It is known that all of us know when to go for a mortgage refinance but there are some situations that we have to take care. These situations are explained in detail below.
Situations when a does not make sense?
• When your property value has gone down: This situation can arise, when the market conditions are down. This is not the right time to look at refinancing home loans because the refinance amount and that you get as loan will be lesser than the current loan amount that you have in hand. Even with a new this won’t work.
• When your time period of repayment is long: If you are paying off your current loan, say for about 30 years of now. Again, you take a loan by refinancing mortgage loans for 30-year time periods, it is not going to make sense, and it is not the best option too.
• When all your equity has been used: If you have already used around 90% of your equity at home then, this is not the right time to mortgage refinance. The home refinancing loan will not give you a low rate in such a case. You will get a rate that is higher.
• When you have just few days to repay the current loan: If you are in a situation like this, then you can go for some extra cash loans on your credit cards than getting a long term loan. If you get a long term long to pay down the current one then you will be losing money by paying the interest rates for a very long time.
makes sense only when you have the right reasons and some equity.
FHA announces changes that will hopefully strengthen it position in this unstable market.
Federal Housing commissioner has released a :
1) The Up-Front mortgage insurance premium will be increased by 50 basis points (from 1.75% to 2.255)on any new case numbers issued April 5th, 2010 and after. Typically the fee is rolled into the loan.
The letter addresses some additional items that will probably come into effect later this summer:
1) Currently the seller can pay up to 6% of the sales price in seller concessions which pay for the buyers closing costs/prepaid items. The 6% will be limited to 3%.
2) Borrowers with a credit score 580 or less will be required put a down payment of at least 10%. In today’s market, lenders typically require a 620 credit score to qualify for FHA financing.
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/p10yr Notes progressively improved into the PM , ending 5 ticks better on the day with a yield of 3.70. MBS fought off much of the AM weakness in tsy#39;s, and rallied just as well into the PM, reaching 101-15 at 4pm. But then we ended 4 ticks down on the day at 101-01! WHAT?!?!? So you#39;re tellin#39; me MBS effectively erased all gains from the past two days?! Not exactly... I#39;ll let AQ explain... -------------------------------------------- If you haven#39;t read the following description of the agency MBS settlement process...please don#39;t skip over it as it may save you from having to change your pants when next month#39;s settlement rolls around. If you have read it...go over it one more time just to make sure the underlying logic is clear. The March FN 4.5 MBS coupon has...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/139367.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139367/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139367" width="1" height="1"
pPosted To: a href="/news/"MND NewsWire/a/pCommercial and multifamily mortgages continue to have the lowest rates of charge-offs of any loan types at banks and thrifts and perform better than the overall loan portfolios at those institutions according to the Mortgage Bankers Association (MBA). In response to what it referred to as a great deal of discussion and conjecture about those loans in recent months, MBA updated an earlier quot; DataNote quot; analysis of commercial and multifamily mortgage data from the 4th quarter of 2008 with data from the same period in 2009. The report states that 56 percent of the assets held by banks and thrifts at the end of 2009 consisted of loans and leases, a category that includes 1-4 family mortgages, home equity loans, credit cards and other consumer loans, commercial mortgages, multifamily mortgages...(a href="http://www.mortgagenewsdaily.com/03092010_mba_commercial_mortgages.asp"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139298/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139298" width="1" height="1"
Humor could be described as a spice of life that can lighten a mood, liven a moment or linger as a memory. Sometimes it can bring a full-roar laugh, a simple smile or like now, a sigh of relief that the topic does not apply to you. We recently read an anecdote on the recent RESPA changes and how some loan officers might be inclined to respond. Allow us to share …
ARE YOU HAVING TROUBLE EXPLAINING RESPA TO BORROWERS?
If RESPA changes are the final blow – swaying you to consider a simpler career path, say neurosurgery or something, you are not alone.
I have to vent for a minute, because I know you are with me on this one. Let’s see….
A new borrower comes to you because his Realtor told him that you are a fabulous loan officer and he needs to get pre-approved and get a Good Faith Estimate.
You look the new borrower square in the eye and have to say, “Wonderful! But I can’t give you a Good Faith Estimate because you haven’t identified a property. But I can give you this other “Non-Binding Settlement Estimate” form that my legal department has authorized, that has a 2-page disclaimer stating that you can’t hold me to any of these figures.”
So the new borrower, with a confused look on his face, takes your new form and goes back to his Realtor. The Realtor calls you trying to figure out what you said to the new borrower who now, doesn’t feel so confident about you or anything else in this transaction. You explain. The Realtor calms down.
The new borrower comes back with an identified property and says; “Now I want a Good Faith Estimate.” You prepare one, in perfect accordance with the new RESPA procedures and hand it to new borrower. He gasps. “This is $3,000 more than the previous estimate you gave!”
“Oh, don’t be alarmed,” you say in your most toddler-calming voice. “This isn’t what you are really going to be paying. This is just how I have to disclose it to you.”
The new borrower gives you a sideways suspicious glance, “But what about all the fees the seller is paying on my behalf? I can’t find a credit on this form for those.”
“Don’t worry…it will all work out at closing. This is how we protect you now. We give you inaccurate information all the way up until you actually close on the property. Isn’t that fun! Kind of like a surprise party!” you happily chime – beaming like an idiot while beads of sweat run down your torso.
