Real estate blog entries tagged with refinance by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709)

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refinance: TOO PAY OFF YOUR MORTGAGE EARLY OR NOT? - 07/10/12 10:55 PM

"Too Pay Off Your Mortgage Early or Not?”

It is not the same answer for everyone. I carry on this conversation with every client. Here are some thoughts to decide if you should prepay your mortgage. Please know that these suggestion may be different if rates where higher than they are now.

If you had an additional $200 per month, here is the question you need to ask. Can I earn a higher rate of return, putting the money into an investment account that can earn more than the rate of interest that I am paying on my mortgage?
… (1 comments)

refinance: A STUDY REGARDING FHA LOANS ORIGINATED BETWEEN 2007 AND 2009 - 07/08/12 10:28 PM

“Study Says 40% of FHA Loans to Become Delinquent in the Next 5 Years, that were Originated Between 2007 and 2009”
The study was done by the Federal Reserve Bank of NY and NY University. I would love to know what the statistical data they used to come up with these brilliant results????
I just read the article again, it’s beyond stupid. It is amazing to me that these two institutions would attach their names to something like this and make it public. Unbelievable……………….
FHA Underestimates Mortgage Delinquency Rates

(Bloomberg) — More than 40 percent of the U.S.Federal Housing … (2 comments)

refinance: ANOTHER CREDIT CARD COMPANY, NOW DOING MORTGAGES - 07/01/12 11:04 PM

“Another Credit Card Company, Now Doing Mortgages”
When I was growing up, I continually came up with different ideas to make money. From time to time I would pitch these ideas past my parents. What they must have thought, when I came up with what I thought were brilliant ideas.
One thing that my dad would always say to me, was “You have to succeed at what you know how to do best.” Yes, there are examples that just the opposite worked out, but that is the exception to the rule.
Many, before Discover Card, have waded into mortgages and … (4 comments)

refinance: REASONS NOT TO REFINANCE WITH THESE LOW RATES - 06/26/12 03:48 AM

“Reasons NOT to Refinance at These Low Rates”
There are numerous reasons someone should not refinance at these low rates. The article below mentions three, one of which really isn’t a good reason, but there are many.
Just to address the first reason in the article, it says not to refinance because you own more for your home than the property is worth. This is not a good reason. If the mortgage is owned by Fannie Mae or Freddie Mac, a HARP 2 loan can most likely lower your interest rate, which in most cases can save homeowners about 2% interest. … (7 comments)

refinance: FHA STREAMLINE REFINANCE A TREMENDOUS OPPORTUNITY - 06/22/12 01:31 AM

“FHA Streamline Refinance a Tremendous Opportunity”
I took a mortgage application last week, from one of my past clients. Her goal was to lower her monthly payment. Brenda purchased her home in 2008 and paid $220,000, at the time we did an FHA mortgage, at a rate of 6.625%.The estimated value was $178,000 and had a mortgage balance of 196,000. Her monthly payment was $1,766.
With the new FHA streamline product, appraisal was not a prerequisite and her interest rate would be just about cut in half. Her new payment was $1,306.
This streamline product, reduces the mortgage insurance premium … (7 comments)

refinance: BIGGEST HOME EQUITY JUMP IN 60 YEARS - 06/21/12 04:02 AM

“Biggest Home Equity Jump in 60 Years”
Home buyers, need to read more information like this. This type of news needs to be shared with them, as there will be a perfect storm in the future. Interest rates will eventually start moving up and real estate values will continue to stabilize and move up. That may mean some folks won’t be able to buy.
We all need to continue to take fear out of the minds of the home buying public. I still see fear as a biggest reason, many folks are sitting on the fence.
Americans Sees Biggest Home … (2 comments)

refinance: HARP 2 IMPROVEMENTS ALLOWING LOANS TO CLOSE - 06/14/12 08:59 PM

HARP 2 Improvements Allowing Loans to Close”
We are actually closing these loans. As most everyone knows, the HAMP refinance guidelines were a complete bust. This new and improved version is actually allowing us to close loans for our clients, that owe more than their homes are worth.
For the loans we have closed so far, the average savings is just under $400. That is real money. We are closing 7 out of every 10 mortgages. They are not a walk in the park, there’s a lot of hoops, but to a homeowner that wants to keep their home, the savings … (0 comments)

