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Home Prices Going Up? Interest Rates Up Too? Want to Buy a Home?

Written by Clay on . Posted in Homebuyers

housing-market Everyone has a payment budget. You MUST think strategically! How long you plan to stay in your home can play an important role in your home buying strategy. For example, if you plan to be in you home 5-7-10 years, an adjustable rate mortgage could provide $59,000 more loan with same payment when compared to a 30 year fixed loan. Buying soon while rates are lower could be advantageous too! If rates were to increase 0.50%, you could lose about $37,000 in loan amount assuming the same payment. Want a professional to assist with a strategy for your home loan? Give me a call. clay signature black Clay Selland, President Signet Mortgage Corporation 925-807-1500 x303 Clay@SignetMortgage.com NMLS#183492

How do I Cancel Mortgage Insurance?

Written by Clay on . Posted in Mortgage Insurance

Mortgage lenders/investors will typically permit the cancellation of private mortgage insurance (MI), when you build up enough equity in the home.  With market values up double digits this past year there is a chance that you may be able to cancel your mortgage insurance earlier than you thought. If you’ve made your mortgage payments on time and have the equity in your home, cancelling your MI shouldn’t be difficult at all. In fact, most homeowners cancel their MI long before the automatic termination date. mortgageinsuranceThere is an important distinction between mortgage insurance on a conventional loan and an FHA or VA loan which do not have the same rules. Mortgage insurance for recent FHA loans often remain through the term of the loan and only way to get rid of the mortgage insurance refinance. The general rule is if you make regular payments only and the loan balance is 78% of the original value – the mortgage insurance is automatically canceled. You can request to have your mortgage insurance canceled if the value of your home has increased and your loan to value is less than 80%.  This will involve working with you or current servicer/lender and may involve an appraisal to confirm value. This link provides a excerpt from the Homeowners Protection Act as well as a link to one of the major mortgage insurance companies brochure containing more detail.  http://homebuyers.mgic.com/resources/cancel-mi.html If you have questions please give me a call. clay signature black  

When a Pre Approval is Not Worth the Paper it’s Written on…and No Better If From a Direct Lender

Written by Clay on . Posted in Homebuyers

It’s a very competitive real estate market and legitimately sellers are choosing which offer to accept based on the strength of the buyer.  Often electing to take a substantial discount in price for a cash offer and a quick closing sellers may unnecessarily leave money on the table. Well-qualified borrowers can miss out on their dream home by not being prepared. The key is getting a solid pre approval. For many years at Signet Mortgage, we have only issued pre approval letters when we have verified a clients income, asset and credit affirmation, as well as obtain automated underwriting from either Fannie Mae or Freddie Mac. In this market that may not be good enough. Because your credit score is one of the most important aspects of your financial profile. However, if you have issues with it, seek help from creditrepairservices.co. Not all lenders will allow the processing of a loan without identifying a specific property, this is understandable because not all transactions go through and it is an investment on their part to fully underwrite the loan that may not go through. Signet, operating as a mortgage broker, has access to 10 lenders that will allow a full underwrite of a “to-be-determined” property. We have a full range of investor options as well as competitive lender choices. This approach is an upfront investment by the buyer that can read significant rewards. With a full underwrite, the pre approval letter now would only have contingency on the identification of a property and no loan contingency with respect to the client putting their offer on par with a cash offer. preapproval The idea that a pre approval from a direct lender is any stronger is hogwash. The quality of the pre approval letter is based on the work done on the loan file to support the pre approval and the experience and integrity of the loan officer – period. Again, as a mortgage broker, Signet has access to just under 20 lenders which assures clients that I can find a successful solution to a buyers unique circumstances. Make sure to leave the time to get a full pre approval before making an offer on your new home! That small investment will help your offer to be successful.  Did you know three out of four real estate agents aren’t true professionals? Many agents have backgrounds in other professions and have just recently transitioned into real estate. The problem with this is that a real estate agent relies on his or her experience to properly evaluate, strategically price, market and advertise your home or a home you are interested in. The negotiating skills necessary to correctly represent you throughout the buying or selling process can only be learnt by bringing parties together and closing deals in the Brantford real estate market. As a CPA and Real real estate agent, I approach real estate financing with the care and professionalism that you deserve for one of the largest transactions you will do in a lifetime. If this sounds like someone you would like to work with to get solidly pre approved for your next home please give me a call. My team and I will do the work to make sure that your offer is the one that the seller loves! 

