Refinancing your mortgage loan can be a big decision for consumers. These days it's not just about getting a lower interest rate on your mortgage, there are many reasons to refinance.
Of course, the biggest reason: Lower your interest rate. This is one of the main reasons people refinance their mortgage. You can get a lower monthly payment and that can make a big difference in your monthly budget and the interest you pay over the term of your loan.
Another big reason in today's market: Get out of your adjustable rate mortgage (ARM). In the past couple years, many people were put into an ARM to save on a monthly payment or to qualify to get into their first home. The downside of these mortgages is when the adjust. That attractive rate now becomes a monthly burden when it adjusts. Many people at this point look to refinance to get the stability of a fixed rate mortgage.
Credit changes can also be a reason for refinancing. Some homeowners have to take a higher interest rate if their credit is bruised. When the time comes that their credit is in a better standing, they could consider refinancing to a lower interest rate that they would qualify for.
Some consumers have the flexibility to change loan terms from a 30 year loan to a 15 or 20 year loan, thus building equity faster. If a consumer is in a position to afford the monthly payment on a shorter term loan, they save a large amount in finance fees and pay down the loan balance faster
Another reason to refince is to pull out equity you have established. By utilizing a cash-out refinance, a homeowner can use the equity they have to turn into cash. It could be to pay off credit cards, do repair work on a home, finance college costs or just personal spending money.
Whatever the reason may be that a homeowner needs to refinance, I am committed to discussing the options with you and helping you determine what program are available and what makes the most sense. I am keeping a close eye on interest rates and now is a great time to consider a refinance. Please contact me for a complimentary consultation.
FHA Loans in Tampa, Florida and throughout the US are going to become even more useful now as the President has finally signed the Economic Stimulus Bill which increases the FHA loan limits by county. (To determine your maximum loan limit, please use the following link to HUD.)
What does this mean to the consumer? For consumers, many people could not take advantage of FHA loans in the past for purchases or refinances because of the low loan limit....now FHA loans can be used for higher loan amounts...in Hillsborough County, this means we can use FHA loans for loan amounts up to $292,500 for a single family home.
What is the benefit of using an FHA loan?
Lower down payment - Typical FHA standards say that the borrower must have a 3% down payment. However, with the help of down payment assistance programs, like AmeriDream, borrowers can have that down payment gifted and in turn have a zero down loan.
Reduced Credit Standards - FHA is more lenient on borrowers with limited or bruised credit history, with no true minimum credit requirement.
Higher LTV allowed on cash-out refinances - Standard conventional guidelines say that a borrower can "cash-out" up to 90% of the value of their home. However, in our declining market environment, that number is reduced by 5%. This is a problem for many homeowners trying to get our of their adjustable rate mortgages. With an FHA loan, a borrower can cash-out up to 95% of their property value.
What does this mean for REALTORS?
FHA has made some significant changes in their underwriting criteria. In the past, FHA inspections were required to make minor repairs for cosmetic defects, or normal wear & tear. Now, FHA has revitalized to a underwriting process much similar to conventional loans, making it easier for consumers to use and REALTORS to promote FHA products.
Ability for Seller to offer concessions to sell their homes - FHA allows the seller to "gift" the 3% down payment through AmeriDream. In addition, the seller can give up to 6% of the sales price to the buyer for closing costs, prepaid expenses and points.
If you have a listing that isn't selling because the home needs some improvements such as new flooring, windows or updated appliances - the new FHA mini rehab program allows buyers to finance as much as $35,000 into the mortgage for minor repairs that would be completed after the sale.
FHA Mortgage Loans are going to become a more vital way for consumers to get the best out of their mortgage options for purchases or refinances. If you are a consumer who has recently been turned down for a conventional loan or were told that you have to bring more money then you have to closing, please feel free to contact me for a complimentary consultation to see if the new FHA program is right for you!
