Thursday, January 28, 2016

How A No Cost Refinance Works…

small-brett-pic4I have people ask me about no cost refinances.
I wanted to take a minute and tell you exactly how a no cost refinance works.
There are two pools of funds you have to address when you refinance…
1) Closing costs.
2) Pre paids. (taxes, interest, and insurance)
A no cost refinance will cover your closing costs. You would still be responsible for the pre paids (although we can roll them into the loan) – because you would pay these costs whether you refinance or not.
Now, if your current loan is escrowed you would be reimbursed the balance in your escrow account after closing. So, this would be a wash for you.
Let me give you an example of how a no cost refinance works…
Let’s say your current rate is at 4.75%. …and let’s say normal closing costs on your refinance loan would be $4,000.
There are two ways to approach this refinance…
1) You can take the very lowest rate in the market at the time. …Let’s say it’s 4.00%. If you elect to go this route – you would either have to pay the closing costs yourself, or we could roll them into the loan. Either way you are paying for the closing costs.
2) You could take a slightly lower rate – say 4.5%, and we (the lender) can pay the $4,000 closing costs for you.
Option 2 is a true no cost refinance. You were able to lower your rate and monthly payment for free. It didn’t cost you any money to do it!
If you would like for me to review your current situation for a no costs refinance – I’ll do it for free!
…just give me a call, or shoot me an email.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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Tuesday, January 19, 2016

The Reason Your Home Isn’t Selling…

small-brett-picIf you are having trouble selling your home – there’s really only one of two reasons your home isn’t selling…
It’s either the home, or it’s the price.
So, take a step back and give your home an honest look. …try to determine which one of these reasons might be behind your home not selling.
Get the opinion of a good realtor. …look what other homes in your area are actually selling for. (not the listing price, but the sales price).
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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Wednesday, January 13, 2016

How The 3% Down Conventional Product Works…

small-brett-picHere’s an easy way to put down only 3%, pay no up front Mortgage Insurance, and get a very competitive rate…
…It’s Fannie Mae’s 97% purchase product!
Here are some of the important features of this product…
1) Owner-occupied primary residence only.
2) Minimum 620 FICO score.
3) Seller contributions up to 3% of sales price.
4) 1-unit attached and detached single family residence, attached and detached PUDs.
5) Purchase and rate/term transactions.
6) Maximum DTI determined by Automated Underwriting.
7) 15, 20, 25, and 30-year loan terms.
8) No up front MI (like you would have on FHA).
9) Loan amounts up to conforming limits (417k in Texas).
This is a great product.
If you meet the credit criteria listed above, and you only want to put 3% down on a house – then call me and I can help you with this.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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Monday, January 11, 2016

Loans For Foreign Nationals…

small-brett-picDid you know I can do loans for people with only an ITIN number? That’s right, I can do loans for Foreign Nationals that have no social security number.
Here are some of the highlights from the guidelines for this program…
 A Foreign National is not a resident of nor permanently resides in the United States.
 Not allowed on:
 Interest Only ARM.
 Primary Residence
 Cash-out Refinance transactions.
 A resident of any country not permitted to transact business with United States
companies (as determined by any U.S. government authority) is not allowed.
 Maximum 70% LTV/(H)CLTV.
 12 months of reserves are required, in addition to the reserves required for the transaction.
Funds must be held in a U.S. bank. See Reserve Requirements.
 For a rate/term refinance transaction, the existing loan must be held with a U.S. financial
institution.
 Title must be vested in the borrower’s name.
 Escrows for taxes and insurance are required for the life of the loan.
 ALL of the following is required:
 Three credit reference letters written in English.
 Two bank reference letters written in English.
 Six months most recent bank statements. The statements must be translated to English and must be shown in U.S. currency.
 All funds required for down payment, closing costs and reserves must be held in a U.S. bank.
 Copy of the borrower’s valid Passport and Visa used to enter the United States.
 The borrower’s income and employment must be verified by an acceptable third party.
 Wage earners must be verified with all of the following:
 Letter on company letterhead from an authorized representative of the employer stating
the borrower’s position/title, time on job, current monthly salary and year-to-date
earnings.
 Valid paystub/pay ledger or financial institution deposit/transaction record that supports
the borrower’s employment and income.
 Self-employed borrowers must be verified with all of the following:
 Letter on company letterhead from a professional based in the borrower’s country of
residence (such as an accountant, CPA, Financial Institution Officer or licensed financial
adviser) verifying the nature of the borrower’s business, the business income figures for
the most recent two years and the year-to-date business income.
 Validation of the business existence must include an internet Web page address or
business/operator license from a governmental office.
 Note: Tax returns are not required.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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Wednesday, January 6, 2016

Proper Way To Do Option Money…

small-brett-pic1When you give someone option money at the onset of a lease option agreement – you are going to have to prove you gave that money when you get a loan to buy that house.
How do you prove it?
If it’s certified funds you need to keep a copy of the certified check.
If it was a personal check – you need to keep a copy of the cancelled check (front and back).
Don’t give cash!
Anything less than this – the underwriter will not give you credit for giving that money.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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Monday, January 4, 2016

Mortgage Rate Market Going Forward…

small-brett-pic2I hope you had a safe and happy holiday season!
Some thoughts on mortgage rates going forward…
The Fed finally hiked on December 16th, but there was no immediate reaction in mortgage rates.
Some experts think that an economic contraction might not be too far away. Others are concerned about a lack of inflation (which is good for longer term rates like mortgages).
Bottom line: the Fed rate hike has not been the death knell for low mortgage rates that many feared it would be, although the near term range is uncertain and rates could be more volatile than normal as we wait for a new trend to emerge.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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