i would add
1. not asking for good faith estimate
2. not shopping around among a few lendersWhat are the top ten mistakes homeowners make in their home mortgage?
1. First paying to much for a house
2. Paying origination fees
3. Not having the seller pay closing costs
4. Not shopping around on rates
5. Not interviewing the mortgage guy, you need someone professional
6. Not reviewing the HUD-1 statement one week before closing
7. Not paying more down on the principle every month
8. Borrowing more than they should
9. Not factoring in new assessed taxes into payment that will hit you 12 months later
10. The best one, doing ESCROW and giving free money to your lender.
Tuesday, August 24, 2010
Should I switch over from an ARM to a fixed rate mortgage?
Currently my ARM has rocketed to 7.3% and I have PMI to boot.
At what point is it, or is it not, viable to switch to a fixed rate option somewhere in the 6% range.
My refinance loan ammount would be approx 400K.Should I switch over from an ARM to a fixed rate mortgage?
When did the ARM portion expire? It is never good to let the ARM expire without locking in a fixed rate, the new rate is almost always higher than the initial rate, which is typically above the current rates for a 30 yr fixed, or even another similar ARM. How long ago did you get this loan? What percentage of equity do you have in your home (PMI falls off after 22% ownership, but you can request to have it removed after 20% owenership)? These are all questions your mortgage person should be asking you. I am a mortgage BANKER and am more than willing to help out if you have any questions. Feel free to email me for further guidance.
Edit: JPN I am trying to reply to you but YAHOO says your email has not been confirmed, please email me at my office... jared@chicagobancorp.comShould I switch over from an ARM to a fixed rate mortgage?
It would probably be to your advantage to switch to a fixed rate.
Two things to consider:
1.) How long do you plan on staying in the house? If you are moving soon, it may not be worth the expense to refi.
2.) Can you lock in at a good rate? If you can get the 6% you mentioned, that would be a big savings.
Also, be sure you understand the restrictions in any new mortgage you sign up for. Pay special attention to any prepayment penalties that would make it impossible or expensive to refinance again if rates fall.
Don't be in a rush. We could easily see rates come down a bit in the near future if housing doesn't get cooking again. But if you don't want to wait, go ahead now. It could cost you more to wait 6 months if your rate went that high already.
You should refinance ASAP.
Rates are still relatively low, and now that your ARM's fixed portion is over it will only surprise you.
Get started here. to figure out how much equity you got, and what kind of packages will be available in your area.
http://loans.savingslife.com
Good luck with it!
You should refinance as quickly as possible.
the Frist question is when did you plain on selling our house?
if 2 years or more you should lock in you payment. if less the 5 years you should do a new ARM. If longer you should do a fix. But with out talking to you it is hard to said.
Switch to a fixed rate NOW. Rates have been coming down in the last few months (lucky for you) and you should be able to get the rate locked in around 6.5% or less. If your house has appreciated, you may have 20% equity in it now and can get out of the PMI rip-off. 400K is below a jumbo loan, so that will save you some too.
The only reason to have an ARM is because the interest rate is lower than a fixed. When that no longer is true it is time to get a fixed.
Talk to your lender. A lot of talk has been going on-negative about ARM's. They will tell you the details.
jpn72,
You should refinance out of your adjustable ASAP!!!
Rates are on the rise again... By this time next year rates will have sky rocketed to 8%!!!
It sounds like your ARM has already reached it s adjustment point.. Ideally you should have refinanced before that happened..
You stil have time as you said to get in the 6% range,a nd get it fixed so that you never have to refinance again (with rates gong up, your not going to want to..)
The question you should be askign is not should you refinance, but where should you refinance? What bank/lender will be able to offer you the lowest rates/fee's?
Here is what i advise to every single one of my clients..
Work with a loan oficer that is partnered with MULTIPLE INVESTORS OR LENDERS...
There are a couple reasons i suggest that..
1. If a loan officer can shop your loan to multiple lenders they are bound to find many that are willing to lend to you. By looking at multiple options and programs you will be sure to find the lowest costs and rates...
