8 Ways To Accidentally “Un-Approve” Your Mortgage

8 Ways To Accidentally “Un-Approve” Your Mortgage

 

 

 

For all the talk of how tough it is to be "mortgage approved", the basics of mortgages haven't changed. Mortgage approvals are still the 3-legged stool of income, equity, and credit.
Sometimes, though, it's not getting approved that's hard -- it's staying approved.
You have to watch out for landmines. 

When Things Go Wrong

Mortgage approvals take time. In a typical home loan market, it's about 3 weeks from start-to-finish.
Approvals can take longer, however, depending on market conditions. For example, if rates are low and there's a refi boom on-going, a refinance can take 6 weeks to close. Banks don't have capacity to do work much faster.
Or, if you're buying a home and it's a short sale or foreclosure, expect delays there, too. With REO, it can take up to 6 months to get to the closing table.
Click to get today's mortgage rates.
Thing is, during that "extra time" -- 3 weeks, 3 months or longer -- a lot can go wrong, and when things go wrong, your loan goes bad. For example, if lose your job, become ill, or see your home damaged by storms, you may lose your mortgage approval -- even if you were previously cleared-to-close.
Unfortunately, these are all events that are beyond your control. You can't control sickness any more than you can control Mother Nature. But you can control yourself during those extra few weeks.
Good behavior matters in mortgage.

Bad Mortgage Behavior, Defined

Keeping "good behavior" in mind, here are 8 things you should absolutely not do between your date of application and your date of funding. I've been doing this long enough that I can say with certainty: Ignore these rules at your own peril.

1. Don't buy a new car or trade-up to a bigger lease
2. Don't quit your job to change industries or start a new company
3. Don't switch from a salaried job to a heavily-commissioned job
4. Don't transfer large sums of money between bank accounts
5. Don't forget to pay your bills -- even the ones in dispute
6. Don't open new credit cards -- even if you're getting 20% off
7. Don't accept a cash gift without filing the proper "gift" paperwork
8. Don't make random, undocumented deposits into your bank account

And that's it.
Now, you may find it 100% impractical to have follow these rules to the letter. I know that.
For example, if your car lease is expiring, you have to do what you have to do. Renew the lease. But before doing it, you should check with your loan officer to see if renting a car in the short-term, instead, would be a more mortgage-friendly solution instead.
The same goes for accepting cash gifts from parents. There's a right way and a wrong way to accept a cash gift from family and if you do it the "wrong way", your gift may be prohibited from use as part of your downpayment funds.
There are a bevy of "gotchas" in Mortgageland and you can't expect to know them all. These 8 rules, however, are a good start.
Click to get today's mortgage rates.

Get Low, Long-Term, Locked Mortgage Rates

Mortgage refinances take time and the best thing while your loan is in process is to keep the status quo. You can't control nature, but you can control you. Be smart with your finances and don't let your mortgage get un-approved.
Click to get today's mortgage rates.

Contact The Mortgage Mark with any questions!!

Mark@themortgagemark.com   www.themortgagemark.com 

Bi-Weekly Mortgage Payments : Will You Pay Your Mortgage Faster?

Bi-Weekly Mortgage Payments : Will You Pay Your Mortgage Faster?

Thinking of starting a bi-weekly mortgage payment plan? You may want to think again. A bi-weekly plan may sound terrific, but it's a program not without its risks.
There may be better, less expensive ways to own your home faster.
Click here to see today's mortgage rates.

Typical Mortgage : 12 Payments Per Year

The typical mortgage asks for one payment per month, which equals 12 payments per year. With a 30-year fixed rate mortgage, therefore, 360 payments are required to pay the loan in full.
Each mortgage payment is split into two parts -- a principal portion and an interest portion. The principal portion is applied to the amount that you owe the bank. This diminishes your remaining loan balance. The interest portion is your cost for borrowing from the bank.
As your loan moves toward maturity, the balance between your mortgage payments' principal-and-interest shifts. In the early years, a significant portion of your payment is comprised of interest and just a small part goes to paying down your balance. It's not until later in your loan's lifecycle does the principal portion of the payment start to grow.
This repayment schedule is the reason why after 5 years or so, your loan's balance has been barely paid down. The technical term for this repayment schedule is amortization (ah-mor-ti-ZHAY-shun).
Click here to see today's mortgage rates.

Bi-Weekly Mortgage Payments : 13 Payments Per Year

A bi-weekly mortgage payment program is meant to short-circuit your loan's amortization schedule. Instead of taking 12 payments per year, the bi-weekly payment plan asks for one payment every two weeks, which adds up to 13 payments per year.
Except that you can't make 13 payments per year on your mortgage -- that's not how a mortgage works.
With a mortgage, you pay a certain amount of interest on an annual basis and that amount is covered in your first twelve payments. The 13th payment has to go somewhere, though, so it gets applied to your principal balance; the amount that you still owe to the bank.
And, this is how a bi-weekly payment plan works. With each "13th payment", your loan balance is reduced by the entire amount of the payment. You reach your loan's payoff date sooner.
At today's mortgage rates, bi-weekly payments shorten your loan term by 4 years.
Click here to see today's mortgage rates.

