Friday, October 9, 2015

When To Refinance Your Home?

With interest rates sitting just below 4 percent, now is a great time to crunch the numbers and see whether refinancing your mortgage can save you money.  As a general rule, homeowners will probably come out ahead when they can shave about 2 percentage points off of their interest rate.

If you have an adjustable-rate mortgage (ARM) or an interest-only loan, you might also benefit from refinancing, even if you don't save money on the monthly payments.  That's because you can lock in a 30-year fixed-rate mortgage at today's historically low rates and never have to worry again about your payments increasing.

Think you're a good candidate for refinancing?  Despite reports of banks hoarding money, lenders are still making loans.  But it has become harder to qualify for one.  Here's a road map to help you navigate the new and ever changing mortgage terrain.

"If you want access to the lowest interest rates, you need a credit score of 720 or higher."  If you have a score of 620 or below, you might not qualify for a loan at all.  Credit scores range from a low of 300 to a high of 850.

You'll need at least a 10 percent equity stake in your property to refinance.  And in some cases, you won't be able to get a loan without a 20 percent stake if private mortgage insurance is hard to get in your region. That might be a problem if you live in an in area where property values are quickly falling.  You might discover that your house is valued at less than you owe on your current mortgage, making refinancing difficult.  The one exception is for people with mortgages that are owned and held by Fannie Mae or Freddie Mac.  A new program will allow homeowners to refinance up to 105 percent of the home's value.

All homeowners will need to document their assets and income.  "Right now you have to prove you are the borrower you say you are, sometimes repeatedly."  Lenders want to make sure that homeowners can realistically afford any debt obligations, and they're reluctant to underwrite a mortgage if the homeowner's overall debt load is more than 43 percent of the family's income.  At the height of the housing boom, acceptable debt ratios reached as high as 55 percent.

Refinancing isn't an option for the millions of Americans who need to lower their monthly payments the most those who have lost their jobs.  Banks won't make new loans to such people until they can show pay stubs from a new job for at least 30 days.  A jobless homeowner's only option might be one of the new government programs for distressed folks, but they are usually available only to those who are at least 90 days delinquent on their payments.  And while it might be tempting to stop mailing in your check, know that your credit score will take a serious hit if you stop paying your mortgage.

In the past, you might have been able to refinance without paying any points and fees, but today that's often not the case.  Now that Wall Street is no longer securitizing smaller mortgages, the vast majority of conforming loans (those valued at $417,000 or less in most areas and $729,750 in high-cost areas) are sold to government-sponsored entities Fannie Mae and Freddie Mac.  About a year and a half ago, they started charging borrowers additional fees.  The first one you'll encounter is called an Adverse Market Delivery Charge, and it could add as much as a quarter of a percentage point to the loan.

Fannie Mae and Freddie Mac also charge a fee called the Loan Level Pricing Adjustment, which takes into consideration your credit score and loan-to-value ratio, or how much home equity you have.  Someone with poor credit and very little equity could end up paying an additional 300 basis points in fees.  So if you were borrowing $100,000 and had to pay 3.25 percentage points in fees, you'd owe the bank an additional $3,250 in closing costs.  If you wrapped the fees into the mortgage itself, you'd end up paying a 4.25 percent rate over the life of the loan.

Interest rates used to be fairly similar from one lender to another, but now they can vary by as much as a percentage point.  And some of the most competitive interest rates are found at the smaller community banks and credit unions, which might be better funded than some of the larger players that got caught in the sub-prime debacle.

Make sure you don't limit your shopping to a single bank or mortgage broker.  Some of the larger lenders, including Chase, no longer allow brokers to sell their products.  So if you want to see all of the rates in your area, you'll need to pick up the phone and do some calling around yourself.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Finding Mortgages and Refinancing With Bad Credit.

So, what do you do if your credit reports make you want to hide under the covers and never use your credit cards again?  Relax, you can turn your credit rating around.

Mortgage lenders look at the "age," dollar amount, and payment history of your different credit lines. That means opening accounts frequently, running up your balances, and paying on time or not at all can impact your credit score negatively. Just changing one of these components of your spending behavior can positively affect your credit score. Also, bad credit does not necessarily mean you can't get a mortgage, it will just come at a higher cost.

"Why Me?"

