Welcome to my Mortgage Information Center! I am going to use this forum as a blog for me to provide you with mortgage news that may help you. If you are in the real estate industry, perhaps some of my tidbits of information will help you help your customers. Many of them will have mortgage questions and I look forward to answering them for you.
Today’s topic is going to have to do with underwater home values. It’s an unfortunate reality today. Many houses are worth less than they were 3,5, or maybe even 10 years ago. People may have little or no equity in their homes, despite paying their mortgages for years (and hoping for appreciation in the market as well). This is depressing for the homeowner, for sure. It’s one thing for the price to be down from what you paid for it; it is another thing completely to OWE MORE MONEY ON THE HOUSE THAN IT’S WORTH! Many people have taken out mortgages in the past with a second loan so that they could avoid PMI. This was referred to a “piggyback” loan.
With liens, the primary loan/value of the home gives you a LTV (Loan To Value). When you add the second loan to the first loan and divide by the value of the home it gives you a CLTV (Combined Loan To Value). The LTV and CLTV are very important values when it comes to underwriting a mortgage. They can affect the rate that you receive or even make you ineligible for a loan.
DU Refi Plus is a program that we offer at Benchmark Mortgage to address this huge problem of homes being “under water”. Starting on Feb 1, 2013, we are able to consider refinancing a mortgage with a maximum of 95% LTV and UNLIMITED CLTV! This news just came out so I wanted to pass it on to you. I look at this as an incredible opportunity for people who thought that they would never be able to refinance to explore this option.
If you have any questions about what kind of mortgage is right for you, I can be reached at 508-269-1882 or emailed at email@example.com
Thank you for reading my blog and come back soon. I will be adding more content often.
NMLS ID 984202
26 Howland Street
Plymouth, Ma 02360