Effective Alternatives To Bi-Weekly Payments

Bi-weekly payments plans work; there's no doubt about that. It's just basic math. However, there are several reasons why homeowners may want to avoid enrolling in a bi-weekly mortgage payment plan.
The first -- and most obvious -- reason to avoid bi-weekly mortgage payment programs is that homeowners choosing to self-manage their bi-weekly payments get better results than via a bank-managed bi-weekly payment program.
Here's how to self-manage : Rather than sending payments to the bank every other week, achieve the same result by making your regular mortgage payment once monthly, an adding 1/12 of your regular mortgage payment to your check.
For every $1,200 in your mortgage payment, in other words, add $100 to your monthly payment. By sending $1,300 to your lender monthly, you will "overpay" your mortgage by $1,200 annually, which is a 13th payment.
Assuming a $300,000 mortgage at 4.000%, look at how the math works :

• Bank-managed bi-weekly mortgage payments pays off in 26 years, 0 months
• Self-managed bi-weekly mortgage payments pays off in 25 years, 11 months

This math works because banks don't apply that 13th payment until the year is complete. By contrast, your self-managed system applies 12 times per year.
Click here to see today's mortgage rates.
Another reason to skip the bi-weekly mortgage program is that bi-weekly payments are a contract and once that contracts starts, as a homeowner, you're obligated to make those 13 payments per year no matter what.
By contrast, with a self-managed payment plan, you never have that obligation. You can choose to skip a month during the holidays, for example, then double-up on payments later on, or not at all. It's all in your control -- not the bank's.
And, lastly, if you find your bank is charging for it bi-weekly mortgage payment program, make sure to say "no" no matter what. That's just wasted money.
Click here to see today's mortgage rates.

See Your Mortgage Payment Choices By Email

Putting bi-weekly mathematics aside, the thing is, with mortgage rates low, your best alternative to the bi-weekly mortgage plan may be to get a new mortgage altogether.
Extra payments can speed up your payoff, but not as well as taking a zero-closing cost refinance, then putting your monthly savings back to your loan balance. Your mortgage payment stays the same, but your loan payoff date shrinks.
Assuming a 1 percent drop in your mortgage rate, the Refinance-and-Reinvest plan can shorten your loan's term 63% more than via a bi-weekly mortgage payment program.
And with lower interest rates, of course, comes larger long-term savings.
Click here to see today's mortgage rates.

Contact The Mortgage Mark with any questions!!

mark@themortgagemark.com

www.themortgagemark.com

September 12, 2012


Dear Valued Customers and Past Clients,

We have recently been made aware of a deceptive attempt to extract money from unsuspecting customers of banks, including our Bank.

Some Capital Financial Mortgage Corporation customers recently received a Litigation Notification from the Residential Litigation Group, PA. The notification indicates that this “Group” is intending to file a claim against Capital Financial Mortgage Corporation for improper lender actions.

While it may first appear otherwise, this notification is actually an advertisement for a law firm. In fine print on the form itself, it explicitly states that, “This advertisement does not contain or constitute legal advice.”

Do not respond to this letter and please do not send them money. We are taking appropriate action in order to bring such misleading advertising practices to an immediate halt. If you received this letter and have any further questions, we urge you to contact us locally at 267-704-0050 or 610-532-1775.

As always, thank you for being a Capital Financial Mortgage Corporation customer.

How Does Refinancing Work?

In the world of mortgages, the term "financing" refers to borrowing money from a bank to help pay for a property.

If then, at a later date, the homeowner wishes to replace his mortgage with a new one -- one with either a lower mortgage rate, for example, or one that provides cash-out at closing -- the financing process is repeated.
This repeat is called a "refinance". Refinancing is when you obtain a new mortgage loan to pay off and replace an existing one.
Click here to get today's mortgage rates.

Refinances Require Re-Verification

Because a refinance amounts to establishing a brand-new loan with brand-new terms, it follows that refinance applicants are subject to the same approval process as for the initial mortgage which was given at the time of purchase. A refinanced mortgage represents a brand-new debt and must be underwritten accordingly.
As with a home purchase, there are three basic areas against which a refinance applicant is evaluated :

1. Credit Score and Payment History
2. Income and Employment History
3. Retirement Assets and Cash Reserves

Furthermore, the home being refinanced is subject to an appraisal to determine its current value.
Next, the above traits are compared against today's mortgage standards. If both the refinancing household and the home itself meet current mortgage guidelines, the refinance will be approved and the old loan will be replaced.
Click here to get today's mortgage rates.

3 Types Of Mortgage Refinance

Mortgage refinances come in three varieties -- rate-and-term, cash-out, and cash-in. The refinance type that's best for you will depend on your individual circumstance.

Rate-And-Term Refinance

In a rate-and-term refinance, the only terms of the new loan which differ from the original one are either the mortgage rate, the loan term, or both. Loan term is the length of the mortgage. For example, in a rate-and-term refinance, a homeowner may refinance from a 30-year fixed rate mortgage into a 15-year fixed rate mortgage; or, may refinance from a 30-year fixed rate mortgage at 6 percent mortgage rate to a new, 30-year fixed rate mortgage at 4 percent.
With a rate-and-term refinance, a refinancing homeowner may not walk away from closing with more than $2,000 in cash. Closing costs and escrow reserves may be added to the loan balance.
Click here to get today's mortgage rates.

