I have a realtor i work w here in NY that owns a prop in AZ

He contacted me looking to refinance...................sad to say im not licensed in AZ

I contacted a fellow AR member who is licensed in AZ and he is going to be able to help my friend out

now i may not get the deal but that realtor will remember that i came through yet again

thank you active rain

Great Prime based commercial loan product

*       The payment will be fixed for 12 months and adjust only once per
year on the anniversary of the loan. 

*       The interest rate assessed on the loan will be adjusted with
each change in the Lenders Prime Rate. 

*       Any over or under payment of accrued interest resulting from the
change in rate, will be applied to the borrower's principal balance. 

*       Each year, the payment will be reamortized using the remaining
term, current balance and Lenders Prime Rate then in effect. 

*       The loan can be converted to a fixed rate loan on the
anniversary date each year.  The conversion fee is only $500 - no need
to reapply.

In many ways, your house is like a savings account.  If you have discipline and knowledge regarding the benefits of refinancing, you can tap into its equity for years to come.  There are many reasons you might want to refinance and most people fit into one (or more) of the basic categories.  

Convert an Adjustable Rate to a Fixed Rate Adjustable rate loans typically offer a lower interest rate than fixed rate loans because they shift the interest rate risk from the lender to the borrower.  Interest rate risk can be quite substantial and should not be underestimated.  In the 1980's interest rates on mortgages were over 10% and it was not uncommon to have a 13 or 15% rate.  In 1981 the 30 year fixed rate mortgage rate ranged between 15% and 20%.  Basically, when rates are historically low it is best to lock in a low fixed rate for the term of the loan.  

 Consolidate Debts to Save Money and Cash Flow Mortgages typically have the lowest interest rates and are tax deductible.  Credit cards and Installment loans typically have higher interest rates and terms that are significantly shorter than mortgages.  If you have equity in your house you can obtain a new mortgage to consolidate debts and save money.  By obtaining a lower and tax deductible interest rate and by extending the term you save money and cash flow.  By extending the term of your mortgage you still have the option to make larger payments on the mortgage which pays off the principal quicker.  

Get Cash Out for Home Improvements This is a great way to use the equity in your home to increase the value and you get to enjoy the improvements.   

Get Cash Out to Settle a Divorce Use the equity in your home to settle with your spouse, payoff joint debts and move forward with your life.  

 Lower Monthly Payments Lower monthly payments can be achieved by:

• Obtaining a lower interest rate
• Taking a longer term 
• Selecting a interest only feature
• Selecting a negative amortization feature 
• PMI Removal
• Paying down the balance on an adjustable rate or interest only mortgage

Lower Interest Rate to Save Money The traditional refinance "rule of thumb" -- that you must get an interest rate at least 2% below your current interest rate -- is often incorrect. The correct approach is to divide the closing costs by the monthly payment savings (due to the lower interest rate) and the result is the number of months it will take to break even on the refinance.   

Shorter Term and Lower Interest Rate to Save Money The most effective way to save money on a mortgage is to lower the term and rate.  The payments may be significantly higher although the interest savings over the life of the loan is quite substantial.  In addition, a 15 year term typically has a 1/2% lower interest rate than a 30 year term.  

Refinance Basic Steps:   

1.  Mortgage Pre-Approval

2.  Mortgage Application

3.  Appraisal

4.  Underwriting

 5.  Closing

I am hearing that new counties may be added to lenders & MI companies declining market lists.  This means All agency loans will get a 5% LTV reduction.  Inform high LTV borrowers (over 90 LTV) to LOCK or they may not be able to get a loan; Period.  

Counties currently considered declining by some lenders & MI companies:
Nassau

 Suffolk

 Orange

 Dutchess

Counties currently under scrutiny: Bronx

 Herkimer

 Kings Madison

New York

 Oneida

 Onondaga

 Oswego

 Putnam

 Queens

 Richmond

 Rockland

 Tompkins

 Westchester

The Housing and Economic Recovery Act of 2008 goes into effect on October 1, 2008. As part of this Act, Congress placed a one year moratorium on risk based mortgage insurance premiums on FHA loans.

