The Joe Costa Show

Joe Costa, a 25 year mortgage professional, business relationship facilitator, and sales educator can be heard weekly on his radio show, The Joe Costa Show.  He discusses current events, financial markets, mortgage/real estate markets and current trends. Connecting local business owners and making their brands and services known to the local community is a focal point of his show and his passion.  To hear previous recorded shows go to www.thejoecostashow.com.

Does Your Interest Rate Determine the Actual Cost of Your Mortgage?

There are often misconceptions by homeowners and prospective homebuyers when it comes to the mortgage process.   Joe Costa  a mortgage professional with San Diego's Park Place Financial Group can help you understand how the process works.  A very common misunderstanding is that the interest rate reflects the true cost of the mortgage amount.  The interest rate alone is only a part of your mortgage payment.  The APR or annual percentage rate actually reflects the true cost of your home mortgage payment.  The APR includes not only your interest rate but also other factors such as points, private mortgage insurance(PMI) if applicable, and other fees for underwriting and loan origination.  When a potential borrowere or homeowner is looking to shop around and compare rates for a new loan or a refinance,  it is extremely important to remember that the APR is the more inclusive rate and will give you a better idea of what you will truly pay for your mortgage.

Why Should a Borrower Go with a Boutique Mortgage Company?

The mortgage industry, along with most industries today, is highly competitive.  As a borrower it is often dificult to know which mortgage company or lending institution to go with when applying for a home loan.  San Diego's Park Place Financial Group is a boutique mortgage company that prides itself with hands on service.  Joe Costa, broker and owner, states that "it is essential to build long lasting relationships with our clients.  This begins with building a solid foundation from the beginning with our borrowers.  At Park Place Financial Group we are available at all times any day during the week to answer any of our clients questions or help walk them through any part of the loan process."

The Importance of Dealing with a Mortgage Professional Prior to Looking for a New Home

It is extremely important in today's market to speak to a  mortgage professional before you even begin your search for a new home.  Getting a loan to purchase your new home can be a very complicated process especially with time frames that are put into place by real estate contracts.  By consulting a professional prior to your search you will have a much clearer idea of all of the details going through the application process entails.  Do you  know how important your down payment, FICO score, and employment history are to obtaining the right loan? Do you know that you should not buy a car, change or quit your current job, or use your credit cards excessively when you are going through the loan approval process?  Joe Costa, a San Diego mortgage professional from Park Place Financial Group can help you start the process by prequalifying or preapproving you before you begin your home search.  When you do find the perfect home and are ready to make an offer, you will have more leverage by being preapproved and having already consulted  a mortgage professsional.

Getting a Low Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you are working on your application process. This means that your interest rate will not get any higher while you are working through this application phase. Rate locks can vary in length, between 15-60 days, with the longer time periods usually costing more. You can get a longer period for your rate lock, but in making this choice, you will probably have a higher interest rate than you would have with a shorter rate lock period.

In addition to going with a shorter rate lock period, there are several ways that you can attain the best mortgage interest rate. The bigger downpayment you pay, the better your rate will be, since you will have more equity from the beginning. A borrower can opt to pay points to improve an interest rate for the term of the loan, which means you will have to pay more initially.  Joe Costa from San Diego's Park Place Financial Group educates his clients on this strategy and is a good option for certain borrowers to pay points up front to improve the interest rate over the life of the loan. You will pay more initally but you will come out ahead in the end.  

Park Place Financial Group's Weekly Mortgage Segment with Joe Costa

Joe Costa provides an informational and entertaining weekly mortgage segment on San Diego's The Answer 1170am every Friday at 8pm.  He talks about real life situations and the importance of establishing a value based relationship with his clients.  He gives his listeners tips on how to go about finding the best mortgage professional to help answer all of your questions throughout a purchase loan process or a refinance for you current home.  He keeps his listeners informed on a variety of topics from interest rates to how to apply for a loan to getting a preapproval letter even before you go shopping for a new home to provide you with the most leverage when you do find the perfect home. For more information go to www.parkplacefg.com and get the most up to date information on his radio show.

Loan Programs With Little or No Down Payment

Often borrowers don't have 20 percent to use as a down payment on a home purchase.  There are several different options instead of the traditional loan program with PMI(Private Mortgage Insurance).

• Federal Housing Administration (FHA) mortgage loans
  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays an important part in helping low to moderate-income buyers get mortgages. Part of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) helps individuals get FHA provides mortgage insurance to private lenders, enabling homebuyers who might not qualify for a typical loan, to obtain a mortgage. Interest rates for an FHA loan are typically the market interest rate, but the down payment amounts with an FHA loan will be lower than those of conventional loans. Closing costs can be included in the mortgage, and the down payment may be as low as 3 percent of the total.
• VA mortgage loans
  With a guarantee from the Department of Veterans Affairs, a VA loan is offered to veterans and service people. This special loan does not require a down payment, has limited closing costs, and provides a competitive interest rate. Even though the VA does not provide the loans, it does issue a certificate of eligibility to qualify for a VA loan.
• Piggy-back loans
  You may finance a down payment with a second mortgage that closes with the first. Generally the first mortgage covers 80% of the cost of the home and the "piggyback" is for 10%. Instead of the usual 20 percent down payment, the homebuyer will just have to cover the remaining 10 percent.
• Carry-Back loans
  In the option of the seller "carrying back a second mortgage," the you borrow a portion of the seller's home equity.. In this scenario, you would borrow the largest portion of the purchase price from a traditional mortgage lender and borrow the remaining amount from the seller. Typically, this kind of second mortgage will have a higher rate of interest.

Call Joe Costa at San Diego's Park Place Financial Group today to find out about all of your options.

Your Down Payment

Lots of buyers can qualify for a mortgage loan, but they don't have a lot of money to pay a down payment. Get started here

Tighten your belt and save. Scrutinize your budget to discover ways you can cut expenses to save for your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your take-home pay moved into your savings account. You could look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or stay local for your annual vacation.

Sell items you don't need and find a part-time job. Look for an additional job. This can be rough, but the temporary difficulty can provide your down payment money. In addition, you can put together an exhaustive list of items you can sell. Unused gold jewelry can be sold at local jewelers. A closet full of small things could add up to a nice sum at a garage or tag sale. You might also look into what your investments may bring if sold.

Tap into your retirement funds. Explore the details for your particular plan. Some homebuyers get down payment money by withdrawing funds from their IRAs or borrowing from 401(k) plans. Be sure to ask your plan representative about the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for help from generous family members. First-time homebuyers are sometimes lucky enough to get help with their down payment assistance from giving parents and other family members who are willing to help them get into their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your first home.

Learn about housing finance agencies. These types of agencies provide special loan programs to low and moderate-income homebuyers, buyers with an interest in rehabilitating a house in a targeted area, and additional specific kinds of buyers as specified by the agency. Financing with this kind of agency, you may be given a below market interest rate, down payment help and other advantages. These kinds of agencies may assist you with a lower interest rate, get you your down payment, and offer other assistance. The main goal of not-for-profit housing finance agencies is boosting residential ownership in particular parts of the city.

The satisfaction will be the same, no matter which method you use to come up with the down payment. Your brand new home will be well worth it!

Want to discuss the best options for down payments? Call Joe Costa at Park Place Financial Group located in San Diego, California 646-245-7856.

Make Private Mortgage Insurance A Thing Of The Past

Beginning in 1999, lending institutions have been required to cancel a borrower's Private Mortgage Insurance (PMI) when his/her loan balance (for loans closed after July of that year) reaches less than seventy-eight percent of the price of purchase, but not at the time the borrower's equity gets to more than twenty-two percent. (There are some loans that are not covered by this law -like some loans considered 'high risk'.) But you have the right to cancel PMI yourself (for mortgages made past July 1999) when your equity gets to 20 percent, no matter the original purchase price.

Do your homework

Keep a running total of money going toward the principal. You'll want to stay aware of the the purchase prices of the houses that sell in your neighborhood. Unfortunately, if yours is a recent mortgage - five years or fewer, you probably haven't begun to pay very much of the principal: you are paying mostly interest.

Proof of Equity

You can begin the process of PMI cancellation as soon as you you think that your equity has reached 20%. First you will let your lending institution know that you are requesting to cancel your PMI. Next, you will be asked to submit documentation that you have at least 20 percent equity. Usually lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your home's equity and eligibility for PMI cancellation.

At  San Diego's Park Place Financial Group, we answer questions about PMI every day. Give Joe Costa a call: 646-245-7856.

Joe Costa's Weekly Mortgage Segment on 1170am

Tune in and get Radio Active with Joe Costa, the CEO of Park Place Financial Group.  Joe's informational weekly mortgage segment is on 1170am every Friday at 8pm.  He provides his San Diego, California listeners with real life loan scenarios and helps to educate buyers on the importance of choosing the right mortgage lender/broker who will find the best home loan product for that individual's life situation.  Go to www.joecosta.info

Park Place Financial Group Is Here To Help

Deciding to buy a house or refinance a mortgage is an important step.  Park Place Financial Group, located in San Diego, CA will help locate the loan program that's the right fit for you. We have a team of professionals to guide you through this major financial decision. For guidance in finding the best loan program for your unique situation, please contact Joe Costa at (646) 245-7856.

Joe Costa at Park Place Financial Group Can Help You Get A Loan This Summer

Before looking to purchase a home this summer, call Joe Costa at San Diego, California's Park Place Financial Group for a loan prequalification or preapproval letter.  This makes it easier when you find the perfect home to know that you already have a lender in place.  Joe Costa has been in the mortgage industry for over 25 years and can answer any questions you might have regarding interest rates and financing for a variety of purchase loan products that are available.

Happy Memorial Day from Park Place Financial Group

Happy Memorial Day from Park Place Financial Group, San Diego, California 's premier mortgage company.  We honor all of the heroes that have served and are serving to protect our country. Thank you for your great service.

Get Radio Active with Joe Costa from Park Place Financial Group

Tune in and get Radio Active with Joe Costa, the CEO of Park Place Financial Group.  Joe's informational weekly mortgage segment is on 1170am every Friday at 8pm.  He provides his San Diego, California listeners with real life loan scenarios and helps to educate buyers on the importance of choosing the right mortgage lender/broker who will find the best home loan product for that individual's life situation.  Go to www.joecosta.info