If you are having trouble getting a loan, ask your lender why. Chances are it will be one of these reasons for rejection:
  • Overextended credit cards: If you miss payments or exceed your limit, that's a red flag to lenders.
  • Failure to pay a previous or existing loan: If you have defaulted on other loans, a lender will think twice.
  • Bankruptcy: Filed for bankruptcy in the past seven years? You might have trouble getting a loan.
  • Overdue taxes: Lenders check your tax payment record.
  • Legal judgments: If you have a judgment against you for such things as delinquent child support payments, it could harm your credit.
  • Collection agencies: Lenders will know if collection agencies are after you.
  • Overreaching: You might be seeking a loan outside what you can reasonably afford.
Peak Home Loans can help with any question you may have!

Fixing Bad Credit
Many financial experts suggest common sense strategies to turn your credit report around:
  • Always pay your minimum balance on time. Let's face it, credit card companies make profits on you when you maintain a balance. Just make sure you send them their due each month. Better yet, only spend what you can expect to pay back at bill time.
  • Try to reduce balances. Even throwing in an extra $20 to $50 each month will help reduce the overall debt, and paying extra looks good on your credit report.
  • Don't run up the entire balance: Having $100 left on a $10,000 line of credit doesn't look so hot. Lenders look at the dollar amount of credit available to you and, from there, what percentage of that credit you have used. In other words, if you have a card with a $1,000 limit and you've spent $900 on that card, you've used 90% of your available credit; this looks a lot worse than having a balance of, say, $200 on the card.
  • Throw away new credit card offers. Don't apply for new cards and lines of credit right before you go home shopping. And when those clerks in the stores offer you a discount if you just open an account, say no. Banks will not turn a blind eye to numerous inquiries for new credit.
If bad credit continues to dog you, the FHA Loan programs may be your ideal option. With down payments as low as 2%, Americans with good and bad credit have been getting into their first homes with these federally insured loans since 1934.

Bad Credit
Having bad credit is not the end of the world. It still may be possible for lenders to give you a loan, provided your credit score is not too low. But be aware that you may pay a higher interest rate and more fees since you are more likely to default (fail to pay the loan back).
There are ways you can improve your credit score, such as paying down your debts, paying your bills on time, and disputing possible errors on your credit report. But on the flip side, there are ways you can also hurt your score, so remember:
  • DON'T close an account to remove it from your report (it doesn't work).
  • DON'T open too many credit accounts in a short period of time.
  • DON'T take too long to shop around for interest rates. Lenders must pull your credit report every time you apply for credit. If you are shopping around with different lenders for a lower interest rate, there is generally a grace period of about 30 days before your score is affected.
Fix Credit Mistakes
In addition to cleaning up your debts, you also need to check your credit report to make sure it is accurate. This is important: Items that are just plain erroneous can stay on your report for up to 10 years if they are not disputed. By disputing it, you put the wheels in motion to clean up the report and get a better mortgage. Your credit bureau will attempt to get the disputed items deleted from your report by contacting the creditors involved. After 30 days, if the creditors do not respond, the item is deleted from the report. (You can also contact the creditors yourself.)

Even after you reverse the downward spiral of your credit history, you might need to tell a prospective lender that there may be some signs of bad credit in your report. This will save you time, since he will look at different loans than he might otherwise.  The following are five things you can do to boost your creditworthiness, plus more information on obtaining your personal score.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Thursday, August 27, 2015

Review of Peak Home Loans in Bradenton, FL

As a mortgage broker in Florida, I was looking for lenders to place mortgages that came into my office.  After a visit to Peak Home Loans, it appears as though they offer free information about mortgage refinance, home mortgages, mortgage rates, home equity loans, HELOC's, debt consolidation, home improvement, credit cards, home affordable refinance program, reverse mortgages, FHA refinance, VA refinancing, interest only home loans, fixed rate home loans, first time home buyer loans - all for good to poor credit, also mortgage calculators, current mortgage rates, mortgage advice, foreclosure help, bankruptcy facts, mortgage glossary, daily updated blog, downloadable forms, printable worksheets and more.

Their mission statement says their goal is to "to offer their hundreds of thousands of clients with the best possible customer service available, to provide our customers with the lowest possible interest rate, the lowest possible monthly payment and the very best home for their money, to get 4 out of 5 customers qualified and to provide loans for customers with all credit histories."

