Own vs Rent

What are the advantages of owning a home rather than renting?

Owning a home can be as affordable as renting, and in some part of the United States, it can be more affordable to own rather than rent. Borrowers can compare costs by researching home prices in the areas they want to live, calculate what a mortgage loan would cost them, and compare that to the cost of renting a similar type of home.

While homeownership might not be the right option for everyone, the advantages are many. Some of those advantages include building equity and earning tax advantages. Borrowers can build their wealth as they gain more equity over the course of time. Additionally, per Internal Revenue Service code, loan interest is tax deductible.

Homeowners must be prepared to consider maintenance costs of keeping their home in good condition. Also, the value of a home can fluctuate in value. Buying a home with the help of The Federal Savings Bank, does NOT require a significant amount of cash upfront, so selling it during the initial years of ownership may be easy and something to consider in light of job and other commitments.

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The Perfect Mortgage Experience

The Perfect Mortgage Experience

  The Federal Savings Bank

At The Federal Savings Bank, we understand that purchasing a home can be an arduous process.  Whether you are buying your first home or your dream home, the mortgage process always requires large amounts of paperwork and at times, can become very confusing.

We have developed the Perfect Mortgage Experience as a proactive approach to keeping you, and all parties involved, informed at all times.  You will be notified every time your loan reaches a milestone within the process. 

We believe that the Perfect Mortgage Experience will create full transparency to the mortgage process.  By informing you up front, you will have peace of mind knowing that your one step closer to owning your new home.

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Housing starts, completions up

Good news for first-time home buyers as they will have more opportunities to buy a new house with the U.S. Census Bureau and Department of Housing and Urban Development reporting that housing starts were up in August on both a month-over-month and year-over-year basis.

Privately-owned housing starts for the month reached a seasonally adjusted annual rate of 750,000, which is 2.3 percent higher than July's revised estimate, and is 29.1 percent higher than the number reported in August last year.

As far as building permits were concerned, privately-owned housing units that were authorized by permits in August hit a seasonally adjusted annual rate of 803,000, which is 1 percent less than the revised July number, but 24.5 percent higher than August 2011's estimate of 645,000.

“Builders across the country have been reporting noticeable improvement in the number of serious buyers who are in the market for a new home, and today’s report shows that this is translating to some welcome gains in construction activity,” said Barry Rutenberg, chairman of the National Association of Home Builders. “While there is still plenty of room for improvement, it’s encouraging to see this continuing trend that is spurring much-needed job growth.”

Housing completions also up
Meanwhile, the report from the U.S. Census Bureau and Department of Housing and Urban Development also found that privately-owned housing completions for the month hit a seasonally adjusted annual rate of 689,000, 0.7 percent higher than July's estimate, and 11.7 percent higher than August 2011.

“The pace of overall housing production has been edging gradually upward all year as consumers become more confident in their local housing markets, and the latest data are further evidence that the housing recovery is here to stay,” added David Crowe, chief economist for the NAHB. “That said, the pace of this recovery continues to be constrained by various hurdles, including a tough lending environment, inaccurate appraisals and more recently, rising prices on key building materials.”

One way that first-time home buyers can take advantage of this news is to shore up their credit and pursue the house of their dreams. Fortunately for them, 15- and 30-year fixed-rate mortgage averages remain below 4 percent.

The Federal Savings Bank

Credit scores improving nationwide

In what is good news for prospective first-time home buyers across the country, even in those areas that have been hit hardest by the recession, credit scores are on the rise.

The third annual State of Credit report from Experian showed consumers in Las Vegas, Phoenix and Bakersfield, California, which were three of the hardest hit cities involved in The Great Recession, have shown improvements in their credit scores.

Among the questions the State of Credit report set out to answer include how the struggling economy has led to many consumers reducing their spending, and whether or not that had a lasting effect on their credit scores over the past few years.

"Increasing numbers of Americans are showing they understand how credit works," said Maxine Sweet, Experian vice president of public education. "They're paying their bills on time and lowering their debt-to-limit ratio. It's encouraging to see them demonstrating that they have the resources to make those positive changes in how they manage credit. They are choosing to 'Live Credit Smart'."

On a regional basis, the South had seven out of 10 cities improving their consumer credit scores, but it was the Midwest that led the way in terms of top 10 rankings. Looking closer, consumers in Wisconsin showed strong credit health as four of the state's metro areas made the top 10 list for the second straight year.

