FHA – June is Biggest Month Ever! WOW!

July 31, 2009 By Leave a Comment

FHA announced that in June, of 2009 they had a RECORD month!

Nearly 89,000 of insured mortgages in June were for new purchases. In addition, approximately 97,000 were for refinanced mortgages. The remaining more than 8,600 endorsements were for reverse mortgages.

If you are considering a purchase in NC, click here to learn more about getting a FHA mortgage!  It’s easier than you think!  WOW!  89,000 People in ONE MONTH!  Wonder how many were First Time HomeBuyers??! 

We expect October and November to busy with First Time Homebuyers who wait until the LAST MINUTE to apply for their $8000 First Time HomeBuyer Tax Credit!  Don’t Wait!  Call Steve and Eleanor Thorne to get the CHEAPEST FHA mortgage!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: First Time Home Buyer, Housing News Tagged With: , , , , ,

FHA Cashout Refinance Changes

March 17, 2009 By Leave a Comment

You have 2 weeks to make application if you want to take cash out of your home using a FHA refinance.

The technical explination of “cash out refinance” is when more than the balance of the mortgage and closing costs are included in the new loan amount. This could be in the form of cash to the borrower, or payment of secondary liens against the property, or the payment of any other borrower indebtness (like credit cards).

This is a significant change from the current 95% maximum loan to value for a cash out refinance. Borrowers have until March 31 to start their application if they would like to receive more than 85% loan to value.

If you have questions about this program, please call Steve and Eleanor Thorne with Connect With Us on Facebook in Cary, NC  at 919-649-5058.

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, Housing News Tagged With: , , , , , , ,

2% Mortgage Rate on Refinance?

March 4, 2009 By Leave a Comment

The Obama Administration outlined today their efforts to help borrowers who need to refinance – and for various reasons can not.

If you’ve made your payments on time, here’s the current plan being floated… REMEMBER! This must be approved by Congress!

A Home Affordable Refinance Program to Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices:

“Provide the Opportunity for Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80% of the value of their homes have a difficult time securing refinancing. (For example, if a borrower’s home was worth $200,000, he or she would have limited refinancing options if he or she owed more than $160,000.) Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to take advantage of these lower rates. As a result, the Obama Administration’s program will provide the opportunity for up to 4 to 5 million responsible homeowners who took out loans owned or guaranteed by Freddie Mac and Fannie Mae (the GSEs) to refinance through the two institutions over time. Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15% to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20% home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300. “Okay – here are some details!  The 5.16% rate mentioned above is the APR (they left that out).  There are also COSTS involved in refinancing which means that if your current rate is 6.5%, and the Obama Administration helps push mortgage rates to the mid to low 4% range – this might make sense.

The other BIG thing to notice is that they are talking about people who’s mortgage is currently owned by Fannie Mae and Freddie Mac. There’s a REALLY good chance your mortgage is owned by Wells Fargo, or BB&T or JP Chase Morgan and they don’t have to fall under these guidelines!
But it still doesn’t get us to that 2% mortgage rate on a refinance! THAT rate is only mentioned for folks who are about to lose their house… and that’s a TON more complicated!
For those details, click here.
If you want to find out more about qualifying to refinance in NC, please contact Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058.


Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, Housing News Tagged With: , , , , , , , , ,

FHA Started Because of The Great Depression…

February 5, 2009 By 1 Comment

Housing is the most important part of getting the Economy back in shape – (according to many of the guys that met for The Global Economic Summit in Davos).   Keeping that in mind, it’s important to remember how FHA and the Government Backed “Mortgage” Programs might be able to help with our housing issues, and hopefully fix them.

When the Great Depression hit in 1929, millions of AmericFHA Started in the Great Depressionans began to loose their homes to foreclosure. Short term mortgages (3-5 years) and balloon payments were common. The banking crisis during the 1930s forced banks to call in loans, and there were no refinancing options for the average homeowner.

As a result the federal banking system was restructured and in 1934 The National Housing Act was passed. This legislation created the Federal Housing Administration (FHA) with the intent to regulate interest rates and mortgage terms on the loans that it insured. The agency purchased mortgages and insured them, allowing banks to turn around and make another loan without putting out substantial capital of its own.

Today, we have some of the same problems they had during The Great Depression, and that’s one of the reasons the Obama administration is looking at new ways to use FHA mortgage loans to help with the current crisis!  With these changes, many “vague” statements on the Internet about FHA mortgage loans could be wrong… so if you are considering purchasing a home in Raleigh, or refinancing in Cary, NC - please call Steve and Eleanor Thorne at Connect With Us on Facebook, Inc to get the most up todate information! 919-649-5058

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans, Housing News Tagged With: , , , , , , , , , , , , ,

Cash Out of Home with FHA Refinance

January 5, 2009 By Leave a Comment

Do You Have Cash in Your Home?Have you heard the joke about the way you see your house, and the way the tax guy sees it and the way your appraiser sees it?