2. If you on your own call multiple banks to see what you qualify for, EACH AND EVERY LENDER will HAVE to pull a seperate credit report. The more times it is pulled the worse your credit gets. Now, when you work with a loan officer that can shop among their investors, they only have to pull one credit report, and use that copy to shop mortgage lenders for you.. As im sure you know, these days everything in life seems to depend on the credit score that you have... Keeping it from dropping is very important for every consumer..
So not only do you keep your credit score where it is, you dont have to worry about any of the busy work..you let the loan officer do it for you..
The most important thing to realize is that I as the loan officer with multiple investors to work with, am fully willing to keep shopping to different companies to find the best program for your needs.
My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in refinancing , or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you.
Feel free to give me a call at 312-264-6448, or
you can email me at Jasonf@providential.com.
Thank You,
Jason Fry
Licensed Mortgage Banker
Providential Bancorp
312-264-6448
At what point is it, or is it not, viable to switch to a fixed rate option somewhere in the 6% range.
My refinance loan ammount would be approx 400K.Should I switch over from an ARM to a fixed rate mortgage?
When did the ARM portion expire? It is never good to let the ARM expire without locking in a fixed rate, the new rate is almost always higher than the initial rate, which is typically above the current rates for a 30 yr fixed, or even another similar ARM. How long ago did you get this loan? What percentage of equity do you have in your home (PMI falls off after 22% ownership, but you can request to have it removed after 20% owenership)? These are all questions your mortgage person should be asking you. I am a mortgage BANKER and am more than willing to help out if you have any questions. Feel free to email me for further guidance.
Edit: JPN I am trying to reply to you but YAHOO says your email has not been confirmed, please email me at my office... jared@chicagobancorp.comShould I switch over from an ARM to a fixed rate mortgage?
It would probably be to your advantage to switch to a fixed rate.
Two things to consider:
1.) How long do you plan on staying in the house? If you are moving soon, it may not be worth the expense to refi.
2.) Can you lock in at a good rate? If you can get the 6% you mentioned, that would be a big savings.
Also, be sure you understand the restrictions in any new mortgage you sign up for. Pay special attention to any prepayment penalties that would make it impossible or expensive to refinance again if rates fall.
Don't be in a rush. We could easily see rates come down a bit in the near future if housing doesn't get cooking again. But if you don't want to wait, go ahead now. It could cost you more to wait 6 months if your rate went that high already.
You should refinance ASAP.
Rates are still relatively low, and now that your ARM's fixed portion is over it will only surprise you.
Get started here. to figure out how much equity you got, and what kind of packages will be available in your area.
http://loans.savingslife.com
Good luck with it!
You should refinance as quickly as possible.
the Frist question is when did you plain on selling our house?
if 2 years or more you should lock in you payment. if less the 5 years you should do a new ARM. If longer you should do a fix. But with out talking to you it is hard to said.
Switch to a fixed rate NOW. Rates have been coming down in the last few months (lucky for you) and you should be able to get the rate locked in around 6.5% or less. If your house has appreciated, you may have 20% equity in it now and can get out of the PMI rip-off. 400K is below a jumbo loan, so that will save you some too.
The only reason to have an ARM is because the interest rate is lower than a fixed. When that no longer is true it is time to get a fixed.
Talk to your lender. A lot of talk has been going on-negative about ARM's. They will tell you the details.
jpn72,
You should refinance out of your adjustable ASAP!!!
Rates are on the rise again... By this time next year rates will have sky rocketed to 8%!!!
It sounds like your ARM has already reached it s adjustment point.. Ideally you should have refinanced before that happened..
You stil have time as you said to get in the 6% range,a nd get it fixed so that you never have to refinance again (with rates gong up, your not going to want to..)
The question you should be askign is not should you refinance, but where should you refinance? What bank/lender will be able to offer you the lowest rates/fee's?
Here is what i advise to every single one of my clients..
Work with a loan oficer that is partnered with MULTIPLE INVESTORS OR LENDERS...
