Oswin Grant asked:




You might have had an approved mortgage loan modification that does not seem to be low enough for you, or it might not be to your liking. You could be one of those homeowners that received a mortgage loan modification offer and fall into that category. Do not be so quick to turn down a mortgage modification offer before you have fully reviewed it. In some cases I advise my clients to seek a lower mortgage payment but it depends on the circumstances, each case can be different.

Lets face it, a mortgage company is not always looking to give you the lowest possible mortgage loan modification available. Sometimes they offer mortgage loan modification that do not appear to be a real good offer. For example, lets say you are 6 months past due on your mortgage payments and your monthly payments are $2000 a month, with a remaining 25 yrs on your mortgage, and your mortgage company offers you’re a loan modification for $1700 a month for another 30 yrs, but you turn them down.

In some cases it is not a bad idea to take them up on their offer because accepting their offer and complying with them you would have brought your mortgage current, and you now have a lower mortgage payment. Your payment might not have been lowered very much compared to what it was, but not having to deal with the outstanding $12,000 in missed payments and possibly other expenses you might have incurred might not be a bad offer for you; but there are other factors to take into consideration such as the new interest rate, whether it is fixed rate interest or not, and how long the new payments terms will be for. I advise homeowners of the offers that they should accept once we receive them, and the ones they should turn down once we get mortgage loan modification offers from lenders. I might be less likely to accept an offer if we take the example from above, but lets say the homeowner is 2 months past due instead of 6 months, and they were going to lower the mortgage payments for $2000 to only $1900 a month and my client would have to sign up on another 30 year mortgage loan with a low 5 yr fixed rate interest that will begin adjusting starting in the 6th year of the mortgage, and adjust twice a year for the remaining 25 yrs of the mortgage. Something like that I would advise against for any of my clients.

The reason why I would not go with the last offer is because there are too many variable in the new loan to accept, and the benefits are really not that attractive. The homeowner might benefit better by doing a repayment plan, short sale, or a deed-in-lieu of foreclosure in the long run than they would by accepting a loan modification with little benefits.

A borrower can challenge a loan modification offer and get a positive outcome, but that is not always to the case, it is a gamble once a lender has placed an offer on the table. First of all, if a borrower is going to challenge an offer made to them, it are going to have to turn down the original offer and hold out for something better. Holding out for something better does not always work out in a homeowners favor, and they could have turned down their offer, and not be offered anything else. Plus, they would lose the offer that was extended to them earlier. Just choose your battles wisely. We have an awesome mortgage loan modification program that is very effective and extremely inexpensive that gives any homeowner with no experience a start to finish approach with modifying their home. Or you may consult to professional for mortgage help, but seeking a professional’s time and efforts can be costly at times. If you get offers think and talk it over with others before making a decision you could ultimately regret.

Carmen

thatgirl_913 asked:


“They generally look at deposits only, and will use your last 12 month average of monthly deposits as your income. This enables you to go full doc, and you can easily get the loan done.” – Advice given to me, but don’t know where to find a mortgage company that will do this.
This is an addition to my other question on Mortgages. I am self-employed with good credit.

Frank

Louie Latour asked:




A well known author named Theodore Sturgeon once said “Ninety Percent of Everything is crap.” This became known as Sturgeon’s law and is even quoted in the Oxford dictionary. Sturgeon’s law is alive and well when it comes to the Internet and the mortgage advice you find online is no exception. Here are several tips to help you separate the wheat from the chaff when it comes to online mortgage advice.

I recently read an article online offering suggestions on how one could save money when refinancing. The article suggested that you should concentrate your efforts on finding a mortgage broker that worked on a non-commission basis. The author stated that non-commission loan representatives are less likely to overcharge you and have your best interest at heart when refinancing. While this sounds like good advice, it’s actually complete rubbish. If a mortgage company or broker tells you they work on a non-commission basis, you are guaranteed to pay too much refinancing with that company. Calling someone a “Non-commission loan representative” is just a slick marketing trick to gain your misplaced trust.

Here’s what that author doesn’t understand about the mortgage industry. Mortgage loans are simply retail products, just like televisions. Just as an electronic store marks up the price of your TV, the mortgage company or broker marks up your interest rate without telling you. This is in fact, how mortgage companies and brokers make the majority of their profits. It’s not commission; they make money from retail markup. You’re already paying origination points to this company for the new loan, so why should you pay double?