Cash-Out Refinance

In a cash-out refinance, the new mortgage may have a lower mortgage rate or shorter term as compared to the original home loan. However, the defining characteristic of a cash-out mortgage is that the loan balance of the original mortgage is increased to account for cash-in-hand at closing of more than $2,000; for debt consolidation; or, to combine an existing first and second mortgage.
Cash-out mortgages represent more risk to a bank than a rate-and-term refinance and, as such, carry more strict approval standards. For example, a cash-out refinance may be limited to a lower loan size as compared to a rate-and-term refinance; or, may require higher credit scores from the applicant.
Click here to get today's mortgage rates.

Cash-In Refinance

With a cash-in refinance, a refinancing homeowner brings cash to closing in order to pay down the loan balance. The refinanced mortgage may also have a lower mortgage rate, or a shorter loan term, or both. There are several reasons why homeowners opt to do a cash-in mortgage, but the most common reason is to get access to lower mortgage rates which are only available at lower loan-to-values, or to remove mortgage insurance payments for loans over 80% LTV.
A mortgage at 75% loan-to-value, for example, may get better rates than a mortgage at 80% loan-to-value, and conforming loans under 80% LTV pay no PMI.
Click here to get today's mortgage rates.

"Special" Refinance Programs For Homeowners

With respect to refinancing, there are four mortgage programs for which the mortgage approval process is different. Collectively, these programs are known as "streamline" programs because their respective underwriting requirements are grossly simplified.
With a streamline refinance, lender often waive large chunks of the "typical" mortgage approval process which may include waiving appraisals, waiving income verification, and waiving credit score minimums.
Four common streamline refinance programs are :

• FHA Streamline Refinance : For homeowners with an existing FHA mortgage
• VA Interest Rate Reduction Refinancing Loan (IRRRL) : For homeowners with an existing VA mortgage
• Home Affordable Refinance Program (HARP) : For homeowners with an existing Fannie Mae or Freddie Mac mortgage
• USDA Streamline Refinance : For homeowners with an existing USDA mortgage

Streamline refinances are available via any lender and mortgage rates are the same as with "traditional" refinances.

Contact The Mortgage Mark with any Questions!!

mwilkins@capitalfmc.com

www.themortgagemark.com

Now Accepting Applications For The FHA’s New, Lower Mortgage Insurance Premiums

For certain FHA-backed homeowners, refinancing via the FHA Streamline Refinance program is about to get a lot less expensive.
Beginning June 11, 2012, the FHA implements a new policy for its mortgage insurance rates.
Click here to get FHA mortgage rates.

Millions Of FHA Homeowners Now Eligible

FHA mortgage rates have been steadily falling. Unfortunately, the FHA mortgage insurance rates have not. Today's FHA homeowners pay up to 1.50% in annual mortgage insurance premiums -- triple the rates that FHA-backed homeowners paid just 4 years ago.
For new FHA homeowners -- the ones using the FHA's low downpayment mortgage program, for example -- the FHA's rising mortgage insurance rates are a nuisance more than anything else. High insurance premiums are the price you pay for getting access to a mortgage with just 3.5% down.
But, for homeowners already with the FHA, rising mortgage insurance rates have made it exceedingly difficult to qualify for the FHA Streamline Refinance, the FHA's "no appraisal needed" refinance program. This is because the program rules state that a mortgage applicant's mortgage payment fall by at least 5% in order to qualify for the FHA Streamline Refinance.
"Mortgage payments" are defined as (1) monthly principal + interest payments, plus (2) monthly mortgage insurance payments.
Principal + interest payments have dropped significantly since 2008, but rising mortgage insurance rates have negated these effects. Making that 5% savings marker has become exceedingly difficult. Potentially millions of FHA-backed homeowners have been heretofore eliminated from the FHA Streamline Refinance program and from access to today's low rates.
For long-time FHA-backed homeowners, that's all changing.
Click here to get FHA mortgage rates.

"Grandfathered" FHA Mortgage Insurance Premiums

June 11, 2012, the FHA introduces a new mortgage insurance premium schedule for long-time, FHA-backed homeowners.
If your current FHA mortgage was endorsed by the FHA prior to June 1, 2009, you are eligible for the FHA's "grandfathered" mortgage insurance premiums. The new premiums are dramatically lower than the premiums paid by today's new FHA customers.
For eligible homeowners, the new FHA MIP schedule is as follows :

• All loans : 0.01% upfront mortgage insurance premium
• All loans (except 15-year fixed with LTV of 78% or less) : 0.55% annual mortgage insurance premium
• 15-year fixed with LTV of 78% or less : No annual mortgage insurance premium

Click here to get FHA mortgage rates.
As a real-life example of how the new FHA mortgage insurance premiums work, a homeowner in Chicago, Illinois with a $400,000 mortgage from 2008 could refinance under the new FHA Streamline Refinance program, paying just $40 in upfront MIP and $183 per month in annual MIP.
This is a huge savings over the FHA's current MIP schedule which would require $7,000 to be paid in upfront MIP and $417 per month in annual MIP.
With the grandfathered FHA Streamline Refinance schedule, there are no other fees, no other adjustments, and the terms are available to all FHA-backed homeowners whose mortgages were endorsed prior to June 1, 2009.
Mortgages endorsed post-June 1, 2009 are subject to the current FHA mortgage insurance premium schedule.

