Tag Archives: mortgage
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.”

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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!

Take 5 Steps Now To Become A First Time Homebuyer in Delaware in 2013

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From credit scores to down payments to paperwork, there’s a lot you can do now to prepare for the home buying adventure ahead of you

Let’s take a look at 5 steps you can take now so you can become a credit score

If you want to become a first time home buyer in 2013, you need to get any debt under control

  • Gather paperwork

    As you’ve probably heard, paperwork is the backbone of the home buying process

    Income verification, tax forms, and bank statements

    The more prepared you are now, the easier it will be to gather the necessary documents

  • Understand your credit history

    A mortgage consultant will pull your credit report from the 3 main credit reporting agencies – Experian, TransUnion and Equifax – and use the middle score (known as a tri-merge credit report)

    Knowing what’s on your credit report can help ensure that you’re doing the right things when it comes to your credit

    Make sure no outstanding issues are on there, and ask your mortgage consultant what needs to be addressed if some issues do arise

  • Research

    Begin the research phase now and start exploring first time home buyer loan options

    Are you considering a mortgage pre-approval is vital in the home buying process

    Step one should not be house hunting and dreaming of the perfect home

      This will help you gear your house hunting to homes you can afford

     

    Here at Delaware Financial Capital Corp, we can answer your questions about your mortgage needs

      Just give us a call at (302) 266-9500 or click on the button below and fill out our online contact form

     

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    Download your FREE Report!  Click the button below:

     

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  • 9 Considersations Before A Home Purchase in Delaware

    You live in Delaware and currently own your home, but your family hdelaware, home purchase, mortgage creditas grown or perhaps you’re retiring and want to down size.  Everyone has a different reason for buying their next home. 

    You have purchased a home before and have a good idea of what to expect when making your home purchase.  However, over the last 4 years there have been a lot of changes when it comes to buying your home.  For the most part, changes in mortgage financing have been a good thing for consumers.  The best part is that we are getting folks, just like you, into their Delaware homes every day.

    Below are 9 things to consider before you begin searching for your new home:

    1.  How much do feel your current is worth if you put it on the market to sell today?

    Compare your house to others nearby to get comparable values. The purchase market call these comparisons, “comparables.”

    2.  How much money will you realize after the sale of your current home?

    This is the amount of money you will net from the sale of your house, after you payoff your current mortgage, transfer taxes, realtor fees and other closing expenses.

    3.  How long do you think it will take to sell your house?

    Ask yourself, are homes in your area selling fast or slow?  This is a good yardstick to determine your estimated transition to a new home.

    4.  Are you comfortable shopping for another house, without knowing you have a buyer for your current house?

    Some folks are comfortable shopping for a new home without knowing whether or not their current house will sell in time and not knowing how much they will receive from their current house sale.  Yet, others are not comfortable to move forward until their current house is definitely under a sales contract.  

    5.  Does your income justify the new mortgage payment?

    More importantly, does your current income support a new higher mortgage payment?

    6.  How is your credit?
     
    Have you made all your past mortgage payments to date on time?  Are you paying your other revolving debt on time?

    7.  Do you have additional assets available to put down toward the purchase of your new home?

    Do you have money saved?  You have other liquid assets to put down on the new house and still have funds for closing?

    8.  Is your current job stable?

    No one knows for sure how stable their job is in today’s economy, but you better than anyone, will have to answer this question. 

    9.  How will the move to a new home impact your life?

    Purchasing a new home should be considered one that will hopefully improve your quality of life.   Be careful not to stretch your budget to the maximum when considering your new home purchase.  Doing a household budget will help give you good direction in determining your overall ideal number for a new mortgage payment.  

    Moving is considered one of the top 3 changes that will occur in your life.  The nice part is that mortgage process can go very smoothly and very quickly.

    Congratulations, if you have decided to purchase another home.  Our experiences have shown that no two persons are exactly the same in their needs and wants. 

