Posts Tagged ‘Mortgage’

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.

 

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BREAKING MORTGAGE NEWS-Rates to Plunge on Brexit!

Last night, the United Kingdom shocked the world by voting 52% to 48% to leave the European Union. Though their Prime Minister David Cameron campaigned hard against the withdrawal, the British people decided that it was in their best interest to do so. This vote is seen as an anti-immigrant one as the UK wants to limit access to its borders. As a result of the financial uncertainly this has caused, MORTGAGE RATES WILL BE PLUMMETING today and at least in the short term.

Brexit

So, what does this have to do with mortgages? Well, I am glad you asked! As the financial analysts and traders were blindsided by the result of the vote, the world stock markets are in turmoil. The British Pound is at a 30 year low v. the dollar and the Dow Jones is down 3% before the open. As a result, the yields on the 10 year US Treasury, which is one of the indexes that effects mortgage rates is down 22 points. That means that mortgage rates are going to open significantly lower today.

If you can act fast, there may be a unique opportunity to refinance and take advantage of what may be a significant “blip’ in the market. This could last for some time until the markets stabilize but there is no way to know. What I can predict with relative accuracy is that today, mortgage rates should be the lowest they have been for the year.

Contact me today and find out how you can save hundreds of dollars on your monthly payment by refinancing! Have a great weekend.

Regards,

Dan

Pre-qualification vs Pre-approval

Many of you have probably heard the terms pre-qualification and pre-approval.  You may have wondered what these terms mean and how do they differ?

If it’s spring, it must be the housebuying season, right?

I know that the calendar says it is spring.  I also know that Easter and Passover are coming weekend. Though, like many others, I just don’t know where the spring weather is!  For those of us in the residential housing game, which each year feels more and more like a Game of Thrones, the spring weather is very important. For sellers and buyers alike, there is a big psychological boost when warm weather finally arrives.  Like the Israelites roaming the desert, the homebuyers are looking for a sign from above that it is time to enter the Promised Land (of homeownership)!

Photo via mypreferredlender.net

I am hoping that we finally get some warm weather next week.  And, while knowing that “hope” is not an effective business strategy, I am still predicting a very strong housing market.   Though the “so called” experts only expect housing prices to rise about 3% over last year’s prices, I think that the increase will be significantly larger. I am expecting the increase to be more like 5%-8% possibly higher.  As for the number of previously owned home sales which decreased to 4.93M nationwide in 2014 from 5.09M in 2013, I see a reversal of this for 2015.  I believe that nationwide we will be slightly above the 5.09M number.

First of all, interest rates have continued to remain low despite the dire predictions for this year. Since rates have actually decreased, not increased since January 1st, home affordability has improved since 2014. With the higher employment numbers so far this year, more people are in a position to buy a home now than they were last year.

In addition, the banks are finally easing up on their credit requirements. In January, the Federal Housing Administration (i.e. FHA) dropped their mortgage insurance rates from 1.35% to .85%. Here is a link to a 2 minute video about this reduction and it’s effect — Changes to FHA Mortgage Insurance Premiums January 2015.  With FHA loans allowing credit scores down to 580, low downpayments (including gifts and up to a 6% seller’s concession); and debt-to-income ratios as high as 55% of gross income (with income from non-occupying co-borrowers included), these loans will enable a lot of people to buy homes.

Other new first time home buyer programs were implemented by Fannie/Freddie which now allow for a 3% downpayment with credit scores as low as 620.  This will allow home buyers with less than $10k down to buy a $300,000 house or apartment!   For more information and for each of their specific program requirements (since they vary slightly), you can view this short You Tube video. — Fannie Mae and Freddie Mac 3% Downpayment for Conforming Loans.

There is also pent up demand for housing. The leading edge of the Millennials, who are now in their early 30s, are being “forced” by demographics, income and family size to purchase homes.  Though they prefer to stay flexible by renting and live in/near cities, like those of us who came before them, there comes a time when practicality and affordability (i.e. realization that you are no longer so young), trumps desire.  For many of the older Millenials, that time is now!

On the other end of the demographics are the folks who are retired or semi-retired and looking to unload the family home that they no longer need. For these people, who held out for higher prices after the housing collapse, housing prices, though not back to 2006 levels, have returned enough for them to consider selling.  The irony is that it is the clash of these two very similar generations, the formerly largest and most selfish generation of Baby Boomers with the (unbelievably) even larger and more selfish Millennials, will together bring back the housing market beginning this year. Their “partnership” will also allow the improvement to continue for the next several years, and probably accelerate as well.

So, there you have it. IMHO, there will be a very strong purchase market this year. But, if this does not occur, I will be back in the fall to tell you why. Since, like the rest of the “so called” experts, if I am wrong, it won’t be my fault. Rather it will be caused by something happening that was unexpected (at least to me)!

If you “like” these monthly posts, PLEASE “Like” my business Facebook page — New York Real Estate Lawyer or subscribe to my mailing list HERE.  Then, check back there often for several posts a day on articles about residential real estate, mortgages, and interest rates.

Happy Easter and Happy Passover to those who celebrate each.

Dan

Mortgage Checklist Documents

A lot of people have been asking lately what documents they need to provide in order to get approved for a mortgage to buy a house. With this video, we’ll go over the documents that you need to provide the lender to make the mortgage application easier for you and the lender. They fall within basically three different categories.

Watch this video and learn about the requirements and documentations you need to prepare to get a mortgage for that home purchase.

Changes to FHA Mortgage Insurance Premiums January 2015

Great news for anybody who either has an FHA loan or is looking to buy a property with an FHA loan.