Mortgage Rates Dropping...What's the lowest rate? This topic is a conversation I am having at least 5 times a day from Michigan to Florida. So, I figured let's get the information all out on the blog and via the e-zine and we'll all be on the same page!
The conversation goes like this....you ask: "Leah, I heard mortgage rates are dropping...I saw on the news and in the paper that they are going to drop the interest rates again by another quarter of a point...How low are they going to drop?"
Now, my response...keep in mind I try to keep it simple and not to heavy on the economics: "Actually, this is a very confusing topic. The majority of what you are hearing on TV and seeing in the newspaper is talking about the Fed Funds Rate or the Discount Rate. This is what the "Fed" controls. This is the rate that has been dropping recently. We call this rate the short term rate. Short term rates affect loans that are based on the Prime Rate, most likely home equity lines of credit."
"What controls our 15, 20, and 30 year fixed mortgages, or what we call the long term rate, is the bond market. These two rates are not directly tied together. When the Fed cuts the short term rate, it doesn't have a direct impact on the long-term rates, rather the bond market dictates long term rates. The Fed has been dropping the short term rate to keep inflation in check. It's when the bond investors think the Fed is letting inflation get out of control that the long the long term rate is affected."
It's really a matter of economics and understanding this small piece will hopefully give some insight on when is the best time to purchase or refinance. Rates are still low although we've seen them rise the past month. If you'd like to know if it makes sense to do something for your particular situation, have concerns about a refinance or just want some honest information, please give me a call. As your mortgage consultant I'm here to take the mystery out of the mortgage market, answer your questions and "pilot" you through the turbulence of financing or refinancing your home.
If you're receiving mortgage solicitations in the mail and on the phone and need some home understanding them, I'd welcome the opportunity to act as your interpreter and give you the facts!
Tampa Florida is home to many luxury homes. In addition, it is common for buyers to take out a mortgage for the purchase of their luxury homes. For many of these buyers, it is necessary to have a jumbo or super jumbo mortgage.
The question has been raised before of when it is necessary to have more than one appraisal on a property. Now, every mortgage lender has their own requirements, but in general certain high loan amounts will require an additional appraisal. The following are our appraisal requirements in regards to jumbo and super jumbo mortgages:
Generally, only one appraisal is required on loan amounts up to $1,000,000.
For loan amounts from $1,000,000 to $1,500,000, one full appraisal and a field review or two full appraisals must be completed.
Two full appraisals will be required on loan amounts greater than $1,500,000.
When two appraisals are required, generally the appraisal with the lower value will be used.
You may ask why Jumbo and Super Jumbo loans have these additional requirements. It is because of risk. Just like a borrower with a below average credit rating has additional qualifications, so do the high loan amounts associated with jumbo loans. I recently wrote a post to this subject.
If you are a local REALTOR working with a luxury home buyer, you may want to be aware of this additional requirement. Consult your mortgage professional to find out up front if you may have to have more than one appraisal completed.
If you are a luxury home buyer in Tampa Bay and would like to know your options for your purchase and jumbo mortgage requirements, please feel free to email Leah, directly for a complimentary consultation.
Leah Ross, Tampa Mortgage Consultant, proudly serving South Tampa, Davis Island, Harbour Island, New Tampa, Brandon, Westchase, Clearwater, St. Petersburg and the remaining Tampa Bay area.
A Tampa VA buyer in Clearwater recently worked with me in getting his VA approval for a home loan purchase in Clearwater, Florida. When he came to me, he was a bit concerned about qualifying for the VA mortgage because of his debt-to-income ratio. What this means is his total monthly debt compared to his gross monthly income.
Standard VA guidelines day that a lender can go up to a debt-to-income ratio (DTI) of 43%. In my Clearwater homebuyers case, he was at 55%. Oops...
With standard conventional financing, he was approved through the automated underwriting system, so the DTI was not an issue. However, for this particular home buyer, his VA funding options was the best choice to get him the lowest monthly payment, lowest closing cost and lowest interest rate. In other words, I HAD to make this work.
