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Posts tagged ‘refinance’

Why Your Mortgage Lender Needs All That Paperwork

As a loan officer, I don’t just ask for paperwork to be a pain in the…

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QM that’s why. The Qualified Mortgage became a thing in January, 2014. Proposed, promulgated and made law of the land by the CFPB (Consumer Financial Protection Bureau) as a safe haven for lenders that played by the rules. Unveiled and delivered to the mortgage lending universe in tandem with ATR (Ability-To-Repay) underwriting guidelines, QM protects lenders from loan buybacks if they follow the CFPB “how to” directions for assembling a mortgage loan file.

QM is a good thing. So is ATR. Together they provide a standard; a common sense (most of the time), make sense approach and framework for determining borrower wherewithal and then providing a schematic for how to corroborate that wherewithal. If lenders stay in the QM/ATR lane and deliver audit worthy loans to secondary markets like Fannie Mae and Freddie Mac, then even if a loan goes bad, the lender will not be at risk of buying it back.

And remember for you history buffs, bad loan buybacks led to the great mortgage collapse almost a decade ago.

The primary weapon in the lender defense arsenal to fend off the dreaded buyback is verifiable proof, mostly in the form of documentation. Paystubs, W2s, 1099s, tax returns, bank statements, IDs, real estate contracts, evidence of this, evidence of that, letters of explanation, and on and on. Essentially any and every piece of information disclosed and used to make a mortgage credit decision, needs to have a bona fide and verifiable document trail that proves beyond a reasonable doubt that what you say and what you do is in fact what you said and what you did.

read more via http://www.forbes.com/sites/markgreene/2016/04/03/why-your-mortgage-lender-needs-all-that-paperwork/#1ff706a45b1d

 

 

Should You Refinance Even If You Plan to Sell Your Home?

Are you interested in refinancing your mortgage, but hesitant to do so because you’re thinking of selling your home at some point? Believe it or not, refinancing could still make sense. Here are several reasons why you might want to consider refinancing anyway.

Your financial circumstances could change

Let’s say you plan to sell your house in five to seven years. No matter how well you plan for the future financially, things happen. Job loss, illness, death—life inevitably gets in the way of your financial plans. Focus on the here and now, as long as you can financially justify refinancing your mortgage. The longer the horizon of selling the home, the more chances life has of getting in the way. If refinancing can save you money in the meantime, it may just make sense.

Because financial circumstances can change over time, for better or worse, it can be a good idea to calculate how affordable your house really is for you.

You could take advantage of lower interest rates

At publishing time, 30-year mortgage rates have edged their way up and are hovering just over 4%. The new outlook for mortgage rates points to continual increases, bringing the cost of debt up. Picture this, if you don’t sell the property or if there is a market correction—and you do not refinance for whatever reason—is your current loan rate and payment something that you can afford to carry for the long haul? If you could save money or better your financial position, it is probably worth investigating. Rates are even better on jumbo mortgage loans, as more investors are pouring into this particular market niche. So if you have a big mortgage on your home you may want to consider refinancing.

You’re facing a higher rate on your ARM or HELOC

With the increased likelihood of interest rates going up in fall 2015, the subsequent recasting of adjustable-rate mortgages and home equity lines of credit will affect millions of homeowners. Most adjustable mortgage loans were tied to the London Interbank Offered Rate, which closely trails the Fed Funds Rate, the rate at which the Federal Reserve uses to control the U.S. economy. If the Federal Reserve hikes interest rates, LIBOR will soon follow suit, and any homeowners within their adjustment period will experience a higher payment or a future higher payment when their adjustable-rate loans reset.

A HELOC works in a similar fashion to an ARM with a fixed period for the interest rate, followed by a rate reset. For a HELOC, payments are interest-only for the first 10 years of the 30-year term. After 10 years, the loan resets, and for the remaining 20 years the loan payment is principal and interest, so at the end of 30 years, the loan is paid off in full. The payment shock will happen after the first 10 years.

If you have a first mortgage on your home with a HELOC, it very well might make sense even if you plan to sell the home down the road, to roll the first mortgage and HELOC into one, saving money and continuing to make a manageable mortgage payment until you sell.

read more via http://www.realtor.com/advice/finance/should-you-refinance-even-if-you-plan-to-sell-your-home/?identityID=10250946&MID=2015_0807_WeeklyNL&RID=361386642&cid=eml-2015-0807-WeeklyNL-blog_3_refi_if_selling-blogs_own

HARP refinance-helping homeowners who are current on their mortgage payments, but who are “underwater” on their mortgage

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Last night I left my client’s home after a refinance closing with an awesome feeling. They are saving just shy of $500/month! Yes, you read that correctly. It’s what the HARP loan is all about.

• They lowered their rate from the 6% range to the 4% range
• Their loan to value was higher than 100% (the underwater part-they owe more than the value of their home in today’s market
• They did not need an appraisal
• I was able to cover their closing costs

This is one of the reasons I do what I do for my career, and feeling great about it!

