Home Loan Help Line

2011-06-21T10:57:00.000-07:00

Sales of previously owned homes fell to a 6 month low in May and prices dropped 4.6%from a year ago. The National Association of Realtors said on Tuesday that sales dipped 3.8% month over month to an annual rate of 4.81 million units. This is the lowest since November.

This is the second straight month of declines. The drop was smaller than economists had expected, but the April sales figure was revised lower, leaving a report that was largely in line with expectations in financial markets. Indications are pointing to a struggling housing market.

The drop in homes sales may eventually have an effect on homeowners ability to obtain financing. This dips may cause lenders to tighten up guidelines even more so. Lenders may become even more hesitant on lending money making it more difficult for homeowners to take advantage of record low mortgage rates.

Homeowners that can qualify should consider speaking with their mortgage professional to better understand if refinancing make sense for them.
pointing to a housing market still struggling to regain its footing.

Mortgage Rates Dip to 2011 Lows

2011-05-24T08:00:00.000-07:00

Great rates have arrived for 2011. Both the 30 yr and 15 yr mortgage rates are at 2011 lows. Borrowers and homeowners should take advantage while of these savings while they can.

The 30 yr mortgage rate dropped to 4.61% from 4.63% while the 15 yr fixed rate feel from 3.82% to 3.8%. There is not much more room for rates to continuously drop and don't expect these rates to stay low for ever.

Speak with a mortgage professional to see if refinancing make sense for you.

Rates Continue to Rise

2010-12-16T06:23:00.000-08:00

Rates on both 15 year and 30 year mortgages increased to their highest levels for the past six months. The average rate for a 30 year fixed mortgage climbed to 4.84% from 4.66%. Rates for the average 15 year mortgage similarly rose to 4.21% from 3.98%.

Although rates continue to climb, they are still very low compared to historic numbers. Homeowners and and potential buyers would still receive good rates compared to rates 15 years ago. You should speak with your mortgage professional to see if refinancing or obtaining a mortgage makes financial sense for your particular situation.

Mortgage Rates Rise to 5 Month High

2010-12-10T13:12:00.000-08:00

Fueled by a treasury bond sell off, mortgage rates climbed to a 5 month high this pas week. Rates move increased to 4.61% from 4.46% on a 30 yr fixed mortgage. Although rates are at a 5 month high, they are still low compared to historic numbers. Many borrowers can still save hundreds of dollars refinancing. Potential home buyers can still lock in a low 30 year fixed mortgage and save thousands of dollars in interest. Contact your mortgage professional to see what makes sense for you.

Mortgage Applications Fall

2010-12-08T08:22:00.000-08:00

Overall, mortgage applications fell last week. Refinance applications were down while purchase applications slightly edged up.

Refinance applications dipped 1.4%. This is the 4th week in a row that refinance applications have decreased. Purchase applications increased 1.8%. The overall decrease for mortgage applications was .09%.

Mortgage rates have increase which tends to reduce the amount of mortgage applications. However, it is interesting that purchase applications have a positive trend. Investors are putting more money into safer investment options such as treasuries lowering the yield. Mortgage rates tend to treasuries which is why we're seeing an upward trend in mortgage rates.

Experts expect rates to continue a gradual climb over the next year. If refinancing makes sense for you, you should take advantage as soon possible.

Mortgage Rates Rise

2010-11-18T18:42:00.000-08:00

The 30 year fixed mortgage rate mortgage climbed to an average 4.39% from 4.17% last week. These November 18th increase potentially signals that rates have bottomed out and are on their way up. Borrowers that have not refinanced should consider speaking with their mortgage professional to see if there is any benefit to refinance.

Jumbo Mortgage Loans on the Rise

2010-11-10T01:33:00.000-08:00

Many companies are posting large year over year increases with jumbo mortgage loans. During the past couple of years, many banks and mortgage companies tightened up their guide lines for jumbo mortgage applicants making it more difficult for borrowers to obtain financing for more expensive homes.

Jumbo loans generally consist of loans greater than $417,000. However, in some high cost areas, jumbo loans can exceed $729,750. Because these loans tend to be larger loan amounts than conventional and FHA loans lenders and government entities typically find them to be more risky. During the real estate crisis many banks tried to mitigate their risk by using more stringent guide lines and cutting back on lending for jumbo loans.

However, in recent months, a increase in jumbo loan fundings maybe a key indicator on market conditions. Some major banks have reported large increases with their jumbo loan lending such as a major bank stating that they have a 146% increase over the past 6 months of this year versus the same time period last year.

Even though jumbo mortgages have increased this year, guidelines still tend to be tighter than before. High loan borrowers maybe attracted to the record low jumbo interest rates that are available helping fuel these increases. Whatever the reason for these increases, jumbo mortgage borrowers should consult their mortgage professional to see if refinancing is a beneficial for their specific situation.

Mortgage Rates On The Rise

2010-10-26T20:07:00.000-07:00

Mortgage rates may have hit bottom. According to the Mortgage Bankers Association's economic forecast rates are on target to rise to 5.1% by the end of next year. Historically, this is still a great rate, however, this may be the time to take advantage of a record low 30 year rate.