The new borrower marches out to his car in tearful frustration and calls the next lender on his list.
Scalpel anyone?
This could not be farther from the truth for us at Awareness Home Funding. The new Good Faith Estimate (GFE) is really a very simple document that helps you, the client, actually understand the real cost of acquiring your home loan. It lets you know where you have choices in the services you will need, such as a home inspection. It tells you what fees should not be changing by more than 10%. And if they do, there will be a good reason, and time for you to understand what just happened before the loan process continues. It also tells you what fees will not change at all.
So why don’t some loan officers like the new regulations and required forms? Why can’t they explain the information it details for you? Why can’t they provide the new GFE for you upfront? Why such the cloak and dagger approach to helping their clients? (Now this part, we do find really funny.)
Check us out (). Give us a call (866-982-9273). Let us help you understand the loan process. That is why you go to a professional in the first place, isn’t it?
pPosted To: a href="/news/"MND NewsWire/a/pThe Department of Housing and Urban Development (HUD) has released the results of the first stage of its increased oversight and enforcement of job creation requirements under Section 3 of the Housing and Urban Development Act of 1968. In a press release on Monday HUD said that more than 3,100 state and local government agencies that receive HUD funds have responded to its campaign to expand hiring and contracting opportunities for low-income persons and three out of four of HUD-funded state and local agencies had submitted their annual reports. HUD said that this was the largest response since HUD made such reporting mandatory. Under Section 3, state and local governments that receive funding from HUD in excess of $200,000 for activities involving housing construction, demolition, rehabilitation...(a href="http://www.mortgagenewsdaily.com/03092010_hud_jobs.asp"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139223/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139223" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pMBS Off To The Races with 4.5#39;s up 8 ticks to 101-15! 10yr up 5 ticks on the day dropping yield to 3.70 (through post auction resistance) Reprices for the better = highly likely From the Ninja: Mortgages are still on hold as todayrsquo;s 3yr note auction held few surprises-everyone loves the shorter end of the curve; donrsquo;t you? $40 billion notes maturing in 2013 is quite commonplace and the sheer size of the issue is no longer an emotional and or logistical challenge to anyone directly (or indirectly, on the bid) involved. No real change to the way we do and or perceive business here in MBS secondary trading land. The market is better into lower and or range-bound rates, like today, and not as excited should the treasury market break out to the upside to prices (and lower interest...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/139341.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139341/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139341" width="1" height="1"
pPosted To: a href="/garrett_watts/"The Garrett Watts Report/a/pWe commented last week how a lot of people didnrsquo;t know what HSBC stood for... If you go back to when they bought a bank in Buffalo, New York to established themselves in the U.S. The joke was that HSBC stood for quot;Holy ____, Buffalo#39;s Cold.rdquo; City National Bank (Los Angeles) was in the news for paying off all its TARP money last week, but the real story is how they became L.A.rsquo;s prestige bank in the first place. Frank Sinatrarsquo;s son was kidnapped on a Friday in 1963, and the singer called up Bank of America, Security Pacific and a few other big banks asking for $240,000 to pay the ransom money. The big banks told him to come in Monday morning and fill out a loan application. When he called City National, Chairman Bram Goldsmith told him ldquo;Come down to the...(a href="http://www.mortgagenewsdaily.com/garrett_watts/139010.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139010/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139010" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pImmediately following the 3yr Treasury Note auction, treasuries weakened while MBS held steady. Since then, MBS have lost a few ticks, but the 4.5 remains positive on the day, up 1 tick at 101-07. The 10yr note is also up a tick leaving the yield just under 3.72. The 10yr#39;s post auction selling turned the corner very much in line with yesterday#39;s high yields suggesting a shift of guidance to tomorrow#39;s auction. . MBS is building a case for support just over 101-06, but as volume remains fairly light, again, the emphasis is even more squarely on tomorrow#39;s auction than it already was. Until/Unless 101-06 breaks down in a significant way, the chances of reprices for the worse remain limited to quot;knee-jerk only,quot; but we#39;re not seeing justification for that. In 10yr...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/139312.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139312/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139312" width="1" height="1"
pPosted To: a href="/mortgage_rates/blog/"MBS Commentary/a/pI am kinda bummed no one laughed at my Kathy Ireland reference in MBS OPEN . Her dress was so tight you could see her liver processing the booze (that#39;s a rumor). I suppose I could have poked fun at Sarah Jessica Parker#39;s quot;Queen of the Nilequot; get-up. Ugh. You guys are killing me. Is this one of those quot;you had to be therequot; jokes? I know I am setting myself up to be mocked because I watched the Oscars...but come on, there is humor in everything we do. (Like I said, I lost control of the remote. Other men: don#39;t pretend you didn#39;t watch. You know what I am talking about here!) Ok I am done pretending I am Perez Hilton. HAHA back to the markets. Chicago Fed President Charles Evans, a middle of the road on inflation non-FOMC voter, shared prepared remarks with...(a href="http://www.mortgagenewsdaily.com/mortgage_rates/blog/139273.aspx"read more/a)pdiv style="background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;"strongForward this article via email:/strongnbsp;nbsp;a href="http://www.mortgagenewsdaily.com/channels/139273/3/forward.aspx" style="color:#3333CC;"Send a copy of this story/a to someone you know that may want to read it./div/pimg src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139273" width="1" height="1"
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