You've probably heard from one source or another, usually your drunk ex-college roommate, that you don't refinace unless you can save 2% on your existing mortgage rate.
The old 2 percent rule is just a quick way to judge the financuil sense of refinancing, not a carved in stone law, like don't bite off more than you can chew.
If you can get a 2% reduction in your mortgage rate, that's great, most likely you can pay for the cost of the new loan with the saviings in under 2 years.
But, what if you have noj plans of selling in the next 2 years? Suppose your wife has 5 years left on a contractual obligation. We can never know the future and the best laid plans can get tossed to the wind pretty quickly in this crazy world.
Use the best information you can obtain, ponder the possible problems and make an informed decision on that new low interest mortgage.
Sunday, December 7, 2008
Thursday, December 4, 2008
Mortgage Closing Costs
Mortgae Closing Costs for Pennsylvania average $3,411 for a $200,000 mortgage according to Bankrate.com. You can check other states here.
Closing xosts vary by lender and type of mortgage so be sure to shop asggresively for the best deal. For more information on mortgage closing costs read more articles at PaMortgageFinance.com
Many closing costs can be rolled into the mortgage, some can't. Arm yourself with the best information and you will ensure you get the best deal possible.
If you have the need for bad credit mobile home financing click on the link for more information.
Closing xosts vary by lender and type of mortgage so be sure to shop asggresively for the best deal. For more information on mortgage closing costs read more articles at PaMortgageFinance.com
Many closing costs can be rolled into the mortgage, some can't. Arm yourself with the best information and you will ensure you get the best deal possible.
If you have the need for bad credit mobile home financing click on the link for more information.
Tuesday, December 2, 2008
Mortgage Fraud Worsens
The Mortgage Asset Research Institute reported mortgage fraud activity was up over 45% during the second quarter of 2008 as compared to the second quarter of 2007.
General application misrepresentation accounted for nearly two thirds of all mortgage fraud activity. According to the Institute. Income exaggeration was slated at 36% of all mortgage fraud.
This entire mortgage meltdown has plenty of blame to go around... but let's not forget that outright fraud was the fuse that lit the ticking time bomb.
General application misrepresentation accounted for nearly two thirds of all mortgage fraud activity. According to the Institute. Income exaggeration was slated at 36% of all mortgage fraud.
This entire mortgage meltdown has plenty of blame to go around... but let's not forget that outright fraud was the fuse that lit the ticking time bomb.
Monday, December 1, 2008
Getting Prequalified is not enough
Getting prequalified is not enough.
There are two different options to look at for an opinion of you’re ability to get a mortgage. One can get you to where you want to go. The other can be a waste off time and effort.
Prequalification in a mortgage situation usually means nothing more than you’ve talked to a mortgage lender and discussed your income and expenses. You spill your guts about your financial situation, your expenses and present income, how much cash you have save for the down payment and then the mortgage lender does some quick calculations and tells you a guesstimate of approximately how large of a mortgage loan you can get, based on today’s mortgage rates, assuming the accuracy of everything you’ve told them
In the book mortgage for dummies, Eric Tyson and Ray Brown said “Most lenders graciously provide a prequalification letter suitable for framing or swatting mosquitoes”.
Since nothing you’ve told the lender has been verified, the lender isn’t bound by the prequalification process to supply you with a home mortgage. Why try to find a house to purchase if you don’t know that you can borrow?.
During the underwriting portion of your mortgage application, the lender will verify all of your financial information. They will look closely at all sources of income as well as expenses.
Guidelines change frequently, but few lenders like to see a housing expense greater than 28% of your gross monthly income, with no more than 32% as your total monthly debt payments.
There are two different options to look at for an opinion of you’re ability to get a mortgage. One can get you to where you want to go. The other can be a waste off time and effort.
Prequalification in a mortgage situation usually means nothing more than you’ve talked to a mortgage lender and discussed your income and expenses. You spill your guts about your financial situation, your expenses and present income, how much cash you have save for the down payment and then the mortgage lender does some quick calculations and tells you a guesstimate of approximately how large of a mortgage loan you can get, based on today’s mortgage rates, assuming the accuracy of everything you’ve told them
In the book mortgage for dummies, Eric Tyson and Ray Brown said “Most lenders graciously provide a prequalification letter suitable for framing or swatting mosquitoes”.
Since nothing you’ve told the lender has been verified, the lender isn’t bound by the prequalification process to supply you with a home mortgage. Why try to find a house to purchase if you don’t know that you can borrow?.
During the underwriting portion of your mortgage application, the lender will verify all of your financial information. They will look closely at all sources of income as well as expenses.
Guidelines change frequently, but few lenders like to see a housing expense greater than 28% of your gross monthly income, with no more than 32% as your total monthly debt payments.
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