refinance: HARP 2, WORKING WELL FOR THE MOST PART - 06/06/12 02:06 AM

Working Well for the Most Part
There is still a lot of frustration with the product and the process, but we are not complaining. We are closing these loans and saving these clients serious dollars. All of these folks were not able to refinance previously, because the value of the homes were less than the mortgage.
It is constantly amazing to me, how many banks and credit unions are just not willing to do these refinances, even though it is in the best interest of the client. Many of these institutions are referring this business to us, good for us.
… (5 comments)

refinance: DROPPING THE SALES PITCH - 06/02/12 01:02 AM

“Dropping the Sales Pitch”
A couple of months ago, I received a referral from an AR member from the Atlanta area. She told me that she had a friend from MA, that wanted to refinance he condominium. She told me that the condo was valued at $500,000 and that the existing mortgage was $350,000. She gave me her friends contact information and the rest was up to me.
I contacted Millie, who was a delight to speak with. She told me that she already had interest rate quotes from three different companies and wanted me to give her a quote as … (9 comments)

refinance: SENATE PROPOSAL TO REVISE HARP 2 - 05/30/12 02:11 AM

Senate Proposal to Revise HARP 2”

I have commented a number of times regarding some of the problems with the HARP 2 program. It is certainly way better than the HAMP program that was a complete bust. Some of the issues that I have written about are now being proposed that would make more people eligible.

We are closing HARP loans, which is helping many that own homes that have more debt than the properties are worth. These folks are not willing to default on their mortgages, but want to take advantage of lower interest rates.

… (5 comments)

refinance: MORTGAGE BANKERS ASSOCIATION PREDICTS LOWEST LENDING LEVELS IN 5 YEARS - 05/29/12 11:13 PM

”Mortgage Bankers Association Predicts Lowest lending levels in the Last 5 Years”
I would like to understand where they get some of these numbers. Are there any Realtors doing less business this year than they did last year or the year before, if so, not many. Are there any mortgage brokers or mortgage bankers doing less business this year, compared to last year, if so, not many.
So being a numbers guy, I don’t understand how the MBA can make the prediction that it's making.
OK, let the prognosticators keep making predictions that we are all going to be doing … (2 comments)

refinance: OVERDUE BORROWERS RELUCTANT TO ASK FOR HELP - 05/24/12 09:45 PM

“Overdue Borrowers Reluctant to Ask for Help”
Six months ago clients came to me, asking for some advice. They told me they had gotten behind on their mortgage and didn’t know what to do. I asked them if they had contacted the servicer, they answered no. They told me, they didn’t know what to say. I asked them if they had attempted to get a modification done, they said yes, but where denied. I asked why they said, they didn’t know. I asked them why they didn’t reapply, they were not aware they could.

My advice to them was simple, … (2 comments)

refinance: THE NATIONAL FLOOD INSURANCE PROGRAM DUE TO EXPIRE SOON - 05/23/12 11:01 PM

“The National Flood Insurance Program Due to Expire Soon”
May 31st to be exact. Unless Congress and the Senate acts quickly, there will be a problem getting mortgages to close where flood insurance is a requirement. Wake up, is anybody home?
There is no reason for any hold up to get this bill extended so that people’s lives don’t get disrupted. This is not a political issue, it is a common sense issue. Wake up, is anybody home?
May 31 Deadline Looming on Flood Extension
By: Brian Collins
The National Flood Insurance Program is due to expire at the end of … (1 comments)

refinance: HARP 2 CHALLENGES AND OPPORTUNITIES - 05/22/12 10:51 PM

“HARP 2 Challenges and Opportunities”
Many of the challenges that lenders experience are turning into opportunities for us. Many of the lenders have limited the loan to value. Many are only going up to 105% of the value of the property, which kills a lot of transactions. I have a number of lenders that will go up to 150%, which is a huge difference. There continues to be talk of higher than 150% loan to value that will be coming in the near future.
In the first couple of weeks that the program came out, two transactions came to me after … (3 comments)

refinance: GUIDELINES FOR GETTING A MORTGAGE AFTER FORECLOSURE, SHORT SALE OR BK - 05/21/12 03:53 AM

What are the Guidelines for Getting a Mortgage, After a Foreclosure, Deed–in-lieu of Foreclosure, Short Sale or Bankruptcy?

