs, furnishings and utilities. According to LearnVest, you should take the top amount you are approved for take 20% off of it to make sure you can afford the extra expenses that go along with home ownership. 3. Understand your loan options. By learning about your loan options before you apply, you can make sure the lender you choose offers the best type of loan for you. Types of mortgage loans include the following: Fixed-rate mortgages Adjustable rate mortgages Government loans Construction loans Professional loans 4. Shop around. When shopping for a mortgage, you don’t have to go with the first lender you talk to. You might get a better interest rate from one lender than you do for another. You’ll likely find that local community banks like First Bank will offer the most competitive rates and best service with all their lending options. 5. Prep your documents. Find out what documents you’ll need to apply for a mortgage and gather them before you meet with a lender. Required documents typically include: Credit report Tax returns Pay stubs Two forms of ID Proof of current property owned Visit First Bank’s Financial Education Center for more tips on buying a home, or talk to a First Bank mortgage loan expert near you to learn more about our home loan options. ——— Sources: http://www.learnvest.com/knowledge-center/7-top-mortgage-shopping-mistakes-to-avoid/3/ http://www.realtor.com/advice/14-step-pre-approval-checklist/ http://www.consumerfinance.gov/askcfpb/137/how-do-i-find-the-best-loan-available-when-im-shopping-for-a-home-mortgage-loan.html 2 min read

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