Under the risk based  premium structure that HUD put into effect on July 14, 2008, borrowers with better credit and lower loan to value mortgages are able to pay lower rates while riskier loans carry higher insurance rates. A perfectly sensible system that FHA statistics show may actually be a major benefit to lower income borrowers since this members of this group with FHA loans have been shown to have higher credit scores on FHA loans.

As part of what may be a little bit of political gamesmanship on the part of HUD, HUD has just announced a new mortgage insurance premium structure to take effect on October 1, 2008. Here are the details:

Upfront Mortgage Insurance Premiums

• Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 Percent

• Streamline Refinances (all types) = 1.50 Percent

• FHASecure (Delinquent Mortgagors) = 3.00 Percent

Annual Insurance Premiums (paid monthly)

• On 30 year loans with LTV > 95 %, annual mortgage insurance will be .55%

• On 30 year loans with LTV < 95%, annual mortgage insurance will be .50%

• On FHA Secure loans with LTV > 95%, annual mortgage insurance will be .55%

• On FHA Secure loans with LTV < 95%, annual mortgage insurance will be .50%

• On 15 year loans with LTV > 90%, annual mortgage insurance will be .25%

• On 15 year loans with LTV < 90%, annual mortgage insurance will not be required

These premium changes apply to the folllowing FHA loan programs: 203b (standard 1-4 unit property), 203k (rehab loan), and 234c (condominiums) but they do not apply to FHA reverse mortgages.

Mortgages with FHA case number assignments made on July 14, 2008, through and including September 30,2008, shall maintain the risk-based premium structure for the life of the mortgage.

HUD promises to let us know what they plan to do at the end of the moratorium, but keep your eye on the legislation being pushed that restores seller paid down payment assistance programs. This legislation includes risk based mortgage insurance premiums.

Before deciding on what terms lenders will offer you on a loan (which they base on the "risk" to them), they want to know two things about you: your ability to pay back the loan, and your willingness to pay back the loan. For the first, they look at your income-to-debt obligation ratio. For your willingness to pay back the loan, they consult your credit score.

The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. (and they're named after their inventor!). Your FICO score is between 350 (high risk) and 850 (low risk).

Credit scores only consider the information contained in your credit profile. They do not consider your income, savings, down payment amount, or demographic factors like gender, race, nationality or marital status. In fact, the fact they don't consider demographic factors is why they were invented in the first place. "Profiling" was as dirty a word when FICO scores were invented as it is now. Credit scoring was developed as a way to consider only what was relevant to somebody's willingness to repay a loan.

Past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

Different portions of your credit history are given different weights. Thirty-five percent of your FICO score is based on your specific payment history. Thirty percent is your current level of indebtedness. Fifteen percent each is the time your open credit has been in use (ten year old accounts are good, six month old ones aren't as good) and types of credit available to you (installment loans such as student loans, car loans, etc. versus revolving and debit accounts like credit cards). Finally, five percent is pursuit of new credit -- credit scores requested.

Your credit report must contain at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This ensures that there is enough information in your report to generate an accurate score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum!

Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

I can help with FC

what is basically done is your FC is stopped for 2 years and during that time you pay 1/6 of normal mortgage payment.

once 2 years is up you actually get your home back owing less than what originally owed.

Please contact me and I am more than happy to get you in contact with the investor to handle this for you

DOMINICK GACCINO

914-391-2388

dgaccino@yahoo.com

I've included a link to an article i read on Yahoo regarding the riskiest US housing markets

Being from NY i was very glad to see that NY is one of the lowest

It was a very good article that i think everyone on active rain should read.

http://promo.realestate.yahoo.com/riskiest_us_housing_markets.html

between this article and what i have been watching on TV regarding the bond market things are not looking good for consumers and RE and Mortgage professionals.

Still i think that us TRUE professionals will be able to withstand this and come out heads high on the other end.

In this unstable market EVERYONE, be it a new home buyer or a person in need of a refi, really needs a true mortgage professional to hold their hand and guide them.

thats what i am here for

Please feel free to contact me and let me use 11 years of mortgage experience to your benefit

DOMINICK GACCINO

First Suffolk Mortgage Corp

914-391-2388