There are a couple reasons i suggest that..
1. If a loan officer can shop your loan to multiple lenders they are bound to find many that are willing to lend to you. By looking at multiple options and programs you will be sure to find the lowest costs and rates...
2. If you on your own call multiple banks to see what you qualify for, EACH AND EVERY LENDER will HAVE to pull a seperate credit report. The more times it is pulled the worse your credit gets. Now, when you work with a loan officer that can shop among their investors, they only have to pull one credit report, and use that copy to shop mortgage lenders for you.. As im sure you know, these days everything in life seems to depend on the credit score that you have... Keeping it from dropping is very important for every consumer..
So not only do you keep your credit score where it is, you dont have to worry about any of the busy work..you let the loan officer do it for you..
The most important thing to realize is that I as the loan officer with multiple investors to work with, am fully willing to keep shopping to different companies to find the best program for your needs.
My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in refinancing , or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you.
Feel free to give me a call at 312-264-6448, or
you can email me at Jasonf@providential.com.
Thank You,
Jason Fry
Licensed Mortgage Banker
Providential Bancorp
312-264-6448
What is a good mortgage modification company to go through?
Most people are scams but there is a company who I send many of my clients to, due to me being a Reverse Mortgage Specialist. But that website is called, www.modifymyrates.com Just fill out your information and they will have a person contact you right away!
Are there realy any mortgage brokers who will give a loan to someone with no $ down and bad credit?
My credit score is in the 500's do you think it is possible someone might finance me with no money down.Are there realy any mortgage brokers who will give a loan to someone with no $ down and bad credit?
First, please be advised that mortgage brokers do not give loans. They take your application, review your credit and finance info and shop your loan needs to different banks. There are many subprime lenders (banks) that specialize in 100% financing for poor credit borrowers. The norm is a 580 mid fico on a full doc loan to qualify for a 100% loan. The broker's job is to find the best lender to help your specific needs. So yes, you may qualify for no money down but all the specifics are needed for an exact answer. Contact a broker company near you to find out more.Are there realy any mortgage brokers who will give a loan to someone with no $ down and bad credit?
No.
I don't think so
you can do a 5 percent down loan from 580 +
550-579 10 percent down
500-549 20 percent down
These are best case scenarios, sometimes a 575 will need 20 percent, depending on how bad it is.
There is always someone who will give you a mortgage regardless of your credit history since the loan is secured by the property itself. A better question is whether you will be able to afford the monthly payment of such a mortgage.
Try www.askzeus.com or call 1-800-ask-zeus. This company advertises the fact that 95% of their customers have 0% down mortgages, and they can give you an instant decision over the phone.
First, please be advised that mortgage brokers do not give loans. They take your application, review your credit and finance info and shop your loan needs to different banks. There are many subprime lenders (banks) that specialize in 100% financing for poor credit borrowers. The norm is a 580 mid fico on a full doc loan to qualify for a 100% loan. The broker's job is to find the best lender to help your specific needs. So yes, you may qualify for no money down but all the specifics are needed for an exact answer. Contact a broker company near you to find out more.Are there realy any mortgage brokers who will give a loan to someone with no $ down and bad credit?
No.
I don't think so
you can do a 5 percent down loan from 580 +
550-579 10 percent down
500-549 20 percent down
These are best case scenarios, sometimes a 575 will need 20 percent, depending on how bad it is.
There is always someone who will give you a mortgage regardless of your credit history since the loan is secured by the property itself. A better question is whether you will be able to afford the monthly payment of such a mortgage.
Try www.askzeus.com or call 1-800-ask-zeus. This company advertises the fact that 95% of their customers have 0% down mortgages, and they can give you an instant decision over the phone.
MORTGAGES. What is allowable income??
PLZ HELPMORTGAGES. What is allowable income??
Anything that can be documented and is going to last for the next three years. Child support, disablity, job wages, overtime, etc. If you have a second job some lender like you to be on it for the last two years. If you have any other question just email me.MORTGAGES. What is allowable income??
