Dec
31
HomePath Mortgage FAQ
Filed Under Radio Commercials | Leave a Comment
SonomaReunion asked:
SonomaReunion video blog supplement- top 5 broker questions for HomePath Mortgage offerings at RMI
Patrick
Dec
30
Manufactured Home Loans
Filed Under Real Estate | Leave a Comment
Kent Pinkerton asked:
The word ‘manufactured’ gives one an idea of the type of house that falls in this category of home loans. Manufactured homes are factory built homes that can be transported to any location needed on their own chassis and wheels.
For a finance institution to finance a manufactured home, it has to be doublewide and on based a permanent foundation on land owned by the borrower. Sometimes, manufactured homes are financed with a retail installment contract that is provided by the retailer who is selling the home. Although the lender may easily grant a conventional mortgage for manufactured homes, they actually prefer giving loans for homes placed on a permanent foundation, as the risks involved in such cases are lower.
It should be remembered that manufactured homes are eligible for FHA and VA loans, so it is wise to apply for them. There are federal standards that help to regulate the quality of the manufactured home, and these standards are in turn based on the strength, durability, fire resistance, energy efficiency, transportability, and quality of the homes. It is only based on the guarantee of these standards that manufacturers readily offer a warranty to cover the home and it’s systems during the stated warranty period.
Like all other home loans, this loan requires that you have a good credit. The better your credit is, the easier it is for you to get the loan. You have to also be ready to make a down payment when applying for the loan which may be as little as 5% of the loan amount as down payment, but the larger the down payment you can make, the lower your corresponding mobile home loan interest rates will be. Unlike many interest rates, the rates of mobile home loans remain stable with no fluctuations.
Ann
The word ‘manufactured’ gives one an idea of the type of house that falls in this category of home loans. Manufactured homes are factory built homes that can be transported to any location needed on their own chassis and wheels.
For a finance institution to finance a manufactured home, it has to be doublewide and on based a permanent foundation on land owned by the borrower. Sometimes, manufactured homes are financed with a retail installment contract that is provided by the retailer who is selling the home. Although the lender may easily grant a conventional mortgage for manufactured homes, they actually prefer giving loans for homes placed on a permanent foundation, as the risks involved in such cases are lower.
It should be remembered that manufactured homes are eligible for FHA and VA loans, so it is wise to apply for them. There are federal standards that help to regulate the quality of the manufactured home, and these standards are in turn based on the strength, durability, fire resistance, energy efficiency, transportability, and quality of the homes. It is only based on the guarantee of these standards that manufacturers readily offer a warranty to cover the home and it’s systems during the stated warranty period.
Like all other home loans, this loan requires that you have a good credit. The better your credit is, the easier it is for you to get the loan. You have to also be ready to make a down payment when applying for the loan which may be as little as 5% of the loan amount as down payment, but the larger the down payment you can make, the lower your corresponding mobile home loan interest rates will be. Unlike many interest rates, the rates of mobile home loans remain stable with no fluctuations.
Ann
Dec
29
Loan Modification – FAQs
Filed Under Real Estate | Leave a Comment
Malcolm Glazer asked:
Loan modifications are great solutions for those who are having trouble paying their mortgage payments or for those who have found that the amount left on their mortgage is more than what their home is valued at. Loan modifications are important procedures and there are many questions to be answered concerning them.
When should I apply for a loan modification? This answer depends on the circumstance. There are situations where a lender will allow their client to apply for a loan modification before they default, it is just more difficult to obtain one. Otherwise, as soon as the letter of default has been received, a person can apply for a modification. In fact, the sooner they apply the better.
How long do I have after the default notice before the home is taken in foreclosure? Usually there is a three month period after the notice before the home is taken away by the bank. If an application for modification has been submitted, the bank has three months to respond. If they agree to go into negotiations, the foreclosure is further delayed. If not then the foreclosure proceedings continue.
What do I need for a loan modification application? There are a number of things needed for a this modification application. The first thing aside from any third party assistance is that is being used, is the letter of intent or the notification sent to the lender informing them of the intentions. Once that is submitted, an application, financial sheet, budget, and any documents that are tied in with the finances are also needed. These documents include paystubs, income tax forms, and mortgage papers, amongst others. A person is advised to read the instructions in the loan modification application package or receive a listing for an attorney before sending the package in.
Should I hire an attorney and at what point should I do so? Loan modifications can be obtained is most circumstances by the client if the lender permits it but this does not mean it is advised. There is a lot of work that goes into preparing the application and in gathering the documents. There are also the negotiations to consider. Individuals who do not have experience in this field often do not receive the modification that they would if they have an attorney. For any case, it is recommended that an attorney is hired for these proceedings. An attorney can be hired as soon as it is decided that a loan modification is necessary or even before if the individual wished to ask questions or obtain advice.