Don't Wait Until June 11. Start Today.

The FHA's new mortgage insurance premiums go into effect June 11, 2012. However, you don't need to wait until June 11 to get your loan application started. You can start your loan application today, and lock your mortgage rate, too.
You'll be among the first in the country to use the FHA's new, lower MIP schedule. And you'll get today's great rates. Get started with a rate quote and see what lower MIP can do for you.
Click here to get FHA mortgage rates.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com  mwilkins@capitalfmc.com

How To Cancel Your FHA Mortgage Insurance Premiums (MIP)

How To Cancel Your FHA Mortgage Insurance Premiums (MIP)

As compared to conforming loans and jumbo mortgages, FHA-backed loans are great for a lot of reasons.

FHA mortgages allow purchases with low downpayments; they allow refinances without appraisal; and FHA mortgage rates are often pretty low.

One place where FHA mortgages fall short, though, as compared to other loan types is with respect to mortgage insurance. FHA mortgage insurance can be cumbersome and costly.
If you're going to take an FHA-backed mortgage, you need to know how FHA mortgage insurance works.

Click here for an FHA mortgage rate quote.

With FHA, Everyone Pays Mortgage Insurance Twice

The FHA's role in Mortgage World is different from Fannie Mae and Freddie Mac. The FHA doesn't "buy mortgages" from banks like Fannie and Freddie do. Rather, it insures them.
It works like this : The FHA issues mortgage guidelines to which banks can underwrite a mortgage. These mortgages are commonly called "FHA mortgages".
If a bank underwrites an FHA mortgage and the loan goes into default, the FHA repays the bank's losses from its capital reserves. The FHA's capital reserves are funded by mortgage insurance premiums paid by the nation's FHA-insured homeowners.
FHA homeowners pay two types of mortgage insurance -- Upfront Mortgage Insurance Premiums and Annual Mortgage Insurance Premiums. These insurance types are sometimes abbreviated and known as UFMIP and MIP, respectively.

Since April 18, 2011, every FHA-insured homeowner has been required to pay both at least one form of FHA mortgage insurance.

Click here for an FHA mortgage rate quote.

How To Calculate Your FHA Mortgage Insurance

The FHA's mortgage insurance requirements are generally simple.
FHA Upfront Mortgage Insurance Premiums
The FHA's current upfront mortgage insurance premium (UFMIP) is 1.75 percent of your loan size. For example, if you want to apply for an FHA purchase mortgage and your loan size is $300,000, then your Upfront MIP will be equal to $5,250.
Upfront MIP is not paid as cash. It's automatically added to your loan balance by the FHA. Therefore, your final loan size in the example above will be $305,250.
Furthermore, upfront MIP is not used in your FHA loan-to-value calculation. This means that you can make a 3.5% downpayment on your purchase, add the 1 percent UFMIP to your loan size, and still meet the FHA's low downpayment guidelines.
Upfront MIP is paid to the FHA upfront, at closing, and never paid again. Hence the name, "upfront" MIP. However, because UFMIP is added to your loan balance, you do pay mortgage interest on it for the life of your loan.
FHA Annual Mortgage Insurance Premiums
The FHA's other type of mortgage insurance is paid monthly. Called Annual Mortgage Insurance Premiums (MIP), it's paid as a part of your mortgage statement.
Annual MIP is required on all FHA mortgages and premiums vary according to your FHA loan's individual characteristics. The FHA's MIP table is below :

• 15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP
• 15-year loan terms with loan-t0-value under 90% : 0.35 percent annual MIP
• 30-year loan terms with loan-to-value over 95% : 1.25 percent annual MIP
• 30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP

As a real-life example, a 30-year fixed rate FHA mortgage in a high-cost area such as Loudoun County, Virginia; or Bethesda, Maryland may be for as much as $729,750. If the FHA mortgage is a purchase and the buyer is putting the minimum 3.5% down on the home, the annual MIP is 1.15 percent, or $699 per month.
15-year FHA mortgages with a loan-to-value of 78% or less are exempt from annual MIP payments.
Click here for an FHA mortgage rate quote.

How To Get Rid Of Your FHA Mortgage Insurance

One nice thing about FHA mortgage insurance is that it's not permanent. FHA mortgage insurance eventually goes away.
The schedule for getting rid of FHA mortgage insurance changes by loan term.

• 30-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value and monthly MIP has been paid for at least 60 months.
• 15-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value. There is no requirement that monthly MIP be paid for at least 60 months.

In other words, if you have a 30-year fixed rate FHA mortgage, you must pay mortgage insurance for at least 5 years before it can go away -- regardless of your loan balance. By comparison, if you have a 15-year fixed-rate FHA mortgage, your mortgage insurance is removed as soon as your LTV is low enough.
No action is needed on your part -- the FHA handles MIP removal automatically.
Also, note that the FHA does not allow a new appraisal to determine whether your loan is at 78% loan-to-value. The 78% LTV is based on the lesser of your purchase price, or its original appraised value.
At today's mortgage rates, a 15-year FHA mortgage on which the minimum 3.5% downpayment was made should pay down to 78% of the original purchase price within 26 months. A 30-year fixed will take 9 years to reach the same point.
Click here for an FHA mortgage rate quote.

