Skip to main content

A battle plan for refinancing your mortgage

Homeowners seeking to refinance their mortgages may be surprised by the amount of paperwork required. During the “easy credit” years, some lenders did not require proof of income or documentation. Nowadays, most lenders require borrowers to provide pay stubs, banks statements, brokerage statements, and possibly tax returns. Self-employed individuals may be asked for a profit-and-loss statement. Those relying on bonus income should expect that most lenders will assume this year’s bonus will be a lot less than last year’s, which could make securing approval more difficult.

Determining the amount of equity in the home is key to being approved for a new loan. Homeowners whose mortgage obligations are less than 80 percent of the home’s value are more likely to have refinancing options available to them. Other homeowners who are current on their mortgages, owe 80 percent to 105 percent of the home’s value, and have a loan owned by Fannie Mae or Freddie Mac may be able to refinance under the government’s “Making Home Affordable” program.



Other factors to take into consideration when refinancing are the property’s appraised value, the homeowners’ credit score(s), whether or not the property has a second mortgage, and the length of the original loan.



To read the full story, please click here
Labels:

Comments

Post a Comment

Popular posts from this blog

Low home loan rates create more affordable housing.

HOME LOAN RATES REMAIN LOWER:    NOW MAY BE THE PERFECT TIME TO SEE HOW MUCH YOU CAN SAVE ON YOUR NEXT MOVE.  HAVE YOU BEEN CONSIDERING DOWNSIZING, UP-SCALING,  MOVING TO A BETTER NEIGHBORHOOD OR SCHOOL DISTRICT?   IF YOUR CURRENTLY RENTING THIS IS ALMOST A NO BRAINIER, WHEN YOU COMPARE YOUR RENT TO YOUR INVESTMENT IN OWN HOME.    TODAY'S  CONFORMING LOANS TO 417K OFFER THE FOLLOWING: 5/1 ARM: 3.25%with zero points 10 Year Fixed: 3.375% with zero points 15 Year Fixed: 4% with zero points 30 Year Fixed: 4.75% with zero points. JUMBO TO 729K 5/1 ARM: 3.5% with zero points 10 Year Fixed: 3.875% with zero points 15 Year Fixed: 4% with zero points 30 Year Fixed: 4.75% with zero points out-of-pocket cost is for the appraisal. SUPER JUMBO TO 1.5MM 5/1 ARM: 4% with 1/2 point 30 Year Fixed: 4.75% with 1/2 point    Special attention to consider the 30 year fixed rate on Super Jumbo. This rate has never been...
Post a Comment
Read more

CASH For Appliances - Just in Time for the holidays

CASH for Appliances— Coming Your Way SOON!! By the end of 2009, consumers nationwide will be able to take advantage of a federal "cash for appliances" program offering rebates on purchases of a wide array of home appliances certified as energyefficient by the EPA's Energy Star program. Backed by an initial $300 million in funding from the American Recovery and Reinvestment Act, the state-run rebate program is intended to help make American homes more energy-efficient while further stimulating the economy. Who Will Run the Program? Each state will administer its own cash for appliances program. The states will be free to select which residential Energy Star qualified appliances to include in their programs and the individual rebate amount offered for each appliance. What Can You Buy? The Department of Energy (DOE) has recommended that the states focus their cash for appliances rebate efforts on heating and cooling equipment, appliances, and water heaters as these products ...
Post a Comment
Read more

Walkable neighborhoods command price premiums

Walkable neighborhoods command price premiums A new study says that homes located in more walkable neighborhoods command a price premium over similar homes in less walkable areas. The study, “Walking the Walk: How Walkability Raises Home Values in U.S. Cities” was commissioned by CEOs for Cities and conducted by Joe Cortright using data from Walk Score. Key findings include: · In 13 out of 15 metro areas higher levels of walk-ability were directly linked to higher home values. · In the typical metropolitan area, a one point increase in Walk Score was associated with an increase in value ranging from $500 to $3,000. Gains were larger in denser, urban areas and smaller in less dense markets. · In the typical areas studied, the premium commanded for neighborhoods with above-average Walk Scores ranged from $4,000 to $34,000. More info
Post a Comment
Read more