Mortgage Refinancing – 100% Satisfaction Guaranteed Home Mortgage Refinance Solution
It’s not very often that a borrower takes into heavy consideration what his loan to value is when shopping for a loan. In fact, if the subject is brought up by the customer, it’s mostly in relation to avoiding paying monthly mortgage insurance. But sometimes, a loan to value can affect even more aspects of your loan – like pricing and approval!
What is loan to value? Well, it’s exactly what it says. The loan amount compared to the value of the home you are buying or refinancing. For example, if you are buying a $100,000 home, and your loan amount is only $50,000, your loan to value or “LTV” is 50%. It’s also very common to refinance a home to obtain a lower LTV and drop mortgage insurance that was before required.
Different types of loans have different minimum requirements for LTV’s. With primary residence purchases, for instance, an FHA loan can have as high as a 97.75% LTV (soon to change to 96.5% in 2009). A conventional loan can have as high as a 97% LTV (but more common is 95% LTV). VA and Rural Housing loans can have 100% LTV’s. People who have cash to put down on the property they are buying and financing with a conventional loan oftentimes try to amass 20% of the purchase price in order to avoid mortgage insurance. Mortgage insurance is required when your LTV for a primary residence is above 80% and is issued by independent mortgage insuring companies like Genworth Financial or PMI. Fannie and Freddie, the big purchasers of conventional loans, will require one of these or other approved companies issue mortgage insurance unless the loan has an 80% LTV. And if you’re refinancing the home you live in? The whole grid of acceptable LTV’s changes for the most part, with a few exceptions. And furthermore, if you’re talking about investment properties, it’s another can of worms.
But when else does LTV mean something? Consider when a loan specialist prices your loan. Oftentimes there are pricing differentials based upon the loan to value. For instance, if you carry mortgage insurance and your LTV is 85.01% or higher, you might actually get a better interest rate than if you had an 85% LTV (but don’t get too excited because your monthly mortgage insurance will be higher). Or if your LTV is 60% or lower, you might also get a better interest rate. If you are close to tipping the scales on one of these ratios, it may be to your benefit to ask your loan specialist how close you are to a pricing break one way or another. You’d be surprised to find out it might change your mind as to how much money you decide to put down on your loan.
And guess what else? A low loan to value may be the difference between loan approval and loan denial. Why is that? Because if you are investing enough of your own money into the equity of a property, chances are you won’t default on the loan. And if you do, it’s probably a last recourse. Not to mention, the lender who holds the note won’t lose money because there is enough equity in the property to cover foreclosure costs, re-sale costs and any value loss from an upside down market. The lender is covered. So, the lender will consider the loan less risky and a higher debt to income ratio is tolerated when reviewed with a high credit score.
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Help answer the question about home loans
Why do people that do home loans get so mad when you shop around?I've heard a friend of mine <that does residential and commercial real estate loans> go completely nuts every time her customers shop around for home loans. What do these lender expect someone to just trust them when they say. <hey, don't be looking at loan numbers from other lenders or I'll kick you in the ding ding.
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Email your home loan financing questions to Kristin Abouelata, Home Loan Specialist with Mortgage Investors Group, at question@kristinmortgage.com or call direct: (865) 567-0113 Toll Free: 1-800-489-8910. For more information visit her website at www.kristinmortgage.com Home Loans Plain Talk.
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Nice work. keep it up. mean time come for social media marketing for esteembpo**com
All mortgage conditions have been tightened up because the boom is over and mortgage companies are faced with huge amounts of foreclosures.
No one without an income has any business borrowing money because there is no way to repay it.
There are advantages and disadvantages to everything in life.
I don't understand your situation financially, therefore I can not answer your question about subprime mortgage.
Sub-prime mortgage was and is an option available or was selected by those that wanted to purchase a house and the program fit their financial situation at the time.
Depending on your financial condition, credit report and other factors will determine if you get a sub-prime loan, an adjustable rate mortgage a 30 year fixed rate and FHA or a "A" loan.
You should not zero in on a certain mortgage program because everyone tell you this is the way to go. Don't jump into the fire because everyone says it is the way to go and we fell all warm and rosy. This same fire might burn you.