Compare FHA Mortgage Rates And MIP

FHA mortgage rates are cheap right now; cheaper than conventional loans and cheaper than VA. There are great bargains for first-time buyers and other households planning on minimum downpayments.
The trick is understanding FHA mortgage insurance. FHA mortgage insurance can be costly in the long run and there's good cause for comparing options.
Before you lock a 30-year fixed FHA loan, do your due diligence -- look at 15-year payments, too. 15-year FHA mortgage rates are often lower than comparable 30-year FHA mortgage rates and the mortgage insurance terms are more favorable.
You'll pay less MIP each month, and can be rid of it as much as 7 years sooner.

Contact The Mortgage Mark with any questions!   www.themortgagemark.com 

mwilkins@capitalfmc.com

Mortgage Rates Responding To Rising Gas Prices?

Mortgage Rates Responding To Rising Gas Prices?

Political unrest across the Middle East has oil prices on the move. Crude oil raced past $110 per barrel last week, a 38 percent increase since just 5 months ago. Gas prices are rising, too -- up 26 days in a row nationwide.
For mortgage rate shoppers, it adds up to bad news at the pump, and at the bank. Rising oil prices are linked to higher mortgage rates.
Click here to get today's mortgage rates.

Higher Oil Prices Lead To Higher Mortgage Rates

When oil prices rise, they tend to take mortgage rates with them. We've seen it time and again throughout history. The link is a natural one, too -- it's tied to inflation.
First, oil prices rise. This can happen for any number of reasons:

1. Demand for oil increases because of expanding economies
2. Supply of oil falls because of reduced drilling capacity, or abrupt disruption
3. The U.S. dollar loses value (because oil is bought/paid for using U.S. dollars)

As oil prices rise, so does the cost of "doing business".
This should be intuitive -- energy costs are an input for manufactured items, and just the cost of keeping the lights on all day goes up when oil prices rise. Before long, business profits shrink.
Meanwhile, as this is happening, homeowners start to experience rising heating and cooling costs, plus higher prices at the gas pump. Furthermore, food costs rise because it's more expensive for food producers to get food from the farm to the supermarkets. Disposable income shrinks.
Before long, the cost pressures on business and households converge. To make up for rising costs, businesses raise prices and households demand higher wages. This cycle is self-perpetuating and costs move ever higher.
This, my friends, is inflation and inflation is awful for mortgage rates.
Click here to get today's mortgage rates.

Gas Prices Are Rising. Lock Your Mortgage Rates.

According to government data, core inflation is up just 1.9% from last year, well within the Fed's "target range" and low enough to warrant holding the Fed Funds Rate near 0.000% until at least 2014.
However, although prices remain tame, the next inflation cycle has already started.
This is because the Federal Reserve has created for the U.S. economy an ideal, expansionary environment.

1. A 0.000% percent Fed Funds Rate
2. More than a trillion dollars worth of bond market support
3. A unwavering message that the Fed Funds Rate will stay low for "an extended period"

And now, with gas prices rising, the cycle gets a boost. Mortgage rates for all loan types -- FHA, conventional, USDA and VA -- should rise in the next few days. Even jumbo loans.
If you've been shopping, consider cutting your losses today. Lock your mortgage rate and get a move on.
Click here to get today's mortgage rates.

Your Next Step : Get A Rate Quote

The Federal Reserve is closely watching inflation, and has been. Rising costs concern Fed Chairman Ben Bernanke to the point that he suggested a third round of quantitative easing may not be necessary.
Remember : Markets had taken QE3 as a foregone conclusion.
Click here to get today's mortgage rates.

Contact The Mortgage Mark with any questions!

www.themortgagemark.com   mark@themortgagemark.com

Mortgage Rates : Real-Time MBS Pricing, February 27, 2012

MBS PRICES HIGHER

MBS markets opened higher this morning after G-20 officials decided over the weekend to postpone a decision on additional aid for Europe. Although they are off a little from the highs, MBS prices have held most of the gains through the morning.
January Pending Home Sales rose 2% from December, which was close to the consensus forecast. Pending Home Sales are a forward-looking indicator based on signed contracts rather than actual closings. They are now at the highest level since April 2010, when the deadline to take advantage of home buyer tax credits spurred sales.
This chart shows the change in MBS prices from today's market open at 8:00 AM ET and tracks how mortgage-backed bond prices have changed until the time of this post. The vertical-axis reflects the change in mortgage bonds pricing as measured in 32nds. Each 32nd is equal to 3.125 basis points.
Falling MBS prices result in higher mortgage rates. Rising MBS prices result in lower mortgage rates.

Get your free Rate Quote today! 

Contact me with any questions!!

www.themortgagemark.com  www.capitalfmc.com

How To Cancel Your FHA Mortgage Insurance Premiums (MIP)

How To Cancel Your FHA Mortgage Insurance Premiums (MIP)

As compared to conforming loans and jumbo mortgages, FHA-backed loans are great for a lot of reasons.
FHA mortgages allow purchases with low downpayments; they allow refinances without appraisal; and FHA mortgage rates are often pretty low. 

One place where FHA mortgages fall short, though, as compared to other loan types is with respect to mortgage insurance. FHA mortgage insurance can be cumbersome and costly.
If you're going to take an FHA-backed mortgage, you need to know how FHA mortgage insurance works.
Click here for an FHA mortgage rate quote.