Are Mortgage Rates On The Rise?

2010-10-21T20:18:00.000-07:00

Mortgage rates went up for the first time in 5 weeks. Rates on the average 30 year mortgage have moved up from 4.19% to 4.21%. Compared to the same time last year rates are still down from 5%. Although, rates are still at all time lows borrowers and first time home buyers still in the market should take advantage while they still can.

Home Buyers Take Advantage of Record Low Rates

2010-07-21T21:57:00.000-07:00

Home buyers are taking advantage of record low mortgage rates. Rates have hit a 5 decade low and home buyers are seizing this opportunity to purchase a home with a low mortgage rate. Mortgage applications were up 3.4% since last week.

Refinance applications were also up last week. Refinance applications were up 9% last week and over 30% for the last month.

Home buyers and home owners are seeing these rates as an opportunity to obtain cheap money. If you interested in buying a home or have a loan you should speak with your mortgage professional to see if there is a benefit for your situation.

Low Rates Lead to More Refinance Applications

2010-07-12T20:20:00.000-07:00

Near low mortgage rates lead to a 6.7% increase in refinance applications. Borrowers are taking advantage of low mortgage rates.

Rates Hit New Low

2010-07-08T07:37:00.000-07:00

The average 30 year mortgage rate hit a new low. Rates dropped to 4.57%. The lowest rate in 5 decades. Homeowners and potential buyers should contact their mortgage professional to see if these rates can benefit their situation. These rates will not remain this low for ever and once they rise we doubt that we will see these rates for a very long time.

Record Low Mortgage Rates

2010-07-02T06:51:00.000-07:00

The 30 year mortgage rates hit a record low this week dropping to 4.58%. The previous record low was 4.69%. If you are able to qualify and have enough equity in your home you may be able to take advantage of these low rates. Don't expect these rates to stay this low for ever. Speak with your local mortgage professional to help determine your savings if you refinance or what your monthly payments will be if you purchase a home.

Can't Make My Mortgage Payments (Part 3)

2010-05-18T16:09:00.000-07:00

Still can't make your mortgage payments and you have received a foreclosure notice. It's time to contact an attorney that concentrates on foreclosures and modifications. Attorneys can halt the foreclosure process some homeowners. There are instances where homeowners have stayed in their home for years while their attorney fought the foreclosure.

First thing to do is save all mail and correspondence from the lender or servicer. That includes the envelopes. This is very important. The envelopes provide attorneys with valuable information that can be used later to protect you as a client. Next you may want to find a good local attorney that concentrates on foreclosures and modifications. Meet with multiple attorneys to find one that you feel comfortable with. Ask some of the following questions as well as others:

- What is you ratio of cases lost to foreclosure?
- How many cases have you handled?
- Do you have any references (They may not be able to provide this due to privacy issues)?
- What are your fees?
- What is your process to challenge the lender?

Make sure you feel comfortable and confident with the attorney you choose. The more attorneys you speak with the more educated you may become on the subject which will help you wade through any BS.

Once you choose an attorney, they will inform you of your options. Listen to your attorney and let him/her work their magic. They can't help everyone, however you maybe surprised on what they are able to accomplish.

203k Loan Program

2010-05-18T15:16:00.000-07:00

The new 203k loan program has been dubbed "the rehab loan". This loan was designed to make it easier for borrowers to obtain financing to purchase a home in need of rehabilitation or repair. In the past borrowers had to obtain multiple rounds of financing when rehabilitated a home. They would have to get financing for the rehabilitation and financing for the home. Once the rehabilitation or repair was completed than they would be able to obtain financing to cover the original loans. The rates on the original loans were never the most attractive. Now with the 203k loan program borrowers can obtain financing at more affordable terms when rehabilitating a new purchase. If interested in rehabilitating and purchasing a home, you should ask your mortgage professional for more details about this loan program.

Can't Make My Mortgage Payments (Part 2)

2010-05-15T13:33:00.000-07:00

If you want to keep your home and your income problem is temporary, talk to your lender about these FHA workout plans. While the options listed here are for borrowers with FHA-insured loans, most lenders offer similar workout plans designed to help you keep your home. Even if you don't expect your income to increase in the near term they may be programs available that lower your over all payments to an affordable level. Speak to a modification attorney, specialist, or HUD housing counselor for more information.

HUD represents your the following as your options:

Special Forbearance. Your lender may provide for a temporary reduction or suspension of your payments to allow you time to overcome the problem that reduced your income. Then you may be offered a payment plan so you can pay back the missed payments a little at a time until you are caught up.

Mortgage Modification. A modification is a permanent change to your loan through which the overdue payments may be added to your loan balance, the interest rate may be changed or the number of years you have to pay off the loan may be extended.

Partial Claim. This is a one-time loan from the FHA insurance fund to bring your mortgage current. The loan is interest free and does not need to be repaid until you pay off your first mortgage or sell your house. This option is only available to borrowers with FHA-insured loans. However, if you have a conventional loan, ask your lender if they offer an “advance claim.”