Your financial situation should dictate the type mortgage you get. Everyone's financial situation is different.
You should contact a mortgage broker complete a mortgage application and allow this mortgage broker to run a credit check for you.
This credit report, debts on your credit report as well as your income will dictate the type of mortgage you are qualified for not that you want a 30 year mortgage or that all your friends have a 30 year mortgage or suggest that you get a 30 year mortgage.
What is best for you right now and in the future should determine the type of mortgage you want and should get.
Once your mortgage broker has mortgage programs available to you then you should sit down with this mortgage broker and go over each option available to you. If you don't understand a certain mortgage then don't leave the table until you completely understand what is available to you.
Now once all your options have been explained to you, then and only then are you able to make an intelligent decision as to which is best for you.
I hope this has been of some use to you, good luck.
"FIGHT ON"
There are two ways to get down payment assistance. One is through the government and the other is from seller-funded down payment assistance. The seller-funded down payment assistance is mostly used by people who are trying to get conventional loans. As the name implies, the seller pays for a part (sometimes even the whole amount) of the down payment. The problem here is that these types of assistance result to troubled loans, which is part of the reason why we are in the housing crisis we are in today. The new housing bill will eliminate this type of assistance, so you are now left with Government down payment assistance. The American Dream Downpayment Initiative can help you with your problem.
I do home loans so I can shed some light, (although I don't go ballistic)- it is a lot of work to give someone a pre-approval- we have to run credit (which we pay for) & figure the debt to income & loan to value etc. Enter all fees etc into a good faith estimate which can mean checking tax rates for your property, getting insurance quotes etc. Its quite a bit of free work for someone who is not "really sure" that they are even ready to buy. We are so busy with the really serious buyers that when you get someone who you see 4 or 5 inquiries from other mortgage companies we know they are just taking up time that we don't have to spare. Really don't mind someone shopping- its just a lot of work for nothing. (Just being honest!). I usually tell those people to get me their good faiths & I will see if I can do better.
You answered your own question in your comments section above. They are greedy and want more.
You're a would-be buyer who's been sitting stubbornly on the sidelines, having seen home prices soar to nonsensical levels, waiting for their inevitable fall back to Earth. Eventually, you say, the time will be right to tiptoe into the market.
Lately, you've seen prices slipping. And you've heard about foreclosed homes being thrown on the market at bargain prices.
Well? Are we there yet? Should you check out a discounted home in foreclosure? After all, there will be more than 1 million foreclosures over the next two years, according to the National Association of Realtors. A house in foreclosure might well offer a great deal.
Michelle Mangione knows. She and her husband, Jeff Haag, are living in a home in Fallbrook, Calif., that she bought from the owner about three years ago, just before it went into foreclosure. Having paid about $680,000, she estimates she saved about $200,000.
Still, her savings came at a price: a lot of needed work on the house. "You have to be willing to live in a mess for a while," Mangione said recently, as painters were working in the home.
FIND MORE STORIES IN: California | Internet | Michigan | Ohio | Georgia | Las Vegas | Indiana | Earth | National Association of Realtors | David Lereah | Stone Mountain | Fallbrook | Rick Sharga of RealtyTrac
Buying a home in foreclosure isn't easy, and it's hardly without risk. Before you consider plunging into the foreclosure market, be sure to do some in-depth research.
"There are some good buying opportunities," says David Lereah, the NAR's chief economist. "But don't repeat the mistakes of the foreclosed borrowers."
Until recently, some buyers saw little risk in rushing into an adjustable-rate mortgage or an exotic loan with a low or no down payment. Now, many are stuck with soaring payments they can't afford.
With the market sinking for "subprime" borrowers — those with shaky credit or little money to put down — buyers short on cash are finding it harder to get a mortgage. Before you try to buy a home in foreclosure, be sure you have a good credit score and enough cash for a sizable down payment. Prime borrowers, Lereah notes, should still be able to qualify for traditional fixed-rate loans with rates remaining near historic lows.
If you do shop for a home in foreclosure, don't reel in the first one you see. In particular, don't get sucked into an auction right away. Auctions aren't the only way to buy a home in foreclosure, and they can sometimes be the most hazardous.