On January 26, 2015, which is just a few days from the taping of this video, the FHA will be lowering their Mortgage Insurance premiums. The current FHA Mortgage Insurance premium is 1.35%. It’s going to be lowered by 0.5%, so from currently 1.35% to 0.85%.

This represents the savings to people taking out FHA loans anywhere from $90 to $300 per month every month that you have that loan. So anybody has an FHA loan. you may be available to do a Streamline Refinance. A Streamline Refinance has very low documentation and has no closing cost so it can be a good deal. You’re automatically saving by half percent just by the reduction in the Mortgage Insurance. And if your rate is higher than the new rate you’ll also save money on the interest rate itself.

The FHA insures about one-fifth of all new U.S. mortgages and is a major provider of mortgages to first-time homebuyers. FHA loans allow for little as 3.5 percent downpayment with the minimum FICO score requirement of 580.

The lower premiums are going to enable 800,000 homeowners to save money on a refinance and it’s going to enable another 250,000 new homebuyers to become homeowners due to the lower payments.

So whether you’re first time homebuyer moving in to a new house or you want to refinance your existing FHA mortgage, the FHA loan program will let you do this with lower Mortgage Insurance.

If you’re interested in finding out how you can buy a house with an FHA loan or save hundreds of dollars per month on your current FHA loan, give Dan a call at (917) 575 -6977 or email at dshlufman@classicllc.com.

So You Want to Buy a House in 2015 (or Refinance)?

If you are looking at the mild, dry weather this winter and the low interest rates and thinking “We should look into buying a house this year,” then this is for you. Likewise, if you have an interest rate above 4.25%; want to change from a 30 year fixed to a 15 year; have PMI on your loan but an increased house value; have an FHA loan with PMI of 1.35%; or want to convert an ARM to a fixed, this is for you too.

But, in order to get a new loan, there are a few things that you should know.  Though some of them are “self-evident” and would appear to the untrained eye to be common sense, trust me that they are not. I would say “don’t try these at home” but, if you don’t try these you will likely not be able to buy or to refinance your home!  To get a loan you need 3 basic things: good credit, sufficient income/employment and assets.

Credit Items:  If you have a mortgage on your house, pay it on time EVERY month. Just one late payment in any year can disqualify you from getting a loan for 12 months. Similarly, if you carry credit card balances, at least pay the minimum payment when it is due.  Having a late payment on your credit card can drop your score by 20-50 points in the months following that late payment.  To keep your credit score highest, keep the credit card balances to less than 25% of the credit limits. MP900405592

Do not incur additional debt while you are in the loan process.  That means, no new “toys,” furniture, trips, cars etc.  As one client told me when his initial loan approval was subsequently declined for leasing a new car, “you didn’t tell me NOT to lease a car.” So, though I never told him “TO” lease a car, I am telling you now not to do this (or at least not to do it before you check with your lender first).

The credit reports you get from the consumer credit reports are not the same credit reports that lenders use. As a result, the credit scores are generally overstated (sometimes significantly). Do not rely on these when applying for a loan. Have a credit report run by a professional (i.e. as noted above, do not try this at home).

Finally, one of my favorites, do NOT co-sign a loan for anybody at any time (other than student loans for a child). Co-signing is the same as signing as far as the banks are concerned.  If the loan payments are made late, or worse, not at all, it will destroy your credit for a very long time.  As Nancy Reagan would advise “Just say No.”

If you have credit issues, address them up front so they can be explained and dealt with early on.  If they exist, they will come up.  Not only that, but when the tax liens and collection accounts appear, we are not going to believe that “this is the first you are hearing of this.”

I Quit My Job Income/Employment:  Do not change (or worse) quit your job during the loan process (And Yes this happens. And No, it is not an isolated incident). If possible maintain a stable work history in the same job preferably or at least within the same line of work for the two year’s prior to applying for a mortgage loan. While there, find out if your employer has a procedure in place for verifying employment.  A lot of large companies and government entities have an online procedure that requires a code from the employer.

When you are asked to provide all of the pages of your tax returns, do not just send the first two pages or the random pages you feel like sending. We need to see all schedules to determine if there are other properties owned, unreimbursed business expenses, etc. Yes, we know that the tax returns are long yet we still need ALL pages.

If you are self-employed, find out what your tax returns show.  Do not tell us when we inquire about your income, “I don’t know what he (i.e. accountant) puts down.”  I know a lot of accountants and generally (though I won’t swear for all of them), “he puts down” the income and expenses based on the results of your business and the documentation that you provide to him.

Assets:  Cash may be king in life, but not in mortgage lending. All assets that will be used in the purchase of a house need to be located at a financial institution and “seasoned” in the account for at least 2 months.

Writing a Check

If you are getting a gift for some of the downpayment it needs to be from a blood relative. And, the source of the relative’s assets needs to be provided via a copy of their account statement. We understand that your uncle does not want you to see his bank statement. But, by making a gift, those assets are now part of the loan file and they need to be verified like
any other assets.

As with the tax returns, ALL pages of your bank statements mean “All pages.” We are aware that the last few pages may be blank, or contain printed text or have copies of your checks. But, we need these too. While we are at it, do not move money between your accounts without telling us first and unless absolutely needed for the downpayment or closing costs. Otherwise, we will need many more statements and possibly explanations. This applies especially to any large deposits that are made into your account during the two month’s prior to applying for a mortgage loan.

You are now ready to apply for a loan. If you follow the suggestions above, you will avoid 80-90% of the issues that arise during the loan process. Good luck.

Dan