Here’s a summary of how it works. You qualify for an interest rate based on your credit and the details of your application. That interest rate is not set by the mortgage company; it comes from the wholesale lender. The mortgage company receives a written guarantee of your rate from that wholesale lender. Your mortgage company turns around and provides you a separate written guarantee for a higher interest rate. This markup by the mortgage company is called Yield Spread Premium. Homeowners that learn to recognize Yield Spread Premium when refinancing their mortgage loans can avoid paying it.

Can you see how the advice this author gave in their article could result in overpaying for a new mortgage loan? To learn more about mortgage refinancing while avoiding bad advice, costly mistakes, and Sturgeon’s law, register for a free mortgage guidebook.

Jo

Rob K. Blake asked:




You have to understand that refinancing your mortgage can offer a lot of benefits for you as a homeowner. Unfortunately, there is scant information about refinancing which makes this option seems too intimidating. There are also some techniques that you should know in order to further cut the costs and charges of obtaining new loans. The good news is that there are practical steps that you can do right now to guarantee success in mortgage refinancing.

Immediately Improve Your Credit Score

Your credit score plays a big factor when you apply for refinancing of your home mortgage. Unfortunately, there is little you can do to immediately improve your credit score. However, there is a good method to immediately see a change in your credit score and it does not involve complicated steps.

As you may notice, your credit score may be adversely affected if you have several active credit card accounts. If you do not have a very nice credit score, your capability to get favorable refinancing terms may be affected also. What you can do is to let credit companies know that you intend to close your accounts. You will be surprised that an immediate positive change in your credit score will become more apparent. Many people are not aware of this technique. You can try it so you can improve your score and get better refinancing rates.

Check Your Credit Report after Closing Your Credit Lines

One month after you make the request to close your credit lines, it is advisable to check your credit report. You should see a special line in the report indicating that your credit lines have been closed “at customer’s request.” You should let the mortgage refinancing company know that you have personally requested the closing of the credit lines in order to get better credibility. This will have a good impact on your application for refinancing.

There are also other benefits that can be enjoyed if you check your credit report. There are times that errors can manifest in your report. Look for such errors in order to further improve the score of your credit. A better score means you could easily secure better terms for refinancing.

Avoid Private Mortgage Insurance

As much as possible, you have to avoid getting involved in private mortgage insurance. This will surface if you apply for refinancing especially if the amount of the loan is more than 80 percent of the value of your home. What you can do is to simply pay-off your credit card debts and to make improvements to your property. These steps will help your get better deals from refinancing companies.

By following these tips, you will be able to improve your prospects of getting good mortgage refinancing. These tips could help you secure lower interest rates and better terms. Exploring your options therefore can really make a big impact on your refinancing application.

Duane

Raziboy asked:


And is’t a good advice to refinance with my mortgage company (CountryWide Home And Loans) or shop around other Loan companies

Laura

Kristen asked:


So, I’m in the process of trying to have my loan “re-modified” as I’m upside down in my house now (I bought it for $310,000 2.5 yeras ago, I owe $240,000 on it now, and it would only sell for about $210,000 if I’m lucky). So, I’m getting ready to have renters move into the house. They will not be paying me enough to cover my mortgage, but only a couple hundred dollars off. So, here’s where it gets tricky. Apparently to remodify a loan, the mortgage company won’t even entertain the idea until I am approx 3 months behind on payments, so I have stopped paying my mortgage in order to make this happen. BUT – when i have renters in the house, am I legally obligated to send their rent money into the mortgage company? Becasue that obviosuly negates what I’m trying to do. Any advice or insight?

Lauren

Thomas Baugh asked:




If you’re looking for a great deal on your mortgage and don’t have a clue what you’re doing, then finding an independent mortgage broker is absolutely essential. They will offer you advice, review the whole market on your behalf and come up with a deal that suits your specific needs.

An independent broker is always best because they aren’t tied to any providers. You’ll see a lot of big name companies claiming they can broker you the best deal on your mortgage but in reality, they only represent a handful of providers. This means that when they look for a mortgage on your behalf, they will only be looking at the range of deals offered by a select number of companies. So if you end up speaking to a mortgage broker make sure you ask them whether they’re tied, multi-tied or independent. The latter is always best.

