How does a borrower looking for a mortgage loan find who “really” has the lowest mortgage rates if there are over 25 million pages online screaming that “they” have the best mortgage rates?
What do I mean? Type “best mortgage rates” in Google and see what you get. Today, February 8, 2010, your friendly lenders are saying they will bless you with rates ranging from 3.48% to 5.25%. Oh me oh my. What to do now? Do you suppose it makes sense to call the 3.48% advertiser? After all, they say they have a rate that is almost 2.00% lower than the other guys. [click here to read the full article…]
Tagged as:
Interest Rates,
Purchasing a New Home
Okay. So you’re thinking to yourself, “I called that lender because they advertised rates that were so low, but I didn’t get the rate.” Why not? The answer is relatively simple though some lenders don’t take the time to thoroughly explain it. Mortgage rates are low, but only if the borrower “qualifies” for that low rate. When lenders advertise rates, we are required to indicate “the fine print” that specifies who and how to qualify for the rate. The fine print also has to say how much the borrower must pay for that low rate – otherwise known as points. Unfortunately, many, if not most borrowers completely miss the fine print. Even worse, borrowers often get wind of low rates from a quick TV news spot. There is no requirement for CBS or CNN to share the fine print. [click here to read the full article…]
Tagged as:
Credit Scores,
Interest Rates,
Refinancing
Effective February 1, 2010, a new policy goes into effect that will speed the resale of foreclosed properties to buyers in New Jersey and other states.
To help achieve the national goal of stabilizing home values and improving conditions in communities where foreclosure activity is high, Shaun Donovan, HUD Secretary, announced a temporary policy that will permit FHA financing for foreclosure properties up for sale within 90 days of the foreclosure.
Prior to this policy change, FHA prohibited insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give borrowers access to a large inventory of foreclosed properties. Due to the tight credit markets, FHA-insured mortgages are often the only means of financing available to many homebuyers. [click here to read the full article…]
Tagged as:
FHA Mortgage,
First Time HomeBuyer,
Foreclosure,
Purchasing a New Home
FHA loan limits vary by county and state where you want to buy. It is well understood that home prices vary throughout the country. What $100,000 will buy in Miami won’t buy you a hut in San Francisco. You should check to be certain the home you want to buy fits into the FHA loan parameters if you will be using FHA for financing. See the chart below for 2010 limits in New Jersey counties. [click here to read the full article…]
Tagged as:
FHA Mortgage,
Purchasing a New Home
Are you planning to claim the home buyer tax credit when you file your taxes? If the answer is yes, here are a few things you need to be aware of as you organize your documents.
Most important and unknown to most people is that you will NOT be able to do a quick efile if you’re claiming the home buyer tax credit. Blame it on all the people who committed fraud last year in claiming the credit. The IRS won’t tolerate it this time around and unfortunately has made it more time-consuming in 2010. [click here to read the full article…]
Tagged as:
First Time HomeBuyer,
Tax Credit
Effective April 5, 2010, it will cost you a lot more to buy a home using FHA. With the market still trying to correct itself, FHA has insured more mortgage loans than ever before over the past 18 months. More loans mean more risk is being assumed. With more risk comes greater cost – passed on to the buyer.
However, prior to April 5, 2010, we can proceed under the current guidelines. If you plan to buy a home, you must get your ball rolling now. There’s no other way to put it. [click here to read the full article…]
Tagged as:
Closing Costs,
FHA Mortgage,
Purchasing a New Home,
Tax Credit
Yesterday, I got a call from a woman who owns her own bookstore. She was calling to see about possibilities of refinancing. She now has an interest only mortgage loan that she wants to refinance to a 30-year fixed. When she got her mortgage 5 years ago, she qualified using a program called “No Income Verification.” Today, no income mortgages are virtually non-existent unless you have sizeable equity in your home.
[click here to read the full article…]
Tagged as:
Purchasing a New Home,
Refinance,
Self-employed
How does a borrower looking for a mortgage loan find who “really” has the lowest mortgage rates if there are over 25 million pages online screaming that “they” have the best mortgage rates?