Home Buying Guide

Owning your own home is more than just part of the American dream. It’s the freedom that comes from having your own space where pets are welcome. It’s the freedom to live your own lifestyle without having to conform to landlord restrictions. It’s about the pride you feel when friends come over. Most importantly, it’s all about you.

Our economic environment has created an unprecedented opportunity to stop paying rent and start enjoying all the benefits of home ownership:

  • Low interest rates offer increased purchasing power
  • Purchase prices are the most affordable in years enabling buyers to get more home, and a higher value, for every dollar
  • Many financing options allow for a low or no down payment
  • Today’s wide range of loan products creates an opportunity for people who thought they could never afford a house payment
  • Home ownership can build an equity nest egg, much like a savings account, which benefits buyers in ways renting can never offer
  • Tax deductions from mortgage interest and property taxes can yield significant annual savings, per the IRS code
  • Stable monthly mortgage payments contribute to a more predictable housing cost while renting costs are subject to landlord fluctuations

As one of the Northwest’s leading mortgage bankers, PRM is widely recognized for personal, one-on-one client relationships that are grounded on trust and professionalism. Our goal is to take the mystery out of the entire financing process to insure an exciting transition into your own space.

We offer a full spectrum of lending options to first time home buyers, many with low down payment options.

Click HERE to see our available loan programs.
 

Home Refinance

A Home Refinance Can Create Special Opportunities.

Over the past decade, an increasing number of home owners have chosen to restructure their home financing, widely known as a home refinance. One significant factor driving this trend has been low interest rates, often at or near historically low levels. Other non-interest rate related factors include the need to replace short term financing, the desire to restructure overall personal debt, obtaining cash for home remodeling, using cash from existing equity for making investments in real estate or other forms of investing, and to use simply for personal reasons.

 

Rate and Term Refinance

With a home refinance, you pay off your existing mortgage and create a new one. This can include combining a primary and second mortgage into one new loan. The refinancing process is similar to that of obtaining your original mortgage and you may encounter many of the same procedures and types of cost. Many borrowers choose to finance any closing costs and prepaid expenses that apply to the refinance so as to minimize out-of-pocket expense while still ending-up lowering their monthly mortgage payment, sometimes by a significant amount. Benefits obtained by the home owner with a refinance include an overall interest expense reduction and/or shifting from an adjustable rate mortgage to a fixed rate mortgage, or vice-versa depending on how long the home owner may or may not be projecting to own the subject home.

 

Cash-out Refinance

When you refinance for an amount greater than what you owe on your home, you can receive the difference in a cash payment. Doing so is called a cash-out refinancing. You might choose to do this if, for example, you need cash to make home improvement or to pay for a child’s education, purchase a new vehicle, or simply to put away funds for retirement.

Home equity is the dollar value difference between the balance owed on your mortgage and the value of your property.  A cash-out refinance is about tapping into that equity so it is important to remember that when you take out equity with a cash-out refinance, you own less of your home.  This means that if you need to sell your home, the amount you get from that sale will have been reduced from previous levels.

If you are considering cash-out refinancing, we encourage you to also consider other alternatives including home equity loans or a home equity line of credit.  We can help compare a home equity loan with cash-out refinancing to see which is best for you.

 

Home Equity Lines of Credit

Home equity Lines of Credit, or HELOCs, are adjustable-rate second mortgages with rates typically based on the Prime Index, as reported through the Wall Street Journal. These are unique in mortgage lending in that they serve as a revolving line of credit during the initial draw period and then become a termed out loan at the end of the draw period. These draw periods typically have a duration of five years, most with a renewable option for an additional five years with a 10 to 15 year amortization after that point. During the draw period, the balance can go up and it can go down as the credit line balance is utilized and/or reduced by the borrower. The minimum payment during this draw period is the monthly interest based on the last month’s balance which could be anywhere from a zero balance up to a balance of the full line of credit limit.

A home refinance can create special opportunities that have benefited many homeowners.  Contact us for a no charge, no commitment consultation to learn how one might benefit you.

 

Home Purchase

You have a wide variety of options for purchasing a home with PRM.

Whether you are acquiring your first home or your 10th home, purchasing is always a big step.  As one of the Northwest’s leading mortgage bankers, we offer a wide array of loan options from which one will be selected that best fits your purchase needs. Click HERE to see our available loan programs.

The loan options available to you through PRM include:

  • Conventional and Jumbo loans
  • Loans with 15 and 30 year terms
  • Adjustable rate loans
  • Reverse Mortgages
  • And more

Our exclusive RuraLiving Home Mortgage, or Farm Loan, Program is especially appropriate here in the Pacific Northwest.  This includes a variety of loan-types designed for current and prospective homeowners specifically in rural and smaller communities.  Country Home Mortgage products offer flexible, long term financing at competitive rates for agricultural properties not accepted by traditional investors.  Through our own in-house financing, we tailor this program to two property categories:

  • Conventional rural homes.
  • Hobby farm homes such as horse properties and harvest farms, vineyards, christmas tree farms, orchards, farms for growing tulips, lavender, and berries, etc.

Click HERE to see our available loan programs.