As Molly answered it correctly - there is one other. If you have other income that you deposit into your checking account, and your credit is decent - say 580+ middle score, you can go off your 12 month bank statements to qualify you as (a full doc) program (stated program too). Lenders use this, instead of paystubs, etc. With the bank statement's - the Lender will call your employer, and just ask if you are working there - but will not ask about your income....It is one way to qualify a person.
Other things to consider:
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, if you have money to bring into the table - so you do not have to borrow the full 100 percent. Rates are still in the 6's but they are getting higher - ok. If your credit is in the 500's to low 600's than the rate would be higher - lots of factors to consider. Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.
Anything that can be documented and is going to last for the next three years. Child support, disablity, job wages, overtime, etc. If you have a second job some lender like you to be on it for the last two years. If you have any other question just email me.MORTGAGES. What is allowable income??
As Molly answered it correctly - there is one other. If you have other income that you deposit into your checking account, and your credit is decent - say 580+ middle score, you can go off your 12 month bank statements to qualify you as (a full doc) program (stated program too). Lenders use this, instead of paystubs, etc. With the bank statement's - the Lender will call your employer, and just ask if you are working there - but will not ask about your income....It is one way to qualify a person.
Other things to consider:
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, if you have money to bring into the table - so you do not have to borrow the full 100 percent. Rates are still in the 6's but they are getting higher - ok. If your credit is in the 500's to low 600's than the rate would be higher - lots of factors to consider. Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.
What is an estimated rate we might qualify for on a mortgage?
Hi I was wondering if anyone might know (or had simular issues) what an estimated mortgage rate would be for us. We would pre-qualify, but we are trying to keep our credit inquiries down as we will (hopefully) be looking to buy in the next year. Here is our situation:
* Married first time home buyers. Median FICO's of 568 and 571
* I filed Bankruptcy 2 years ago. My Husband has not filed bankruptcy before.
* I have been in the same field for 6 years.
*Husband has been a full time student.
*We and have paid off all outstanding debts except one car payment of $350 and a student loan of $100 per month both with excellent payment history.
*Our approx gross income is $65,000/year.
*We have $5,000-$10,000 for downpayment.
*Neither of us have a current rental history as my company takes care of our living arrangements (medical traveler).
Any suggestions or thoughts? Thank youWhat is an estimated rate we might qualify for on a mortgage?
AMAZING THREE ANSWERS AND ALL BAD! dont worry about your score you do qualify for an FHA mortgage and you will get a competative rate somewhere around 7% today.
you dont need to wait a year to buy in fact you should buy right now!
also, sounds like you are eligible to recieve a FREE grant for your downpayment using an FHA mortgage. i know all of this because i am national mortgage banker and an FHA direct endorsed lender which means we reveiw you loan application and make the lending decision we dont send it out for approval any place else.
feel free to call me at 1-877-472-6810 and i will give you all the detials. dont listen to anyone that says you cant based on your credit score!
good luckWhat is an estimated rate we might qualify for on a mortgage?
first thing what i will do, is to go and speak with good mortgage broker and try to work on your credit before you will start looking for any mortgage. you don't have any debts almost, your payment history is good now, so i thing it will be worthy for somebody good to take a look at your credit and tell you how to improve . sometimes small '; adjustments and changes'; can make huge impact on your credit ratings. mortgage brokers have access to new tools to analyze your credit and tell you what to do to improve your credit scoring and how many points your credit score can go up and how mach time this will take.you have time, at least couple mts and i will advise you to try this.
if you will not do anything with your credit- interest rate will be higher about 2-3% from normal interest rate, just because your credit score. you can refinance your mortgage after you buy the house, but for refi. to be worthy for you - your credit score need to improve. again we come back to square one - credit. the sooner you will start to work on this, you will be better off in the long run.
I don't know your state (or your state laws), but I'll give you this. . . According to your input, you qualify for an $1,895.83 payment, which on a 30 year at 7.5 would buy you a 271,018.00 house. -- Don't worry about rental history, as long as your employer is willing to document that its being paid, its being paid. -- Best of luck to you.