    Take advantage of our free 30 minute consultation to determine what you can afford, what terms are best, and which program works for your needs.  More importantly, you want to make sure you have the proper timeline and steps in between to make your home purchase as smooth as possible.

    Now is the time to purchase a home!

    mortgage financing, helping clients qualify affordable housing, and quite frankly, we are good at handling the stress of home buying for you! 

    I’m sure you’ve read all the horror stories, such as:

    1

      A mortgage is to hard to get today

    2

      I can’t afford to buy a house

    3

      I don’t have enough down payment

    4

      Not sure if my credit is good enough

    5

      Is my income enough?

    I can tell you the answer if you never ask the question: NO!  Our job is to help you turn your answer from no to YES!  Give Delaware Financial Capital a call at 302-266-9500 or click the button below for our online contact form!

     

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    Mortgage interest rates are still low!

    interest rates, delaware, mortgageDelaware mortgage rates have improved since the Federal Reserve started its QE3 program by pumping in an additional $40 billion to boost the housing market.  This should keep rates low for a while, so the sooner you get refinanced, the sooner you will start saving money monthly and increasing your cash flow.

    If you are considering refinancing your home, now is the time is take advantage of these all time record low rates. 

    Did you know that 69 % of homeowners today have mortgages exceeding 5% according to recent data.

    Why aren’t more people  refinancing if they know they can get a lower interest rate?  It
    turns out that many homeowners who purchased prior to 2008 and even into 2010, may find they are underwater, (underwater is owing more on your mortgage than your home is worth). Still some homeowners have run up credit card debt and in some cases unfortunately lost their jobs, making it impossible to qualify.

    The good news is there is help for Delaware homeowners.  First, we are seeing there is an increase in home sales and home values, especially in New Castle County and other areas, depending on property location.  Next, many Delawareans have kept up on their mortgage payments despite being in a down economy.   Keeping up to date with your mortgage payment is a key element in getting refinanced or maybe even buying a new home.

    Finally, the HARP 2.0 Program is still available which may mean further easing for borrowers who are underwater. 

    How do you know whether or not you qualify?  Simply, you won’t know unless you ask.  If this whole topic seems a little confusing, please do not hesitate to give us a call at 302-266-6500 to see if you may qualify for a lower rate and a refinance.

     

     

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    YES! You can get a mortgage!

    Delaware, Newark, mortgage, credit scoreAre you buying a home in Delaware? Do you need help buying a home?

    The more you know about mortgages and what it takes to get a mortgage is your best bet! 

    • Don’t let misconceptions get in your way.  Just because someone you know couldn’t get a mortgage doesn’t mean the same applies to you.

    • Getting through the mortage is a difficult process.  Not really if you work with a knowledgeable and experienced professional.  Take one step at a time.

    • The more you know, the better experience you will have.  True!  Knowing what to do, how to do it, and when to do it are important steps.

    Know the 3 Big Issues to Get a Mortgage

    1.  Income
    Income plays a big part in getting a mortgage. Not so much in how much income you make, but how much will your income afford you to a make a reasonable mortgage payment and still have money left over to pay your other living expenses.

    2.  Assets
    Having cash or other assets is great.  The cash you have the easier it will be for you to get a mortgage.  But, don’t be discouraged if you don’t have tons of cash,  we have plenty of programs to assist you.  Having some cash is always expected since it demonstrates good financial management.

    3. Credit
    Having a good credit score is a good indication that you will pay your mortgage and perform on your debt.  Also, the better your credit score, the better will be your interest rate.  Mortgage rates are determined by what is called risk based pricing.  In other the better your credit score, the better will be your rate. 

    Finally, having good income, liquid assets (cash) and good credit are the 3 things you want, but, remember, there are many loan programs for borrowers who have marginal credit.  