Rental Housing Network Radio Show w/ Clay Selland

Written by Clay on . Posted in Uncategorized

“Clay was a recent guest on Rental Housing Network Show on KLIV 1590AM with host, Sandy Adams. Clay spoke about buying investment property and opportunities in this market. Watch the first half and learn about valuable information that investors and owners should be paying attention to. The second half Russ Castle of Castle Insurance shares information on comparing insurance policies and questions you should ask your insurance agent.”  

HARP 2 Refinance Program Update

Written by Clay on . Posted in Uncategorized

updateImproved HARP – Home Affordability Refinance Program… something that the Government got mostly right during the effort to assist homeowners that could not take advantage of historically no credit check loans in the uk because their home values have dropped.  Recent changes mean property owners should take a second look, specifically:
  • Bankruptcy or Foreclosure seasoning requirements have been eliminated
  • Up to 60% debt-to-income ratios are now accepted on all HARP refinances, thanks to the Rhinosure programs that are being offered
  • Promissory Note date now used to determine HARP eligibility, prior to 5/31/09.  Until recently it was based on when Fannie or Freddie purchased the loan.
  • 0x30 Mortgage rating in last 6 months is required – previously it was no late payments for 12 months!
  • Loans that currently have mortgage insurance are allowed!
  • Unlimited LTV/CLTV on HARP owner occupied homes, 2nd homes and Investment properties

60% of HARP eligible borrowers have NOT refinanced yet, probably because they were turned down. Now is the time for a second chance!

Available for INVESTMENT properties TOO!

making-home-affordableThe HARP 2.0 Home Affordable Refinance Program is designed to allow a refinance of properties that no longer have 20% equity and benefit from historically low rates.  In short, no late payments last 6 months, and your loan has to be owned by Fannie Mae or Freddie Mac (not the same as who services your loan or where you make your payments).  Generally conforming loans (below $625,500).   Promissory note must be dated on or prior to 6/1/2009. If you are in debt then first take a look at trust deeds for debt in Scotland. Existing 2nd loans are allowed – unlimited combined loan to value. Rates are fabulous so it’s worth checking if you would benefit from a refinance to record low rates. Multi-family properties up to four units can be refinanced at similar rates as there are caps on the adjustments for loan to value, credit score, occupancy and number of units! The main requirements are that the loan be owned by Fannie Mae or Freddie Mac.  Remember, a loan can be serviced by any of the major services and still could be owned by Fannie or Freddie.  The best way to tell is to provide a current mortgage statement and the last four digits of borrowers social.  We can do the rest. No requirement (or benefit) to refinance with your existing lender as they may have overlays that restrict benefit. Fannie Mae and Freddie Mac will likely assign an automated valuation of the property thus eliminating the need for an appraisal. Primary residence or second home.  With a primary residence there is a cap to the “adds” so rates are very competitive.

Send us your mortgage statement and note the last four digits of your social security number – and your email address – we can do the rest!    No obligation at all – you might as well find out if you could lower your payment or take years off your mortgage.

clay signature black

Investment Property – Renovation Loan Options!

Written by Clay on . Posted in Investment Properties, Rental Properties

PrintPurchasing an investment property that needs a little work?  Wish you could include the costs of renovation in the loan?  You can with a HomeStyle renovation loan from Signet Mortgage! You can ask me any property management questions in the comment box below. Purchase that rental property that needs renovation or repair on this guest post. Improvements can be anything that adds value to the home.  No longer will a purchase be held up because of the condition of the home – a renovation loan will allow roofing albuquerque nm repair service to cater you after closing with funds borrowed at the time of purchase. You must also conclude to take care of water in the floors, walls, ceiling, basement, attic, and wherever it is that it doesn’t belong. Check out http://silverlinerestoration.com/ for more information. The lender simply creates a hold-back for the funds that are dispersed as the work is completed. It doesn’t matter whether you are a residential customer or large corporate customer with a high-rise building, you’ll receive the same high-standard of care, service and support. Property must be a single-family home and the loan-to-value based on the “as completed” value is limited to 75%.  The underwriting is based on slightly more conservative Fannie Mae guidelines requiring a 720 FICO score, etc. In case you are Canadian and looking for a Real Estate there then take a look at http://mirvishgehry.ca/location-and-amenities. Cost of improvements can be up to 50% of the “as completed value” which provides a great deal of flexibility to buy a distressed property and turn it into a solid investment.  Improve your return on investment by putting less cash into the property. Amcor Share Price will be a good place to start your investing business. This example illustrates purchasing a $400,000 property with and without a renovation loan. The ability to add the desired renovations into the value that the 75% loan is calculated on, lowers your cash investment.