What benefits will an attorney give me? An attorney has a lot of experience in negotiating and they already know the lenders. They use their proven negotiating strategies to receive the best type of modification for their clients.
With everything to consider, it is not difficult to understand why attorneys are used in such situations. Loan modifications not just prevent foreclosures but put the homeowner back into financial stability. To have it done right the first time, an attorney is recommended.
Jeffery
Loan modifications are great solutions for those who are having trouble paying their mortgage payments or for those who have found that the amount left on their mortgage is more than what their home is valued at. Loan modifications are important procedures and there are many questions to be answered concerning them.
When should I apply for a loan modification? This answer depends on the circumstance. There are situations where a lender will allow their client to apply for a loan modification before they default, it is just more difficult to obtain one. Otherwise, as soon as the letter of default has been received, a person can apply for a modification. In fact, the sooner they apply the better.
How long do I have after the default notice before the home is taken in foreclosure? Usually there is a three month period after the notice before the home is taken away by the bank. If an application for modification has been submitted, the bank has three months to respond. If they agree to go into negotiations, the foreclosure is further delayed. If not then the foreclosure proceedings continue.
What do I need for a loan modification application? There are a number of things needed for a this modification application. The first thing aside from any third party assistance is that is being used, is the letter of intent or the notification sent to the lender informing them of the intentions. Once that is submitted, an application, financial sheet, budget, and any documents that are tied in with the finances are also needed. These documents include paystubs, income tax forms, and mortgage papers, amongst others. A person is advised to read the instructions in the loan modification application package or receive a listing for an attorney before sending the package in.
Should I hire an attorney and at what point should I do so? Loan modifications can be obtained is most circumstances by the client if the lender permits it but this does not mean it is advised. There is a lot of work that goes into preparing the application and in gathering the documents. There are also the negotiations to consider. Individuals who do not have experience in this field often do not receive the modification that they would if they have an attorney. For any case, it is recommended that an attorney is hired for these proceedings. An attorney can be hired as soon as it is decided that a loan modification is necessary or even before if the individual wished to ask questions or obtain advice.
What benefits will an attorney give me? An attorney has a lot of experience in negotiating and they already know the lenders. They use their proven negotiating strategies to receive the best type of modification for their clients.
With everything to consider, it is not difficult to understand why attorneys are used in such situations. Loan modifications not just prevent foreclosures but put the homeowner back into financial stability. To have it done right the first time, an attorney is recommended.
Jeffery
Dec
29
Dec
28
Mark Polman asked:
Rarely has there been a time when there was so much interest in mortgages and mortgage rates. The devastating collapse of the financial markets, led by mortgages that weren’t worth the paper they were written on created incredibly high foreclosure rates and a corresponding plunge in housing prices. If you are in the market for a home the pricing isn’t going to get much better than it is today and mortgage rates are at a record low. However if you have a mortgage and you’ve been hit with an adjustment, your monthly payments are probably putting a strain on your wallet and you’re looking to refinance.
For both types of borrowers, getting a mortgage or refinancing an existing one can be a challenge in this economy. It’s best to “bone up” on the mortgage market and to help you do that we’ve listed the answers to the seven most frequently asked questions.
1. What kind of credit score do I need to qualify for a mortgage?
As recently as a couple of years ago you could find a lender willing to enter into a deal if you had a FICO score of at least 600 and could prove that you could breathe without assistance. That rapidly changed as all the toxic mortgages started sending the market into a downward spiral. Today you may have a chance at 720 but a FICO of 740 is preferred.
2. How much equity do I need to refinance a loan?
Typically a lender will want you to have at least 20% equity in your home. This presents a big problem today because of the reduced housing prices. If for example you bought your home 5 years ago and have a mortgage balance of $300,000 on a home you paid $375,000 for but which is now only worth $325,000, then you have insufficient equity. There are programs to finance up to 125% of the current value of a home if your loan is owned or guaranteed by Fannie Mae or Freddie Mac.
3. How can I avoid foreclosure if I can’t afford the monthly payments?
The federal government put pressure on the banking industry, particularly those banks that received TARP money, to do loan modifications. The initiative was designed to save over 1,000,000 homes from entering foreclosure proceedings. To date there have been fewer than 145,000 loan modifications executed. If you are on the brink of foreclosure, seek out a broker who has experience in modifications as trying to do it yourself is next to impossible.
4. What is a home equity loan
These loans are available to homeowners and are usually taken out for home improvements, consolidating debt or other long term expenses like college tuition. The loan is based on the amount of equity you have in the home. If you have sufficient equity, and you meet other requirements the bank may have, you can take out the loan at a far lower rate than a regular signature loan.
5. What is a home equity line of credit (HELOC)?
A HELOC essentially makes the equity in a home available to the owner when they need it. Unlike a home equity loan where you take out a specific dollar amount, the HELOC defines what line of credit you have and only charges interest when you actually use some of it. These loans can be tricky however and you want to be sure you understand the terms and conditions.
