Check Your Potential Eligibility for HARP 2.0 Refinance

Many folks call to ask what is a HARP 2

0 all about

The Answer:
The Home Affordable Refinance Program (HARP) is a program designed to assist homeowners in refinancing their mortgages – even if they owe more than the home’s current value

Our term for this is called “underwater

”   Continue reading

Are you putting off mortgage refinancing?

I am still amazed when I get a call from a client and find out they have interest rates near or exceeding 5% or higher.  When we finish looking at their particular financial situation and see how they can save by refinancing the comments are often the same, “I wish I had done this earlier.”

home-loan1-resized-162

Here’s the 10 most usual comments I hear from clients when asked why they have not refinanced?
1.  I’m just too busy!
2.  Not sure how long I will stay in the house.
3.  I thought my other borrower would do it
4.  My neighbor said our house was valued too low
5.  I didn’t think I would qualify?
6.  Refinancing is a real pain.
7.  Mortgage companies have tightened up lending.
8. Not sure if I would save any money.
9. My accountant or tax advisor told me to do it last year.
10.  I thought mortgage rates were going lower?

OK, you’ve got the idea.  No one knows you’re situation when it comes to mortgage financing and whether or not it makes sense, other than you.  However, you never know if it makes sense or not to refinance, unless you know all the answers.

Making a note of #10.  Considering where mortgage rates are now, refinancing or buying a house today is the best ever. When you consider all permaters, such as inflation and taxes, leveraging your asset at the lowerst possible rate has never been better and has never made more sense.

I have a suggestion.  Give us a call and let’s see if refinancing makes sense for you.  If it does, then you still have the opportunity to shop around or let us help you, either way, we have performed a vital service to you and your family!

Give us a call, we’re here to help!

Update! Are mortgage interest rates starting to rise?

arrowIn comparison, last week’s average rate was 3

38%

  When you compare rates from 30 years ago, rates still remain lower and very attractive for a purchase or a refinance

The average rate on a 15-year, fixed-rate loan was 2

71%

 

 

pmms chartWhen creating any debt it requires you must have a net tangible benefit to you the borrower

 If purchasing a home you must feel comfortable that you will still have a life after paying the mortgage

 If you refinance, then you must see a benefit that saves you both monthly payments, increases your cash flow and provides for a reduction in long term interest payments

 

Housing starts and new construction are up over last year

Existing home inventory for most of Delaware seems to have dwindled from 2012,  which means a return to demand

Some areas in Delaware has seen purchasing has moved from a buyers market to a sellers market

This equates to less negotiation room for buyers

Bottom line, if you are considering buying or purchasing a home,  the timing for you is still good

If you are thinking about refinancing and it makes sense by providing you a tangible benefit, then no time is better than now

(rate source 

” href=”/Contact-Us-/” target=”_self”>Contact us

Let us know, where do you see interest rates going in the near future?

Leave your comments below

 

 

 

New mortgage guidelines for borrowers continue to evolve

Since 2008, mortgage and financial institutions have seen many changes in the way it does business

Lenders as well as consumers must now consider structured guidelines and steps before receiving a mortgage that might cause consumers harm in the future

 To the best of the lenders ability, the goal is to make sure  consumers can qualify and have the ability to repay their mortgage

 

Changes in mortgage underwriting for mortgage clients continue to evolve

Home buyers are discovering that the world of lending has changed

Lenders are asking for concrete documentation for income, assets, explanations regarding credit, and other obligations such as student loans and prior collection accounts

 

These new underwriting guidelines and regulations regarding lending are taking place to make insure consumers are protected

In other words, it doesn’t do a homebuyer much good to get into a mortgage debt repayment, unless they have the ability to repay that debt

Yes, the old days of common sense underwriting and common sense lending have returned

 

consumerfinance

gov/” title=”(CPFB) ” target=”_self”>(CPFB) is now the primary governmental regulatory agency overseeing protecting consumers in financial transactions

 The Bureau promulgates rules and guidelines for lenders to insure consumers are protected

New rules by the Bureau were just announced requiring lenders to insure that indeed consumers have the ability to repay their mortgages

Many lenders have already started implementing these new mortgage standards, which are at this time, set to take affect January 10, 2014

The final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages



The final rule also implements section 1414 of the Dodd-Frank Act, which limits prepayment penalties

Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated

At a minimum, creditors generally must consider 8 of the following underwriting factors:
(1) current or reasonably expected income or assets;
(2) current employment status;
(3) the monthly payment on the covered transaction;
(4) the monthly payment on any simultaneous loan;
(5) the monthly payment for mortgage-related obligations;
(6) current debt obligations, alimony, and child support;
(7) the monthly debt-to-income ratio or residual income; and (8) credit history

Creditors must generally use reasonably reliable third party records to verify the information they use to evaluate the factors

The final rule also establishes general underwriting criteria for qualified mortgages

Most importantly, the general rule requires that monthly payments be calculated based on the highest payment that will apply in the first five years of the loan and that the consumer have a total (or “back-end”) debt-to-income ratio that is less than or equal to 43 percent

The Bureau believes that these criteria will protect consumers by ensuring that creditors use a set of underwriting requirements that generally safeguard affordability

(source: http://www

consumerfinance

gov/)

Tell us what do you think about the new rules and guidelines?

