Mortgage refinancing opportunities now exist for nearly all homeowners. Regardless of your financial situation or if you have a bad mortgage, there is now Government backed mortgage refinancing help available. Never before has such an extensive plan been enabled that offers so many homeowners help. Here is what you need to know so you can use this plan for yourself.

This $75 billion Government program is designed to help homeowners, reduce foreclosures, and help the housing market. Never before has a plan existed that offered help to so many homeowners. This money is being given to mortgage lenders and banks who help homeowners and approve them for refinancing. With this money, the lenders and banks can take more risks and help more people in bad financial or mortgage situations.

Many people are at risk of losing their home to foreclosure. Many more have missed or been late on their home loan payments. This program offers new mortgage payments which will be lower every month through new mortgage refinancing choices. These choices include interest rates as low as 2%, approval for homeowners with bad credit, and help for homeowners with an upside down mortgage.

Homeowners are encouraged to get help for themselves using this program from President Obama. This mortgage stimulus will help an estimated 8 million homeowners get help with their home loan and save themselves from a foreclosure. If you are struggling to make your payments, take action now and get help. This program is here to help homeowners in all types of situations. If you need help, odds are that it exists for you. You must get it for yourself though. Take action and get a mortgage refinancing.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-refinancing-for-millions-of-homeowners-with-obamas-stimulus-1599404.html

Jumbo loans are non-conforming, fixed rate loans for purchases and refinances that require larger loan amounts than Fannie Mae and Freddie Mac will allow. Currently, Fannie and Freddie’s “conforming” loan limit is $417,000. If your purchase or refinance requires a loan amount that is $1.00 over that conforming loan limit, you are now in need of a jumbo mortgage. Because jumbo mortgages can be complex and extraordinary, your needs are best served by an experienced jumbo loan specialist like John Moneypenny.

Jumbo mortgages offer you many benefits. Here are just a few:

1. Loan amounts up to $3,000,000 provide you with more borrowing power.

2. SunTrust’s “interest only” option gives you flexibility in your payment options, enhanced cash flow, and a lower monthly payment.

3. Our “No Income Verification” option eliminates the need for us to verify your income. This means that your all-important “qualifying ratios” will be calculated on the income that you disclose on your loan application.

4. Our in-house Automated Underwriting System can determine your loan eligibility quickly and easily. This will save you time, help expand your qualifying ratios, and increase the possibility that the documentation we will need from you will be reduced (AUS eligibility applies to loan amounts less than or equal to $1,000,000).

5. You will enjoy lower closing costs on loan amounts up to $1,000,000 because we only require one appraisal instead of the typical two appraisals.

Because the interest rate on a Jumbo mortgage ($417,000+) is slightly higher than the interest rate on a non-jumbo loan, many clients choose to structure their financing using two mortgages. This strategy involves taking out a first mortgage that is less than the $417,000 conforming loan limit and combining it with a second mortgage to cover the total loan amount needed. For example, if you need a $600,000 mortgage to purchase your new home, you may be better off selecting a $400,000 first mortgage and a $200,000 second. This not only keeps the interest rate lower on the first mortgage, but also may eliminate your need for costly mortgage insurance if your loan-to-value ratio on a single mortgage would be higher than 80%.

Another benefit of this technique is that you will have a wider selection of loan products available to you such as 5/1, 7/1, and 10/1 adjustable rate mortgages that, depending on your projected time frame for keeping this property, may be less costly than the typical 15 or 30 year fixed mortgage.

These are just a couple of crucial items that you need to know about jumbo loans. That’s why you need to work with a professional, jumbo loan specialist who can help you determine which jumbo loan strategy will minimize your costs, maximize your cash flow, and reduce your tax liability.

Author: John N. Moneypenny
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To be considered for a low down payment loan, you generally need to have:

1. Sufficient income to support the monthly mortgage payment

2. Sufficient cash to cover normal closing costs and related expenses (explained below)

3. A good credit background that indicates your payment history or “willingness to pay”

4. Sufficient appraisal value, which shows the house is at least equal to the purchase price

5. In some instances, a cash reserve equivalent to two monthly mortgage payments

Closing costs, or settlement costs.