"The 2012 State of Credit confirms another year of incremental gains on the part of consumers, yet with a national average score of 750, which is just that - average - we have room to improve," said Gail Cunningham, vice president of membership and public relations at the National Foundation for Credit Counseling, the nation's largest financial counseling organization. "Widespread financial education is the key to helping more Americans manage their credit well as they regain their economic footing."

Having a strong credit score as a number of positive advantages, one of which is the ability to secure a mortgage for that first home. Major banks and other lenders are more inclined to offer a low-rate mortgage to a home buyer with an impressive credit score. That is why individuals with strong credit are encouraged to plunge into the waters of home buying and take advantage of all the benefits that it offers.

The Federal Savings Bank

What if I don’t have a big down payment?

What if I don’t have a big down payment?

One of the great mortgage myths is that you must have a large down payment to qualify for a mortgage loan. For many of us, especially first time homebuyers, a 20% down payment on their home mortgage is not realistic. While other lenders offer low down payment options, they often require extra insurance to protect the mortgage lender in case you default on your mortgage loan. This insurance is called private mortgage insurance (PMI) (link to FAQ on PMI).

At The Federal Savings Bank, we offer programs with down payments as low as 1.5% for qualified buyers, and we have many offerings that don’t require PMI (like piggy back loans and second mortgages).

Still have questions? Call us at 877.788.3520 or your TFSB banker directly if you have already established a relationship with one. If you are ready to apply, then let’s go!

FHA and VA Refinance Options

Understand Your Refinance Options

FHA and VA Refinance Options

The Federal Savings Bank is the easiest and fastest way to refinance your FHA loan or VA loan.

FHA loans are ideal for first time home buyers and borrowers with less home equity and lower credit scores. And in June, 2012 The Federal Savings Bank will be introducing an enhanced affordable and streamlined process for refinancing your existing FHA loan (link to FHA Streamline). Call us today 877.788.3520 to speak with a Banker about your options.

VA loans represent one of the best veteran benefits. The Federals Savings Bank is veteran-owned – we are veterans who have a passion for servicing other veterans. Read more about us to see why military service is in our DNA (link to “about us”).

Popular Mortgage Refinance Options

You have many choices when refinancing your mortgage with The Federal Savings Bank! Although there are several options, we are experts at helping you understand the differences and matching you with a customized solution for your unique needs. Here are our most popular refinance home loans:

• FHA Refinance Mortgage
• 30-Year Fixed-Rate Refinance Mortgage
• VA Refinance Mortgage
• Home Affordable Refinance Program (HARP)
• Compare All Refinancing Options

Refinancing by State

The Federal Savings Bank is a national mortgage lending expert. We lend in all 50 states, and will find the perfect refinance option for you…from Alaska to Florida and all points between.

Getting Pre-Approved for your mortgage

Getting Pre-Approved for your mortgage

Nothing is more important than obtaining a pre-approval when buying a home. First, it helps you narrow down the homes under consideration because it tells you what price house you can afford. Second, pre-approval can give you a leg up over other buyers when you find a home you like. Sellers are more likely to accept offers from buyers who they know have financing secured, because the sale is more likely to close.

A legitimate pre-approval letters give the seller confidence in you - the buyer. The Federal Saving Bank analyzes your credit and verifies your income and liquid assets (bank accounts, investment accounts, retirement, etc.). Simply provide us the documentation (we'll tell you what we need - usually just a paycheck stub and W2) and a copy of your bank or investment account statements.

Pre-approval is a good step to take before you start shopping because it shows sellers that you are a serious buyer. In fact, in some housing markets, for your offer to be reviewed it is necessary to be preapproved. That way, sellers can be certain the deal won’t fall through.

Remember that you can buy a home for less than your pre-approval amount. Think of pre-approval as your limit. If your budget doesn’t allow for a $1,500 monthly mortgage payment but your lender says you can afford that much, stick with your budget. We want you to get the most for your money, but avoid getting in over your head!

If you are ready for a pre-approval, the first step is to call us at 877.788.3520 (or your TFSB Banker, if you already have one). We will discuss all of your options and help you and your realtor negotiate the strongest purchase offer.Remember, certainty can be a substitute for price in the mind of the seller. In other words, a full pre-approval letter can often convince the seller to accept a lower price because they know you're a solid buyer. It also means no surprises for you, since the only thing standing between you and final loan approval is the appraisal of the home. Writing a strong offer can also help you negotiate a lower price.