Luckily, I found a loop hole! With VA financing, borrowers are also qualified on their residual income, in addition to their DTI. This meant, if his residual income fit within the guidelines, we were okay to move forward with his loan approval. Now, you may be asking...what the heck is residual income? Let me explain. Residual inomce is calculated as follows:
Gross Monthly Income - (less) Federal Income Tax - (less) Social security - (less) PITI - (less) home maintenance fee (which is $.14 per square foot) - Montly credit debt
This net figure is the borrowers "residual income".
Now, if the DTI is above normal qualifying ratios (43%), then the borrowers residual income must be 120% above the residual income requirement for the region and the number of people in the household. AND, in my borrowers case, we were golden!
This VA loan worked out as approved because I found the way to make it work! If you are considering a VA loan in Tampa Bay, Clearwater, or St. Petersburg and would like to discuss your options with a Professional VA Lender, please call or email me for a complimentary consultation.
Information provided by your Tampa Mortgage Professional, Leah Ross. Proudly serving South Tampa, North Tampa, Westchase, Brandon, Clearwater, St. Petersburg and the remaining Tampa Bay area.
Troubled credit history, lack of income, no down payment...all reasons this Tampa lender has to flex my muscles. Oh yes, as this title states, I am dusting off my gloves and taken' em to the gun show!
In today's market, as a loan officer, I have to fight even harder for my customers. Recently, I had a home buyer referred to me who had a couple issues....mainly lack of sufficient overtime income to qualify for the home he wanted. So what did I do...I fought. I made a case for my buyer of why we should be able to include the overtime income he received, although he didn't have a two year history of receiving it. I showed by underwriter his previous history, the strengths in the file and most important, why this loan made sense.
Today, consumers looking for a mortgage need a lender working for them who is willing to put in the time and effort to make things happen for their customers. With my borrower, I put in about 5 extra hours on his file just getting through the income. And guess what...I got the loan approval.
Although I have not yet been caught for carrying these weapons...I break them out when I have to!
If you know someone who needs a mortgage lender who means business...I am in the ring and in your corner. Put me to work and let me flex my muscles!
Everyday I am surrounded with the issues of the current mortgage industry. From customers wanting explanations to Realtors wondering how this will affect their business. I took a moment this morning to explain my feelings on what is currently happening in the industry.
Please take a moment and watch this short 2-minute video where I discuss the current mortgage industry and what it means to you, your customers or your friends...
If you are considering purchasing or refinancing your Tampa mortgage, please call or email me for a complimentary consultation. I am happy to help you make an informed decision about your Tampa mortgage options.
Information provided by your Tampa Mortgage Professional, Leah Ross. Proudly serving South Tampa, North Tampa, Westchase, Brandon, Clearwater, St. Petersburg and the remaining Tampa Bay area.
In my South Tampa home, we have a new rule...no passing gas! The man of the house isn't too happy about it, but it is a must. He says..."it doesn't smell"...but that's the silent but deadly part. There is no smell.
Guess what...It's carbon dioxide gas and I don't want it around me or ruining my beautiful environment!
Many people believe the things they can't see or smell don't exist. Well, I am here to tell you that carbon dioxide does exist and we need to make a difference to stop global warming. I love our climate in Tampa Florida and I would like to continue to enjoy it for the next 50 years.
Imagine....Tampa being one of the cities that contributes the least amount of carbon dioxide...we could be nationally recognized. Next thing we know, everyone want to purchase and live in Tampa! Oh, what a beautiful thing it would be.
Let's work together to limit the amount of gas we pass around each other. Here are a few simple things we can do to save carbon dioxide:
Change a Light - You can save 150 pounds of carbon dioxide a year by just replacing one regular light bulb with a compact fluorescent bulb
Check Your Tires - Poor tire pressure wastes gas. Keeping your tires inflated property can improve gas mileage by 3% and every gallon of gas you save in turn saves 20 pounds of carbon dioxide
Wash Your Clothes in Cold Water - Saves about 500 pounds of carbon dioxide per year
Plant a Tree - One tree can absorb one ton of carbon dioxide over it's lifetime.