Finally, they provide home loans at 2.75% for home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100K loan with Peak Home Loans is only $441/mo.  They claim 4 in 5 will qualify.  Rates are at an all-time low, you should consider applying today.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Saturday, November 2, 2013

Home Refinancing Explained

To Refinance Your Home means getting a new mortgage and using some or all of the proceeds to pay off the old mortgage - good credit refinance, poor credit refinance or fair credit refinance.  Homeowners may home refinance their mortgage for several reasons:
  1. To take advantage of lower interest rates and lower your monthly payment.
    If interest rates have gone down since you got your original mortgage, you could save money over the life of your loan, while reducing your monthly mortgage payment.
  2. To switch mortgage types.
    You may want to switch from a variable to a fixed interest rate, or vice versa. If you have a balloon/reset mortgage, you must either pay the mortgage in full at the end of the 5- or 7- year term, contact your Service Provider (the organization to which you send your monthly mortgage payments) to start procedures to reset your mortgage to a fixed-rate of interest, or refinance with a new mortgage.
  3. To shorten mortgage terms.
    You may want to refinance to shorten the term of your loan. This would allow you to pay less interest over the life of the loan because the money is borrowed for a shorter period of time, and more quickly builds up equity in your home.
  4. To get "cash out."
    Some lenders will let you borrow more money than the balance of your original mortgage, based on the equity you have in your home. A portion of the money left after the original mortgage is paid off goes to you to use for things like paying for a child's education or home remodeling.  However, remember that you'll have a new mortgage, at a higher amount, that will eventually need to be paid off.
Home Refinance Programs:

Fixed Rate Loans - Both interest rate and payment remain the same over the term of the loan. Loans can be amortized over the following terms: 10, 15, 20, 25, 30, and 40 years. The advantage of a fixed rate program is that it allows you to get a fixed rate, over a specified period, without being concerned about market fluctuations. This type of financing is recommended for borrowers who intend to stay in their house for a long period of time.

Fixed Rate Balloons - Both interest rate and payment remain the same until the loan is due. Typically, the entire loan amount is due in either 3, 5, or 7 years. The advantage of balloon programs is that they tend to have the lowest rates, due to the fact that the entire balance must be paid off or refinanced at the end of the term. This type of financing is recommended for borrowers who know they will be leaving their current house in either 3, 5, or 7 years.

Adjustable Rate Mortgage (ARM) - Both interest rate and payment remain the same for a fixed time period, usually 1, 3, 5, 7, or 10 years. At the end of that period the rate can rise at fixed intervals. The amount the rate can rise, or margin, is predetermined (normally 1/2% to 2% per rise). The intervals are normally 1, 3, 6, or 12 months. Typically there is a cap on the margin, which determines the highest the rate could ever go. The advantage of an ARM is that it allows you to get a lower rate, for a known period of time, while you watch the market to see if and when fixed rates get better. Some feel that although they may have gotten a better rate with a balloon, an ARM will adjust at the end of the "fixed period", whereas a "Balloon" has to be refinanced or paid in full. Arm's are recommended for those borrowers who intend to stay in their house for a fixed period and have taken the time to factor in the margin, to determine that they would not be better off with a Fixed Balloon or even a Fixed Rate.

Buy down - Both rate and payment remain the same for a fixed period, at the end of which, the rate and payment increase. The rate and payment may increase once, twice, or even three times, depending on whether the Buy down is a 1/1, 2/1, or 3/1. The percentage of increase, as well as number of increases is predetermined. Once all of the increases have occurred the new rate and payment remain fixed for the term of the loan. Also, lenders will typically charge a fee to "buy the rate down" for the first 1, 2, or 3 years of the loan. The advantage to a Buy down is that it offers a lower rate and payment during the first few years of the loan. Buy downs are recommended for those borrowers who are having trouble qualifying for a Fixed Rate Loan or those who need a more affordable payment at present.

Home Refinance Loan Types:

Conforming - Conforming loans refer to loan amounts that conform to government service standards as determined by Fannie Mae & Freddie Mac (the original government agencies, set up in the early 1940's, established to help people finance new homes). Conforming loans range in amount form $1 to $275,000. Although not all conforming loans are serviced by these government agencies, the mortgage industry has adopted the term to express loan amounts in this range.

Jumbo (Non-Conforming) - Jumbo loans refer to those loan amounts outside of the "conforming" range or, above approximately $300,000 (different from state to state.)

