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