With FHA, Everyone Pays Mortgage Insurance Twice

The FHA's role in Mortgage World is different from Fannie Mae and Freddie Mac. The FHA doesn't "buy mortgages" from banks like Fannie and Freddie do. Rather, it insures them.
It works like this : The FHA issues mortgage guidelines to which banks can underwrite a mortgage. These mortgages are commonly called "FHA mortgages".
If a bank underwrites an FHA mortgage and the loan goes into default, the FHA repays the bank's losses from its capital reserves. The FHA's capital reserves are funded by mortgage insurance premiums paid by the nation's FHA-insured homeowners.
FHA homeowners pay two types of mortgage insurance -- Upfront Mortgage Insurance Premiums and Annual Mortgage Insurance Premiums. These insurance types are sometimes abbreviated and known as UFMIP and MIP, respectively.
Since April 18, 2011, every FHA-insured homeowners has been required to pay both forms of FHA mortgage insurance.
Click here for an FHA mortgage rate quote.

How To Calculate Your FHA Mortgage Insurance

The FHA's mortgage insurance requirements are generally simple.
FHA Upfront Mortgage Insurance Premiums
The FHA's current upfront mortgage insurance premium (UFMIP) is 1 percent of your loan size. For example, if you want to apply for an FHA purchase mortgage and your loan size is $300,000, then your Upfront MIP will be equal to $3,000.
Upfront MIP is not paid as cash. It's automatically added to your loan balance by the FHA. Therefore, your final loan size in the example above will be $303,000.
Furthermore, upfront MIP is not used in your FHA loan-to-value calculation. This means that you can make a 3.5% downpayment on your purchase, add the 1 percent UFMIP to your loan size, and still meet the FHA's low downpayment guidelines.
Upfront MIP is paid to the FHA upfront, at closing, and never paid again. Hence the name, "upfront" MIP. However, because UFMIP is added to your loan balance, you do pay mortgage interest on it for the life of your loan.
FHA Annual Mortgage Insurance Premiums
The FHA's other type of mortgage insurance is paid monthly. Called Annual Mortgage Insurance Premiums (MIP), it's paid as a part of your mortgage statement.
Annual MIP is required on all FHA mortgages and premiums vary according to your FHA loan's individual characteristics. The FHA's MIP table is below :

• 15-year loan terms with loan-to-value over 90% : 0.50 percent annual MIP
• 15-year loan terms with loan-t0-value under 90% : 0.25 percent annual MIP
• 30-year loan terms with loan-to-value over 95% : 1.15 percent annual MIP
• 30-year loan terms with loan-to-value under 95% : 1.10 percent annual MIP

As a real-life example, a 30-year fixed rate FHA mortgage in a high-cost area such as Loudoun County, Virginia; or Bethesda, Maryland may be for as much as $729,750. If the FHA mortgage is a purchase and the buyer is putting the minimum 3.5% down on the home, the annual MIP is 1.15 percent, or $699 per month.
On a 15-year mortgage, the MIP falls to $304 per month.
Click here for an FHA mortgage rate quote.

How To Get Rid Of Your FHA Mortgage Insurance

One nice thing about FHA mortgage insurance is that it's not permanent. FHA mortgage insurance eventually goes away.
The schedule for getting rid of FHA mortgage insurance changes by loan term.

• 30-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value and monthly MIP has been paid for at least 60 months.
• 15-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value. There is no requirement that monthly MIP be paid for at least 60 months.

In other words, if you have a 30-year fixed rate FHA mortgage, you must pay mortgage insurance for at least 5 years before it can go away -- regardless of your loan balance. By comparison, if you have a 15-year fixed-rate FHA mortgage, your mortgage insurance is removed as soon as your LTV is low enough.
No action is needed on your part -- the FHA handles MIP removal automatically.
Also, note that the FHA does not allow a new appraisal to determine whether your loan is at 78% loan-to-value. The 78% LTV is based on the lesser of your purchase price, or its original appraised value.
At today's mortgage rates, a 15-year FHA mortgage on which the minimum 3.5% downpayment was made should pay down to 78% of the original purchase price within 26 months. A 30-year fixed will take 9 years to reach the same point.
Click here for an FHA mortgage rate quote.

Compare FHA Mortgage Rates And MIP

FHA mortgage rates are cheap right now; cheaper than conventional loans and cheaper than VA. There are great bargains for first-time buyers and other households planning on minimum downpayments.
The trick is understanding FHA mortgage insurance. FHA mortgage insurance can be costly in the long run and there's good cause for comparing options.
Before you lock a 30-year fixed FHA loan, do your due diligence -- look at 15-year payments, too. 15-year FHA mortgage rates are often lower than comparable 30-year FHA mortgage rates and the mortgage insurance terms are more favorable.
You'll pay less MIP each month, and can be rid of it as much as 7 years sooner.

Contact The Mortgage Mark with any Questions!!

www.themortgagemark.com
mwilkins@capitalfmc.com

Who Needs Super Bowl Tix When You’ve Got a Man Cave?