Unplug Your Electrical Devices - Unplugging electronics when they are not in use can save thousands of pounds of carbon dioxide a year.
We all want to live in the best environment possible. Here in Tampa, homeowners want nothing less. One small change can go a long way.
I have replaced over 10 bulbs in our house with the compact fluorescent model. I only wash in cold water (thank you Tide for cold water). I have 5 huge trees in my little South Tampa yard and we just bought another one to plant last weekend. I use Eco-Friendly Pest Control. And, upon doing this research, thanks to the help of one of my wonderful friends, Melissa Meehan with the Southern Alliance for Clean Energy, I have learned today about turning off and unplugging my electrical devices (thank you Melissa). If you have questions about how you can make responsible energy choices that solve global warming problems and ensure clean communities, please feel free to click here to email Melissa.
If you are interested in more information on the truth about Global Warming, please check out http://www.climatecrisis.net/
This information provided on behalf of your dedicated Eco-friendly Tampa Mortgage Professional, Leah Ross. If you are interested in ways you can make your home more energy efficient, please email or call me. I proudly offer my mortgage services in South Tampa, Tampa, New Tampa, Brandon, Westchase, Clearwater, St. Petersburg and the rest of the Tampa Bay area.
For luxury buyers in South Tampaand throughout Hillsborough County, there is a bigger hurdle for financing the dream home...the Jumbo Mortgage.
If you are not familiar with the term, "Jumbo Mortgage", it is a type of mortgage for individuals looking for a loan over the conforming loan limit. The conforming loan limit for our area happens to be $417,000. Hence, a buyer looking to purchase a million dollar home and take out a loan for $700,000 may need a Jumbo Loan.
The roller coaster events in the mortgage industry have caused lenders to take caution with the Jumbo and Super Jumbo loan market, just as they do with any other risky loans, including subprime mortgages. While the Jumbo loan market is not as bad as the subprime market, we are seeing the following affects to Jumbo loans:
~ Increase in Fixed Rate Mortgage rates, roughly 1 point higher than standard conforming interest rates
This message is meant as education for my local buyers to be aware of what to expect when setting up your Jumbo Loan. I spoke to a client today and he was a bit shocked by the difference in interest rates versus where they were a year ago...oh yes, how times change!
If you are purchasing a home in the Tampa Bay area and need to consider Jumbo or Super Jumbo loan financing and would like a complimentary consultation to your financing options, please email or call Leah Ross, Your Tampa Bay Mortgage Source.
Proudly serving South Tampa, New Tampa, Brandon, Westchase, Clearwater, St. Petersburg and the remaining Tampa Bay area.
Being behind on mortgage payments can provide a huge hurdle for borrowers looking to refinance into a more affordable interest rate. HUD recently announced a new refinance program available through FHA called "FHASecure". The refinance program is for borrower who are feeling the effects of a subprime adjustable rate mortgage and have become behind on payments because of the increase in their monthly payment.
The ideal candidate for this program is a homeowner who:
Made all their mortgage payments on time, until the adjustment of their interest rate began and caused a financial stress.
This FHA program is great because it provides flexibility in qualifying by allowing borrowers to finance their delinquent payments into their new mortgage. In addition, if the new FHA mortgage is not enough to pay off the existing first lien, including arrearages and closing costs, FHA is allowing the lender to execute a second mortgage at closing for any difference.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Tampa Florida is home to many luxury homes. In addition, it is common for buyers to take out a mortgage for the purchase of their luxury homes. For many of these buyers, it is necessary to have a jumbo or super jumbo mortgage.
Being behind on mortgage payments can provide a huge hurdle for borrowers looking to refinance into a more affordable interest rate. HUD recently announced a new refinance program available through FHA called "
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