Cash is King – Upside Down Mortgage Solutions

September 17, 2010

Underwater Mortgage Help – FHA Short Refinance Program

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// Homeowners who have seen their home’s value drop over the past months may have options in dealing with their underwater mortgage through a new FHA short refinance program. Homeowners who might qualify for this program could see a principal reduction on their underwater mortgage and have the opportunity to refinance for an FHA home loan, which could bring a more affordable mortgage interest rate and lower monthly mortgage payment.

Many homeowners who own more on their home than their home is actually worth are obviously in a very difficult financial situation, especially in cases where a homeowner’s monthly mortgage obligation has become problematic due to the loss in property value. Interest rates on home loans are quite low at the present time but underwater homeowners have been unable to refinance for a more affordable mortgage rate and possible mortgage payment since they have negative equity in their home.

Yet, it’s hoped that this new Federal Housing Administration program will bring more options to homeowners in an underwater mortgage situation so that they may make their home loan payment more affordable and avoid foreclosure. However, there have been some concerns over whether this program will be successful due to the fact that mortgage servicers will be required to offer a principal reduction before homeowners may qualify.

Mortgage servicers have been reluctant to offer principal reductions in some cases and since another qualification of this program is that a homeowner must be current on their home loan payments, it’s believed that mortgage servicers may not offer principal reductions in cases where homeowners can still meet their mortgage payment requirements. However, homeowners who may be struggling to stay current on their home loan payments may find assistance through this short refinance opportunity as long as their mortgage servicer will work with them to provide more affordable mortgage payment options.

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August 3, 2010

4 Things To Consider When Deciding How Much Mortgage You Can Borrow

Filed under: mortgage — brentlane @ 12:39 pm
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Mortgage is that loan which is taken to pay for a house and the land that it is on. The land and the house are treated as collateral on the loan. If you do not make the payments towards the loan, you may lose your house and land. Thus, deciding how much you can borrow and afford to pay back is very important.

If you are planning on buying your dream home and are planning to take a home loan/mortgage, you must have often wondered “how much can I borrow for a mortgage”. To get an answer to that, you have to consider various factors. Some of the factors are as follows.

1. Credit score: To find out how much mortgage you can afford, find out your credit score first. Your credit score affects the interest rate; this will directly affect the mortgage payment. It is better to find out from a few lenders what interest rates they are offering. This should help you determine how much mortgage you can afford.

Learn to Mortgage

2. Down-payment: The amount of money that you have saved and are willing to pay towards the down payment, also affects how much mortgage you can afford. Earlier it was very difficult to get a mortgage for more than 80% of the price of the house you are purchasing. That is, 20% of the price of the house had to be paid by you, as down payment.nowadays, mortgages are given even with 3% of down payment.Thus, it is important for you to find out how much down Payment you will be able to make.

3. Monthly income: Your income is an important determinant that affects how much mortgage you get. Most lenders say that housing expenses are not to exceed 25% to 28% of your gross monthly income. Your income in this case will include, not only your income from your steady employment but also overtime, bonus, income from self employment, interest and dividend incomes, workman’s compensation etc. House expenses comprise of monthly mortgage principal, property taxes and your home insurance. The house expenses should not go beyond 29% of your gross income.

4. Debts: How much debt you have, is also considered by lenders before they give you a home loan. It is better to pay off as much of your debt as possible before applying for a mortgage. All debts such as real estate loans, bank loans, auto loans, alimony, and child support, come under consideration. Your housing expenses and your long term debts should not be more than 36% of your gross income.

Considering these factors you can have a fair idea of how much monthly mortgage payment you can afford. This helps answer the question “how much can I borrow for a mortgage”.

September 1, 2009

June 11, 2009

Fannie Mae Solves Upside Down Mortgage Refinance Issue

Finally!

 

Fannie Mae has stepped in to help!

 

Refinancing Upside Down Mortgage has a new face and Fannie Mae is leading the charge.

 

They are now allowing homeowners the ability to refinance their Upside Down Home Loan  with relative ease.

I have put together some educational videos that will walk you through the steps to help you through the process of  refinancing an upside down mortgage.

Click the LINK below and I will tell you how to start the refinancing upside down mortgage process.

upsidedownmortgagehelp

March 23, 2009

Upside Down Mortgage: The Reason Why and Opinion from the Pros!

Check out our new BLOG on

Coping with an Upside Down Mortgage:

A Legal Perspective

Mortgage Deliquencies up for the 8th Straigh Quarter

http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/transunion_mortgage_delinquencies_1

CHICAGO – The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007, according to data provided by TransUnion LLC.

The credit reporting agency said its database shows delinquencies — or the percentage of mortgage holders at least 60 days behind on payments, considered a precursor to foreclosure — jumped to 4.58 percent nationally, from 2.99 percent for the 2007 fourth quarter.

That was 16 percent above the 3.96 percent rate seen in the third quarter, TransUnion said, and marked the eighth straight quarter that deliquency rates rose.

“It’s about what we were expecting,” said Keith Carson, senior consultant in TransUnion’s financial services group. But while not unexpected, the huge jump from last year was still “alarming,” Carson said.

TransUnion, best known for its consumer credit rating data, projects delinquency rates could reach as high as 8 percent by the end of the year. The company isn’t predicting that the climate will improve until the middle of 2010.

The states that have shown the highest delinquency and foreclosure rates remain the same. Florida is on top, with a 9.52 percent rate for the fourth quarter, while Nevada is second with 9.01 percent. Arizona came in at 6.93 percent and California right behind at 6.88 percent. Carson said there is a glut of homes in those states, which is combining with increasing economic woes and declining home values to keep the rates high.

North Dakota, at 1.21 percent, remains the state with the lowest delinquency rate.

The figures are culled from TransUnion Trend Data, which consists of 27 million consumer records randomly sampled each month from the credit reporting agency’s national consumer credit database.

While the government has launched efforts to stem foreclosures, those moves are not yet reflected in data, Carson said. Banks are also trying to work with consumers to reduce problematic mortgages, but falling home prices are feeding the problem, he said. “We do know from everything we’ve found out in the last year is that the primary driver on mortgage defaults is negative equity,” he said. When homeowners owe more on their mortgages than the houses are worth, data show a higher likelihood that consumers will simply walk away, he said.

California is the state with the highest average mortgage debt per borrower, at $356,421. West Virginia has the lowest, at $96,243.

Lenders are trying to address some negative equity issues with refinancing, but Carson said data shows the rate of redefault on modified mortgages “has been very high, primarily because of negative equity.”

Find Secrets to Refinancing your Upside Down Mortgage ……

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

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