Get on the List

Have you ever tried to refinance or buy a house and had lenders everywhere calling you? I have been asked a many of times if we sell leads. The answer to that question is NO. When a lender pulls your credit then your name goes on a “trigger list” that can be sold to firms for companies to buy. It isn’t the mortgage companies doing this but the actual creditors. I suggest logging onto this website at least 48 hours before giving us permission to pull your credit. Here is a way for all you buyers to make sure that your name and information doesn’t get on that list…


http://www.optoutprescreen.com/

Get on the List

FHA changes in 2010

If you have spoken with mortgage lenders recently then by now you are familiar with the term FHA loan. They came around in the depression era to encourage people to buy houses and stablize the market. They have gained popularity in the recent years as it made the loans affordable with lower down payments, flexible guidelines and typically lower credit scores. This economy and all the recovery acts and protection acts have changed the way mortgages are done. It began with the conventional loans and this year FHA jumped in. They announced back in the Spring that there were going to be three changes this year. They have been experiencing rising defaults which sent the cash flow below the mandated levels.  They are hoping that these changes will  give borrowers a stronger equity position making them less likely to default. The #1 change was the increase in credit score. I want to talk about #2 change which covers mortgage insurance premiums.

These mortgage insurance premiums are required to insure the lender against default. There are two types of mortgage insurances that come with FHA loans. The upfront mortgage insurance and the monthly mortgage insurance. The monthly mortgage is required until you have owned the house for 5 years and gained some equity making the loan to value of 78% or less. The upfront mortgage insurance is refundable during the first 5 years of your home loan. You are able to finance the upfront mortgage insurance making your loan amount more giving you higher payments and less equity.

The new policy will  be for all loans taken after October 4, 2010. If you are planning on refinancing and currently have a FHA loan then please speak to a lender today. The changes include a decrease in the upfront mortgage insurance from 2.25% to 1% and the monthly will increase to .90% for Loan to value greater than 95% and .85% for loan to value less than 95%. It is slight changes but could impact your debt to income since the payment will be a little higher.

At this time I haven't heard the effective date for #3 change.... reducing seller concessions from 6%  to 3%.

FHA changes in 2010

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Mortgage in the Raw: Mort Rates often change in opp direction as Fed changes due to the dynamics within the financial mkts.

Monday Mortgage in the Raw: Promissory Note is the legal evidence of the debt b/t the lender & you. It states terms, promise and signature.

Mortgage in the Raw... Simple Interest is interest computed on the balance of the outstanding principal only.

Embrace Life and Embrace the Low Mortgage Rates

Thinking about life there are many inventions that go uninvented and many ideas that pass by us. In passing I have heard that the average person thinks of a million dollar idea at least once a day. Did you know that the common Mayfly has the shortest life? They live only one day with only one goal. This goal is to mate and reproduce. In fact; the whole Mayfly population is counting on this for survival. This just shows you how we need to embrace life because time is precious.

Let’s take a moment and think about this in relation to your life. What is the message you need to reproduce? How are you leaving your financial picture? Do you know what your financial picture looks like with the change in economy? Have you written down to call about a refinance and haven’t done it? There are lots of questions to ask yourself. Change and uncertainty are the main reasons why most people let ideas pass. Don’t let uncertainty be one of the reasons that why you didn’t check it off your ‘honey-do-list.’

Listen to your mortgage conscience; take the time to answer these questions. The mortgage rates are at all time low. This is the lowest they have been since the 1950’s. Change and uncertainty are the main reasons why most people let ideas pass. Don’t let uncertainity be one of the reasons that why you didn’t check it off your ‘honey-do-list.’ Mortgage originators are there as your advisor and your teacher. Many mortgage companies offer free mortgage check ups to assist with this issue. You owe yourself and your family to hear any options that evaluate your current situation. This might not be life or death decision; but it is one that could affect your financial picture. You can help your family to save money for other life goals.

Remember: Successful people buy stock in themselves and it begins with knowledge

Embrace Life and Embrace the Low Mortgage Rates