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“Mortgage tips”: Refinance & Mortgage Tips: Down Payment From 401k Or 403b Retirement Annuities

admin — Mon, 17 Oct 2011 01:34:19 +0000

If you are purchasing a home and have a substantial portion of your assets inside of a retirement account such as a 401K, 403B or other retirement product or annuity, you may choose the increasingly popular option of tapping those funds to make a down payment on your new home. Like any other accounts you may have in your name, such as brokerage accounts and bank checking, savings and money market accounts, most popular retirement accounts qualify as assets to be counted toward your “reserves”, a measure used by mortgage lenders to determine how many months of payments you must have in order to serve as a buffer covering payments you might miss if there were any interruption of your income. Retirement accounts such as 401(k) or 403(b) annuity accounts are generally administered or sponsored in whole or in part by your employer. In addition to serving as excellent documentation of your earnings and savings, your 401K or 403B accounts can be used in a variety of ways to help finance your new home purchase. Depending on the specific restrictions applied to your account, you may have the option of withdrawing money directly from the account or “borrowing” money in the form of a loan (against your own funds) which is repaid at a generally low rate of interest. Regardless of whether you cash money out of your account or take a loan against it, be sure to thoroughly document any details of the transaction, including any withdrawal or loan application paperwork, demand drafts, cashier’s checks, deposit tickets, etc. for the purpose of substantiating this source of funds to your lender. Lenders do treat down payment money from retirement accounts differently from program to program and state to state, sometimes from case to case. In particular, borrowing money in the form of a loan may increase what the lender’s perceives as your monthly debt obligations, because even though you are borrowing money from your own account, you are still obligated to make a payment every month which you wouldn’t have to make otherwise, and lenders will often consider this to be detrimental to your qualifying DTI or Debt to Income Ratio, making it harder to borrow as much money as you may need. On the other hand, cashing out any type of retirement account will always create a taxable event and sometimes also a penalty fee, which generally accounts to more than the nominal interest rate common to the loan option. Speak with your loan officer about the requirements of your individual program and weight the options with him/her or another trusted financial professional. You may also consider speaking to your employer about any down payment assistance programs which may be available to you as part of your benefits package. These can come in many forms, but it is important to clarify with your employer that any down payment assistance granted does not amount to a loan and that there is no expectation of payment. Why would an employer want to help you make a down payment? Call them old fashioned, but most companies do want their employees to stick with them, and if your employer helped you achieve ownership of your dream home, how would you feel about them? As with the 401K, 403B or other retirement account options, down payment assistance from your employer should be documented in detail and all copies of communication, checks, deposit tickets and statements of account, along with signed records stipulating that the funds are given freely and not to be repaid, should be kept for submission to your lender.

Hopefully you found this article helpful, it was provided by JVM Lending, the leader in CA Home Loan and CA Mortgage.

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Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Re-Finance

admin — Sat, 15 Oct 2011 22:40:28 +0000

Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Re-Finance

Mortgage Rip-offs and Money Savers reveals how the mortgage industry cheats borrowers out of billions in extra costs every year. Mortgage industry insider Carolyn Warren taps her decade of experience with lenders to expose the tricks, lies, and dirty little secrets they don’t want you to know. With her expert guidance, borrowers will save tens of thousands when they avoid the traps so many consumers fall into. Having this inside information is the only way borrowers can truly get the best possib

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“Mortgage tips”: Down Payment With Gift Letter And Refinance Mortgage Tips

admin — Fri, 07 Oct 2011 07:33:50 +0000

If you are a first time home buyer who has been out shopping for that dream house, you’ve probably already heard your real estate agent or property developer’s first question: “How much will you be putting down?” If you have excellent credit, several years of consistent income on record and a relatively long history of using credit wisely, you may qualify for 100% financing, often referred to as a “No Money Down Mortgage” or “Zero Down Home Loan”. But for the majority of new borrowers, a down payment is a prerequisite to buying a house, and finding 20% to 30% or more of the purchase price of a house can very often entail getting the money from family or friends. Getting that much money together can be tricky enough, however lenders will also require that every dollar used for a down payment be documented back to a specific funding source, and this can be particularly difficult when the money comes from a third party, which is why we have “Gift Letters”.