FHA-Home Affordable Modification Program (FHA-HAMP). This option combines an enhanced partial claim with a loan modification. Under the FHA HAMP, the partial claim loan from FHA will not only include any amounts necessary to bring your mortgage current but may also include an amount to reduce your existing loan balance by up to 30%. The reduced loan balance will then be modified to lower your monthly mortgage payment to an affordable level. As described above, the partial claim loan is interest free, but must be repaid when you pay off your first mortgage or sell your house.

To qualify for any of these options, you will need to provide your lender with current information about your income and expenses. Also, your lender may suggest that you agree to a payment plan for three or more months to demonstrate your commitment before you are approved for a modification or partial claim.

It is important not to lie to the lender or the government, however there are instances where items can be stated in certain ways to help your situation. It may be advantageous to speak with an modification attorney, modifications specialist or HUD housing counselor before submitting information.

Can't Make My Mortgage Payments (Part 1)

2010-05-15T13:20:00.000-07:00

If you're having trouble making your mortgage payments don't be ashamed. Thousands of people are in similar circumstances. The housing bubble, economic conditions and poor goverment management took many people by suprise. Don't be in disspear, there is a light at the other end of the tunnel and even if you're unable to maintain the costs for your home; losing your home is not the end. It's just a new start.

This is part one of a series of ways for home owners to get assistant to help maek their mortgage payments more affordable.

First thing you must do is not ignore the problem. It is not going to go away on its own. It's going to take some effort on your part.

HUD recommends the following:

WHAT SHOULD I DO?

1. Contact your lender right away. You can find a contact number on your mortgage statement.When you call, be prepared to explain:

Why you are unable to make your payment.
Whether the problem is temporary or permanent.
Details about your income, expenses, and other assets like cash in the bank.

2. If you are uncomfortable talking to your lender, a HUD-approved housing counseling agency can help you understand your options. These services are free of charge.

3. Open all of the mail you receive from your lender. It contains valuable information about repayment options. Later mail may have important legal notices. Failing to read the mail will not be an excuse in foreclosure court!

4. Look for ways to increase the amount you have available to make your mortgage payments. Can you cancel cable TV, pack lunches, or get a part-time job? While these actions may not replace all of your lost
income, they send a strong message to your lender that you are serious about keeping your home.

The Tax Credit is Over!

2010-05-02T00:23:00.000-07:00

The federal government did not extend the home buyer tax credit. Expect this to affect both mortgage applications and the purchase market. We'll update you on the numbers shortly.

Reverse Mortgage - FHA Loan Program

2010-04-29T20:53:00.000-07:00

Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash. This program has become exceedingly more popular in the last few years.

FHA Loan - Rehabiliation of your home.

2010-04-29T20:49:00.001-07:00

FHA has a loan that allows borrowers to purchase a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs into one loan.

Home Buyer and FHA Loans

2010-04-29T20:48:00.000-07:00

A FHA loan allows borrowers to obtain financing with a low down payment. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties. Home buyers can obtain a home for a fraction of a down payment from a conventional mortgage. Inquire about FHA loans from your mortgage professional.

FHA Loan Program is becoming more popular.

2010-04-29T20:45:00.000-07:00

FHA loans have been helping people become increasingly popular over the last several years. As subprime loan programs disappeared more and more mortgage professionals have utilzied the FHA program to assist borrowers. FHA mortgage loans are insured by the Federal Housing Administation proving lenders that ability to offer a better deal to borrowers. FHA loans typically provide borrowers with:

Low down payments
Low closing costs
Easy credit qualifying

The FHA loan is a great program that can reduce your over all costs and help borrowers obtain financing. Ask your mortgage professional to provide more information about the process, guidelines and benefits of an FHA loan.

Tax Credit Ends April 30th

2010-04-29T20:27:00.000-07:00

First time home buyers have been scrambling to find a home and beat the dead line for the end of the tax credit. Many people believed that the tax credit would be extended but there have been no signs from the government supporting the extension.

Modification Update

2010-04-26T20:51:00.000-07:00

Some homeowners may see their monthly mortgage payments drop, thanks to changes to a government mortgage modification program.The government is offering incentives to lenders to reduce mortgage balances for borrowers who qualify. However, not all borrowers are eligible, and the new rules come with restrictions.

Borrowers that want to find out if they are eligible to recieve a mortgage reduction should contact their loan servicer or a housing counselor for more information. You may not be able to find answers until the program is rolled out but it never hurts to be proactive.

Right of Rescission can Protect Borrowers From the Bait and Switch

2010-04-22T21:03:00.000-07:00

Federal law provides borrower a cooling off period when they refinance or obtain a equity line of credit. This Right of Rescission allows borrowers the ability to cancel a loan without repercussions from the lender. Borrowers are alotted 3 days to back out of the loan no questions asked.

If you feel that the lender or mortgage professional pull a bait and switch the Right of Rescission maybe able to give you an opportunity to back out of the loan and obtain a new loan with a mortgage reputable lender. The option should not be used lightly. Keep in mind, many people put in a lot of work to provide lending. Make sure that you are rescinding for the right reasons. Also, keep in mind their is no guarantee that you'll be able to obtain financing from another lender. You need to weigh what the risk vs reward when deciding to rescind on a loan.