Do you think you are qualified?

Buying a home in Delaware – Consider Ability to Repay Mortgage!

was not on the forefront of the minds of consumers purchasing homes

There was a feeding frenzy to buy homes regardless of the ability to repay the loan

The prevalent thought at the time seemed to be , buy now and worry later

Unfortunately, this school of thought has hence caused thousands to lose their homes in foreclosures and scores other also filing for bankruptcy

 

Since 2008, the mortgage world of finance  has seen a complete change in the way it does business

Lenders as well as consumers must now consider many new guidelines before receiving  a mortgage

 One of the  biggest considerations is can the consumer qualify and still have the ability to repay their mortgage? 

Changes in mortgage underwriting to qualify for a mortgage has been a rude awakening for many consumers, as denials have increased

 Many home buyers have found that the world of lending has changed

Lenders are asking for concrete documentation for income, assets, explanations regarding credit, and other obligations such as student loans and prior collection accounts

These new underwriting guidelines and regulations regarding lending are taking place to make sure consumers are being protected

In other words, it doesn’t do you much good to get into a debt repayment, unless you have the ability to repay that debt, only later to endure the heartbreak of losing what you thought was a sure thing

 Making sure you have the abiliity to repay are a return to common sense and reasonable financial responsibility on both lenders and consumers

 

The

consumerfinance

gov/f/201301_cfpb_final-rule_ability-to-repay-preamble

pdf” title=” final rule” target=”_self”> final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for

consumerfinance

gov/” title=”Bureau” target=”_self”>Bureau believes that these criteria will protect consumers by ensuring that creditors use a set of underwriting requirements that generally safeguard affordability

(source: http://www

consumerfinance

gov/)

Please feel free to contact us with any questions or concerns or to see if you This entry was posted in blog and tagged , , , , , on by .

Veterans Can Benefit by Lowering Current VA Mortgage Rates

describe the imageDo you currently have a VA Loan?  If so, you may  find it beneficial to explore getting a VA Interest Rate Reduction Refinance Loan (IRRRL), commonly referred to by lenders as VA Streamline Refinance. Many Veterans here in Delaware, Maryland and Pennsylvania are seeing the benefits from this program.

The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your current interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

VA Streamline (IRRRL) Facts and Answers

  • If I currently have a VA Loan, do I need a property appraisal?
    Answer:  No appraisal or credit underwriting package is required when applying for an VA Streamline, IRRRL.

  • Do I need to put out any out of pocket to get my VA loan refinanced and my interest rate reduced?
    Answer:  No, in most cases you need  “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
  • What if I currently have a VA ARM (adjustable rate mortgage) can I still to a VA Streamline Refinance? 
    Answer:
      Yes, you can go from an existing VA ARM loan to a fixed rate loan.
  • I am a Veteran, how do I proceed?
    Answer:  Simply give us or lender of your choice a call to get started.
  • Can I receive any cash if I do a VA Streamline Refinance?
    Answer:  No, you may NOT receive any cash from the loan proceeds.
  • How do I know if I qualify?
    Answer:  If you have an existing VA loan and currently occupy your home, you most likely qualify.

How do I get the application process started?

A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or you can use our e-mail confirmation procedure in lieu of a certificate of eligibility.

Are there loan limits to get my VA mortgage rate reduced?

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money lenders will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location. See Loan Limits for more information about the limits in your county.

When is the best time to get this done?

Your timing could not be better.  Rates are now at their lowest point in years and if you are a veteran and currently have a VA loan higher than 4.0%, you may benefit from an interest rate reduction loan.

Getting Your VA Mortgage Loan Rate Reduced

 

VA Streamline (IRRRL) Facts and Answers

  • If I currently have a VA Loan, do I need an property appraisal?
    Answer:  No appraisal or credit underwriting package is required when applying for an IRRRL.
  • Do I need put out any out of pocket to get my VA loan refinanced and my interest rate reduced?
    Answer:  No, you need  “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
  • What if I have currently have a VA ARM (adjustable rate mortgage) can I still to a VA Streamline Refinance?  Answer:  Yes you can go from an existing VA ARM loan to a fixed rate loan.
  • I am a Veteran, how do proceed?
    Answer:  Simply give us a call to get started.
  • Can I receive any cash if I do a VA Streamline Refinance?
    Answer:  No, you may NOT receive any cash from the loan proceeds.
  • How do I know if I qualify?
    Answer:  If you have an existing VA loan and currently occupy your home, you most likely qualify.

How do I get the application process started?

A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or you can use our e-mail confirmation procedure in lieu of a certificate of eligibility.

Are there loan limits to get my VA mortgage rate reduced?

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money lenders will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location. See Loan Limits for more information about the limits in your county.

 

When is the best time to get this done? 
Your timing could not be better.  Rates are now at their lowest point in years.