Do call me if you wish to talk over your mortgage situation to see if you can get HARPed 630.362.6405.

Mortgage Interest Rates are Dropping…

Mortgage Interest Rates are Dropping like a ROCK!
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Do not hesitate to call me if you wish to consider refinancing scenarios or
perhaps you know someone looking to purchase a home.

(630) 362-6405

What is a HARP loan?

I was just asked this question by someone on Sunday, so I figured it’s important to share since there are an estimated remaining 4-plus million households nationwide who could refinance via HARP, but haven’t.

A HARP loan allows those who have lost equity in their home to refinance without adding mortgage insurance or increasing their mortgage insurance even if they happen to be upside down on their loan.  I will need to check to see if your current mortgage is HARP-eligible.

The best suggestion I can make is to call me so I can determine if your mortgage is eligible.  Once I determine that, we can discuss the options and monthly payment scenarios.  All it takes is a quick phone call or email to me so I can research it.  I do not want those I know to miss out b/c they didn’t know what HARP is.

Are you HARP eligible?

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Have any of you been previously denied for refinancing due to lack of equity in your property? With the increasing values we’re seeing, it might be time to try again. While rates aren’t as low as they were last year at this time they are still fantastic. And there are an estimated remaining 4-plus million households nationwide who could refinance via HARP, but haven’t.

Here are the general HARP guidelines in case you’re interested: * Mortgage has to be owned by Fannie / Freddie (this is different than who you make your payments to). * Loan must have closed prior to 6/1/2009 * No late payments in the past 6 months Often times there is no appraisal needed. I can find out if you are eligible. Let me know how I can help.

 

Petition to improve HARP refinances PLEASE SIGN!

One of the problems with the current HARP refinance program is the arbitrary date that they chose as a cutoff (6/1/09).  Please sign the attached petition to try to have that date modified or removed altogether. HARP is a fantastic program for borrowers who have little or no equity in their properties but many of them cannot refinance because their loan was sold to Fannie Mae or Freddie Mac after that 6/1/09 date.  Please take a moment to sign the petition.  You could help your friend, family or even yourself refinance or refinance again under HARP.

https://petitions.whitehouse.gov/petition/fhfa-eliminate-cutoff-date-june-1st-2009-harp-20-program/2Jl4hPsH

Obama reduces refinance costs for FHA mortgages – Mar. 6, 2012

NEW YORK CNNMoney — Borrowers with some federally insured mortgages will be able to refinance into lower interest rate loans more easily and cheaply under a plan unveiled Tuesday by the Obama administration.

At a news conference, President Obama announced that the Federal Housing Administration will cut upfront fees for refinanced loans it already insures.

The new fees are for borrowers whose FHA loans were issued before June 1, 2009. An estimated 2 to 3 million borrowers could take advantage of the savings, which could reduce mortgage payments for the typical FHA borrower by about a thousand dollars a year, according to the administration.

“Its like another tax cut in peoples pockets,” said President Obama.

Borrowers who refinance their existing FHA loans will pay an upfront insurance premium equal to 0.1%, the lowest allowable rate, of the mortgage amount — $100 for a $100,000 loan — plus an annual fee of 0.55%.

The new refinancing fees contrast sharply with the cost of obtaining a FHA loan, according to Jaret Seiberg, an analyst with the Washington Research Group. A borrower making a 3.5% down payment on a home purchase as of April 1 will pay a 1.75% upfront fee and a 1.25% annual fee. Those purchase fees were raised barely a week ago to improve the FHAs capital reserve.

via Obama reduces refinance costs for FHA mortgages – Mar. 6, 2012.

Big Bank vs. Mortgage Broker? Experts say BROKER!

I can’t stress enough how important it is to ask the hard questions and to know who you’re dealing with when purchasing or refinancing your home. Please take a few minutes to check out the video below from MSNBC.

“Nov. 12: As the economy struggles to rebound and the government tries to help homeowners refinance mortgages, TODAY contributor Barbara Corcoran says it’s more important than ever to know your lender.”   click here to see video

Fannie Mae and Freddie Mac Announce HARP Changes

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While we don’t know the full details of the proposed program until November, I wanted to give you a heads up… if you’d like to take advantage of the HARP program, I’d be happy to check and see if Fannie or Freddie owns your mortgage.

Washington, DC – The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac (the Enterprises), today announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage.   The program enhancements were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants.

In general, borrowers must meet the following criteria:

  •  The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  •  The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  •  The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under    HARP from March-May, 2009.
  • The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Also, new highlights include:

 * Eliminating certain risk-based fees for borrowers who refinance into shorter-term
mortgages and lowering fees for other borrowers;
* Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by
Fannie Mae and Freddie Mac;
* Eliminating the need for a new property appraisal where there is a reliable AVM
(automated valuation model) estimate provided by the Enterprises; and
* Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the
Enterprises on or before May 31, 2009.

via:  http://www.fhfa.gov/webfiles/22722/HARP%20release%20102411%20Final.pdf