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Real Estate Agent with ACME Real Estate

A recent story published in the New York Times reminds us that there is more than one way to lower your mortgage payment.

Homeowners looking to lower their monthly mortgage payments and reduce their interest rate may be able to do so without refinancing.  A little-known strategy called recasting or re-amortization is available through some mortgage lenders and servicers, and eliminates the hefty fees and daunting credit requirements of refinancing.

    * Re-amortization requires borrowers pay off a lump sum of the principal amount on the mortgage and asking to have the monthly payments reset according to the original interest rate and loan terms.  The lump sum reduces the principal, so the new monthly payments decrease slightly and interest paid over the life of the loan is reduced.

    * Lenders typically charge an administrative fee of $150 or more to re-amortize a mortgage; however, borrowers are not required to pay closing costs or submit to another credit check.

    * Re-amortizing works well for homeowners unable to qualify for refinancing, especially those who are self employed or have low poor credit.

    * Homeowners consider re-amortizing their mortgage should be aware that some lenders require a minimum amount to be paid toward the principal in the lump sum.  JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.

    * Another challenge is finding a lender, or loan servicer, that offers re-amortizing.  JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and Dept. of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

READ THE FULL STORY HERE: http://www.nytimes.com/2011/01/02/realestate/mortgages/02Mort.html?_r=2&ref=realestate

Courtesy of C.A.R. Market Matters 2011.


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Courtney Poulos, Realtor, GREEN, EcoBroker Certified | 323.919.0375 direct | DRE 01882678



Posted by
Courtney Poulos, Realtor, GREEN, EcoBroker Certified | 323.919.0375 direct | DRE 01882678

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you for reminding me of the process.  Although most of my clients are have job problems.

Jan 13, 2011 06:10 PM
georges kfoury

<a href="http://www.leaderscorpfinancial.com/ "><h1> Mortgage industry after April of 2011 </h1>

I believe the answer to that, would be for the mortgage brokers and mortgage bankers to give more then what the big banks are giving to the public and to the real estate industry. It's a simple philosophy give and you will get much more in return. We have set our path for 2011 strategy and the execution of our strategy will begin in January 15th of 2011. Our strategy will create opportunities for real estate agents to have more business and develop for them a strategy for continuous growth in return to have a massive bonding strategy between the real estate agents in our market with our loan officers in exchange for the value that is provided by the services and the strategies we bring to our industry. All we would like to ask for the loan officers, the mortgage brokers and mortgage bankers that are in the industry and they are facing some financial trouble or facing frustration of growth and development for their office or their company to join us on Facebook and join our company so we could put our hands together and promote what banks can't promote, give the public and the real estate industry something that has never been provided and asking nothing in return.

Our formula for success in 2011 is the way of conquering markets, it's the new way to conquer this industry lets come together and turn this industry to our benefit and show the banks how hard it is going to be for them when we are taking their business away, and how much this industry is in a need for our breed of professionals.

facebook: http://www.facebook.com/apps/application.php?id=164247740284042&v=app_6009294086

twitter: http://twitter.com/#!/georgesleaders


Jan 16, 2011 02:37 AM