Some people might say that it’s slightly old fashioned to use a broker to find a deal on your mortgage. With the evolution of the internet, it is easier to review the market yourself to seek out good offers. However, there’s no substitute for getting solid and knowledgeable advice from skilled professionals.

If you do choose to use a broker and are able to find one you believe can help you, make sure you ask up front about their fees. Some will ask you to pay them depending on the number of hours they work on your behalf. Others will get their fee from the mortgage company when they arrange the deal and you agree to it. They get a commission from the mortgage company for setting up the deal which is usually quite substantial depending on the size of the loan you take on. Therefore you should be inquisitive about any additional charges the bring up.

A good independent mortgage broker can be difficult to find so look for recommendations from friends and family. A mortgage is a huge decision for anyone and it deserves some time and effort on your behalf to ensure you get a great deal. If you don’t know your tracker mortgage from your variable rate mortgage then you should invest in the help of an experienced broker.

Tonya

dan p asked:


am lost and felt like i have been lied too by my mortage company. In 04 we bought a townhome for 174k had 2 loans, 1 for 140k that is a ARM and other for 35k. august of 05 we were approached by Countrywide that has our 1st loan telling us we have a value of 220k and you have about 35k in usable equity. We had about 25k in medical debt for my kids hospital bill. They suggested to roll that in with my 35k second. The selling point was to clear those payments to get ready to refinance my 1st which is a ARM to a fixed plan. Now i am getting these rate hikes now have a 10percent on my first and the payments are killing us. I went to countrywide to refinance, check my credit was 700, my income was fine. Then they send out a apparisal,came in at 185k, countrywide told me i cannot do anything. I hired my own appraiser came up with the samething, but he told me the property should have never been appraised at 220k when i took out the HELOC should have been 183k?
we live in a townhome community so all homes are alike. My appraiser that i hired showed me the sales during that time frame that countrywide showed a value of 220k. All the comparable sales were between 181-186. No other lending company will not help us get out of this 1st loan too. I keep trying to talk to Countrywide i find them rude and unhelpfull

Lydia

sondrassssssss asked:


I fell behind in my mortgage payments and am now facing forclosure. I was advised to contact my mortgage company, they are required to work with me under some new laws. They are continuing with forclosure. Is there anything I can do? I am currently paying 11 % interest as I got suckered into one of those idiot loans. My house was appraised at $225,000.00 last November, and I refinanced at that same time for $140,000.00. I am currently working.

Agnes

ginnyree03 asked:


The mortgage company i’m dealing with now is totally belligerent, unfriendly and unhelpful. They literally will not answer questions – they just tell me I need to re-read my loan agreement. I don’t qualify for a refinance, I just want to move my current loan amount to another company entirely. Can somebody please advise ?
Thanks !

Donna

Alan S asked:


I have been in mytownhome for 3.5 years bough it for 194k. My mortgage was a2`year ARM. My mortgage company approached me 2 years ago for a 2nd loan, they told me that my townhome is worth 275k. I had a 45k medical bill for my son and at that time the payment were killing me, i went a head and did it brining the loan to 55k, that paid that off and closing fees. Well now i am tring to refinance and finding out my townhome is worth 195k, i owe now 252k on the home. My payments are killing me the ARM is now at 10.25%. I was talking to my neighbor Bud who lives in my community bought his townhome at the same time they wrote my 2nd loan, he paid 200k. I had a realitor friend investage and found no town home ever sold above 205k. I doug out all of my paper work and found false #. 1, they put down my home was worth 275k, no townhomes ever sold over 205k. Second my monthly income was doubled. I called my mortgage company to see if they could help, i got laughed at?

Anita

Not so looney afterall asked:


Two years ago we lived in California, where our mortgage was ASTRONOMICAL. We sold our house and paid off the loan. We moved to another state and bought our new house with cash. We are now in the process of getting a small mortgage to put toward home improvements. Yesterday, my husband’s credit score came back as 744- yea! But also the report showed two late payments on the old house before we sold it. The mortgage company wants us to contact the old mortgage company and find out why those payments were late. The truth is I know they were late because we had a temporary employment issue- but then we got back on track for several payments before we sold the house- and then paid off the loan anyway. I guess, despite the excellent credit rating, this might affect our interest rate on the new loan. Please advise how I should approach the old mortgage company so we can get the best rate on the new loan. Thanks!