Are paid when the home buyer and the seller meet to exchange the necessary papers for the house to be legally transferred. On the average, closing costs run approximately 2% to 3% of the house price. This percentage may vary, depending on where you live.

Examples of closing costs are the loan origination fee (if not already paid), points, prepaid homeowner’s insurance, appraisal fee, lawyer’s fee, recording fee, title search and insurance, tax adjustments, agent commissions, mortgage insurance (if you are putting less than 20% down) and other expenses. Your mortgage professional will give you a more exact estimate of your closing costs.

Points are finance charges that are calculated at closing. Each point equals 1% of the loan amount. For example, 2 points on a $100,000 loan equals $2,000. The more points you pay, the lower your interest rate will be. In some cases, you may be able to finance the points.

So How Much of a Mortgage Can You Afford?

There are two basic formulas commonly used to determine how much of a mortgage you can reasonably afford. These formulas are called qualifying ratios because they estimate the amount of money you should spend on mortgage payments in relation to your income and other expenses.

It is important to remember that the following ratios may vary and each application is handled on an individual basis, so the guidelines are just that — guidelines. There are many affordability programs, both government and conventional, that have more lenient requirements for low- and moderate-income families.

Many of these programs involve financial counseling for low- and moderate-income people interested in buying a home and in return, offer more lenient requirements.

Generally speaking, to qualify for conventional loans, housing expenses should not exceed 29% to 33% of your gross monthly income. For FHA loans, the ratio is 29% of gross monthly income. Monthly housing costs include the mortgage principal, interest, taxes and insurance, often abbreviated PITI. For example, if your annual income is $30,000, your gross monthly income is $2,500, times 28% = $700. So you would probably qualify for a conventional home loan that requires monthly payments of $700.

Any expenses that extend 11 months or more into the future are termed long-term debt, such as a car loan. Total monthly costs, including PITI and all other long-term debt, should equal no greater than 33% to 36% of your gross monthly income for conventional loans. Using the same example, $2,500 x 36% = $900. So the total of your monthly housing expenses plus any long-term debts each month cannot exceed $900. For FHA the ratio is 41%.

Maximum allowable monthly housing expense

26% – 28% of gross monthly income – Conventional
29% of gross monthly income – FHA

Maximum allowable monthly housing expense and long-term debt

33% – 36% of gross monthly income – Conventional
41% of gross monthly income – FHA

When budgeting to buy a home, it is important to allow enough money for additional expenses such as maintenance and insurance costs. If you are purchasing an existing home, gather information such as utility cost averages and maintenance costs from previous owners or tenants to help you better prepare for homeownership.

Homeowner’s insurance or property insurance is another cost you will have to consider. The lending institution holding the mortgage will require insurance in an amount sufficient to cover the loan. However, to protect the full value of your investment, you might want to consider purchasing insurance that provides the full replacement cost if the home is destroyed. Some insurance only provides a fixed dollar amount which may be insufficient to rebuild a badly damaged house.

Author: Ronnie Bolton
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More Home Equityquestions please visit : RefinanceFreeFAQ.com

RefinanceFreeFAQ.com

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Mortgage refinancing is easier than ever thanks to over $75 billion in funding from President Obamas “Making Home Affordable” plan. This stimulus program is designed to assist all homeowners get a mortgage refinancing or modification into a new monthly mortgage payment that is low enough to be affordable. Here is some information you will need if you want to refinance a mortgage with Obamas stimulus program:

This program is designed to help homeowners in all sorts of financial situations. Even if you have bad credit or owe more than your home is worth, help is available from Obamas stimulus. Never before has such a program been in place that has the promise of helping so many people. An estimated 8 million homeowners are eligible for this stimulus program. This is great news as right now foreclosures and mortgage defaults are at all time highs.