Still have questions? Call us at 877.788.3520 or your TFSB banker directly if you have already established a relationship with one. If you are ready to apply, then let’s go!

How do I select the right Realtor?

How do I select the right Realtor? | Start Your Home Loan Process!

The Federal Savings Bank

October, 2012

Selecting a good real estate agent is one of the most important choices you can make when purchasing a new home. You want someone who understands what you're looking for - who has the time and capability to keep your best interest at heart. Your real estate agent is your home buying advocate. The Federal Savings Bank can assist you in selecting the perfect realtor for you. Whether you are looking for your home locally, want to buy a condo for your new college freshman, or need help identifying a realtor for that second home 3,000 miles away, your banker can assist you.

There are differences among realtors. A dual agent has an obligation to treat both parties fairly, but has a higher degree of loyalty to the seller. For example, there is no assumed confidentiality with the buyer. If the buyer tells the dual agent something about their strategy - like their top dollar - the dual agent has to give that information to the seller. On the other hand, a buyer's agent has strict loyalty to the buyer. His contractual obligation is to assist the buyer in obtaining a property at the absolute most favorable terms to the buyer.

We like to say that ‘the root of all conflict is unmet expectations’. Our Bankers will build a relationship with your realtor, help you structure a strong offer, prevent any surprises from occurring, and provide you with a mortgage pre-approval (link to FAQ for pre-approval) so you can negotiate with confidence. And if you have a special situation (for example, if you are foreign national, you need a bridge loan, you want to buy new construction, or if that condo you love doesn’t have enough owner occupants to qualify for traditional programs) The Federal Savings Bank is flexible enough to accommodate you.

Get Help Selecting Your Realtor And Lean More About Your Home Buying Process!

How much house can I afford?

How much house can I afford?

"How much house can I afford?" That’s a great question. Helping you understand your limitations and capabilities ensures that you get as much home as possible without getting in over your head. That’s what partnership is all about.

The Federal Savings Bank can help you estimate your purchase power by utilizing one of our convenient mortgage payment calculators. This is a fast and easy way to get an initial indication of affordability. But an accurate evaluation can only be determined by understanding your unique needs and characteristics. Our Bankers can help you determine your true buying power simply and easily, and at absolutely no cost to you (yes, it’s Free!). Simply call us at 877.788.3520 or your Mortgage Banker directly, and we’ll ask you a few simple questions about your income, employment, credit history, and your savings. Why do we need to know this? Our offerings are uniquely tailored to each individual borrower. No two situations are alike, and our Bankers are trained to quickly and efficiently direct you to best solution. You deserve to be rewarded for paying your bills on time and saving responsibly.

Affordability is important to every potential home owner, but it’s especially critical for our first time home buyers. That’s why The Federal Savings Bank offers a broad array of low down payment programs. But we go even further. We also offer our first time buyers special financing – in some cases that means as little as 0-15% down payment with no private mortgage insurance (link to FAQ ‘what is private mortgage insurance’). And because we control the entire process (link to ‘perfect mortgage experience), our rates are typically better than other banks and mortgage lenders.

Still have questions? Call us at 877.788.3520 or your TFSB banker directly if you have already established a relationship with one. If you are ready to apply, then let’s go!

So you can afford the house, great news! What’s next?

The Home Buying Process

You've worked hard, saved your money, and managed your credit responsibly. Now you're saving up to buy your biggest purchase ever - a new home. Whether it’s your first home, your dream home, a vacation home or an investment property our philosophy at The Federal Savings Bank is the same: a better educated customer is a better customer. Period.

That’s why The Federal Savings Bank educates you about the entire home buying process - not just mortgage financing. Our approach is designed to help you determine how much home you can afford, understand low down payment options, assist you with selecting a real estate agent, guide you through writing a strong home purchase offer, and pre-approve you for a mortgage so you can negotiate your purchase with confidence. We're here to make buying a home as simple as possible – our goal is to provide you a Perfect Mortgage Experience. Call us 877.788.3520 or your Mortgage Banker to experience first-hand how enjoyable it is to work with true mortgage professionals.

Read more

• How much house can I afford to buy?
• Selecting the right realtor
• Writing a strong purchase offer
• What if I don’t have a big down payment?
• Getting Pre-Approved for your mortgage