Terri

Chad Bates asked:


Texas Mortgage Loans are in plentiful supply due to the fact that the Texas marketplace has not gone through the dramatic swings the west and east coast markets have. Areas like Dallas- Ft Worth, as an example, still offer some of the most affordable housing costs of any major metropolitan area of the United States.

There has been a proliferation of loan products to serve the consumer- and almost all are available in Texas. What really is important to the consumer is to work with a Mortgage Company who asks you the right questions and then tailors the loan program for your particular financial needs. Some of the questions that should be asked by a mortgage professional regardless of whether it is a purchase or refinance are:

*How long do you plan on staying in this home?

*What other financial objectives are important to you?

*Do you have any other consumer debt?

*What are your retirement plans and how are you preparing for that?

*What are your plans in terms of family expansion or contraction in your home? (increasing family size or contracting family size due to children going off on their own)

*What is the most important thing to you- a lower payment or lower closing costs?

You see, the key is to have a mortgage professional tailor your loan to your particular financial objectives to insure that the loan is the best fit for your overall financial needs. There can be significant savings and specific benefits to any home owner or buyer to insure that their own specific financial needs are taken care of. Unfortunately, there are not that many mortgage professionals who understand and embrace this fact. For instance, there can be closing costs savings by raising the rate on a loan and the lender helping with paying some closing costs.

Likewise, there can be savings for new buyers to have advice prior to buying to structure a loan where the seller pays the closing costs- or a significant portion of the costs. Another strategy might be to not take a 30 year fixed rate loan if you do not plan on being there more than 3,5, or 7 years. Lots of options- and you should be able to trust your mortgage professional to advise you on these.

Bottom line is this- each and every mortgage loan should be tailored to the individual- and not a “cookie cutter” approach. There is a lot more to it than asking “what is your interest rate”. Make sure that you go with a professional who can explain all your options to you and understands that it is important to tailor a loan to your particular financial needs.

And remember- a home loan is an important part of your overall financial plan- and not just a home loan. You should definitely do an annual “Mortgage Fitness Check Up” tm to see if your mortgage loan is working the best for you.



Tanya

don k asked:


am in some desprate need of advise, My wife up and left me a couple of months ago leaving me with this nice big mortgage. I am looking at selling the loan is for 205000 but the property is valued at 190,000 and to sell its going to be 15k. My payment is 1900 and i cannot afford it. My current mortgage company is not helping me. the home and morgage is all in my name alone.

Andrea

capswitt asked:


My Sister is 10 days late on her mortgage payment. The mortgage company stated that they would not accept the late payment and she needed to make the past month and next months payment together. Is it legal for Mortgage companys to do this? They cannot refuse payment can they? BTW, this is not the mortgage company she financed her loan through. The company was purchased by First Horizon several years ago. She did not agree to this with her original mortage company and was not advised of this ‘rule’ after the buy out.

Corey

summerlandcollies asked:


I have found a couple of homes I really do like. However, my mortgage company has advised me to clear some items off before the loan can be processed. These will probably only take me about 30-60 days My problem is, the moment I find a house I like, it’s gets snatched up.
Is it possible to put a contract on a home with closing in 90 days? or more?
The two particular houses I am interested in are either just rehab projects or corporate owned. They are both empty.

Dolores

bryan l asked:


I very upset with my mortgage company. 1 year ago they gave me a courtsey call telling me i have 45k in equity in my home. They threw me an offer to cut my bills down ect. I went into talk to them at a local office and they spelled every thing ourt My 1st loan is 140k on a adjustable plan. They were telling me to roll in my car loans, credit cards and student loan to cut monthy payments total as 70k. They valued my property at 220,000 did not send our a appraser, they also told me that it would help my credit score substantually doing this so i could refinance my 1st. Now my 1st adjusted from 5.7% to 9.22% with payments increase HUGE. I called Country Wide to dicuss refinancing. They looked it up and it did show my Credit Score did go up to 680. and yes we are ready to work with you. They sent a appraser our 300 dollars extra out of my pocket and they apprased the property at 185k, leaving me backwards 35k. they then told me they could not do anything.
to break it our
before this refinance Now after this
140k 1st 140k 1st
35k 2nd mortgage 80k in HELOC
20k in student loan Now told value
25k car loan is 185k
Property value was
told to be at
220,000

Marilyn