Posts Tagged ‘Mortgage loan’

If you have not Refinanced yet, Why not? Do you need a personal Invitation?

If so, here it is……

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You are cordially invited to save hundreds of dollars off your monthly mortgage payment by refinancing your loan today. Dan Shlufman and Classic Mortgage hereby request the presence of your loan application at our processing center in Maywood, NJ. We would be thrilled to share this special time in history with you when we have the lowest interest rates on record.

The pleasure of your patronage is respectfully requested. Please RSVP to the contact information listed below at your earliest convenience. We want to make sure that we have funds put aside so that you can enjoy a lower monthly payment for 15, 20 or 30 years.

 

If you would like us to book a hotel or a flight which you can pay for with these savings, please let us know. Also, if you need cash to pay off high interest credit cards; for a home renovation; college or a business investment, you can do that too.

Contact me today and find out how you can save hundreds of dollars on your monthly payment by refinancing. You can also buy a new home with a great interest rate. As Eddie the pitchman from the 80’s might say, “act now, these Crazy rates won’t last forever!”

 

Warmly (or, maybe with this weekend’s weather, I should write “Hotly”),

 

Daniel M. Shlufman, Esq.

 

It is Possible to Buy a Home Now with Less than Perfect Credit and a Small Down Payment!

There’s a general feeling in the market that in order to get a mortgage now, a person has to have a credit score over 700 credit score; a very high income and a large down payment.  This can be difficult since the economy is still recovering so that high paying jobs are hard to come by. Also, due to the high cost of living, it is hard to save a lot of money in order to buy a house. But none of that is necessary.  So long as you have a job and a little money saved or available to use from some source, you can buy a home!

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There are loans available through Fannie Mae and Freddie Mac, as well as the FHA which require much less of a down payment.

For example, on a Fannie Mae or a Freddie Mac loan you can put down as little as 5%, and on an FHA loan, you can put down as little as 3.5%. In addition, on an FHA loan, you can even get that 3.5% as a gift from a family member, as an advance from your employer and in various other ways. With respect to credit, you don’t need credit scores over 700 to qualify for a loan either. On a Fannie Mae and a Freddie Mac loan, you want to have at least a 660 credit score. On an FHA loan, you can qualify for standard interest rates with a credit score as low as 640.  You can even get an FHA loan, with slightly higher interest rates with credit scores as low as 580.

As for income, Fannie Mae and Freddie Mac are letting people spend up to 45% of their gross monthly income on their mortgage and debt payments. The mortgage part consists of principal and interest on the mortgage; real estate taxes; mortgage insurance (if applicable) and your home insurance. The other debt payments include car loans, student loans, credit cards, alimony and child support and any other debt that is payable monthly. On an FHA loan, we can lend to people who have debt to income ratios as high as 55%. That means 55% of your total gross income can be spent on your debt.

So, if you have a good job, are able to come up with some money for a down payment, you likely will be able to buy a home. Even if you had a bankruptcy, foreclosure or short sale in the past few years you may be eligible.  If you are dreaming of owning your own home, the best thing to do is to contact a reputable mortgage lender to discuss your financial situation.  They will be able to tell you if you can qualify for a loan now or, if not what you may need to do in the near future to make that happen. And, as you can probably imagine, if you do not know a good mortgage lender, I will be happy to refer you to one of the best! 🙂

New Requirements for Mortgage Servicers

A. Disclosure Before An Interest rate or Payment Adjusts: On an adjustable rate mortgage, prior to the first adjustment date, a borrower must be given a disclosure with the following information:

1. An estimate of the new interest rate and the monthly payment

2. Comparison to the current interest rate and payment. (Example: Current interest rate is 3.5% and payment is $2,000 per month. New interest rate will be 4.0% and payment will be $2,200 per month.)

3. An explanation as to all aspects of the adjustment

a. how the new payment is determined (e.g. 1 year treasury plus 2.75. That is if the 1 year treasury is .25%, the new payment will be 3.0%)

b. the effective date of the adjustment

c. when the next interest rate adjustment and future adjustments will occur

4. If there is a pre-payment penalty

5. Alternatives that the borrower may pursue if the new mortgage payment is unaffordable

6. A list of housing counselors

B. Monthly Mortgage Statements: Monthly mortgage statements must be made easier to read or more understandable to borrowers. They will need to include:

1. Dollar Amount and due date of the next payment

2. A summary of the mortgage terms such as interest rate and principal amount outstanding.

3. Itemization of payments indicating principal, interest, fees and escrows

4. Recent transactions including breakdown on the fees, charges and payments

5. If the borrower has missed 2 monthly mortgage payments, a notice must be included in the monthly statement about the delinquency, amounts needed to bring current and consequences of failing to do so.

C. Servicing Improvements: The CFPB was very concerned about the operations of the mortgage servicers. Borrowers were complaining of getting the “runaround,” not having mortgage payments credited promptly, losing records, etc. So the CFPB is implementing a number of common sense policies and procedures for the handling of borrower’s accounts:

1. Payments Credited Promptly

a. payments must be credited the day they are received

b. if the payment includes the mortgage payment amount and escrows but is missing some fees (e.g. late fee), it still must be credited the date it is received for the amount included

2. Request for Balances: Servicers must respond to a borrower’s request for a “Payoff Letter” within 7 business days of receiving a request for it. This avoids delays in closing on refinances and sales. (Note. This is probably still a bit too long and should be about 3 business days).

3. Accurate Records: Servicers must maintain all records for at least 1 year after a loan is repaid or transferred.

a. Records must be easily accessible and capable of being compiled quickly

b. Policies and procedures need to be enacted by servicers so they can provide the information quickly to borrowers, investors and the courts

4. Errors Corrected and Information Provided: Servicers are required to acknowledge and respond to borrowers with respect to requests for errors or information requests as follows:

a. Acknowledge the request from a borrower within 5 days of receipt of written notification of an error

b. Within 30-45 days the servicer must (i) correct error and notify borrower of same; (ii) conduct an investigation and notify borrower of the results or (iii) notify the borrower that the information is not available

c. Examples of errors include (i) incorrect calculation of credits and payments; (ii) incorrect payments from escrow account; and (iii) inaccurate information about foreclosure avoidance