Government Loans - Government loans refer to those loans that are guaranteed by one of two federal agencies. The two types of government loans are: Federal Housing Administration (FHA) loans, and Veterans Administration (VA) loans. The advantage of financing using FHA loans are that they are easier to qualify for and allow a borrower to finance more of the loan amount than non-government loans. Whereas with a Conforming loan a borrower may only be able to finance 80% of the loan amount, a FHA loan allows a borrower to finance 97% of the loan amount. FHA loans are recommended for those borrowers who are first-time buyers, have little money to put down, have a short credit history, or are having trouble qualifying for a Conforming loan. The two main advantages of financing using VA loans are that the VA allows borrowers to finance 100% of the loan amount, and that, the VA only requires proof of veteran status to qualify for the loan. The only drawback to government loans is that mortgage insurance is required at all loan to values (LTV), unlike Conventional and Jumbo loans where payment of mortgage insurance is determined by the amount of equity a borrower has in his home.  WE ARE VA AND FHA FRIENDLY!

Investment Properties (Non-Owner Occupied) - These types of homes are normally acquired specifically for investment purposes or are owned as a result of moving to a new house without selling or being able to sell the old house. Financing for investment properties can be achieved using any of the above described programs. Typically, the rates for financing on investment properties are higher than owner occupied homes and the LTV's allowed are lower, due to the fact that default rates tend to be higher on these types of loans.

B, C, D Credit - Just because your credit isn't perfect does not mean you can't obtain financing. Most, if not all of the above described programs can be utilized even if a borrower does not have perfect credit. In these cases the rates will be higher and LTV's allowed will be lower. Most lenders have special divisions specifically created for the marketing and sales of sub-prime products. Also, most lenders will offer special limited programs as incentives, when they recognize an area where there is a need.

No Document or Low Document Loans - In certain situations it is either difficult or impossible for potential borrowers to show a lender their income on paper. In these instances any of the above described programs can be used, but under circumstances called NIV or No Income Verification. All of the other program parameters must be met, however, in the case of income, a borrower may only be required to show a operating license or business license and/or limited income information. With this type of financing, rates offered tend to be slightly higher. This type of financing is recommended for self-employed borrowers or borrowers who have difficulty showing their income on paper, for one reason or another.

Cash-Out Refinances - Occasionally, when refinancing a first trust, a borrower wants to "cash out" some of the equity that has been built into the loan. Under specific conditions, established by the lender, a borrower can actually receive a check for an amount of money that meets those conditions. Cashing-Out is not normally limited to any Your Type Of Loan Desired program, it can be done with most of the described programs.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Sunday, September 8, 2013

How To Find The Most Up To Date Home Refinancing Advice

There is no denying the fact that most homeowners in the United States are struggling when it comes to maintaining their monthly mortgage payments in addition to their general living expenses and other bills such as credit card debt. Many people feel that the only way that they will acquire financial relief is to file bankruptcy. However, others have relied on mortgage refinance advice and have quickly learned that they can acquire low home refinance rates that will allow them to pay off their current mortgage and that will then lower their monthly payment on their new mortgage. This is one of the most financially savvy options that you can choose to take advantage of in order to maintain your way of life without having to struggle to make ends meet each month.

Apart from home refinancing advice others have also relied on debt consolidation options in order to take other bills such as their credit cards and to combine the payments into one monthly bill. This option once again allows homeowners to free up their finances so that they are keeping more money in their bank accounts each month. This allows these individuals to quit living from paycheck to paycheck.

Don’t believe that your only option is to get rid of your home or to file bankruptcy. This is actually a last resort for most people. In fact many people that attempt to file for bankruptcy quickly discover that they don’t even qualify because they don’t have enough debt to do so. Therefore, you should consider all other options in order to save yourself time and so that you can acquire immediate debt relief.

The best part about acquiring home refinancing advice is that you can easily do it from home. By making use of the internet you can focus on searching for those companies that specialize in providing users with latest mortgage refinance advice that is available. You will want to do this instead of visiting lenders in your area. That is because lenders will generally tell you what they want you to hear and what they want you to believe. If you were to visit five lenders in your area you would hear five different stories as to what you qualify for. Whereas if you make use of the internet for your research purposes you can find the truth immediately in regards to your current situation.

Just be cautious when choosing an online resource to rely on for such information. The main thing you want to realize is that laws vary from one state to the next and one country to the next when it comes to refinancing. Therefore, you will need to find an online resource that actually provides information based on your area. That way you can truly learn what you are entitled to and how refinancing truly works in your area.

Peak Home Loans is one of the most professional and reputable information services of its kind. If you want to learn what your refinancing options really are you should immediately make use of their free online services.

Do you desire to acquire the most professional home refinancing rates? You can acquire the best mortgage refinance advice at Peak Home Loans.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.87% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $415/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!