I hear such bad information out there when it comes to how soon someone can get a mortgage after a foreclosure, short sale or bankruptcy. Yes, there are excepts, but I would follow the guidelines below.

I am referred many clients after a they have gone through one or more of these events. I immediately start the process of educating them regarding rebuilding credit. Just because these time periods have gone by, but if they haven’t handled their credit, they still … (6 comments)

refinance: WHY AREN'T MORE HARP LOANS CLOSING? - 05/17/12 03:32 AM

“Why Aren’t More HARP Loans Closing?” The HARP program isn’t asking the lender to take a principal reduction, just an interest rate reduction. The majority of these homeowners have paid their mortgage on time, but their real estate values dropped. These homeowners didn’t cause the values of their homes to drop and they want to continue owning the properties. Why make this refinance process as difficult as it is? If these folks obtain an interest rate that drops, they have more dollars to spend every month, that will help the overall economy. Right now, I am getting 7 out of 10 … (5 comments)

refinance: MANY WANT TO REFINANCE AND CAN'T - 05/14/12 03:40 AM

“Many Want to Refinance and Can’t”
Yesterday was a very tough day. When I can’t help someone refinance, it is really tough to say to them, I’m sorry, there is nothing I can do to help.
Randie called me,saying that she was referred by her dad. They purchased a home in 2004 and refinanced in 2006, at the time the mortgage was $200,000. They are paying 8.05% interest and is not a loan that is owned by Fannie or Freddie, so a HARP 2 loan is not possible. The property value is estimated at $175,000. They do not have money … (3 comments)

refinance: MORTGAGE BANKER SAYS MORTGAGE APPLICATIONS HAVE DECLINED - 04/16/12 10:34 PM

“Mortgage Banker Says Mortgage Applications Have Declined”

Every time I read an article like the one below, I wonder if we are on the same planet. Real estate sales continue to be stronger this year of last, which means more mortgage applications, so I struggle with the math.

HARP 2 refinances are an added boost the to the refinance activity. Here is no shortage of Fannie Mae or Freddie Mac loans that are upside down. Again, I struggle with the math, but no matter, it’s all good.

Mortgage Applications Decline 2.4% From Week Before: MBA
By: Ryan … (1 comments)

refinance: REFINANCE BUSINESS WILL NEVER END - 03/29/12 02:08 AM

“Refinance Business Will Never End”
I have to turn clients away, that cannot refinance today, for one reason or another. In most of these situations they are merely postponing the refinance process.
I took a mortgage application yesterday. I had met with this couple 6 months ago and could not help them at that time. There were a number of issues that we had to deal with to get the refinance accomplished. They were desperately wanting to get out from under an 8.25% interest rate, but the debt ratio was too high.
He was getting a raise from $2,200 per week … (2 comments)

refinance: LOAN OFFICERS EXPRESSING THEIR VIEWS REGARDING FHA PREMIUM HIKES - 03/23/12 11:19 PM

“Loan Officers Expressing Their Views Regarding FHA Premium Hikes”

Here is the bottom line, the Mortgage Insurance Premium, will go up to 1.75% from 1%. If it is a $200,000 mortgage, the premium goes from $2,000 to $3,500.
Next, the monthly mortgage insurance would go from 1.15% to 1.25%, so on the same loan we go from $193.58 to $211.98.
I know there are people that are saying what’s the big deal, I’m sorry, but it is a big deal. It may be the difference between someone getting approved or not getting approved. These increases especially hurt first … (6 comments)

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