Category Archives: home loans

Builders End Year On An Optimistic Note

Though down slightly from the month before, the National Association of Home Builders Housing Market Index remained at a high level in December. The Index – which measures builders’ perception of the market for newly built single-family homes – is scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In December, the Index dropped one point to 61. David Crowe, NAHB’s chief economist, said the results are an indication that the residential real estate market will continue to make progress in the year ahead. “For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” Crowe said. “With job creation, economic growth, and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.” Each of the three individual index components suffered minor losses, including a two point decline in both the gauge of expectations for the next six months and buyer traffic. The component measuring current sales conditions fell just one point. The NAHB has been conducting the monthly survey for the past 30 years. More here.

lending tree

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.67% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $404/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 2.67% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $404/mo.  4 in 5 will qualify.  Rates are at an all-time low, Apply Today!

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 2.67% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $404/mo.  4 in 5 will qualify.  Rates are at an all-time low, Apply Today!

Biggest Mistakes Of First Time Home Buyers

There are several potential blunders you’ll want to side step as a first time homeowner. Three of the biggest mistakes that many first timers make are:
    1. Purchasing the wrong home – Make sure the home you want is one that you can realistically afford, is located in a good area, and has all of the features and benefits that are the most important to you. It is highly unlikely that you will find a home that will have absolutely everything you want and fit in your price range, so be prepared to make compromises. It’s the difference between knowing what you must have/need and what you can live without. Things to think about include, but are not limited to:
      • The number of rooms and bathrooms you require for a comfortable and manageable living space.
      • The safety of the neighborhood.
      • How busy are the streets?
      • Etc.
first-time-home-buyers
Don’t make a fast decision. Even if you fall in love with a home and everything seems to fit, view it from every angle with a critical eye. Some homes really are too good to be true.
  • Altering your credit score prior to closing – Once you have completed your loan application, do not make the huge mistake of making purchases on credit or with a credit card. Although it may be tempting to make big purchases for your new home, such as buying furniture, appliances, or other equipment, you need to put buying on hold until after closing.
  • Making purchases with credit can alter your credit score and lead to an underwriter cancelling your loan. On the other hand, in the event your loan contingency has been removed or expired, in addition to losing your home, you could forfeit your earnest money deposit. The bottom line is: don’t buy on credit before closing and keep your credit score the same, and, if possible, work on improving it.
  • Not being upfront and honest with your real estate advisor – Your advisor, whether it is a real estate agent or a real estate lawyer, has a fiduciary obligation to represent your best interests. Real estate professionals work for you and with you, to help you obtain the home that is the most ideal for you. However, they can’t help you if you withhold information from them. You need to trust your agent and be open and honest with them about what you are thinking and your feelings about buying. Even if you have thoughts about backing out of a deal bring this to your agent’s attention. If you do not like your advisor or do not have confidence in them, find another one to represent you who you like better.
The bottom line is that there are lots of factors you need to consider, professionals you need to consult, and plenty of research to be done if you want to avoid making big mistakes that could cost you money and even your home.
 
Anthony Myers is a seasoned entrepreneur and mortgage industry veteran with over 15 years experience in managing and loan consulting. Prided in establishing successful Mortgage Consulting teams that create and foster long-term relationships with clients. Contact www.peakhomeloan.com.
You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.67% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $404/mo.  4 in 5 will qualify.  Rates are at an all-time low, Apply Today!

Low Home Mortgage Refinance Rates

Home mortgage and refinance rates are very low right now because the FED continues to buy more and more MBS (Mortgage-Backed-Securities that directly move interest rates one way or another). The past couple weeks have been relatively stable as far as market conditions go. That means lenders can confidently continue to offer lower and lower interest rates. This happens when Mortgage-Backed-Securities level-out. In fact, this stability has led to rates remaining in the territory of new all-time lows. There is a clear momentum behind these prices as well.

adjustable-rate-mortgage

This puts the best-scenario, thirty-year fixed rate conventional loan at 3.25% for the majority of lenders and even 3.125% for some for the first time ever which is good for those intending to purchase a house or refinance a current loan. But, not all is bright and shiny for the future.  The FED is artificially holding the prime rate, the rate at which lenders borrow money, at 0.0% (zero percent.)  And unfortunately, the FED is printing new money on a daily basis to pay mounting US debts.  This can lead to hyper-inflation.  This is the phenomenon where an individual will need a wheel barrow full of dollar bills to buy a loaf of bread.  So, as far a buying a new house at a cheap interest rate, things look good.  But, you might not be able to buy anything to put in the house.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.67% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more.  A $100k loan is only $404/mo.  4 in 5 will qualify.  Rates are at an all-time low, Apply Today!

Attn: Special Rates Available Until 12-31 For Residents Of Virginia & Neighboring States!