Posts Tagged ‘mortgage’

WI FHA Home Equity Conversion Mortgage Information

Doug MacLeod is a Reverse Mortgage Consultant serving the state of WI. Learn what a reverse mortgage is and the facts behind these great mortgage programs at www.ReverseMortgageWI.com 5 of 5

An FHA loan is a government backed loan the allows a client to get into a property with as little as 3 percent money down. Find out what factors affect FHA loan qualification, including income and credit history, withhelp from a financial specialist in this free video on home loans and money management. Expert: Matthew McKillen Contact: www.innovativefg.com Bio: Matthew McKillen has more than 21 years of industry experience in arranging loans for his clients. Filmmaker: Christopher Rokosz

Nice Adjustable Rate Mortgage Refinance photos

Check out these adjustable rate mortgage refinance images:

Subprime Crisis No Barrier to Affordable Housing


Image by woodleywonderworks
WP’s take:
The subprime mortgage crisis is an ongoing financial crisis characterized by contracted liquidity in global credit markets and banking systems triggered by the failure of mortgage companies, investment firms and government sponsored enterprises which had invested heavily in subprime mortgages. The crisis, which has roots in the closing years of the 20th century but has become more apparent throughout 2007 and 2008, has passed through various stages exposing pervasive weaknesses in the global financial system and regulatory framework.

The crisis began with the bursting of the United States housing bubble[1][2] and high default rates on "subprime" and adjustable rate mortgages (ARM), beginning in approximately 2005–2006. For a number of years prior to that, declining lending standards, an increase in loan incentives such as easy initial terms, and a long-term trend of rising housing prices had encouraged borrowers to assume difficult mortgages in the belief they would be able to quickly refinance at more favorable terms. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U.S., refinancing became more difficult.
Posted 14 minutes ago.

hair, nails, gifts and mortgages


Image by woodleywonderworks
Cover shot for the "illustrated guide to the mortgage crisis"

ml-implode.com/

American Mailboxes .. Hope Street .. Foreclosure limbo: Staying without paying (June 09, 2011) …..


Image by marsmet462
Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.

…..item 1)…..Yahoo! Finance…..Foreclosure limbo: Staying without paying. ….. CNNmoney.com

Les Christie, On Thursday June 9, 2011, 9:45 am EDT

finance.yahoo.com/news/Foreclosure-limbo-Staying-cnnm-989…

Charles and Jill Segal have not made a mortgage payment in nearly five years — but they continue to live in their five-bedroom West Palm Beach, Fla. home.

Lynn, from St. Petersburg, Fla., has been living without paying for three years.

In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.

They’re not alone.

Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.

These cases can go on and on. Nationwide, it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days and in Florida, where the "robo-signing" issue is particularly combative, it’s 807.

If they want to fight evictions hard, borrowers can remain in their homes even longer while their cases are being worked through.

The Segals have been doing that — in court. They bought their home in 2003 with an adjustable rate mortgage. After a few years, their monthly payments tripled to ,000, just as their home-inspection business was cratering.

The Segals want the bank to modify the mortgage so payments are affordable, and they think the court will agree that their lender put them into a toxic loan.

"The evidence will show that we were defrauded," said Jill Segal.

If they lose, of course, they’ll finally have to leave. And, unfortunately, more than 50 months of missed mortgage payments hasn’t translated into big savings.

"It’s very hard to save," said Jill Segal. "Our company’s billing is 90% off and my husband is only working about four days a week."

Lynn, who didn’t want her last name used, purchased a two-bedroom on Tampa Bay in 1998 for 5,000.

As the waterfront property’s value skyrocketed, eventually reaching 0,000, she refinanced twice (once to expand a business), and took out a second mortgage. She now owes more than 0,000 on the home, which is worth only 5,000.

Living in this foreclosure limbo is "Hell," Lynn said. "I feel like I’m locked in a box. I work for a financial organization and if this came out, it could cost me my job."

She’s still hoping to negotiate the loan. In the meantime, small things bother her. "A couple years ago, I lost my dog and I can’t decide on getting a new one," she said. If she has to move, she can’t be sure she’ll go somewhere that allows pets.

The actor from Thousand Oaks, Calif. began having problems during the screenwriters’ strike in late 2007, followed by a threat of a strike by the Screen Actors Guild.

