Quick Tips On The Mortgage World

Thursday, April 21, 2016

Your Credit Score Affects This Too…

When it comes to your mortgage payment your credit score can affect your interest rate, and your home owners insurance rate.

There is another part of your payment that is also affected by your credit score… Your mortgage insurance payment on Conventional loans.

Let me give you some examples of how your mortgage insurance rates can vary due to credit score.

These numbers are based on a $100,000 loan at 95% loan to value ratio.

MI Payment Chart…

Credit Score Range MI Payment Amount

> 760 = $45
720 to 759 =$51.6
680 to 719 =$74.17
620 to 679 =$95.83

The lesson here is protect and monitor your credit as much as you can. Keeping your scores up can save you alot of money!

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Monday, April 18, 2016

How A Mortgage Underwriter Will Treat Bonus And Overtime Income…

Are planning on using your bonus income or overtime income to help you get a mortgage?

…If so, then there are three important things you need to be aware of:

1) We can’t use bonus income or overtime income unless you can prove you have been receiving this income for 2 years.

2) The employer has to indicate that the bonus or overtime income will likely continue.

3) We will use a two year average of bonus and/or overtime income. So, if you got alot this year, but not last year then we will have to use an average of both years.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Monday, April 11, 2016

Tip For Those Of You With Conventional Loans That Have Mortgage Insurance…

Did you know there was a federal law in place to protect borrowers who have Conventional loans with private mortgage insurance?

The law includes two basic consumer protections:

It requires lenders to inform home buyers-both at closing and annually-about their right to request mortgage insurance cancellation and how to do it.

It requires lenders to automatically cancel insurance for those who do not request cancellation.

How the Private MI Cancellation Law Works:

Initial disclosure-For loans originated on or after July 29, 1999, lenders must give borrowers a written notice at closing that explains they have Private MI on their mortgage and that they have the right to have it canceled at a certain point.

Annual disclosure-Lenders must send borrowers an annual reminder that they have Private MI and have the right to request cancellation once they’ve met cancellation requirements. This requirement applies to all loans with cancelable Private MI, not just those obtained after July 29, 1999.

Borrower-initiated cancellation-For most loans originated on or after July 29, 1999, a lender must cancel Private MI at the request of a borrower whose mortgage balance is 80 percent of the original value of the house. The borrower must be up to date on mortgage payments and have no other loans on the house. The lender must be satisfied that the property value has not declined.

Automatic termination-For most insured loans originated on or after July 29, 1999, Private MI will be canceled automatically when the mortgage balance is at 78 percent of the original value of the house. The borrower must be up to date on mortgage payments. Otherwise, insurance will be canceled automatically once the borrower becomes current.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Wednesday, April 6, 2016

FHA Loan Tip For Borrower’s With Deferred Student Loans…

Here’s a tip for those of you with deferred student loans trying to get an FHA loan…

If your student loans are deferred, and there’s no payment listed on your credit report it’s a good idea to contact your loan servicer and find out what your payments would be if you started making payments today.

Get something in writing from them indicating the payment amount.

The reason this is a good idea is that if there is no payment listed for your student loans on your credit report, we have to use a payment number equal to 2% of the aggregate balance of your student loans.

In reality your actual payments would be less than 2% of the balance, so it’s a good idea to be able to show the lower payment.

This is new to FHA loans. The rule used to be if you could prove deferment for 12 months we didn’t have to count any payment. …now we do.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Monday, April 4, 2016

Minimum Credit Score To Get A Conventional Loan…

I wanted to briefly go over the minimum credit score you will need to get a conventional loan.

You will need a minimum credit score of 620 to get a 97% or a 95% loan up to $417,000. (conforming loan limit in Texas)

You will need a minimum credit score of 620 to get a cash out loan on owner occupied property in Texas. (max 80% loan to value ratio)

For Jumbo loans (amounts above $417,000) you will need a 620 score to get a 80% loan to value ratio loan. In other words you would have to put down 20% on a jumbo purchase with this credit score.

There’s more to getting a loan of course than just the credit score. …but it’s a good place to start, and at least now you know what you need.

Please call me or email me if you have additional questions about your situation.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett