home lenders refinance mortgage

October 23, 2008

Home Loans and Mortgages

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 9:11 am
M. D. Robinson asked:


Todays real estate market is a volatile one; prices are at record levels and Interest rates are favorable, but foreclosures are increasing. Wages havent kept up with home prices and some buyers who had to stretch to find a way to obtain a mortgage in the first place are having trouble making their payments. Usually, if a buyer cannot meet his or her mortgage obligation, the lender forecloses, taking the home and leaving the buyer without a place to live and a tarnished credit record. If you are having problems paying your mortgage, can you avoid this scenario?

Depending on your type of mortgage and your lender, you may have other options. Most lenders, wary of rising foreclosure rates, would rather work out some sort of solution than take your home. Lenders are in the business of lending money, not selling houses, and the process of foreclosure is a tedious one that most institutions would rather avoid. The first thing you should do if you find yourself with a problem making your payments is to call your lender and discuss the matter with them. The sooner you contact them, the more likely you are to work out a solution that is agreeable to both of you.

Here are a few possible options for buyers who are having temporary cash flow problems:

Your lender may agree to temporarily suspend payments until you are able to resume paying them. Alternatively, your lender may be willing to restructure or refinance your loan.

If your loan is insured by the department Housing and Urban Development or the FHA, you may be eligible for a one-time payment to bring your mortgage payments up to date. For details, contact the HUD or FHA directly.

You may be able to sell your home to pay off your loan. This is clearly not the first choice for many homeowners, but it is a better option than losing your home outright. Rising real estate prices during the last few years have left many homeowners with a lot of equity. You may be able to sell your home for more than you owe, which will relieve your debt and leave you with some cash left over.

Your lender may be willing to simply take the home back, rather than force you out of it. You lose the house, but your credit rating will not likely suffer.

These are just a few choices that may be available to you. Your lender may offer other solutions, as well, so dont hesitate to call them if you find yourself in financial trouble. It is far better to contact the lender and tell them of your problems than to have them call you and ask, Where is our money? Be forthright and tell them that you want to work something out, and you may find a solution that allows you to keep your home. It never hurts to ask.



MARGARITO

are there any mortgage lenders out there that have “stated disability” programs?

Filed under: Renting & Real Estate — Tags: , , , , , , , — admin @ 2:33 am
jrow77 asked:


i am mortgage loan officer and have a client who needs to take out a loan/refinance for debt consolidation and home improvements. he only owes a little over $20,000.00 on his home and it appraised at $220,000.00. he wants to borrow $100,000.00, so there would still be $120,000.00 of equity left. his credit is poor, thus the need for debt consolidation. and he is disabled with a minimal monthly disabilty check. ofcourse, his wife is on title aswell, but her credit is worse, but she does have a monthly income of a very modest amount. the fact that he recieves disability does show up on his credit report, however, the dollar amount does not. what can be done for this family? are there any mortgage lenders out there that have “stated disability” a program? please respond if you are a lender that can help,or have information on the subject that could help. thank you so much.

ALFREDO

October 22, 2008

Houston Refinance Mortgage Information

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 7:24 pm
Smith & Chen asked:


There are three main reasons that consumers consider a Houston refinance mortgage. They are lower rate, cash out (or debt consolidation), and converting from adjustable to a fixed rate.

For a rate refinance an important consideration is the closing costs to be paid. If there are typical closing costs it is usually advisable to refi if you can save ฝ percent on your rate or more. With a “no closing cost” loan it can make sense to refi with 1/8 percent savings or more. The no closing cost option is not always the best choice. If a mortgage with some closing costs is available at a better rate you should consider the payback time. This is a calculation of how long it would take a rate savings to recover the closing costs. If the payback is 4 years and you plan on having the loan longer than that it may be the better deal.

For cash out refinancing there are rules that are commonly called “Texas cash-out” rules. The key part of this is that the loan may not exceed 80% of your homes appraised value. For example if your home is worth $100,000 and you currently have a $50,000 mortgage, the maximum cash out would be $30,000 (less closing costs). It is usually not advisable to do a cash out refi if it would result in a higher rate than you currently have. If you can’t get a equal or better finance rate it may be better to do a second mortgage or home equity line of credit instead (HELOC). Ask a good loan officer or mortgage broker to show you options and explain the differences.

It is usually advisable to convert from an adjustable to a fixed rate mortgage only if the fixed rate is equal or better. Some adjustable rate loans have a prepayment penalty the first two or three years. In some cases it can be best to wait until after the penalty clause expires to refinance.

For all refinance mortgages it is important to get the best possible rate and terms. Your credit, income, and loan to value ratio will be factors for your rate and terms. Your goal should be to get the best program that you qualify for. There are a lot of mortgage programs available in the marketplace. In general the best include some Fannie Mae/ Freddie Mac programs, and VA conforming loans. Next might be other conventional “A” mortgages or FHA loans which are very good. Alternate A loans are next, these are loans that don’t quite fit the top tier because they are very large (jumbo), or for another reason like not documenting your income. Next could be Fannie/Freddie programs that are for those with less than perfect credit (sometimes called A- mortgages”). Next to last would be “sub-prime” loans. These are for consumers with more difficult to finance mortgages because of credit or other reasons. The lowest category could be called “hard-money” loans. Some lenders will do this type of mortgage at a high rate regardless of severe problems if there is a large amount of equity.

I suggest dealing with a lender that has a large variety of programs to select from. If you shop a lender that only does one type of mortgages you will probably be turned down if you don’t fit their program. When you shop a lender that doesn’t do FHA loans, they may suggest a lower category mortgage with a higher rate. And it is better when a lender offers a choice of programs, rather than just one.

Texas residents can visit our Houston refinance mortgage site for more information. You can also call my office at 281-537-7800.

Mortgage Rate Calculators – Valuable Tools For Getting The Best Loan

Are you looking for some inside information on refinance mortgage rate calculators? Here’s an article that can help provide information for you to find the best rates for your mortgage.

Refinancing is a smart move if you want to lower your monthly payment and overall interest on your bills. With refinance mortgages, you are also able to change the term of the loan to a shorter one so you can pay off the loan earlier and save more on interest.

There are actually several reasons why people want to take a refinance mortgage. This is also why refinance mortgage rate calculators are important. Refinance mortgage rate calculators help consumers determine the amount of savings they can make on their chosen loan type. Refinance mortgage rate calculators also aid you in finding out how much is your monthly payment for your refinancing loan.

The Internet refinance mortgage rate calculators show you the monthly payments you need to make for your mortgage. Aside from that, these refinance mortgage rate calculators also show you the total interest rate. If you’re more concerned on how much saving you will be able to make with a refinancing loan, refinance mortgage rate calculators will also help you on that.

It seems like new information is discovered about something every day. And the topic of refinance mortgage rate calculators is no exception. Keep reading to get more fresh news to help you make a wise financial decision.

The refinance mortgage rate calculator will ask you for your current loan information. For instance, on the refinance mortgage rate calculator, a field labeled Principal Balance will be provided along with the Monthly Payment and Annual Interest Rate fields. You need fill these up in order to start using the refinance mortgage rate calculator.

To complete the process, the website’s refinance mortgage rate calculator will also ask for your new loan information. Another three fields will be provided in the refinance mortgage rate calculator. The refinance mortgage rate calculator fields are: Annual Interest Rate, Term, and closing Costs. By checking on the Finance Closing Costs at the bottom part of the refinance mortgage rate calculator and then hitting the Calculate button, you can determine how many months it will take for your loan to break even on the closing costs.

For example, for the Principal Balance field on the refinance mortgage rate calculator, you put in $150,000 (Take note that the amount you place in this refinance mortgage rate calculator field represents the remaining pay-off balance). The Interest Rate of your current loan is 6% and the data you put in the refinance mortgage rate calculator Monthly Payment field is $899.30.

For the New Loan Information portion of the refinance mortgage rate calculator, you place the following data: 5% Annual Interest Rate, 30-year Term, and $0 for Closing Costs. Make sure that you check the box for Finance Closing Costs at the bottom of the refinance mortgage calculator before hitting the Calculate button.

The results of the refinance mortgage rate calculator would show you that your new monthly payment would be $805.23, $93.77 short of your current loan monthly payment. The refinance mortgage rate calculator would also display the difference in the interest rates of both loans. With the refinance mortgage rate calculator, you will be able to find that the total interest of your current loan would be $173,757.28 while your new interest after refinancing would be $139,883.68. This allows you to save $33,873.61 on interest.