He’s working with his lender toward a mortgage modification, submitting page after page of documents, which the bank has often misplaced or waited so long to examine them that they had grown too old to use.

His ideal outcome is get the loan modified and get all his late fees waived. He feels entitled to that because the bank advised him to stopped paying in the first place to qualify for one of the government’s foreclosure programs. Before that, he had missed only one payment.

Meanwhile, he has cobbled together some income streams — small acting parts, teaching acting classes and even handyman work.

"In a way, I feel like I’m lucky because I haven’t had to pay any ‘rent’ for 30 months," he said.

But he feels like he’s always under a cloud. "I haven’t slept in three years," he said. "It’s terrifying. I have to have the ultimate poker face in front of my kids."

Ruben Martinez, a Staten Island, N.Y., man trapped in a particularly bad adjustable rate mortgage, stopped paying more than three years ago. His attorney, Robert Brown, has managed to stave off one foreclosure.

Martinez, still struggling to find work, has little in savings despite the missed payments. He’s earning some income as a pastor and consulting for a non-profit family counseling organization.

"There’s pressure on me every day," he said. "I have a wife, three daughters and two grandchildren. Where are we going to live?"
.
……………………………………………………………………………………………………………………………………………………………………….
.
.
.
.
.
.

Closing Costs ? 4 Tips to Save Money the Next Time You Get a Mortgage

Did you ever wonder if the closing costs your mortgage broker proposes can be lowered?  Whether you have or not, this article will provide you with 4 ways easy to minimize your closing costs.

   1. Examine your Good Faith Estimate and make sure you understand what each fee is for. Seems straightforward but many people do not do it. Sometimes, they do it long after the fact. You must do it before. Preferably a few days before, not minutes before.

You should always get your closing costs estimates on the Good Faith Estimate form.  It’s a standardized way of showing you what fees you are going to be charged.  Since it’s standardized, you can easily compare one mortgage brokerage’s closing costs estimates with those of another.  

The closing costs are finalized on HUD-1, a form that you should have in your hands and inspect (compare it against the Good Faith Estimate form) several days before the closing.  

   2. Now that you understand what all the fees are for, make sure you don’t have there fees that you’ve already paid and are not given credit for that. Maybe you paid the appraisal fee upfront.  This fee is part of your closing costs and it should be on the Good Faith Estimate as having been already paid if you did, indeed, already paid it.

]]>

   3. Mortgage brokers (lenders too) have a number of third parties they have to work with to make a mortgage loan happen.  Some, like title companies, they choose.  Others, like the city and county you chose when you chose your home.   Though there’s nothing you can do about the county or city fees, it doesn’t mean you have to pay the other fees.  For instance, if you have a title company that is reliable and willing to charge you less, work with that company.

   4. ‘Lender’s Inspection Fee,’ ‘Commitment Fee’ and other such fees. Some exist only so that the mortgage broker or lender makes more money. Others exist so they don’t waste time with tire kickers. Make sure all such fees are absent or waived if there’s a closing.

Until May 2011, mortgage brokers and lenders are still allowed to charge you a yield-spread premium.  That’s the extra fee they get from the bank (lender) if they get you into a mortgage with a higher interest rate than the ‘wholesale’ rate you qualify for.  Mortgage brokers (unlike banks) have to report this extra fee if they get it.  Make sure to look for it.
The only time you should be paying extra is if the mortgage broker is going to use the fee to lower your interest rate (buy down the rate) or to pay your closing costs with it.

Refinance closing costs are lower than the closing costs for a first mortgage. They still run into the thousands, you can still overpay by a few hundreds. Make sure you understand what you’re paying and that the HUD1 form and the Good Faith Estimate form are in agreement.

Adjustable Rate Mortgage (ARM) Refinance into a 30 Year Fix

Peace Of Mind Avoid the Credit Crunch www.questgroup-usa.com www.credithelp21.com
Video Rating: 0 / 5

Get an Estimate on Saving with a Mortgage Refinance Calculator

Put away the paper and pencil. Stop racking your brain over how much you could save on your home loan and let your computer do the work for you through a mortgage refinance calculator. Here is how to get the answers to all of your questions.

Is Refinancing Right for You?

