Archive for Bryan Dornan Articles
Best Home Refinancing Loans
Posted by: | CommentsI get a lot of emails from homeowners wanting to know what the best home loan programs are at the moment. It is common for most consumers in the U.S. to want the inside scope, but homeowners in particular want the road map to the best mortgage rates for refinancing and home buying. I uncovered some interesting statistics from the Lead Planet, a mortgage marketing company that generates mortgage leads online. The company said that in 2005, nearly 7 out of every 10 loan applications online qualified for a purchase or refinance loan. In 2010, less than 2 out of 10 home loan applications led to loan approvals from bank or lender underwriters. Home loan refinance transactions were in high demand, but lenders expected more from borrowers who wanted to qualify for record low rates.
Simply put, times have changed — Credit scores are way down, loan delinquencies have exploded and home equity has evaporated. Not to mention unemployment continues to surge and incomes as a whole are way down. These days, borrowers should throw a party if they are approved for a mortgage refinance, new home purchase or home equity loan. Second mortgage products have almost completely vanished and refinance guidelines are requiring significantly more equity. Unfortunately most homeowners are rejected from their lender when applying for a refinance online.
In most cases conventional programs allow borrowers to refinance mortgages to 80% loan to value but if borrowers need cash out the LTV are restricted to 70 or 75% depending on the credit score and debt to income ratios. FHA refinance programs are a bit more flexible as they allow borrowers to refinance to 96.5% and if they need cash out the loan to value limit is set at 85%. VA refinancing continues to have the loosest guidelines as they allow 100% refinancing for rate and term loans and 90% for cash out mortgages. Streamline refinance transactions provide the most loop holes for homeowners as they require no appraisal, so borrowers who have underwater mortgages can still refinance. The streamline program also waives income documentation, so if a borrower’s job can be verified no pay-stubs, W2′s or tax returns will be requested.
Best Refinance Mortgages in 2010
VA Streamline - refinancing beyond the value of your home. (stated income and no appraisal)
FHA Streamline Refinance – FHA customers can lower their interest rate with very little documentation needed.
VA Mortgage Refinance – 100% refinance loan for veterans that have their VA loan eligibility.
FHA Rates and Term Refi - The average borrower can get approved for a low rate refinance with only 3.5% of home equity.
No Cost Mortgage Refinance – If you have a good credit score, take advantage of the lender incentives. The loan companies pay all the closing costs and the borrower refinances into a record low rate.
No Income Mortgage Refinance
Posted by: | CommentsOne of the most common questions I get submitted to me on the Natiowide website, is “How do qualify for a no income mortgage refinance?”
Stated income, no doc and no income verification loans were all very popular home loans a few years ago. What started as a convenience mortgage for self-employed borrowers turned into a popular choice for all types of borrowers because it was easy but for many people it enabled them to qualify for a loan that they reall could not afford. Brokers and lenders clearly pushed the envelope on no income mortgage loans over the last decade and the mortgage inustry is paying the price for all of the loan defaults and foreclosures right now.
Today the only know no income mortgage refinance option is the streamline loan. This popular government refinance loan is available with the VA streamline refinance and the FHA streamline refinance. These programs do verify employment, but at this time they are not verifying income. This refinancing loophole has helped thoussands of borrowers refinance even though their debt to income ratio was higher than the loan program allowed. For more infomation about the streamline loan program read the recently published article, The Streamline Refinance, the Best Kept Secret in the Mortgage Industry.
3 Tips for the Best Mortgage Refinancing Experience
Posted by: | Comments2010 may be the year best remembered for the best mortgage refinance rates, but to qualify you have might have to jump through some hoops. In an effort to reduce foreclosures and loan defaults, mortgage refinance lenders have tightened refinancing guidelines for conforming and jumbo loan products. Everytime you consider refinancing, there is an opportunity to save money. Sometimes you save money by realizing that mortgage refinancing is not the best financial move for you at this time.
1. Before you celebrate, make sure you qualify. Getting a pre-approval solicitation in the mail does not count. You need a loan approval from the lender signed by the underwriter who has the authoority for the type of loan you using to refinance. The current refinancing guidelines for FHA, VA anc conventional all require income documentation that proves your debt to income ratio is low enough to qualify.
2. Do the Math! When considering the best mortgage refinance options you must calculate the savings monthly and then factor in the years you are adding on the loan. Take your existing mortgage payment and multiply it by the number of months you have left. Do the same thing with the proposed refinance loan. If the calculator indicates that the new loan will cost you more over the term of the loan, you better think twice and make sure that the monthly saving justify the long term costs. If you absolutely can’t afford your current payment or if you are planning to move in the next 12-18 months than the long-term saving may not matter.
3. Compare Mortgage Refinance Lenders! You may have a favorite loan officer, but make him or her earn your business each time you do a loan. In most cases if you let the loan officer know that they are in a competitive situation, they will usually go the “extra mile” to reduce the lending fees and get you approved for the lowest possible mortgage refinance rate. Don’t forget to find out if you qualify for a no cost mortgage refinance.
Mortgage refinance rates may be at an all-time low, but if you think before you sign and consult with financial advisors you trust, then you just may uncover new opportunities to save yourself thousands of dollars over the life of the loan. It’s your time and your money, so choose your mortgage refinance lender wisely!
The Mortgage Loan of a Lifetime
Posted by: | CommentsMany people are baffled that the record low mortgage rates have not sparked a refinance or housing boom this year. In the past when the Federal Reserve took measures like discounting key interest rates it usually spurred a housing boom that led to a sharp rise in homeownership. In 2010 there is a decrease in homeownership mostly because even though money is cheap it is still not financially feasible for struggling consumers who are experiencing a loss of income and the threat for job loss is the most real it has been since the Great Depression in the 1930’s.
Lowest Mortgage Rates Since 1971
httpv://www.youtube.com/watch?v=RCbPhlOZ-Rw
Mortgage refinance applications have risen in recent weeks, but only a small percentage of loan applicants qualify for home buying or mortgage refinancing. Mortgage lenders have significantly tightened home loan guidelines in an effort to reduce foreclosures. Even government mortgage finance options like VA and FHA mortgage loans have experienced major changes that make qualifying for a refinance or purchase more difficult than ever. According to BofA mortgage executive, Jeff Moran, “Home mortgages have truly become a commodity, because the interest rates are very appealing, but very few borrowers meet the criteria to qualify for these record low interest rates.” Moran continued, “If a borrower has good credit, good income and minimal liabilities then there is a real opportunity for the applicant to qualify for the mortgage loan of a lifetime.”
Popular loan programs like cash out second mortgage loans and interest only mortgages have almost completely disappeared. Bad credit mortgage options are few and far between with FHA and VA home loans occasionally taking a risk on a borrower with a poor credit score. Home equity loans were once offered at 125%, but now you can consider yourself truly blessed if you qualify for a 90% equity loan. Even the FHA streamline refinance loan requires borrowers to pay for the closing costs “out of pocket.” Most borrowers are using a FHA loan for cash out refinancing because they do not require a 700 credit score like most home equity lenders demand today.
Undoubtedly the pool of borrowers that qualify for home refinancing or purchasing has shrunk, but maybe there is a silver lining. In the near future interest rates will likely rise. If you are one of the chosen few who meet today’s lending requirements you just might qualify for the mortgage loan of a lifetime. If you do qualify – - – Seize the opportunity and lock into the lowest fixed rate ever!