    At Delaware Financial Capital Corp., we can help you get a mortgage.  Our office is located in Newark, DE.  Give us a call at 302-266-9500 or simply fill out the contact form below:

     



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    Don’t forget to download your free ebook “Homeowner’s Guidebook”

     



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    What documentation is needed to obtain a mortgage?

    mortgage pre-approval

    Getting a pre-approval before the buying process can be beneficial for several reasons

    For one, it can give you an idea of how much you can afford when you are looking for a home

    When you have found the right home, one of our mortgages consultants will let you know what you need to do next

    First, you will fill out an application and provide details like your work history, social security number and previous addresses

    Our mortgage consultants here at Delaware Financial Capital Corp

    will also pull a credit report

    This helps to make a determination on whether you qualify for a mortgage

    Along with your application, you will be required to provide additional

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    aspx” title=”documentation,” target=”_self”>documentation, which one of our mortgage consultants will go over with you

    Often times this is required for those borrowers who are self-employed or receive non-employment income

    If either applies to you, you will be asked to provide tax returns and any other tax forms like a 1099

     

    At Delaware Financial Capital Corp here in Newark, DE, we are committed to help you through your entire mortgage process

      To speak to one of our mortgage consultants today, please call 302-266-9500 or click on the link below and get started!

     

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    How Mortgage Loans Work

    How Mortgage Loans WorkExcluding property taxes and insurance, a traditional fixed-rate mortgage payment consist of two parts: (1) interest on the loan and (2) payment towards the principal, or unpaid balance of the loan.

    Many people are surprised to learn, however, that the amount you pay towards interest and principal varies dramatically over time. This is because mortgage loans work in such a way that the early payments are primarily in interest, and the later payments are primarily towards the principal.

    In the beginning . . . you pay interest
    To help calculate monthly payments for loans based on different interest rates, lenders long ago developed what are known as “amortization tables.” These tables also make it fairly easy to calculate how much money of each payment is interest, and how much goes towards the principal balance.

    For example, let’s calculate the principle and interest for the very first monthly payment of a 30-year, $100,000 mortgage loan at 7.5 percent interest. According to the amortization tables, the monthly payment on this loan is fixed at $699.21.

    The first step is to calculate the annual interest by multiplying $100,000 x .075 (7.5 %). This equals $7,500, which we then divide by 12 (for the number of months in a year), which equals $625.

    If you subtract $625 from the monthly payment of $699.21, we see that:

    • $625 of the first payment is interest
    • $74.21 of the first payment goes towards the principal

    Next, if we subtract $74.21 (the first principal payment) from the $100,000 of the loan, we come up with a new unpaid principal balance of $99,925.79. To determine the next month’s principal and interest payments, we just repeat the steps already described.

    Thus, we now multiply the new principal balance (99,925.79) times the interest rate (7.5%) to get an annual interest payment of $7,494.43. Divided by 12, this equals $624.54. So during the second month’s payment:

    • $624.54 is interest
    • $74.67 goes towards the principal.

    Equity
    As you can see from the above example, even though you pay a lot of interest up front, you’re also slowly paying down the overall debt. This is known as building equity. Thus, even if you sell a house before the loan is paid in full, you only have to pay off the unpaid principal balance–the difference between the sales price and the unpaid principle is your equity.

    In order to build equity faster–as well as save money on interest payments–some homeowners choose loans with faster repayment schedules (such as a 15-year loan).

    Time versus savings
    To help illustrate how this works, consider our previous example of a $100,000 loan at 7.5 percent interest. The monthly payment is around $700, which over 30 years adds up to $252,000. In other words, over the life of the loan you would pay $152,000 just in interest.

    With the aggressive repayment schedule of a 15-year loan, however, the monthly payment jumps to $927-for a total of $166,860 over the life of the loan. Obviously, the monthly payments are more than they would be for a 30-year mortgage, but over the life of the loan you would save more than $85,000 in interest.

    Bear in mind that shorter term loans are not the right answer for everyone, so make sure to ask your us about what loan makes the best sense for your individual situation. 

