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Mortgage

PostHeaderIcon Refinance Cost, Mortgage Cost & Lowest Mortgage Rate

When a client wants to refinance their existing mortgage there is a refinance cost. There are typically the same fees for all refinances. Costs of a refinance are lender fees, third party fees, and pre-paid items. Lender fees are made up of origination, points, application, credit report and appraisal. Pre-paid items are not typically known to be fees these are items you pay regardless of refinancing or not. Pre-paids contain the borrower’s taxes and insurance of their home. Third party fees are also part of a refi they are closing costs, title, and title insurance. Refinance fees can usually range from two to six percent of your loan amount. If a client is interested into refinance their current mortgage, they can ask the loan originator for a good faith estimate or GFE. There is also a way to finance the closing costs; this is usually done if there is enough equity in the home.

Mortgage cost can be simply explained, the costs that involved with a mortgage are all on explained on a HUD. A HUD explains everything that happened on the refinance or on the purchase, also it shows all the fees and how much each of them cost. These costs are usually lender fees, third party fees, and prepaid items. The lender fees are the origination fee, points and application fee, appraisal fee, and credit check. The origination fee is typically what the lender charges for the work in evaluating and preparing the mortgage loan. Points can either be discount points or buy down a point which is charged to the borrower to get the lowest interest rate. When a buy down is charges this means that the rate had a hit on it so then the lender charges the borrower an extra point to get that rate. An appraisal fee is typically 300 or 400 hundred dollar and this fee can be paid at the door. An appraisal must be done by a certified real estate appraisal. Applications can be taken over the phone or in person, some companies have a fee for an application and some don’t. Pre- paid item are not considered to be fees because these must be paid regardless or refinancing or not. The escrows are pre-paids which are the taxes and insurance of the home. These can be included in your monthly mortgage payment or not. Third party fees are the title and closing costs fees. Closing costs fees are underwriting and processing fees. The title fees are the cost of examining the public record to confirm ownership of the real estate property. This fee also takes care of the cost of a policy, typically issued by a title insurance company, which insures the borrower to a specific amount for any loss because of discrepancies in the title to the borrower property. All the costs can be explained on a good faith which can be given to the client upon request by the loan originator who is working on the loan.

There are many different factors that go into getting the lowest mortgage rates. To obtain the lowest mortgage rate is by having great scores, having a really low loan to value, and also having a single family. The refinance would have to be with no cash out to get the lowest rates. These are the factors that go into getting the lowest interest rates possible.

PostHeaderIcon Paying Mortgage, Private Mortgage Insurance & Refinancing Rate

There are many different ways to paying mortgage. A client can have bi weekly, monthly payments which can help them pay off their mortgage faster. There are many different options to paying off the mortgage; one is increasing your payment schedule. Another ways are making lump sum payments, shorten the time frame of your loan, and increase your payments. Also you can refinance at a lower interest rate, but continue paying the same amount each month. If a client is on a bi weekly, that means that the client will make on extra payment a year. Also if a borrower refinances into a 15 year, this makes your payment high but ultimately will pay off your mortgage faster. To know the best way to paying the mortgage is by calling a financial company and fingering out the best option.

Private mortgage insurance is also referred to as PMI. Private mortgage insurance is insurance for the lender to have, just incase the borrower defaults on the loan. The clients that have PMI are the ones who own less than twenty percent of the property. If a client got into an eighty-twenty loan they most likely have PMI.  The way that a borrower can get rid of PMI is by refinancing once they own more than twenty percent or if their house apprises for more. For a client to get rid of private mortgage insurance they need refinance and they need to have their loan to value under the eighty percent mark to get away from private mortgage insurance. If a client is purchasing a property and do not put twenty percent down this will mean that they will have PMI. PMI is a way that lender allow borrower to get a loan with out putting twenty or more percent down.

Refinancing rates are the interest rate that borrower get once a refinance is done. Interest rate is the price that a borrower pays on the money that they do not own. When doing a refinance changes your interest rate typically for a lower one. If you lower your interest rate than your monthly payments will also decrease. Interest rates change day to day but they relatively stay around the same. When refinancing the rate you get matters on your credit score, loan to value, and also the term life of your loan.

PostHeaderIcon No Cost Refi & Refi Loan

A no cost refi is when a borrower will get a high rate to offset the lender fees. A client will get a higher rate then normally would qualify for but they would get this higher rate because the lender will need to offset the fees. A higher rate with no fees is how a client doesn’t have to pay for the rate. Some clients like this because their loan amount is high enough and they do not want to raise it, so they go with a higher rate to pay for the closing costs.  Also if a client wants a refinance at no cost they will get a higher rate, because of hits to rate. This means that certain credit scores, certain, loan to values and also the type of property it is has hits to the rate. So if a client doesn’t want to get charged in the front to cover these fees, they will get a higher rate then deserved.