This money is only given to mortgage lenders and banks who help homeowners in accordance with President Obamas guidelines. That means that millions of people in all types of financial situations can get the help they need right now, regardless of their past. The mortgage lenders and banks are anxious to approve homeowners in order to get cash incentives from the Government. This money enables them to help even more homeowners and covers some of their financial risks when approving struggling people for a mortgage refinancing. That is great news for homeowners who have bad credit, a tough financial situation, or who actually owe more than their home is worth.

Getting help with President Obamas mortgage bailout plan is easy, regardless of the finances of the homeowner. Never before has such a huge plan been enabled which would help so many homeowners. This is all an effort to reduce foreclosures and increase stability in the housing market and overall economy. Get the help you need now before your situation gets worse.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/president-obamas-mortgage-refinance-and-modification-stimulus-program-1584859.html

Home sales picking up? Not from the help of the jumbo mortgage market.

So for in 2009 the industry once booming known as the mortgage industry has seen the lowest interest rates in 50 years and on top of that the government has given unprecedented first time home buyers tax credits up to eight thousand dollars just to buy. Just the fact that refinancing is showing some signs of life with long term mortgage rates such as the 30 year fixed home loan in the 4.5% range is an important sign we’re at a turning point in economic recovery. Jumbo mortgage rates are loans that go beyond the limits of a conforming also known as Fannie Mae mortgage. Those limits are set by Fannie Mae and Freddie Mac. The maximum loan size is $417,000 for a single family residence which is quite often below the median loan amount in most areas especially in California. The conforming jumbo was created to address this issue and goes up to about $729,000 in some counties. Before the housing market collapsed the difference between Jumbo rates and conforming mortgage rates was as low as.25%. The difference now is big, almost 2 1/2 percent.

Without the good old portfolio lenders like World Savings, remember them, Jumbo loan availability has dwindled as the risk involved dries the ink out of the underwriters approval stamps. Jumbo mortgage loans were already considered high risk previous to the market collapsing. Today, this risk is shown in the high mortgage rates. Even though banks are stacking up big money with investors playing it safe with savings accounts credit is squashed. The rise in refinance applications on conforming mortgages is just another result of lower interest rates and we can only hope that soon the government takes bold moves to lower the rates and increase the available credit on the once prosperous true jumbo loan. With most of the old jumbo loan lenders out of business except for a few it’s more important than ever for a homeowner to be tedious in their search for a jumbo mortgage.

You don’t want to take the first bank that will approve you. Though it might take some research and shopping on part of the homeowner, more than usual, field a few competitive offers and negotiate just as you would in the flowing credit market. You may be surprised with what good rate you can find despite the negative news surrounding the credit market in particular the mortgage industry.

Author: Edward Ferrara
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Here are the three options you have when looking for a true no down payment mortgage loan. I’ve also laid out some details of each program, so you can get an idea of what they are all about.

1. VA (Veterans Affairs) Mortgage Loan – Whether you or your spouse are currently in active duty or a military veteran, you can be eligible to obtain a VA mortgage loan. No down payment is required with this loan program. A VA loan has many benefits for military personal, that is should be taken advantage of. Here are the list of benefits that come with a VA mortgage loan…

• No down payment.
• Less of a PMI (private mortgage payment) payment.
• Favorable and secure 30 year fixed interest rates.
• No minimum credit score to qualify. Even if you have bad credit, a VA loan is approved based on your ability to show you can afford the mortgage payments. You have two ways to be approved. 1. Approval through an automated underwriting engine. 2. A manual underwrite. Sometimes, the automated engine doesn’t approve your application, but that’s ok. It still allows your application to be underwritten manually by an underwriter. Basically, if you can show ability to pay the mortgage with good employment history, you will most likely be approved.
• You may be able to obtain a VA loan multiple times. A form called the, Certificate of Eligibility, is required when applying for a VA loan and this determines whether or not you have enough “eligibility” left to qualify for another VA loan. Sometimes, a borrower doesn’t use all of his/her eligibility, which can be used again for a future purchase on a new home.