As your knowledge about mortgage calculators continues to grow, you will begin to see how easy it is to get the best loan available. Knowing how these type of tools work is important when making large financial decisions.



TYLER

October 20, 2008

Refinance Mortgage Loan: Solution Or Complication?

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 10:07 pm
Rony Walker asked:


Falling interest rates are often the prelude to home owners rushing to avail of a refinance mortgage loan. Most of the time, there is not much thought given to the merits or financial implications of that idea. It is a very attractive option, much the same as an open flame is attractive to a moth.

At first glance, a refinance mortgage loan does not seem to be minatory at all. But being burned by one is not something most people would count as a pleasant experience. In fact, rates are just a small part of the bigger equation. Some people take out a refinance mortgage loan every time rates go down, even by just a little. A common scenario is a refinance mortgage loan once every year for about five years running. That is clearly disadvantageous. Every refinance mortgage loan means adding more principal to the end of the loan as well as extending its duration.

But What Is A Refinance?

Purchase-money loans are the original loans secured by buyers to buy a house. On the other hand, a refinance loan is a new loan utilized by the borrower to pay off the original loan. Obviously, for borrowers with multiple refinance loans, the current loan pays off the last refinance loan. The refinance loan is usually prioritized but a home equity loan can also be refinanced.

What’s Your Flava?

If you are currently paying a fixed-rate mortgage, it is still possible for you take out a different mortgage loan when you get a refinance loan. Before you switch from a fixed-rate mortgage, you must be sure that you understand all of the terms of the new refinance mortgage loan. Let’s take a look at some common mortgage loan types.

Interest-only mortgages are loans that are backed by real estate. They contain an option to make interest payments. They are often portrayed as risky and disadvantageous to the borrower. This is often not the case at all.

Another mortgage product is called the Option Adjustable Rate Mortgage. It is perhaps the most complex loan program in real estate mortgage financing. Without proper management, it could cost a home owner his or her entire equity. For the knowledgeable borrower, it could be the optimal solution. Option Adjustable Rate Mortgages contain negative amortization. This is a key concept that is often misunderstood. That is why Option Adjustable Rate Mortgages are generally disdained.

FHA loans are gaining again in popularity. The Federal Housing Administration does not give out loans. Instead, it insures them. This insurance eliminates or alleviates the risk lenders face when buyers only pay a small percentage. Borrowers with less than perfect credit histories might want to consider them. They may qualify even if they have had financial problems in the past. Also, the rates are competitive and the terms are very straightforward. Today’s FHA loans also require fewer repairs on the home. They are available to everyone. However, first time and low to moderate income buyers are their most frequent users.



SHELBY

Refinance Mortgage Potential Pitfalls

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 6:26 pm
Tom Allen asked:


There has been a lot of talk about mortgage refinancing over the last couple of years. One thing that you need to bear squarely in mind when considering doing this is that you must be prepared to pay your costs at closing. This is very similar to what happened when you initially purchased your home. Despite all of the advertising when it comes down to the nitty-gritty you will find that there’s very little difference between what you have to pay in a refinancing situation and what you had to pay when you took out your original mortgage.

It’s important to remember that there are a number of fees charged by the mortgage provider for different jobs during the application process and before a loan approval. These will include payments for certificates, necessary reports and various other paperwork attached to the loan process. It is virtually impossible to avoid paying these expense so it’s very important to factor them into your calculations.

Something that you also may not be aware that the is that a new appraisal of the property will be necessary. Any money owing for this service will usually be paid at the point of settlement. There will also be title and escrow fees attached to the deal. This is not necessarily a definitive list of all the costs that may be involved but is just to give you an outline of what possible charges you may encounter. Lot of the advertising attached to refinance mortgages will give the impression that all of this type of work that you did when you originally bought your home and took at your original mortgage will still be applicable and not necessary to repeat. For the most part, that is simply not the case and a lot of this work will have to be done again

.

Chances are, mortgage products and the terms and conditions attached to them have changed significantly since you originally took out your mortgage loan so there are possibly significant savings that can be made in this area if you shop around and you compare all of the terms and conditions from the different lenders very carefully. At the same time, it’s also very important to be aware that a lot of these fees that you may have thought that you had paid once at your original mortgage will come to you again with your refinancing deal. You must factor these financial elements into the equation so as to make sure as to not leave yourself with financial difficulties in the short term.

Just one other item, your old friend property taxes will rear its ugly head again here in this situation so it’s important to also factor that into the equation.

All in all, refinancing your existing mortgage can be a very smart financial move and you may very well get a better set of terms and conditions than you originally had when you took out your mortgage. But like anything, it also comes with potential pitfalls. It is very important that you look at all of the terms and conditions attached to any particular deal from a given mortgage provider and that you also factor in the type of cost that we’ve dealt with in this article.



TAYLOR

October 18, 2008

Today’s Fha Refinance Mortgage Requirements

Filed under: Marriage — Tags: , , , , , , , , , , , , , , — admin @ 6:15 pm
Robert asked:


Are you presently considering refinancing your home? possibly you have heard how interest rates are at 5 year lows or that FHA refinance loans and their updated programs have become vastly admired. fortunate for you, both of those things are true making for an excellent refinance opportunity. And it is no more hard to apply for an FHA mortgage than it is for a Conventional mortgage.

Before you elect to refinance, you should know the basic requirements for FHA Mortgages. To be eligible for FHA refinance loans, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specific percentage of your gross monthly income. This is called the “Top Ratio” and it should be below 31%. You must also have enough proceeds to pay your housing costs plus all additional monthly debt. This is called the “Bottom Ratio” and it needs to be below 43%. These percentages may be exceeded with compensating factors.

Your credit background will also be fairly considered. FHA refinance credit requirements are not entirely credit score driven, while it is helpful to have at least a 580 FICO score to obtain a quicker approval. FHA guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances outside their control, and as long as the borrower has improved from those circumstances in a reasonable method, they’re usually going to be credit-eligible for an FHA refinance loan.

If you have had a preceding bankruptcy, it may still be doable to get an FHA Refinance. If you have been discharged from a chapter 7 bankruptcy for two years or more, you are eligible to apply for an FHA refinance mortgage. If you are in a chapter 13 bankruptcy and have made all court approved payments on time and as arranged for at least one year, you are also eligible to make an FHA mortgage application.

FHA Refinance Loans multiple options to meet the needs of your current home equity scenario. If your home has positive equity, you may be able to refinance up to 98.75% or 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower. If you want to take cash out of the property, then the maximum financing amount is either 95% or 85% of the current appraised value, depending on the borrowers qualifications. If you do not have sufficient equity in your home to pay off your current mortgage or cover your refinancing closing costs, then you should ask your lender to consider a “Write Down”. A “Write Down” is when your lender writes off the excesss balance owed for the purposes of refinancing a mortgage. The Housing bill that goes into effect on October 1st provide for a Write Down to 90% of the current appraised value for delinquent mortgage FHA refinances. Offering this option is at the discretion of the lender.



SANTIAGO

October 17, 2008

If I owe more on my home than its worth, do I now qualify for mortgage relief?

Filed under: Politics — Tags: , , , , , , , , , , , , , , — admin @ 7:22 am
Bob asked:


PHOENIX – President Barack Obama’s plan to tackle the foreclosure crisis will spend $75 billion in an effort to prevent up to 9 million Americans from losing their homes.

The plan, which Obama is releasing later Wednesday, is more ambitious than initially expected — and more expensive. It aims to aid borrowers who owe more on their mortgages than their homes are currently worth, and borrowers who are on the verge of foreclosure.

The initiative is designed to help up to 5 million borrowers refinance, and provides incentive payments to mortgage lenders in an effort to help up to 4 million borrowers on the verge of foreclosure.

http://news.yahoo.com/s/ap/20090218/ap_on_go_pr_wh/obama_home_foreclosures

One of my properties appraised at $230,000 last year. A comp home sold for $175,000 due to foreclosure. My loan is greater than $175,000 and less than $230,000. Do I now qualify for mortgage assistance? If I do, should I take it?
I just want the program to be fair. If I can get a new mortgage from 6% to 4% or less, I will do it in a heart beat.

So should I stop paying my bills so I qualify?

JAKE

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