Well, it’s pretty funny… because everyone has a difference perspective!

If you believe you have some equity in your home, and you would like to take cash out, FHA might be your best bet! Not on a home like the one above (of course), the maximum FHA loan in Wake County is now $271,050… but FHA now allows you to cash out up to 95% of the value of the home!

FHA allows you to use this money for investments, to take a vacation, pay off bills, home improvements… almost anything you need!  Some folks think rates will be at 4.5%!  To find out how to get your 4.5% mortgage - click here!

Call us for details, and the current interest rates! Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058.

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , , , , , , ,

Found Money Refinancing from Subprime to FHA

December 11, 2008 By 1 Comment

Found Money for the HolidaysIn the South we have a “saying” that I love.

FOUND MONEY!

Do you know what that means?  It refers to that $20 you “found” in your bluejeans that you had forgotten about!  It’s about the extra money you make when you do the laundry, or the refund check for $17.81 that we recently got back from an overpayment to the IRS!  Money you hadn’t “earmarked” for anything else. My Grandmother use to call it “Hallelujah” money!

I talked to a really sweet girl tonight who has an Interest Only 80% first mortgage at 6.5% with a second mortgage that’s adjusted to 10.325%.  She’d been turned down by 2 other lenders when she called me… but by the end of the call she was CRYING (seriously) with JOY!REFINANCE NIGHTMARES!

So… here’s what happened.  She can refinance today and save over $200 a month.  She will be paying down her balance and creating real equity in her home!!  (which is the REAL goal!)!

Why did she get turned down?  She had over 700 credit scores, and I had her ratios of income to debt at less than 40%!  Because of the way she presented information to the mortgage lender, and the way THEY didn’t ask more questions!

She said, “my husband has two jobs.  His income is $31,055.”  I asked her if it was commissioned, bonused or did that include Overtime?  “No,” she said, “but he has only had one since June.  He worked there before, but they were sold.”  I went on to ask her if they were past due on any of their debt, had they been past due this year or last, her answers were firmly no.  I asked about her debt, and her goals for refinancing.

Two things happened… when she was talking to the other companies, and the folks wanted to know about her payments, she was telling them what she was paying – not the actual payment on the credit card… they other loan officers also didn’t ask more questions about her husbands job that changed in June, and they were not counting that income.

As it turns out, her husband works 30 hours a week as a landscaper, and has done this for 7 years with the same group of people.  The company was SOLD in June, so he now works, doing the same thing, with the same guys, making the same money – only the name of the company changed.  That income is fully allowable, she completely qualifies for this refinance!

If you’ve been told that mortgage lending has changed, and you can’t qualify… it’s true, you might be beat… but there’s a chance that you are just talking to a loan officer who is not asking the right questions.  No matter where you are, I’ll be glad to talk to you (call me!), and I’ll ask questions, and I’ll give you honest feedback – and maybe we’ll find some “Hallelujah” money!!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , ,

Subprime Refinances

August 1, 2008 By 7 Comments

noteWith the anniversary of the “Subprime” Mortgage Meltdown Mess, I figured I’d take a look at what we’ve got left.

Many people during 2004 through 2007 purchased homes with little to no money down, using a stated income product.  These loans were often referred to as subprime, or non-conventional loans, and many of them either adjusted to interest rates above 9% – or they are about to.

People who purchased a home with this type of loan product normally did so with hope in their heart, and expectations of gain $$$  when they sold!

Now – a year after the house of cards began to fall, we know that the “hope” that some folks felt as they purchased these homes was built on false assumptions.  The assumption was that the property would continue to appreciate, and the job market would continue to improve, and everyone would be able to flip the house for a nicer one in a couple of years.

If you were one of those people – you might find yourself now facing higher payments, eating peanut butter and jelly sandwiches 4 nights a week and working a second job…

FHA has some new guidelines that help those that are in your situation.  If you find yourself here – please call us and see if we can refinance you into an FHA mortgage.  The maximum loan amount in Wake County is $295,000.

We’ve helped MANY people get MUCH lower payments, keep their home, and get on a more realistic path!

Steve and Eleanor Thorne, Connect With Us on Facebook, Raleigh, NC 919-649-5058

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: FHA Mortgage Loans Tagged With: , , , , , , ,

Mortgage Insurance vs Default Insurance

April 14, 2008 By 12 Comments

mortgage rates caryMortgage Insurance, Default Insurance, Homeowners Insurance, Mortgage Life Insurance… it can be confusing!!