January 31, 2012

 

It may sound like a football fan’s dream to attend a Super Bowl game live and in person. But really? Indianapolis? In February?
Unless you are a rabid fan of the New York Giants or the New England Patriots — the conference champs who will square off in Super Bowl XLVI on Sunday, Feb. 5 at the Lucas Oil Stadium — there really are better places to watch the NFL title game.
Like, a tricked-out, beer-tapped man cave!
Homes with “man caves” — or rooms with giant TVs, sports memorabilia, wet bars, and comfy couches — have grown in popularity over the years and have become the go-to place on big game days. Or, dare we say big movie nights?
Just in time for the big game, we found some homes for sale with man caves that offer the ultimate place to watch on Super Bowl Sunday. So, sit back, pop a cold one and pass the chips and dip while we tour a few man cave beauties we found.



9124 Eagle Point Loop Rd SW, Lakewood, WA 98498 (above)
For Sale: $1,295,000
Cars, kitchen, couches, and TVs – what more could a guy ask for? “Designed for a car enthusiast,” this 7,800-sq ft home sits on a gorgeous, waterfront parcel of Lakewood real estate with 3 bedrooms, 3.5 bathrooms, 2 dining rooms, library, hobby room, and a 1,000-sq ft entertaining deck. The only space needed this weekend, however, is the “man cave,” which is equipped with a full kitchen, car elevator, bathroom, workshop, and adjacent billiards room.



1445 W Grande Cir # 7, Washington, UT 84780 (above)
For Sale: $6,995,000
Gentlemen, start your drooling. Located in Washington, UT, this 24,500-sq ft home sports the ultimate man cave amenity: Its very own sports pub. Four ceiling-mounted TVs offer a 360-degree view of the game, and the hardwood floors, full bar, bar tables, and a pool table complete the pub ambiance. As an added bonus, there’s also a two-lane bowling alley, swimming pool, gym, theater, spa, and arcade room for alternative means of entertainment during half-time. This resort-like estate is currently listed on the Washington real estate market for $6,995,000.



15 Cape Harbour Pl, Spring, TX 77380 (above)
For Sale: $2,999,000
Talk about an architectural tongue-twister: Here’s a “French colonial constructed of vintage old Chicago brick with an English Pub-inspired man cave in Texas.” That’s a mouthful, but believe it or not, this home really does exist and is listed on The Woodlands real estate market with a recently reduced asking price of $2,999,000. The 5-bedroom, 7-bathroom home is Super Bowl-ready with a “one-of-a-kind man room” that includes a poker table, full bar, kitchen, pool table, dart board and more.


3317 Dartmouth Ave, Dallas, TX 75205 (above)
For Sale: $3,695,000
With its marble columns, wrought-iron chandelier, and painted ceiling, the man cave in this ornate Dallas estate takes you back to the Renaissance. Populated with a mounted, flat-screen TV, dart board, pool table and arcade games, however, makes it an elegant and appropriate destination for hosting Super Bowl festivities. Recently taking a $300,000 price cut, this 4-bedroom, 6-bathroom home is currently listed on the Highland Park real estate market for $3,695,000.

3675 Decoursey Bridge Rd, Cambridge, MD (above)
For Sale: $30,000,000
Noted as “one of the most significant hunting and equestrian estates” — not only on the Cambridge real estate market but in the entire United States — this property called Tudor Farms is sprawling: 6,250 acres and an 11-bedroom, 10.5-bathroom lodge-style home. Super Bowl Sunday festivities wouldn’t be lacking for a proper space here, either. Among the 14,000 square feet of living space is a cabin-like man cave with log columns, corner-mounted TV, pool table, shuffle board and bar



1255 Pacific Ave, Laguna Beach, CA 92651 (above)
For Sale: $7,995,000
Outfitted with white floors, ceilings and walls, there’s no place for messy tailgate appetizers at this gleaming property. A contemporary piece of Laguna Beach real estate, this 9,500-sq ft luxury home includes a sharp entertainment lounge with wet bar and media area for a more sophisticated Super Bowl get-together. Additional amenities include a wine cellar with tasting area, professional-grade gym, sauna, elevator, and outdoor entertaining area with a 74-foot lap pool, spa, and a rooftop deck.



151 Haggetts Pond Rd, Andover, MA 01810 (above)
For Sale: $6,500,000
If a mid-game dip is more your style, then a home with poolside TVs and full bar may be your best Super Bowl bet. Currently listed on the Andover real estate market for $6,500,000, this 9-bedroom, 9.5-bathroom home features an indoor pool with slide conveniently situated next to a bar with two TVs. The massive 20,000-square-foot home also includes a full basketball court, theater, arcade, exercise room, custom locker rooms, billiard room, and bowling alley.

Contact The Mortgage Mark with any Mortgage or Real Estate Questions!

www.themortgagemark.com

mwilkins@capitalfmc.com 

5 Ways to Improve Your Credit Score

5 Ways to Improve Your Credit Score

In today’s world, your credit score can have a significant effect on the financial aspects of your life. Your credit history determines loan and credit card interest rates, can raise your insurance premiums, and can even be a determining factor for getting a job.
Therefore, it’s very important to take steps to achieve and maintain a healthy credit score, and to check up on it frequently to ensure that it is accurate.