There always will be a time when a client wonders if it time to refinance their home. They ask themselves is refinancing my home right now a good time? And they answer is yes if the market rates have dropped compared to your current interest rate. Also if the market is a good time to refinance. A client must also find a lender that will work with them and be more of a friend and guide than a pushy muscle man. You want a lender who’s looking to help you, not just refinance you to make money. As a borrower you should see if it’s the right time for you to refinance your home mortgage.

Refi loans are when a person or persons is trying to lower their monthly payments, lower interest rate, cash out money from equity or even change the amount of years on their loan. People have great opportunities to refi their mortgages and help make their lives easier.  A Refi mortgage is when a client applies for a loan that is secured to pay off another secured loan. If a clients rate is a fixed interest rate and has now lowered then a client is more inclined to refi their mortgage to a new better rate. A fixed mortgage is a mortgage with a fixed interest rate.  A fixed interest rate is fixed for a specified amount of time; most likely a ten year, fifteen year, twenty year or even a thirty year fixed. When a client refi mortgages its benefits are to significantly lower the monthly mortgage payment. For most clients owning a home is their biggest asset. With this a mortgage payment may be the highest bill you have a month. With this being such a large payment, if you refi the mortgage you will be able to have more money every month. Another benefit may be to shorten the length of your home mortgage. This can also happen when you refi the mortgage, if you have a thirty year loan and you refi you can change it to a ten, fifteen or twenty year and save an immense amount of interest.

PostHeaderIcon Mortgage Refi & Mortgage Questions

A mortgage refi is Refinancing is explained by the replacement of an existing mortgage loan with a new mortgage loan consisting of different terms. Refinancing is the most common consumer refinance. To refinance for a lower rate than a borrower current rate is called a rate and term. Rate and term can either be just changing your interest rate and or change the term of your loan. Loans typically come in a 10 years, 15 years, 20 years, or 30 years loans. Also while paying a mortgage a borrower builds up equity in their home, when they refinance a client can cash out some of their equity. Another common reason why people refinance their mortgage is to pay off other debt, this will make your loan amount go up but it can be very beneficial to get rid of some of that debt. When refinancing this can help a borrower by lowering their monthly payments, and since the mortgage payment is most likely your largest payment than why not try to have it as low as possible. You can obtain a lower payment by either refinancing for a lower interest rate or extending the life of your loan, like taking a fifteen year loan to a thirty year loan.

When refinancing your home their come refinance costs that come with it. These fees tend to be between two to six perfect of the loan amount. With most company fees are typically lender fees, third party fees and pre-paid items. Lender fees can consist of origination fee, points, application fees, and credit report and appraisal fee. Origination fees are what the lender charges for the work in evaluating and preparing home mortgage loan. Points are the charges given by the lender at closing to increase the lender’s yield spread and the stated interest rate on the mortgage loan. Pre-paid items are the taxes and insurance these are considered a fee since a borrower has to pay them regardless of refinancing or not. Third party fees can consists of closing costs, title and title insurance. Title and title insurance fees is the cost of examining the public record to confirm ownership of the real estate property. This fee also takes care of the cost of a policy, typically issued by a title insurance company, which insures the borrower to a specific amount for any loss because of discrepancies in the title to the borrower property. Also other refinancing costs can be because of getting into an FHA loan, there is about the same fees just one extra. This extra fee is PMI which is private mortgage insurance, this insurance is just incase the borrower defaults on the loan. FHA has this because they it’s a loan to higher risk borrowers.

There are many different types of mortgage questions. These questions can all be answered by a licensed loan originator. The most common mortgage questions are what PMI is? PMI is private mortgage insurance, this is given to all FHA loan and on conventional loans it is given if the LTV or loan to value is above eighty percent. Another most common question is what are escrows and do I have to have them included. The answer to this question is escrows are the taxes and insurance of your property and they can be including in your loan if you choose that. All other questions about your mortgage can be answered by a licensed loan officer.

PostHeaderIcon House Loan & House Mortgage

A house loan is what a client borrows to purchase a home. The loan that a borrower gets from a bank or mortgage company is called a mortgage, or a note. The bank or mortgage that is giving the loan is called the lender. To pay back the lender you will have a monthly payment which is called the mortgage statement or payment. On this monthly payment the lender has an interest rate attached. There are to common types of loan conventional and FHA. The most common terms for these are fifteen years and thirty years. A fifteen year benefits are paying off the mortgage in half the time of a thirty, and also saving a lot on the interest. The benefits of a thirty year mortgage are it’s easier to qualify for, lower monthly payments. A home loan is probably the biggest investment a client will have.

