Homebuyers

Good Debt vs. Bad Debt
By Stacy Willison, Mortgage Loan Officer When looking at debt, you might think that all debt is bad. However, there are certain types of debt that can be good for you. Good Debt Good debt is debt that has the potential to increase in value and/or is an investment in your future. For example, mortgages and student loans are good debt. A home’s value usually appreciates over time and student loans are considered an investment in your future. You are not alone in thinking that student loans are bad; most people dislike them. However, getting a college degree gives you the potential to ...
Turning Point Loans Explained
By Tina Manshum, Okemos Branch Manager What is our Turning Point loan you might ask? This type of loan is for the member that may not fit the typical mortgage guidelines of Fannie Mae and Freddie Mac. These are loans that are underwritten, approved, and serviced by Michigan First Mortgage and our parent, Michigan First Credit Union for the life of the loan. This allows Michigan First Mortgage to set guidelines and qualifications for all loans in this program to meet. These loans also offer flexibility that might not otherwise be an option. This could be to accommodate unwarrantable condos, property improvements, ...
Can I Buy a House with Student Debt?
By John Fitzgerald, Grand Rapids Branch Manager For some people, getting a college degree is necessary for their chosen occupation. Unfortunately, getting a college degree can be expensive and often results in student loans that must be repaid once the student has graduated. Recent statistics show that the average student loan debt is over $32,500 and the average student loan payment is $393 per month. If you are one of the over 44 million U.S. citizens with student loan debt, your debt might affect your ability to become a homeowner. If you are looking to buy a home, you might find these ...
How are Mortgage Rates Determined?
Zarine Torrey, Sr. Mortgage Loan Officer Your mortgage rate is determined by a calculation that takes in many variables; some that are in your control and others that are not in your control. Factors you control: Credit score – the lowest and best rates go to consumers with credit scores of 750 or higher. The lower your score becomes, the higher of a risk for the lender to take on, so the risk is passed onto you with a higher interest rate. Lenders use your credit score to predict how reliable you will be in paying your loan. Before you start shopping ...
Ways to Save for a Down Payment
By Carrie Buscemi, Sr. Mortgage Loan Officer Saving for a down payment can be one of the biggest barriers to homeownership. But many of today's homebuyers overestimate the size of the down payment they need. The average down payment is between 5% and 10% — not 20%, as a lot of people assume. With options like Freddie Mac's 3% down Home Possible mortgage, Fannie Mae’s 3% Home Ready mortgage, and the Federal Housing Authority's 3.5% down, qualified borrowers are able to make a down payment as little as $6,000 for a $200,000 home. Down payment assistance programs can help you bridge the cash gap, ...
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