A mortgage refinance loan calculator can help you find out how much you might save plus give you helpful insights on making sense of all the numbers. Simply enter in a few figures, such as the amount of your mortgage, your home appraisal value, mortgage term, and income tax rate, and let the mortgage refinance calculator go to work. In just seconds, you’ll have an estimate that can help you make a confident informed decision regarding the refinancing of your home loan.

What It All Means

Many homeowners can feel overwhelmed by all the numbers and confusing real estate terms. Fortunately, a good mortgage refinance calculator can simplify things. You’ll learn what the new interest rate would be if you refinanced today as well as other helpful details such as your monthly savings in regards to principal and interest and PMI (Private Mortgage Insurance), if applicable. You can even use the mortgage refinance loan calculator to see what your monthly PMI payment would be, as well as how much goes toward the principal and how much you pay in interest under the refinancing terms. Using a refinance calculator is the ideal way to compare the numbers on your current mortgage versus an estimate for refinancing under a new rate.

]]>

Important Points to Keep in Mind

At its core, a mortgage refinance calculator is a tool, designed to help you crunch the numbers and give you the knowledge to make an informed decision on refinancing. Some of the numbers may depend on current home loan interest rates on that day due to daily interest rate fluctuations. Remember, a mortgage refinance loan calculator cannot evaluate all the factors that enter into determining the loan that might be best for you. That’s why it’s important to speak with a home loan advisor about your specific needs and qualifications before you make a final decision. Having the advice of a professional can help you better understand what options are available to you should you decide to move forward with a refinance. However, using an online mortgage refinance calculator is a great first step to a loan that could save you hundreds or even thousands of dollars. Most are free to try and only take a minute to download before you are on your way to becoming a more informed borrower.

Using an Online Mortgage Loan Calculator?.”How Much Home Can I afford?”

Many sites offer a variety of mortgage loan calculators for use by web surfers and visitors.  There are monthly payment calculators, rent versus buy calculators, refinance calculators and on and on.  I am taking aim in this series of articles to help you to use these calculators in a more effective way. Today we are going to examine the most widely used calculator, How Much Home Can I Afford Mortgage Calculator.  More specifically, we are going to break down how to accurately estimate the qualifying income the mortgage company will consider when you apply so that you can enter that into a mortgage calculator. 

The design of this Calculator is to allow you to put in some basic income figures and have the calculator determine what payment your income will support and determine what loan amount that translates to and, by adding a down payment to that figure ….how much home you can afford.

The pathway to answers using this calculator is full of many pot holes. Let us start with the first – income determination.  In my two decades of loan origination I have found that there is often a huge difference in what a potential borrower thinks they make versus what an underwriter is going to allow for qualifying.  These differences are largest among the self employed crowd predictably. 

If you are self employed and file a schedule C: 

Your qualifying income is going to be determined by taking your verified schedule C gross income and subtracting all expenses (not including depreciation or depletion – both are paper losses) for the last two years and averaging that into a monthly amount.   There is an exception to the 24 month average rule and it is not good…. The exception is if your income is lower in the most recent year versus the previous year it is being averaged with, the lower year will be taken on its own and averaged over 12 months.  An explanation for the decrease will be required most likely and if it is significant, evidence that the “bleeding has stopped” might be required as well.  

Example: 

2009      Gross Self Employment Income 0,000 – ,000 of expenses (not including depreciation) is ,000 

2010      Gross Self Employment Income ,000 – ,000 of expenses (not including depreciation) is ,000 net, taxable and qualifying income 

]]>

Ordinarily underwriting would take the 80,000 and the 70,000 net figures and average them. In this case, since the 70,000 is the more current figure 2010, it will also be the qualifying income figure.   

If you are Self Employed and Own a Corporation. 

Whether you are a C Corp or an S Corp, the business tax returns will be required and the corporation will need to be profitable. A loss (not including depreciation) will bring doubt as to whether or not the company can sustain the salary income you might be deriving from it.  S Corp losses and gains will appear on your personal tax returns but the corporate returns will still be required and should be reviewed as you work with a mortgage calculator. 

If you are W-2 Employee Earning Bonus or Commission or Overtime Income. 