    Give Delaware Financial Capital Corp. a call at 302-266-9500 or simply click on the button below and fill out our online form

     

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    Will Your Credit Score Affect the Interest Rate You Get?

    pre-approval

      I asked if he have any idea what his credit score was

      He said he went on line and it was 900+

      I advised him that that score was impossible because credit scores range from 300 to 850

    The credit scoring mechanism used by mortgage lenders is called a FICO score

     This credit scoring pulls its scores from three different credit bureaus,

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    andContinue reading

    HARP 2.0 – Taking the right first steps!

    HARP, HARP 2.0, underwater homeowner

    Taking the right steps to prepare and have ready all the required information for the HARP 2.0 program can help in getting you approved more quickly. 

    New HARP

    The defining characteristic of the newly expanded HARP program is the allowance of an expanded loan-to-value (LTV) ratio. The old HARP program had more stringent loan-to-value (LTV) ratios, thereby eliminating many borrowers who could not qualify.

    HARP 2.0 gives homeowners the ability to refinance into today’s low mortgage rates and includes the ability for closing costs and in some cases even not requiring an appraisal.

    Beyond that, a HARP loan looks a lot like any other mortgage. Lenders are looking for borrowers with solid incomes, good assets and quality credit scores.

    5 Steps for your HARP preparation

    Since HARP mortgages are backed by Fannie Mae and Freddie Mac, the underwriting process will resemble that of any other conventional mortgage. There will be loan disclosures to sign and supporting financial documentation to remit.

    To ensure your HARP application lands on the top of the stack, you’ll need to follow these 5 preparatory steps:

    1. Ensure Fannie or Freddie backs your mortgage

    Since day one, only those with mortgages owned or guaranteed by Fannie or Freddie could qualify. Fannie and Freddie each have a loan lookup tool which allows homeowners to search for their loan.

    To check if your mortgage is backed by Fannie Mae,
    visit http://www.fanniemae.com/loanlookup/.

    If your mortgage is not found, try Freddie Mac’s loan lookup at
    https://ww3.freddiemac.com/corporate/
    .

    Mortgages not listed on either website are not backed by Fannie or Freddie and, therefore, are not HARP-eligible.

    2. Determine if your mortgage is old enough

    Only those whose mortgages were securitized prior to June 1, 2009 can apply for HARP. In general, this means that your mortgage must have started in mid-May 2009 or earlier. You can find your mortgage start date by looking at your closing paperwork. In the upper-right-hand corner of your settlement is your “funding date”–that’s the date you’re looking for.

    Note: Since it can take up to 60 days to securitize a Fannie or Freddie loan, even if your start date is close to June 1, 2009, you still may be ineligible.

    3. Does your current mortgage have LPMI?

    HARP 2.0 is designed to help homeowners with or without private mortgage insurance (PMI), but the government’s revisions specifically excludes homeowners that chose lender-paid mortgage insurance (LPMI), in other words your MI is mortgage insurance that is built into your rate..  

    If your mortgage statement itemized your monthly PMI, you have borrower-paid mortgage insurance and are thus eligible. All other mortgage insurance types are ineligible–including single-premium insurance. These guidelines can be investor specific and subject to change.

    4. You must be current

    HARP 2.0 requires that all homeowners have made their last six mortgage payments on time, with a maximum of one 30-day late payment in the past year. This information is verified against your credit report, so be sure to review your credit reports prior to submitting your application.

    5. Find and organize your supporting paperwork

    Since HARP mortgages are underwritten like every other type of mortgage, you will be required to provide bank statements, a drivers license, homeowners insurance information, pay stubs and W-2s. If you’re self-employed, you’ll have to provide a few years of tax returns to verify your income.

    Your speed in which you return these items to your lender can dictate your mortgage rate. If you plan on applying for HARP 2.0, gather all these items in advance. The less you leave to the last minute, the smoother your application will go.

    If you’re going to apply for the new HARP 2.0 follow these tips to be one of the first approved and one of the fastest to close. 

    Our mortgage team here at Delaware Financial Capital Corp is here to assist you through this process.  Please give us a call at (302) 266-9500 or simply fill out the on line form below to speak to one of our HARP 2.0 Specialists.

     

     

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