If you have a conventional loan with PMI, you may request it to be removed once the principal balance of the loan reaches 80% of the value of the home. According to the Homeowners Protection Act, a borrower may initiate cancelation of PMI coverage by contacting the servicer. PMI will automatically fall off when the...
Tag: Arizona
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A LOOK AT MORTGAGE RATES OVER TIME
Freddie Mac publishes a weekly Primary Mortgage Market Survey where they survey the 30-year and 15-year fixed mortgage rates. According to the survey, this week’s 30-year fixed rate is 6.96% and the 15-year fixed rate is 6.34%. The survey contains data going back to 1971. Looking at rates over the last 50-years, today’s rate is...
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MANY LOAN OPTIONS ARE AVAILABLE
The mortgage market has changed since the days of 2-3% rates. Lenders are introducing many new products into the market to try to make up for the loss in volume. Contrary to some recent news reports, it is not harder to get a loan today. Lending is not getting tighter. There are more options for...
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MULTI-FAMILY FINANCING – INVESTOR VIDEO SERIES
The type of loan available depends on the number of units you are purchasing. If you are purchasing up to a 4-unit property, you can get a 30-year fixed mortgage. However, if you are looking for an apartment building or multi-family 5+ units, lenders consider this commercial financing. These loans are typically fixed for 5...
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APPRAISALS – FIRST-TIME HOMEBUYER VIDEO SERIES
You entered into a contract and agreed to a purchase price with the seller. You are applying for a mortgage, and the lender asks if you are ready to order the appraisal. What is the appraisal and why is it necessary? An appraisal is an independent opinion of value provided by a licensed appraiser. The...
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INVESTOR VIDEO SERIES – CAN I QUALIFY TO PURCHASE AN INVESTMENT PROPERTY?
If you can qualify for a primary residence, you can probably qualify to purchase an investment property. When purchasing an investment property, the appraiser prepares a schedule of market rents. The lender takes 75% of the rents on this schedule and subtracts the proposed mortgage payment. This amount is then added to your income or...
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PRINCIPAL PAYMENTS ON LOANS
Typically, when you make a large principal payment on your loan, the monthly payment remains the same, but the term of the loan shortens. However, if you wish to lower the monthly payment instead of shortening the term, ask the lender if they allow a recast. A recast is where a large principal...
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WHAT IS UNDERWRITING?
What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan. An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase), title insurance, and appraisal to determine...
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MORTGAGE BANKING ADVERTISEMENTS
You may hear many mortgage bankers advertise they have in-house underwriting and fund their own loans which gives them an advantage in getting your loan approved and funded. FAKE NEWS. Bankers promote these services as something special, but, it is not special to have your loan underwritten and funded on time. This should be...
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ON-LINE LENDING
On-line lending tends to emphasize on closing a loan quickly and making the process automated; this approach implies that counseling to find the right mortgage is not necessary, and leaves the choice of finding the right mortgage to the customer. This approach, however, may not work for the following sample of customers who may...