From the information u gave u could not go F H A so u will have to get a B loan or conventional loan, your rate will most likely be around 9% - 12%.mask work how to apply
* Married first time home buyers. Median FICO's of 568 and 571
* I filed Bankruptcy 2 years ago. My Husband has not filed bankruptcy before.
* I have been in the same field for 6 years.
*Husband has been a full time student.
*We and have paid off all outstanding debts except one car payment of $350 and a student loan of $100 per month both with excellent payment history.
*Our approx gross income is $65,000/year.
*We have $5,000-$10,000 for downpayment.
*Neither of us have a current rental history as my company takes care of our living arrangements (medical traveler).
Any suggestions or thoughts? Thank youWhat is an estimated rate we might qualify for on a mortgage?
AMAZING THREE ANSWERS AND ALL BAD! dont worry about your score you do qualify for an FHA mortgage and you will get a competative rate somewhere around 7% today.
you dont need to wait a year to buy in fact you should buy right now!
also, sounds like you are eligible to recieve a FREE grant for your downpayment using an FHA mortgage. i know all of this because i am national mortgage banker and an FHA direct endorsed lender which means we reveiw you loan application and make the lending decision we dont send it out for approval any place else.
feel free to call me at 1-877-472-6810 and i will give you all the detials. dont listen to anyone that says you cant based on your credit score!
good luckWhat is an estimated rate we might qualify for on a mortgage?
first thing what i will do, is to go and speak with good mortgage broker and try to work on your credit before you will start looking for any mortgage. you don't have any debts almost, your payment history is good now, so i thing it will be worthy for somebody good to take a look at your credit and tell you how to improve . sometimes small '; adjustments and changes'; can make huge impact on your credit ratings. mortgage brokers have access to new tools to analyze your credit and tell you what to do to improve your credit scoring and how many points your credit score can go up and how mach time this will take.you have time, at least couple mts and i will advise you to try this.
if you will not do anything with your credit- interest rate will be higher about 2-3% from normal interest rate, just because your credit score. you can refinance your mortgage after you buy the house, but for refi. to be worthy for you - your credit score need to improve. again we come back to square one - credit. the sooner you will start to work on this, you will be better off in the long run.
I don't know your state (or your state laws), but I'll give you this. . . According to your input, you qualify for an $1,895.83 payment, which on a 30 year at 7.5 would buy you a 271,018.00 house. -- Don't worry about rental history, as long as your employer is willing to document that its being paid, its being paid. -- Best of luck to you.
From the information u gave u could not go F H A so u will have to get a B loan or conventional loan, your rate will most likely be around 9% - 12%.
If I changed a condo from an investment to a rental in August 2008, can I still deduct mortgage interest?
Since I only rented for 3 1/2 months, my losses (after subtracting mortgage interest and property tax) will be huge. Of course, I'm not complaining since it's a tax deduction -- and at least I'm getting some rent now -- but I'm not sure if the mortgage interest and property taxes need to be prorated and declared in different sections of the tax forms or not. Do they?If I changed a condo from an investment to a rental in August 2008, can I still deduct mortgage interest?
Yes. You need to pro-rate the interest you paid for 3-1/2 months for use of the rental. It goes on Schedule E as a rental property. Don't forget to add depreciation expenses, legal fees, taxes, etc. related to the rental, and your rental income. The rest of the mortgage interest and taxes should go on your Schedule A deductions, subject to the $1M limit on debt.If I changed a condo from an investment to a rental in August 2008, can I still deduct mortgage interest?
yes--but check with your accountant for your state
Yes. You need to pro-rate the interest you paid for 3-1/2 months for use of the rental. It goes on Schedule E as a rental property. Don't forget to add depreciation expenses, legal fees, taxes, etc. related to the rental, and your rental income. The rest of the mortgage interest and taxes should go on your Schedule A deductions, subject to the $1M limit on debt.If I changed a condo from an investment to a rental in August 2008, can I still deduct mortgage interest?
yes--but check with your accountant for your state
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