As many now know, the Making Homes Affordable Program aka Harp 2 Refinance allows people to refinance if their loans are owned by Fannie Mae or Freddie Mac, with out any loan-to-value restriction. Successfully refinancing any occupancy home despite being underwater is quite common these days under this program. While this program, is helping many…
The annual percentage rate is always higher than the actual interest rate, because the annual percentage rate takes into consideration all of the costs associated with financing including prepaid items such as property taxes, hazard insurance and mortgage interest lumps them all together against your loan and re-amortizes the figures over the life of the…
The lender wants to make sure future debt obligations do not impact the integrity of repayment on the loan they are making to you. If the lender allows you to pay off the credit card balances, who’s to say you wouldn’t take out consumer debt again and be in the same situation you’re in in…
Anyone who is looking at the Harp 2 Refinance Program, stands to benefit by a tremendous amount of money. Interest rate savings of over 1% at the minimum coupled with minimum monthly payment savings of at least $300 per month or more are very common. Because this program ignores loan-to-value, which is considered an integral…
On January 10, 2013, the Consumer Financial Protection Bureau unveiled new rules to help protect consumers from unscrupulous mortgage lending. These rules implement underwriting criteria what constitutes a “qualified mortgage”. As long as the mortgage lender meets certain criteria, the consumer cannot sue a lender for not verifying income, providing a loan to a consumer…
Many of the mortgages being made today contain higher loan to values. These loans contain inherent “risk based pricing” which causes the rates to change. What is loan to value anyway? The loan to value (LTV) is defined as the amount of money you’re borrowing against the value of your the property expressed as a…
Large cash deposits have to be sourced and paper trailedwhether doing a purchase or refinance transaction. One of the things lenders are required to do is source all money used in a transaction even funds not being used for the transaction. For example if you’re making $5000 a month and you get a deposit in…
People lining themselves up for home buying or even current homeowners who have not taken mortgage in a number of years, with all the different programs available in the marketplace today; Government Loans, Conventional Loans, Conforming Loans, it can be easy to get lost in the array of available programs. All mortgage loan programs breakdown…