MHQ - Mortgage HeadQuarters

Over the life of the mortgage, the amount of a mortgage payment is composed of a combination of interest and principal repayment. Initially, your payment will be primarily interest, with a small amount of principal included. As the mortgage matures, the principal portion of the payment will increase and the interest portion will decrease. So, why do you pay so much interest in the early years of a mortgage loan ? Here are four reasons: 1. The interest owed starts to accrue from the day the loan is made.  When you deposit money at the bank, you naturally expect to start earning interest on the balance right away. It's exactly the same for lenders; they expect to earn interest on the balance as soon as they make a loan. 2. Interest diminishes along with the loan balance.  On a typical loan, you pay principal and interest each month. Over time, as you pay down the principal, you owe less interest each month, because your loan balance is lower. So, more of your month...

As rent payments rise and home mortgage interest rates remain considerably low, many couples today are opting to buy a house together instead of renting. It's no surprise that a lot of couples would rather own a house together than rent, as buying a house has a lot of advantages that renting doesn't. However, before jumping the gun on buying a home, you and your significant other should talk about how you will  apply for a home mortgage at the Lake of the Ozarks . Will you apply for the mortgage together or separate?  MHQ Mortgage HeadQuarters  has some advice for you. 1. Monthly Income and Assets There are a few things to consider before you decide what will be the best route for your home mortgage. Whether you apply singly or jointly, your loan officer will look at a few factors to see if you qualify. They will look at your gross monthly income and any available assets. If you file together, combing both your monthly incomes and assets can help you qualif...

A good credit score is important for more reasons than just obtaining new credit. These days, it can factor into everything from landing a new job to getting the best deal on your insurance policies. As a homeowner, there are many more reasons to keep up with your credit score and maintain a healthy credit history. It's more important than ever to avoid late payments on your mortgage . Here are some ways that missing or paying your mortgage late can affect your credit. Late Payments = Dropped Score A 100 point drop for one late mortgage payment? It’s true. A single 30-day-late mortgage payment can cause your score to drop by as much as a hundred points. Credit scoring algorithms vary based on many factors, and in some instances, the damage may be even greater and last for years. The Costs Accumulate At the time, a single missed payment will cost you only a late fee, but the expense really adds up on your next loan or missed opportunity. Low credit scores typically mean a h...

Under certain circumstances, buying mortgage points when you purchase a home can save you significant money over the course of your loan. But it’s important to understand how they work and how long it takes for the additional upfront cost to be worthwhile. So this week, Mortgage Headquarters of Missouri is sharing with you some information on what points are and how they work. What Are Points, and How Much Do They Cost? "Points" are really called "Discount Points." Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate. Technically, they're considered pre-paid interest. One point = 1% of the loan amount. In general, the longer you plan to own the home, the more points help you save on interest over the life of the loan. Example: 1 point on a loan of $100,000 = $1,000.  Should I Pay Them?  When you consider whether points are right for you, it helps to run the numbers. Divide the upfront cost by the mon...

It's pretty amazing that a rate increase of just 2% can impact affordability by as much as $40,000. Rates have been artificially low for some time, but we've been seeing rates on the rise. Every smart consumer knows to ask the question "how can I get the lowest interest rate possible?". Unfortunately, lowest isn't always the best. This week, we're sharing with you some details on what you need to know about the real cost of owning a home and factors that may impact your interest rate. Lowest Isn't Always Best The lowest rate certainly sounds best. But did you know the lowest rate doesn't always mean the lowest cost? Mortgage interest is just one component of the real cost of owning a home. Interest rates are a reflection of expectations for inflation and the supply/demand equation for money. Rising rates typically mean rising inflation, too. When inflation occurs, the value of your home will typically rise. You can subtract that increase in va...