Newlyweds and young people generally have neither sufficient credit history nor income consistency to qualify for 100% financing, and are also the least likely to have sufficient savings and acceptable documentable assets to actually come up with the cash to make the down payment. Members of the family are in some ways the best and very often the only available source of down payment assistance available to “green” borrowers. Your lender generally will only allow you to use money given to you by a true family member, i.e. your mother, father, brother, sister, uncle, aunt, grandfather, grandmother, first cousin, etc. This means that you cannot use funds given to you by people who are really not family members, for example your friends or colleagues, however you may be able to use funds from a non-family third party if you can provide documentation of a very close and long lasting relationship. This is done primarily to prevent people from taking out personal loans which will have to be repaid to come up with their down payment, which have the potential to throw off the person’s debt to income ratio, or DTI. Basically, they don’t want you to take on more debt than they believe you can safely repay, otherwise they would have qualified you for 100% financing.

If you find yourself in a situation where you need to get money from your folks or other family to make a down payment on your new house, you will be required to prove that you did not borrow the money from them with an expectation on their part that it be repaid or with an intention on your part to repay it. In fact, both you and your family will need to prove to your lender that the money was given to you, in the form of a Gift. To verify that the funds are in fact given freely, your lender will require special documentation.

If you are applying for a new mortgage, you should receive as part of your loan application package a special form called a “Gift Letter”. The goal of this letter is to identify the source of the funds and assure the lender that they are in fact a gift. Typically, a gift letter will include the name of donor, the name of the recipient, the relationship between the two parties, the amount of the gift, the address of the property for which the gift is to be used to pay for, the fact that no repayment is required or expected, and an assurance that the person making the gift or the source of funds is not in nay way party or beneficiary to the transaction, e.g. not the broker, seller, agent, loan officer, builder and so on. In most cases the person giving the gift will be required to document where the money came from, such as a bank account or a brokerage account. If you are depositing the funds directly into escrow, or even if they are going into your bank account, take some precautions to document the transfer by keeping copies of the checks or deposit tickets/receipts from the bank/escrow agent.

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“Mortgage tips”: Your Down Payment Is The Key To Refinance And Mortgage Tips

admin — Mon, 12 Sep 2011 22:37:26 +0000

If you are buying a house, the first thing you need to figure out is how much of a down payment you can afford to make. This may seem like the sort of advice your father would give you, but rest assured there are a few reasons why knowing what you can put down and where you’ll get the money can make all the difference when shopping for a house and a mortgage to finance your new purchase.

Before you pick up your local newspaper and browse the real estate section looking for a new house, call up your banker, your accountant, or your spouse and find out how much you’ve got in savings and liquid assets to make the down payment and pay the closing costs on your mortgage.

First you must consider the source of your down payment, because this affects how much of the down payment your lender will actually attribute to you the applicant for the purpose of qualifying you for loan programs and determining your rates and payments. If the money is from your savings and securities / investment portfolio, be sure you can prove it. If you have employer retirement tax deferred accounts, 401(K) 403(b) accounts etc. and would like to use those as a source to finance the down payment, the lender will likely have several special conditions and limitations on the treatment of those funds. If you are receiving the down payment in part or in total as a gift, your lender will have another set of rules which will affect your payments. How you pay for closing costs will also have some affect on your final rates and payments; the more you take from a third party like the seller, the more risk the bank assumes.