You should first determine your base income. This would be your regular hourly rate x 40 hours a week or your regular monthly salary if that applies. Perhaps you are a nurse and work three 12 hour shifts in which case your base income would be your regular hourly rate x 36 hours. Do not use the over time rate in this case for calculating your base income.  In summary your base income is going to be established by using your current regular hourly rate or salary figure…no overtime, stipends, bonuses etc. Raises can be taken into consideration immediately when it concerns base income but will need to be evidenced with a paystub prior to closing.   

Underwriting will determine your qualifying overtime using a verification of employment but you can simply take your last 24 months of overtime and average it to a monthly figure. Keep in mind that you employer is going to have to verify that the overtime is likely to continue in order to use it and if the overtime is declining it may not be considered. If you have doubts don’t include it in your mortgage calculator.  

Please also keep in mind that it is common to claim unreimbursed expenses when you file your taxes. Many people do not even understand these expenses or where they are claimed.  If you itemize expenses on your personal Federal Tax  returns, it is possible that you are claiming expenses for your job that are not reimbursed by your employer. In the industry we call these 2106 expenses because they are broken out on form 2106 but listed in total on your Schedule A.  Typically these expenses will be averaged over 24 months and subtracted from the average gross income figure base pay plus overtime.

The following are general rules in determining income for the online Mortgage Calculator. 

Rule One: Monthly Base Income equals:

Current Salary (even if recent raise) evidenced by a recent pay stub.
Regular Hourly Rate x up to 40 hours a week. 

Rule Two: Bonus, Commission, Overtime  equals:

24 month average if increasing or steady.
Must subtract all unreimbursed job expenses claimed on tax returns 

Rule Three: Self Employed Income equals:

Sole Proprietor – Gross Income minus expenses (excluding depreciation and depletion) for the past two years evidenced by tax returns.  Must have a minimum of two years in business to count.
Corporate Owner – Salary or wage income plus review of two years of Corporate returns indicating the company’s ability to continue paying your income. Business losses (excluding depreciation) indicate that the company may be unable to sustain your income and underwriting will take this into consideration. 

Rule Four: Second Jobs

Must demonstrate a minimum of two years history of holding two jobs continuously in order to have this income accepted.
Income will be averaged over 24 months.      

For questions or comments on this article or about using a Mortgage Calculator or Mortgage Qualifying Calculator please feel welcome to contact us  hugh@themortgagecity.com

Do I Qualify For A Mortgage Refinance?

In today’s uncertain lending environment, it is often unclear to potential mortgage applicants if they qualify for a refinance. Ever since the recent financial crisis, there has been a great deal of media exposure regarding how banks are not lending. Many people believe that only the very rich or most qualified borrowers are successful when applying for a mortgage. The truth is, the mortgage crisis did more good then harm when it comes to correcting underwriting guidelines that for many years were too lenient and ultimately led our country to a disastrous real estate bubble. Today, guidelines are more stringent but at the same time they are better in determining if a borrower can comfortably cover their monthly payments.

The first step in determining whether or not an applicant will qualify for a mortgage is to calculate their debt to income ratio. The definition of a “DTI” ratio is the total gross income for the borrower(s) divided by the total monthly obligations. When considering income, borrowers should always take their gross pay, or the amount paid to them prior to any deductions for taxes, IRA, etc. Monthly obligations would typically be any payment that shows up on the borrowers’ credit report. These payments usually are credit cards, student loans, car payments, 2nd mortgages, home equity lines of credit, and store charge cards. The total monthly payments for these items are then added to the monthly tax and homeowner’s insurance payments and the principal and interest payment of the proposed mortgage. The following is an example of how to calculate a debt to income ratio.

Mr. and Mrs. Jones both make a combined annual salary of ,000. They have minimum monthly payments on credit cards of 0, student loan payments of 0, two car payment of 0 each, annual taxes of ,000 and an annual homeowner’s insurance premium of 0.

In this example, Mr. and Mrs. Jones would therefore have a gross monthly income of ,000 and gross monthly obligations of ,575. If they were applying for a 0,000 mortgage at 5%, and a 30 year amortization, the principal and interest payment would be ,073.64. Therefore, total monthly obligations jump to ,648.64 and their debt to income ratio would be 33 percent (,648.64 total debt / ,000 gross income).