6. What does APR mean?
APR or Annual Percentage Rate is one tool available when comparing the actual cost of a loan and comes in handy when you’re shopping for a mortgage. All mortgages are not the same. If you find one with a low rate then you can almost guarantee it will have higher closing costs and other fees. What the APR does is consolidate interest rate, costs and fees and gives you a total cost for the loan.
7. What is a reverse mortgage?
This is a mortgage product that is fairly popular with the elderly. Basically this allows the homeowner to take out all the equity in his home and not pay his mortgage until he or she no longer lives there permanently. Older folks tend to have high equity or no mortgage at all so it appears to be a way to partially finance retirement. When they leave their home it’s normally because they died or were moved into a convalescing home. Either way, the house has to be sold to pay the mortgage.
Getting a mortgage today can be pretty scary. Know as much about your personal finances as you can (including your score) and you’ll have a better chance at success.
Allan
Rarely has there been a time when there was so much interest in mortgages and mortgage rates. The devastating collapse of the financial markets, led by mortgages that weren’t worth the paper they were written on created incredibly high foreclosure rates and a corresponding plunge in housing prices. If you are in the market for a home the pricing isn’t going to get much better than it is today and mortgage rates are at a record low. However if you have a mortgage and you’ve been hit with an adjustment, your monthly payments are probably putting a strain on your wallet and you’re looking to refinance.
For both types of borrowers, getting a mortgage or refinancing an existing one can be a challenge in this economy. It’s best to “bone up” on the mortgage market and to help you do that we’ve listed the answers to the seven most frequently asked questions.
1. What kind of credit score do I need to qualify for a mortgage?
As recently as a couple of years ago you could find a lender willing to enter into a deal if you had a FICO score of at least 600 and could prove that you could breathe without assistance. That rapidly changed as all the toxic mortgages started sending the market into a downward spiral. Today you may have a chance at 720 but a FICO of 740 is preferred.
2. How much equity do I need to refinance a loan?
Typically a lender will want you to have at least 20% equity in your home. This presents a big problem today because of the reduced housing prices. If for example you bought your home 5 years ago and have a mortgage balance of $300,000 on a home you paid $375,000 for but which is now only worth $325,000, then you have insufficient equity. There are programs to finance up to 125% of the current value of a home if your loan is owned or guaranteed by Fannie Mae or Freddie Mac.
3. How can I avoid foreclosure if I can’t afford the monthly payments?
The federal government put pressure on the banking industry, particularly those banks that received TARP money, to do loan modifications. The initiative was designed to save over 1,000,000 homes from entering foreclosure proceedings. To date there have been fewer than 145,000 loan modifications executed. If you are on the brink of foreclosure, seek out a broker who has experience in modifications as trying to do it yourself is next to impossible.
4. What is a home equity loan
These loans are available to homeowners and are usually taken out for home improvements, consolidating debt or other long term expenses like college tuition. The loan is based on the amount of equity you have in the home. If you have sufficient equity, and you meet other requirements the bank may have, you can take out the loan at a far lower rate than a regular signature loan.
5. What is a home equity line of credit (HELOC)?
A HELOC essentially makes the equity in a home available to the owner when they need it. Unlike a home equity loan where you take out a specific dollar amount, the HELOC defines what line of credit you have and only charges interest when you actually use some of it. These loans can be tricky however and you want to be sure you understand the terms and conditions.
6. What does APR mean?
APR or Annual Percentage Rate is one tool available when comparing the actual cost of a loan and comes in handy when you’re shopping for a mortgage. All mortgages are not the same. If you find one with a low rate then you can almost guarantee it will have higher closing costs and other fees. What the APR does is consolidate interest rate, costs and fees and gives you a total cost for the loan.
7. What is a reverse mortgage?
This is a mortgage product that is fairly popular with the elderly. Basically this allows the homeowner to take out all the equity in his home and not pay his mortgage until he or she no longer lives there permanently. Older folks tend to have high equity or no mortgage at all so it appears to be a way to partially finance retirement. When they leave their home it’s normally because they died or were moved into a convalescing home. Either way, the house has to be sold to pay the mortgage.
Getting a mortgage today can be pretty scary. Know as much about your personal finances as you can (including your score) and you’ll have a better chance at success.
Allan
Dec
20
Mortgage FAQ #2. What EXACTLY does it mean to get Pre-approved?
Filed Under Education | Leave a Comment
DreamsUniversity asked:
In this short video, we answer one of the most frequently asked mortgage questions we get and that is “What does it mean to get Pre-approved?” We explain what it means to be Pre-approved and why it’s so important to do so before you start shopping for a home. Apply for your mortgage online quickly & securely at www.mortgagedreams.com A loan for your home is as close as the phone! So pick yours up (your phone, not your home) and call a Certified Mortgage Planner at 877-DREAM-14 today!
Raul