Renovation_Loan

If you made it this far you are obviously interested in the details on how a companion maids cleaning service can work to purchase your next investment property.  As I am a CPA and licensed as a real estate broker I am uniquely suited to assist with even the most complex situations and would be happy to help.  Please give me a call today. clay signature black Clay Selland, President, Signet Mortgage Corporation 925-807-1500 x303 Clay@104.238.124.149

Loan Fee Increase to be Delayed – A Bit of Holiday Cheer!

Written by Clay on . Posted in events, Fannie Mae, Freddie Mac, Homebuyers, Uncategorized

  Fannimgresie Mae and Freddie Mac guaranteed fee increase will not go into effect in April as previously announced.  Rep. Mel Watt, the incoming director of FHFA, said late last week that he would delay an increase in mortgage fees announced in early December.  In a prepared statement, Mr. Watt indicated the delay of the loan fee increases “until such time I have had the opportunity to evaluate fully the rationale for the plan.” The planned increases included a sharp rise in fees from Fannie Mae and Freddie Mac for borrowers who do not have at least 20% down payments and credit scores between 680 and 760. This is good news coming at a time when rates have already seen an increase after the Fed announcement to taper off the purchase of mortgage-backed securities. We will keep a sharp eye on these developments after Mr. Watt is sworn in early January.

More loan fees: More expensive mortgages

Written by Clay on . Posted in Current Events, Fannie Mae, Freddie Mac

FannieFreddie Fannie Mae and Freddie Mac loan guarantee fees are going up again, and the cost is simply passed along to borrowers. Rather than reflecting the actual cost of doing business for Fannie/Freddie – this change is a penalty and raises the cost of a Fannie/Freddie loan under a “plan” to encourage private capital to the mortgage marketplace. The guarantee fees, or G-fees, for conventional mortgages guaranteed by Fannie and Freddie will increase an average of 11 basis points, according to the FHFA. The fees, which in the past were charged to cover potential losses by Fannie and Freddie, are being raised as part of an ongoing effort to lure private capital back into the mortgage market. In January 2012 and again in September 2012 Congress slipped a 10bps increase in the G-Fees under the same guise. The funds from the January increase go to the general fund and not to Fannie or Freddie at all.  It was done to offset a payroll tax break, putting the extra costs on home borrowers and allowed Congress to avoid having to repeal the politically popular payroll tax cut.  A bit slight of hand, don’t you think? Here is the quote from FHFA … “The new pricing continues the gradual progression towards more market-based prices, closer to the pricing one might expect to see if mortgage credit risk was borne solely by private capital,” FHFA Acting Director Edward J. DeMarco said. “The price changes provide better protection of and return to taxpayers, who are providing the capital support that keeps these companies operating. These changes should encourage further return of private capital to the mortgage market.” The problem is when increased loan fees hike the prices of Fannie and Freddie loans, that expense gets passed on to the consumer and make mortgages more costly. The opinions expressed in this post are mine … if you could use assistance navigating your options for residential financing, please give me a call. clay signature black

FHA Loan Limits going down for California … No change to Reverse Mortgage Limits

Written by Clay on . Posted in events, FHA, HUD, Loan Modification, reverse mortgage

HUD announced last wupdateeek the new Federal Housing Administration single-family loan limits effective Jan. 1st 2014. The standard loan limit for areas with relatively low housing costs will stay at its current level, $271,050. However, the limit for California and other high cost areas will be reduced by more than $100,000, from $729,000 to $625,500. Loan limits for FHA-insured reverse mortgages will remain the same at a maximum amount of $625,500, with actual loan limits based on the value of the property, current interest rates and the borrower’s age. The limits were lowered under the Housing and Economic Recovery Act of 2008 (HERA) as an emergency measure to keep mortgage credit available during the housing crisis, according to HUD. Not much of an impact with the FHA loan limits being lowered – the increase in up front and monthly mortgage insurance implemented earlier in the year has made FHA loans less attractive than conventional alternatives anyhow. Welcome news that there were no changes to the HECM reverse mortgage limits.  With the recent changes to the HECM program in October – the amounts available to borrowers are conservative but still viable for California homes values.