A rule of thumb about size: the bigger the better when it comes to your mortgage down payment, at least from the perspective of programs, rates and payments. The more you put down out of your own savings, the lower your payments and the broader your selection of loan programs. An added benefit is that more money down means that any blemishes on your credit report or a low score count for less and less the more you pay upfront, and you also reduce your income requirement by improving your debt to income ratio. By knowing how much you can put down, you will know in advance how much house you can be qualified to purchase by your mortgage lender, get that mortgage pre-qualification letter, and know what to put in your purchase offer with your realtor, lawyer and seller when it’s time to make an offer. By finding out what you can afford to put down, you can get a head start on knowing your overall homebuying budget, financing options, and also have time to take care of the documentary requirements, seasoning and time-sensitive pre-requisites associated with closing your deal, saving you weeks if not months of wasted time sorting out these matters after you’ve found the house of your dreams.

So find out what you can put down and where you can get it from, contact a mortgage broker to find out what you can afford and what you can do with your down payment and documentation to get the best rates, payments and terms, and then take a pre-approval letter from the broker with you to start shopping for homes with a full knowledge of what you’ll be asking for and writing on the contract.

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Alpharetta Homes – Mortgage Tips for First Time Home Buyers

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“Mortgage tips”: Down Payment From Savings And Refinance Mortgage Tips

admin — Fri, 09 Sep 2011 16:36:05 +0000

Once you’ve figured out how much of a down payment you can make on your home mortgage, it’s time to determine how to document the source of your funds for the down payment and closing costs. Now you might be saying, “Why do they care where I get the money?” Lenders need to verify the source of funds to both assess the underlying risk in you as a borrower as well as to prevent loan fraud. This makes it imperative for you, the applicant, to maintain complete and detailed records of how the money which you plan to use for a down payment makes it into your hands. Money from your own savings, checking & money market accounts looks best to the bank for a variety of reasons, and is amongst the easiest sources of capital to document.

Money in the bank is also very easy to document. The lender has the option of asking you to submit bank statements to them indicating that you have the money for the down payment and closing costs, or performing a formal Verification of Deposit directly with your bank. Most lenders ask for statements, generally 2 to 3 months if you are providing full income documentation or up to 24 months if you are providing alternative documentation of income.

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When discussing your down payment, your lender may discuss the topic of seasoning requirements with you. If you have money in a bank account for 3 months and it reflects consistently in consecutive statements, that money is considered “seasoned” 3 months. Your lender may require that your down payment money be comprised of seasoned funds, and that any large influxes of capital into your bank account may have to be extensively and thoroughly explained, documented, and potentially disqualified. So start saving and plan ahead!

There are loan types which do not require any form of documentation in this regard, particularly No Asset Verification mortgages or “no assets” loan programs. Just as it sounds, this type of mortgage does not require any verification of assets, however lenders generally do not allow the applicant to borrow more than 60% to 70% of the property value without some form of asset verification. There is another type of loan program which is increasingly popular over the last few years called Stated Income Stated Assets mortgages, which allows for limited verification of assets, and some of these programs allow up to 75% or 80% of the property’s value to be loaned to the borrower.

Buying a home with no down payment, often referred to as a “no money down” mortgage, has become a popular way for first time buyers to enjoy the benefits of homeownership without substantial savings, however it is important to note that borrowers who want a zero down loan will be faced with higher interest rates and monthly payments and are statistically shown to have higher rates of default and foreclosure.

No matter what you decide to put down, if you have and can document assets above and beyond the down payment and closing costs on the home and mortgage you can establish “reserves” with your application. Having ample capital reserves, good credit, and your down payment sitting in your bank account for a couple of months can in combination help you qualify for some of the best programs available, and potentially save you hundreds of thousands of dollars over the life of your mortgage.