Today, Fannie Mae guidelines dictate that borrowers not have over a 45 percent DTI ratio. Therefore, in the above example, the borrower would have satisfied this requirement. Of course, there are many guidelines that a borrower must satisfy in order to qualify for a refinance, but calculating one’s debt to income ratio should be one of the first. It can be very helpful to determine if it makes sense to move forward with a mortgage application and the probability of a successful loan commitment.

How To Refinance Your House And Live Like A King! Smart Home Mortgage Refinancing That Will Save You Thousand$

How To Refinance Your House And Live Like A King! Smart Home Mortgage Refinancing That Will Save You Thousand$

How To Refinance Your House And Live Like A King! Smart Home Mortgage Refinancing That Will Save You Thousand$

With the low interest rates and with many homes being underwater, lots of folks are looking to refinance their current home mortgage. But you should do so carefully and for the right reason.

There are many considerations you need to look at prior to refinancing. We’ll examine all of these in this book.

In this guide we’ll take you through all the considerations of

List Price: $ 0.99

Price:

Related Refinance With No Closing Cost Products

Choosing Mortgage Refinance and Debt Consolidation Refinance

In these days, one has to take various kinds of financial loans taken for everyday requirements like home loans and mortgages. Many times the inability of the borrower to repayment the loans results in taking refinance loans. In such circumstances mortgage refinance and debt consolidation refinance might be a benefit for the indebted person.

When it comes to searching for the perfect kind of mortgage refinance loans, there are many options to confuse you. But it is best to hold on and select the right loan which can guide you to escape of a monetary mess. Keep in mind that there are several negative consequences of not paying loans on time. These contain poor credit scores. If a wrong mortgage refinance is taken then you may end up giving extra interest. It also means increased repayment amounts each month. Non payment can also lead to foreclosure or loss of your home.

There are a variety of ways through which the mortgage refinance can be attained-

. You can select for the fixed interest refinance option, where you know particularly how much you will be paying over the ages.

. Then there are the flexible interest rates, which have a low percentage of interest for a limited period. But post that period, the costs shoot up significantly, leading to higher interest rates.

. The jumbo mortgage refinance loans are suitable for individuals who need refinance for higher amounts.

Related to the mortgage refinance option is the debt consolidation refinance. Generally a debt relief is taken to repay numerous loans, which include debts of credit cards, loans and mortgages. Here a new lender funds the borrowers money, for lesser interest rates, to repay the earlier loans. But, the new loan provider has to be reimbursed via a monthly amount. This amount is a consolidation of all the previous loans. If you are incapable to repay this monthly installment, then you can decide for a debt consolidation refinance.

In debt consolidation refinance the agreements of the new loan are evaluated and studied. Depending on your current economic condition and other things like emergencies or death in the family, a new consolidation loan is invented. However, it should be remembered that with each remortgage, your credit results encounter more damage. Therefore, the credit scores dip from normal to very poor after every refinance. So, ensure that you settle the debt consolidation refinance timely.

Refinance Mortgage With Bad Credit

Learn about refinance mortgage with bad credit, refinance mortgage loans, bad credit loan and refinancing mortgage after bankruptcy. www.christianet.com
Video Rating: 5 / 5

Hi my name is Jim Woodworth, I’m a Mortgage Banker at Quicken Loans and I’m going to talk to you a little bit about applying for a mortgage after a bankruptcy. I get this question a lot and for the most part, after your bankruptcy is discharged you’ve got to prove yourself all over again. It’s imperative that you get some type of new credit established after the fact. Whether it’s a car loan, a bank loan, credit card, student loan — whatever it may be, it’s imperative that you show lenders going forward that you’ve done a good job of managing your credit. After the bankruptcy is discharged, in most cases you’d have to wait at least 2 years before you’d be able to get new financing for a mortgage — whether it’s purchasing or refinancing. In some limited cases we can get you approved after one year. It depends on what kind of credit you have, what kind of payment history you have and how many pieces of credit you have — but generally speaking you’d have to wait at least 2 years. It’s imperative you get some kind of new credit established after the bankruptcy and the most important thing is you get your payments made on time after the bankruptcy. We’d love to talk to you about it specifically & everybody’s situation is a little bit different so we may be able to get one person approved and not the other so give us a call or find us online. You can find us online at www.quickenloans.com — we’d be happy to help. www.quickenloans.com
Video Rating: 1 / 5