The basic mortgage information about a mortgage is that it’s a lien on a property that was taken by a loan and that is paid back to the lender in monthly installments over a set term. A mortgage loan is taken out by a buyer to pay off the seller for a home in full. Then the borrower who took the loan from a lender owes it back in full plus interest. For the promise that the borrower will pay back the lender, the lender has a deed that they still own the property, until the mortgage loan is paid off. While the borrower pays back the loan, they live in the home as if they already own it. There are many types of mortgage loans, the one that best fits each client need to look at their financial standings and how long they tend to stay in the home. Some clients plan to stay in the home for thirty years or more and some clients decide to make an investment or want to pay their loan off quickly. To know which mortgage loan best fits the client it takes time and effort. Once a borrower has a mortgage they are eligible to refinance the loan. This means that the borrower can renegotiate the term and the interest rate. Refinancing is taking the old secured loan and paying it off with a new secured loan. A borrower typically refinances either to lower the monthly payments by getting a new interest rate or changing the term of their loan. A mortgage is the most likely the largest payment a client has each month so when the interest rates drop and are lower than their current rate a client can benefit greatly.

The house mortgage is the loan that a borrower took from a lender with interest. To obtain a mortgage you can talk over the phone or in person to a bank or mortgage company and take application, which can be “ran” to see if the lender will approve the loan. The information that is taken during an application is basic, until income information is needed and also the social security number. This can help determine if you can afford the loan.  Once this part is done, the lender will have a certified appraiser come out and have a appraisal done to the property to see if the value is there. Meaning that the home still has value is worth more than it was bought for. This is known as the LTV or loan to value; how much the borrower is financing against the total value of the home. Also the DTI ratio are a major factor, there are to ratio the front and back. The front ratio is percentage of income that goes toward the home and the back ratio is the percentage that goes to paying all reoccurring debt. These are some of the factors that go into obtaining a loan, the best way to see if you can get a loan or refinance the current one is by contacting the bank you have your loan from or a mortgage company.

PostHeaderIcon Cash Out Refinance & Mortgage Cost

A cash out refinance consist of a borrower choosing to take cash-out in addition to their existing loan amount. The new loan balance will consist of the current loan balance plus the amount that was wanted by the borrower. This type of refinance is typically referred to as cash out refinance. This is common when a client wants to make home improvements or pay off other debt. With a cash out refinance your actually refinance more than you currently owe and taking the difference for your self.

Mortgage costs can be very easily explained, all mortgage costs are on what is called a HUD. A HUD tells you everything you did on the refinance or on the purchase with all the costs that were included. These costs are usually Lender fees, third party fees, and prepaid items. The lender fees are the origination fee, points and application fee, appraisal fee, and credit report. The origination fee is what the lender charges for the work in evaluating and preparing the mortgage loan. Points can either be discount points or buy down a point which is charged to the borrower for a lower interest rate. When a buy down is charges this means that the rate had a hit on it so then the lender charges the borrower an extra point to get that rate. An appraisal fee is typically 300 or 400 hundred dollar and this fee can be paid at the door. An appraisal must be done by a certified real estate appraisal. Applications can be taken over the phone or in person, some companies have a fee for an application and some don’t. Pre- paid item are not considered to be fees because these must be paid regardless or refinancing or not. This is what is called escrows pre-paids are the taxes and insurance of the property. These can be included in your monthly mortgage payment or not. Third party fees are the title and closing costs fees. Closing costs fees are underwriting and processing fees. The title fees are the cost of examining the public record to confirm ownership of the real estate property. This fee also takes care of the cost of a policy, typically issued by a title insurance company, which insures the borrower to a specific amount for any loss because of discrepancies in the title to the borrower property. There are many different types of mortgage fees and these all can be shown to a client by asking for a good faith estimate. The good faith estimate is required by law to be given to client once the application process is complete.

PostHeaderIcon Calculate Mortgage

There are five simple steps to calculate mortgage. The first step would be to calculate the interest and principle payment depending on the amount your borrowed, the term life of the loan (15 year, 30 year…etc) and the interest rate. The second step is to figure out how much your yearly property taxes are, then you divide that by the number of payments you make a year(12 months) or bi-weekly(26 months). Step three is to figure out your homeowner’s insurance costs a year and divide that by number of payments a year. Step four is to add in the private mortgage insurance (PMI). The fifth and final step is to add everything up the monthly interest and principle payment plus the taxes plus insurance plus PMI. This will give you your monthly mortgage payment. There are many websites that have mortgage calculators, you can easily put the information in and the mortgage calculator will figure everything out, some even figure out the taxes and insurance.

PMI is when you do not own twenty or more percent of your home. This is determined by your loan to value (LTV), if the LTV is eighty percent or less, than you will not have PMI. Also you can have a mortgage payment without taxes and insurance included, but most lenders require that you have taxes and insurance included with the mortgage.

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