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Awesome Arizona Refinance Money Saving Tips For FHA Streamline Refinancing From Tucson-FHA-Loans.com

admin — Mon, 08 Aug 2011 04:35:56 +0000

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tucson-fha-loans.com Awesome Arizona Refinance tips for the Arizona FHA Streamline Refinance. In this video I’ll show you how an Arizona Refinance using the FHA Streamline Rate Reduction Refinance is helping Arizona Homeowners to get crazy low interest rates WITHOUT getting an appraisal,…

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Mortgage Refinancing To Combine Credit Card Debt

Contributor — Mon, 01 Aug 2011 21:23:53 +0000

A number of people opt to refinance to consolidate their present debts. With this kind of alternative, the homeowner can consolidate greater interest rate debts like credit card debts under a reduced interest residence loan. The interest rates related to property loans are traditionally lower than the rates associated with credit cards by a considerable quantity. Deciding whether or not to refinance for the purpose of debt consolidation might be a rather tricky issue. You’ll find quite a few complex elements which enter into the equation such as the amount of existing debt, the difference in interest rates too as the distinction in loan terms along with the existing financial scenario of the homeowner.

This article will attempt to make this concern much less complicated by supplying a function definition for debt consolidation and providing answer to two key questions homeowners really should ask themselves prior to refinancing. These questions consist of whether the homeowner will pay a lot more in the lengthy run by consolidating their debt and will the homeowners monetary scenario increase if they refinance.

What’s Debt Consolidation?

The term debt consolidation might be somewhat confusing because the term itself is somewhat deceptive. When a homeowner re-finances his property for the purpose of debt consolidation, he isn’t in fact consolidating the debt inside the accurate sense of the word. By definition to consolidate means to unite or to combine into 1 method. Nevertheless, this isn’t what in fact occurs when debts are consolidated. The existing debts are actually repaid by the debt consolidation loan. Though the total quantity of debt remains constant the individual debts are repaid by the new loan.

Prior to the debt consolidation the homeowner may possibly have been repaying a monthly debt to 1 or more credit card businesses, an auto lender, a student loan lender or any number of other lenders but now the homeowner is repaying one debt to the mortgage lender who supplied the debt consolidation loan. This new loan will probably be subject to the applicable loan terms which includes interest rates and repayment period. Any terms related to the individual loans are no longer valid as each and every of these loans has been repaid in full.

Are You Paying Much more inside the Lengthy Run?

When considering debt consolidation it’s crucial to figure out whether lower monthly payments or an overall boost in savings is becoming sought. This is an important consideration due to the fact whilst debt consolidation can result in lower monthly payments when a lower interest mortgage is obtained to repay higher interest debts there is certainly not usually an overall cost savings. This is since interest rate alone doesn’t decide the quantity which is going to be paid in interest. The amount of debt and the loan term, or length of the loan, figure prominently into the equation as well.

As an example think about a debt with a fairly short loan term of five years and an interest only slightly higher than the rate related to the debt consolidation loan. In this case, if the term of the debt consolidation loan, is 30 years the repayment of the original loan would be stretched out over the course of 30 years at an interest rate which is only slightly lower than the original rate. In this case it really is clear the homeowner may possibly end up paying more within the lengthy run. Nevertheless, the monthly payments will almost certainly be drastically reduced. This kind of choice forces the homeowner to determine whether or not an overall savings or lower monthly payments is far more essential.

Does refinancing Increase Your Monetary Situation?

Homeowners who are considering refinancing for the purpose of debt consolidation really should carefully take into account regardless of whether or not their monetary situation will likely be improved by refinancing. This is essential since some homeowners could opt to refinance due to the fact it increases their monthly cash flow even if it doesn’t result in an overall price savings. There are plenty of mortgage calculators accessible online which could be used for purposes for example determining regardless of whether or not monthly cash flow will increase. Making use of these calculators and consulting with industry experts will support the homeowner to make a nicely informed decision.

There are many things to consider when thinking about refinancing to consolidate debts, including where the current mortgage rates are and how this action may affect your overall financial health. If you are interested in a Michigan refinance loans, a great site to check out is www.michiganmortgageadvisor.com.

Countrywide Home Loans Highlights Refinance Factors

admin — Sun, 24 Apr 2011 11:32:39 +0000

Countrywide Home Loans Highlights Refinance Factors

Calabasas, CA (PRWEB) May 8, 2007

Countrywide Home Loans, Inc. has outlined factors for homeowners to consider when determining if the timing is right for a mortgage refinance. Through a straightforward, three-part formula, Countrywide aims to help homeowners simplify the decision-making process and make informed choices about their refinancing options.

“Playing the guessing game when it comes to interest rates can lead to missed opportunities to refinance a home loan, so the key is to consider the entire picture and take action–which could be as simple as contacting a local home loan expert for help,” said Greg Lumsden, senior managing director and president of Countrywide Home Loans’ Full Spectrum Lending Division. “Because there is no crystal ball for the mortgage market, homeowners’ insights into their own current and future situation can often be much better indicators than the experts’ financial forecasts.”

Countrywide has outlined three basic principles that homeowners may use as a starting point when weighing their home loan refinancing options:

1. Dollars and sense. Common sense can be a very effective tool to help determine refinance timing: homeowners can simply assess whether the benefits of refinancing outweigh the dollars spent on the transaction and the total amount to be paid when compared to their current situation. An online refinance calculator can help homeowners crunch the numbers, but “benefits” do not need to be limited to monthly payment savings. For example, a cash-out refinance can provide an extra source of funds, which may be an advantage even if the monthly mortgage payment stays about the same.

2. The magic number. While some may say that homeowners should only refinance their home loan if the new interest rate is one or two percentage points below the current loan’s rate, there really is no magic number. Often, more pertinent numbers are how many years the homeowner plans to stay in the home and how long it will take to recoup the upfront costs of the refinance.

3. Market vs. individual circumstances. The ebb and flow of the mortgage market may not necessarily coincide with each homeowner’s unique situation, so a decision to refinance should rest largely on individual needs and goals. For example, if a homeowner plans to move within a few years, refinancing from a fixed-rate loan to an adjustable rate mortgage (ARM) may make sense because they can take advantage of lower introductory interest rates, then sell their home before the rate is scheduled to adjust. Conversely, homeowners who currently have an ARM may consider refinancing to avoid adjusted rate increases.

For more ideas on when refinancing may make the most sense for individual needs, homeowners can speak with a home loan expert at 1-800-508-0794 or visit us on-line.

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Burbank California Actual Estate

Contributor — Mon, 31 Jan 2011 01:06:54 +0000

Burbank, California, is positioned in Los Angeles County, and is 9 miles north of Los Angeles, California. Burbank has a inhabitants of a hundred,316. Among its residents are those who work within the media and leisure field. NBC, Warner Studios, and Disney Leisure name Burbank their home. Town is served by Burbank Worldwide Airport.

Burbank’s houses include luxurious properties in the hills, and single and multi-household houses throughout the city. Its sunny weather, prosperous financial system, relative safety, and consistently high-rating faculties make Burbank a well-liked place to stay, especially with households and those in media and entertainment.

Burbank properties pool is 41,608 residential properties together with Burbank new homes. The median age of actual property in Burbank is 1956. The common family dimension is 3.14 people. 7% are one bedroom houses, 39% are 2 bedroom homes, forty two% are three bed room houses, 10% are four bedroom properties, and a couple of% are 5+ bed room homes.

Houses With No Mortgage – 26%
Properties With Mortgage – 74%
First Mortgage Only – fifty six%
First & Second Mortgage or HELOC – 18%

Burbank Actual property Tax: Median Real Estate Taxes (2000) have been $1,640 evaluating to 1999 Median Household revenue $ fifty six,767. Evaluate to USA median yearly Actual Property Tax $1,300 and USA median Household Income $forty two,000 (1999).

Burbank Faculty District: The Burbank Faculty District persistently fee as probably the most successful within the County. Mother and father are keen to buy houses right here so as to ship their kids to the extremely successful District.