1. Pay Your Bills on Time

Your bill payment history accounts for roughly 35% of your credit score, and includes payment of credit cards, auto loans, mortgages, and utility bills. Recent late payments in your credit history have the greatest impact on your score, so if you’ve missed a payment before, avoid repeating this costly mistake!
If you want to boost your credit score, do whatever it takes to pay your bills in a timely manner every month. Use online reminders to help you remember to pay your bills, and inquire at your bank or check with your credit card company to see if they offer email reminders about due payments.
Many companies also allow customers to change the due dates for monthly bills, allowing you to streamline all of your bill payments into one or two occurrences per month.

2. Review Your Credit Report on a Timely Basis

Inaccurate or outdated information can appear on your credit report at any time, and this can significantly hurt your credit score. Identify and correct errors on your credit report quickly using the following steps:

• Request a Free Copy of Your Credit Report. You can order your free credit report online from AnnualCreditReport.com. This is the only website that offers free credit reports, and provides access to reports from each of the three major credit reporting agencies. Once you sign up on the site, you can stagger when you review each of your three credit reports, reviewing one report every four months or so. You can also receive a free credit report if you are denied credit.
• Review Your Credit Report. Once you obtain a copy of your credit report, review your contact information to make sure it is correct. Look for inaccurate information, outstanding balances, and late payments. If you have an open account with the company that reported the late payment, you can call them and ask that they remove it from your credit report. You may also notice a number of inquiries on your credit report, which often merely reflect credit card companies’ efforts to market their products to you. If any inquiries seem unusual, research to find out why they are being made on your account.
• Check Carefully for Bankruptcies and Charge-Offs. Review the details for any bankruptcies and charge-offs on your credit report to ensure their accuracy.
• File a Dispute. If you find errors or incorrect information on your credit report, file a claim to dispute and fix the errors with the reporting agency.

3. Never Close Old Lines of Credit

Many people believe that consumers should close old or unused lines of credit to improve credit scores. Actually, it may be more advisable to keep these lines of credit open.
A large portion of your credit score (approximately 30%) is determined by the amount of available credit you are using. If you have a lot of available credit, but only use a small portion of it, you can improve your credit score.
If you have a few credit cards that you no longer use, don’t let them languish – instead, use them occasionally for a few small purchases and pay them off in full each month. If you don’t use the cards, the issuers may reduce your credit lines or close your accounts. Closing a credit card hurts your credit score.

4. Open New Credit Judiciously

Based on the previous point, you might think that opening multiple new lines of credit will improve your credit score. This isn’t true, however, as opening several new lines of credit in a short period of time will negatively affect your score.
New credit accounts for about 10% of your score, and credit reporting agencies constantly monitor your activity, so open new lines of credit judiciously. If you find good deals on cash back credit cards or credit card sign-up bonuses, tread lightly.

5. Carefully Mix Credit Lines

The mix of credit lines accounts for about 10% of your credit score. If you have a mix of credit cards, loans, and other types of credit, you can positively impact your score. Walk this line carefully so that you do not overextend yourself, however.

Final Thoughts

In addition to paying your bills on time and maintaining lines of credit, other factors play a role in determining your score. For instance, the length of time you have had credit also accounts for about 15% of your credit score.
Over time, as you build and establish your credit, your score will improve. With careful, regularly scheduled awareness and monitoring, you can improve your score and enjoy all the benefits that come with a solid credit history.
What are some of the other strategies you’ve used to raise your credit score?

Contact The Mortgage Mark with any questions!

www.themortgagemark.com

mwilkins@capitalfmc.com

FHA Mortgage Insurance Premiums Rising Again

Last Chance To Beat The FHA PMI Increase

Today's article is titled "Act Today And Beat The Mortgage Fee Increase". It's about the December 2011 Payroll Tax Extension program that passed into law. The government voted to finance the tax break's $33 billion price tag via fees collected on new mortgages. If your next mortgage is either conventional or FHA, therefore, be prepared for new, mandatory loan fees.
For Fannie Mae and Freddie Mac conventional loans, the expected fee hike is 0.125% to your mortgage rate. For FHA borrowers, it's a 10 basis point increase to your annual mortgage insurance premium.
This marks the 5th increase to FHA mortgage insurance premiums in as many years. Because of the changes, it's harder for FHA-insured homeowners to meet the FHA Streamline Refinance program's "5% Savings Rule". Fewer FHA-insured homeowners will qualify for the FHA Streamline Refinance program going forward.
As explained in the article :

"As soon as the FHA announces its increase, thousands of FHA households will be rendered ineligible for the FHA Streamline Refinance. Each time FHA mortgage insurance premiums rise, it gets harder for FHA-insured homeowners to meet the 5 percent savings requirement."

The new fees are expected to be in place very, very soon.
Click here for a rate quote.

Beat The Payroll Tax Fee. Apply Today Instead.

Mortgage rates are low. We all know that. But low rates don't matter if you have to pay an arm-and-a-leg to get them. Each new loan fee; each new price change; each new adjuster -- it all adds up, costing you money. Costs can be so high that low rates no longer matter.
Don't let that happen to you. If your loan is locked and in-process before the Payroll Tax Extension fees go live, you'll be exempted from the fees forever. The trick is to apply before the fees are changed.
Unfortunately, we don't have an exact date on it. Your safest bet, therefore, is to get started with a rate quote now.

Contact The Mortgage Mark with any questions!!

www.themortgagemark.com

mwilkins@capitalfmc.com