2. Rural Housing Mortgage Loan – If you find a home in a rural area and your adjusted annual gross income doesn’t exceed the moderate income limits for the area, you can qualify for a rural housing mortgage loan. No down payment is required with this loan program. A rural mortgage loan has many benefits for a borrower that is looking to purchase a home in a rural area. Here are the list of benefits that come with a rural mortgage loan…

• No down payment.
• No PMI. (private mortgage insurance)
• Favorable and secure 30 year fixed interest rates.
• Seller can pay up to 6% of the purchase price, to the buyer, for closing costs and prepaids. This allows the buyer to truly not have to bring money to closing, since there is no down payment.
• You may finance up to 102% of the appraised value or purchase price, whichever is lower. The 2% is meant to finance the closing costs and prepaid items like the escrow account, so you truly do not have to bring money to closing.

3. FHA Mortgage Loan With A Down Payment Assistance Program – If the seller agrees to participate in a down payment assistance program, the buyer can use these funds towards his 3% down payment when applying for a FHA loan. This is how you can truly do a no down payment FHA mortgage loan. A down payment assistance program allows the seller to gift 3% of the purchase price to a 3rd party service, which in turn the buyer can use the 3rd party service and it’s funds for the down payment. Here are the list of benefits that come with a FHA loan…

• No down payment, when using a down payment assistance program.
• Less of a PMI (private mortgage insurance) payment.
• Favorable and secure 30 year fixed interest rates.
• No minimum credit score to qualify. Even if you have bad credit, a FHA loan is approved based on your ability to show you can afford the mortgage payments. You have two ways to be approved. 1. Approval through an automated underwriting engine. 2. A manual underwrite. Sometimes, the automated engine doesn’t approve your application, but that’s ok. It still allows your application to be underwritten manually by an underwriter. Basically, if you can show ability to pay the mortgage with good employment history, you will most likely be approved.

I specialize in helping people obtain no money down mortgages, even when it seems others say they cannot finance 100% of the purchase price.

Learn more atmy personal website www.homeloanwisconsin.comand see how I can help with all your mortgage financing in Wisconsin.

Author: Joshua Bucio
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Do you want to get the best rate mortgage? Doing so can result in thousands of dollars worth of savings. Imagine saving $10,000. These are the savings that can be seen with the information contained here!

There are all different mortgage packages out there. These are all financial packages that all promise the same thing. They promise that you will get the best to be able to buy a home with.

The main difference between these packages is the level of interest. The higher the interest, the more it will cost over the course of the loan. To get the best, you need the lowest levels of interest.

There are many ways to go about this, by far the easiest, is to go online, where you can find a number of different sources.

The tabloids, television and even radio are all other great resources. The main thing people do is go to a bank, but they can prove to have the highest levels of interest, so it may be better to also look to a broader view.

With so many options it is not that difficult to find the best packages. It may need some research, but it will pay off in the long term.

Consider this, the internet offers better levels, because it generally benefits the lenders. They don’t have as many costs as what they might need with having telephone calling centres with lots of staff.

The result is big savings, and the benefit is that it is a win-win.

Author: Sarah Reddingworth
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     If you are sixty-two years old or older, looking for funds for home improvement, pay off your current mortgage, supplement your retirement income or for healthcare purposes, you might put into consideration a reverse mortgage. This mortgage allows you to convert part of your home equity into cash without having to pay additional monthly bills or sell your property.

     There are three kinds of reverse mortgages. First are the Single-purpose Reverse Mortgage and the least expensive. This is used for a single purpose only as specified by a non-profit lender or the government. Most homeowners with low or moderate incomes may qualify for this. Second and third, is the Home Equity Conversion Mortgages or HECMs and backed the U.S. Department of Housing and Urban Development and the Proprietary Reverse Mortgage financed by its developers.