Here are your main options:
Auction.
The typical one is a state process. It's generally held on the courthouse steps, in the clerk's office or in front of the foreclosed house.
"The auction probably represents the highest potential return but also the highest risk," says Rick Sharga of RealtyTrac, which tracks foreclosures.
That's because buyers typically can't inspect the home in advance of the auction and must pay on the spot in cash or with a cashier's check. It's also possible that the current homeowners will refuse to move out, and then you must deal with an eviction, says Alexis McGee of Foreclosures.com, which provides advice on buying foreclosed homes.
REO (real estate owned)
If a foreclosed home isn't sold at auction — if, for example, the highest offer is less than the homeowner owes the lender — the bank would repossess it. Though the bank will want to unload the home, it won't necessarily do so cheaply. So you aren't guaranteed a fabulous price.
"The bank can take their time in responding to an offer," says Jim McEachern, a buyer's agent in Las Vegas. "It's just a piece of paper on a banker's desk."
Still, you'll be able to arrange an inspection and title insurance. In that way, it's safer than an auction.
Jenny Nelson recently bought a home in Stone Mountain, Ga., from the lender that seized it. She had time to research the home, which had been empty for about a year and was in rough shape. "It's nerve-racking to think what could have happened to this house," she says. Nelson had heard that when the house was vacant, homeless people had moved into it for a while.
Once Nelson hired an inspector, she learned that a broken pipe in the basement had caused mold to grow. Nelson, who had the problem repaired and cleaned up, plans to move in in June.
Pre-foreclosure.
Because an auction is risky and an REO is more costly and time-consuming, some experts recommend buying a home in pre-foreclosure.
You can find a house in pre-foreclosure by studying the public notices about homes in default. The information is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac. You'll pay a fee, though, for their services.
Plus, there will be little if any competition because the home usually isn't up for sale. It's a private deal. You offer a price that's less than market value but more than the amount owed on the bank loan.
"The thing that makes it difficult for people," McGee notes, "is the idea of soliciting somebody who hasn't put a for-sale sign up front."
Buyers don't all have the same opportunities, because the number of foreclosures varies considerably across the USA. The top states now include Ohio, Indiana and Michigan, according to the Mortgage Bankers Association.
Now may be a good time, for example, to buy a home in the Detroit area. "Homes are a lot more affordable than they've been for the last 15 years, and our inventory is at least double what it normally is," says Ron Simpson of the Detroit Association of Realtors.
Simpson says he recently sold one home in foreclosure for $415,000 that would have cost $600,000 not long ago.
Not every would-be buyer in such areas, of course, can capitalize on the attractive prices, because many have lost jobs themselves. In fact, the main reason for foreclosure is unemployment, says Jay Brinkmann of MBA.
But be aware: Some homeowners don't even try to stop foreclosure, because of something wrong with the neighborhood or structurally with the house.
"There are various reasons for people to live rent-free for close to a year, ride through the process and let it go into foreclosure," Brinkmann says.
If you're too nervous about buying a home in foreclosure, consider other options to find attractive deals. The overbuilding of homes in some parts of the USA, for example, has swelled the supply for buyers.
Some who have done it say buying a home in foreclosure is best suited to buyers who can accept the stress and hard work.
"You have to have vision and patience and be able to live in a little chaos," says Mangione, the happy buyer.
PJ it depends on where you are and what bank/lender you are using. There's no "one rate fits all" situation. Of course you can still get mortgages but they have to be done the right way which is in my opinion the only way there should have ever been.
You need to be able to service the debt as in be gainfully employed for at least a year. Come up with a minimum of 5% down and have a healthy credit score/report minimum of about 650-680 depending on the lender.
Take a look at the finance/rate section of msn.com or just visit the website of your local bank and look up their mortgage rates.
Well, the obvious answer is that SONYMA loans are only available for property located in the state of New York.
Here's more info on the SONYMA loan application process:
http://www.nyhomes.org/home/index.asp?page=143
Ah ha! must be a reason credit is not great, eh?
Start with a business plan.