Children make up 22.three% of Burbank population. Burbank has 22,337 below 18 years old residents, or 0.forty six children per one employee, or 0.fifty four youngsters per one household.

Burbank Actual Property & Burbank Homeownership

There are 14146.seventy two or 34% one individual households, 12482.4 or 30% {two} person households, and 6241.2 or 15% three person households in Burbank, California. Median residents age is 36.four, Senior residents (sixty five+) make up 12,859 or 12.8%% of Burbank population.

There are 48,430 staff (over sixteen years of age) in Burbank. Of these, 89.33% drive to work. Approximately 2.fifty six% of employees in Burbank take public transportation, reflecting the realm’s over reliance on cars. An estimated 2.seventy five% walk to work.

Median Burbank home-owner’s housing expenses are 22.four%

Crime in Burbank (2003), crimes per 10,000 residents per yr
Violent Crimes – 28.21
Robberies – 6.88
Aggravated Assaults – 19.fifty four
Property Crimes – 268.55
Burglaries – 49.eighty four
Larceny-Thefts – 172.26
Motor Automobile Thefts – 46.forty five

When making a call about shopping for actual estate in Burbank California space, many components should be thought of, along with the next statistical data:

Near Medium City – Near Giant City – Los Angeles, California Burbank Zip Codes – 91501, 91502, 91504, 91505, 91506 Burbank Space Codes – 818 White inhabitants – 72.18% African-American inhabitants – 2.06% Asian – 9.15% American Indian & Alaskan – {-}% Hispanic (of any race) – 24.87% Median Family Earnings (1999) – $ 56,767% Population Beneath Poverty Level – 10.forty five%

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What To Take Into Account When Looking Into Madison, Wisconsin Mortgage Rates

Contributor — Sun, 12 Dec 2010 08:02:26 +0000

It’s a no-brainer that when you go out to have a mortgage to buy property, you wish to find the most beneficial rates available. Possibly what you are not conscious of, however, is the fact that even a small percentage of a point can make a lots of difference over the term of the mortgage. The mortgage rate will likely determine your monthly mortgage payments. Therefore, if you are looking for the lowest mortgage rates in a city like Madison, Wisconsin, you need to find something that will save you money overall as well as on monthly obligations which will leave you with more money to spend on your family or perhaps save when you are thinking of a madison refinance

The mortgage rate that you secure will make a lot of difference in what you end up paying over the term of your mortgage. For instance, if you are planning to finance $200,000 on a thirty year fixed rate mortgage. If your interest rate is 4.25%, the quantity of interest you will probably pay for the thirty years is $155,082. Now let us say that rather than a 4.25% mortgage you got one for 5.853%. With this new mortgage you would pay $224,895 in interest over the term of the mortgage. This signifies that through securing the lower rate mortgage, you will be saving $69,813 throughout the 3 decades you pay on the mortgage.

Now let us look at what that same evaluation does to your monthly obligations. At 4.25 %, you’ll pay $986 each month. The same mortgage at 5.853% will cost you $1,180 per month. That is the variation of $194 each month over 3 decades that you would not have to generate to pay on your mortgage. Even if the difference does not appear that much to you now, over the years the cost of living will definitely rise, you may have a family to support, and that nearly $200 per month may come to mean a lot to you.

After all, consider what you might achieve with an extra $194 each month. For beginners, you can pay extra on the principle of your mortgage. Upping your monthly obligations is a wise idea, provided your mortgage doesn’t stipulate that you cannot do so, because extra payments suggest you are able to pay off your mortgage in less than 3 decades. If you put the $194 into savings monthly at 5% interest, by the end of the thirty years you would have a fortune of $161,458.17.

Clearly, the madison wi mortgage rates you find can make a lot of difference in the amount of money you will be expected to pay over the term of the loan, and who couldn’t make use of a few extra dollars in their pocket?