     Both Proprietary Reverse Mortgages and HECMs are more expensive than most conventional home and loans and their up-front costs are high. You might want to consider these kinds if you are planning to stay in your property for a short time or else borrow a small amount of money. These loans need no income or medical requirements, are widely available and for multi-purpose use.

     Consult a counsellor from a government-approved housing counselling agency before you apply for HECM mortgage. Some lenders that offer proprietary reverse mortgage may require you for counselling. He or she should be able to explain the expenses, financial implications and alternatives of the HECM and help you compare the costs of these two types of mortgages. The amount that you loan from a HECM or proprietary mortgage will depend on factors such as the type of mortgage, value of your home, your age and the present rates of interest. In general, the older you are the more equity you can have in your home and the lesser amount that you owe means the more money you get.

If you are interested of a reverse mortgage, here is what you should know:

1. Generally, for HECMs, lenders will charge a mortgage insurance premium, origination fee and other costs of closing. Some may charge you service fees for the duration of the mortgage. Currently, the law dictates the origination fees for HECM.

2. Although some reverse mortgages have fixed rates, most have variable rates that are tied to a financial index and are likely to alter with the market conditions.

3. The amount owed in a reverse mortgage increase over time. The interest is charged on the outstanding balance, added to your monthly fees. This means that the total debt will decrease as the funds are advanced into the loan interest.

3. A reverse mortgage could use up some or all of the equity of your home and leave a few assets for your heirs. Most of the mortgages have nonrecourse clause that prevents you from owning more than its value.

4. Since you will retain the title to your property, you are responsible for the property taxes, insurance, utilities and other costs. If you fail to pay these and maintain your home condition, the loan may become due and payable.

5. If your home is of higher value, you could get a higher amount, but this could mean higher expenses. It is best to do a side-by-side comparison of the benefits and expenses of these two kinds of mortgages.

6. You can cancel your deal within three days without paying a penalty. You have to write a letter to the lender and send through registered mail and request for a return receipt that will allow you to document the letter and the date received by the lender. It will take twenty days for the lender to return any money you paid for financing.

     Remember that regardless of the kind of reverse mortgage you are planning, you should understand the conditions that could make your loan due and payable.

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A jumbo loan is different than a conventional home loan also called a conforming loan. A jumbo loan is a loan that is in excess of Fannie Mae guidelines. Fannie Mae’s limit can change each year but due to the decline in home prices it is unlikely to rise annually as it has done since 1999. The current conforming loan limit is $417,000 so a jumbo loan is a mortgage above $417,000. In addition, the interest rate is usually higher than a conforming loan and considered to have more risk to lenders.

A jumbo loan is considered a non-conforming loan. The majority of mortgage loans by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done. Although most mortgage loans that are done in the USA are conforming there are high-cost areas that demand jumbo loans such as California, Florida, New York, and other high cost states. If you are a resident of California and are searching for a jumbo loan approval, the internet is an excellent place to start your jumbo loan quest for a few reasons. One reason is there are many online lenders competing for your home loan so they are obliged to offer their low rates to get you as a client. As an example, a local mortgage company, who has a good flow of business, may not be as motivated to give you the lowest closing costs or the lowest available rates, when his competition is basically local. But, when you have a large group of online mortgage companies wanting your business, you are more than likely to get a better rate.

I am convinced, so where is the best place to get a jumbo loan? There are numerous mortgages companies online who can offer you rate quotes from multiple mortgage companies or loan officers. These companies will be able to provide you with quotes from up to 4 different mortgage companies. This is an excellent way to find a low rate versus searching around in your local yellow pages. Always be certain to request a good faith estimate of closing costs from each competing mortgage company for comparison reasons. It may surprise you but sometimes a higher interest rate and lower closing costs may make more sense depending on your goals. This type of comparison can be provided by sophisticated loan officers and companies who can estimate home appreciation, your income tax bracket, your job income, closing costs, etc. scenarios, in a pro-forma type analysis. Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.

Author: Frank Collins
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