Homeowners policies and Mortgage Life Insurance (issued by companies like State Farm) have been around for a long time – and protect you as a consumer against catastophies like hurricanes or disability.

As a general fule of thumb mortgage insurance (for conventional loans) are required for loans with less than 25% equity in the property.  For government loans - you can count on having Mortgage Insurance no matter how much equity you have in the home.

Mortgage Insurance and Default Insurance are virtually the same thing. They are called by different acronyms, dependant upon the mortgage loan program you are using to finance your home.  It was put into place in the early 1970s to protect lenders against giganitc losses created by large numbers of foreclosure (like the economic conditions we find ourselves in today!) Mark Flanders, of Spokane wrote a great article on potential ways to AVOID paying PMI – although these options are quickly going away.

Conventional loans refer to mortgage insurance as PMI, and can be financed, paid by the Lender, or paid on a monthly basis.  Here’s some more information…

  1. One-Time Financed mortgage insurance. We recommend this mortgage insurance product on a regular basis.   A discount is offered in the mortgage insurance rate as the PMI company receives full payment “upfront.”  The premium is added to the loan balance, however it doesn’t adversely affect your equity position, as there are provisions for refunding pro-rated monies back if you sell or refinance.  There are also tax advtanges as your loan amount will be higher.
  2. Lender Paid Mortgage Insurance. If you elect this program, the lender will pay for your mortgage insurance by giving you a higher interest rate. There are times when this might be a good choice (depending on your goals and how long that you will be in the house) and there are times when Investors offer “specials” making this one of the best options. As a borrower who might need PMI – always consider what the TOTAL payment will be.  This payment is often the lowest of the option available – and again you receive the tax advantage of paying slightly more interest.
  3. Monthly mortgage insurance. The “oldest” form of PMI is the monthly paid insurance.  As with all of these programs, the insurance rate is determined by program, FICO and overall investment in the property.  This insurance is the only one (mentioned here) that you can have removed once you gain the required equity in the property. It is also generally the most expensive on a monthly basis.

This is important to understand, especially if you are considering a REFINANCE!

If you are interested in learning more about Mortgage Insurance, or getting pre-qualified for a FHA loan in Raleigh, contact Steve and Eleanor Thorne, NC Mortgage Experts in Cary, NC, 919-649-5058  We offer the BEST Mortgage Rates!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: First Time Home Buyer, Housing News Tagged With: , , , , , ,

Time to Refinance?

January 11, 2008 By Leave a Comment

refinance cary ncIf you closed on your mortgage loan with National Mortgage in May of 2005 or May of 2003 – you are probably going to get a call from me in the next week.

It’s time to consider refinancing your home, because your mortgage will reset in the next 60 days.  WHAT DOES THAT MEAN??  When your mortgage resets it means that the payment is going to change.  If you have a 4.5 percent interest rate (and many of the 3 and 5 year arms had those start rates) the mortgage holder will take your Index and add the Margin and then calculate the new payment.

Many of the loans we made have 2 percent caps on the payment adjustment, meaning your 4.5 percent loan will likely go to 6.5 percent for the next year. PLEASE CHECK because some of the loans we made through Wells Fargo have 5/2/5 caps.  THIS MEANS that your First Year Adjustment could go up as much as 5 percent!!

Most of the loans we made have LIBOR as the base Index.  Unfortunately, it has not gone down in recent months. THIRTY YEAR fixed rates, however, are near 5.5 percent!  All of the bad news for the economy is working in YOUR FAVOR!

The other thing to consider is legislation pending in the Senate.  The new Predatory Lending Legislation has a provision that PROHIBITS no cost refinances…

So – when I call be ready to talk about what your new payment is going to be and let’s see if it’s time to refinance!

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: Housing News Tagged With: , ,

Refinance and Earn Holiday Dollars

December 2, 2007 By Leave a Comment

shoppingThere are multiple reasons to refinance now – especially if you have an EQUITY LINE on your home that is not getting paid down… rates are lower than they’ve been in a couple of years and Fannie Mae and Freddie Mac are going to be ADDING FEES that amount to at LEAST an additional point next year… but these aren’t the ONLY reasons to consider a refinance NOW.

With holiday shopping days upon us, many folks are trying to figure out where that extra cash for presents will come from!  Gas prices have eaten up the extra 500 to 600 dollars folks set aside for the Holidays!  When you refinance, you have the ability to skip a mortgage payment.  For some consumers, this is the added benefit they have been looking for!

Fixed Rate Interest rates are below 6%.  If you have a 30 or 40 thousand dollar equity line at Prime Plus 1 or 2 percent – you NEED to refinance and pull both mortgages into ONE.  Most consumers do NOT pay any extra on their equity lines and therefore, they are not building adequate equity in their home!  Consider your options by calling us today!

Steve and Eleanor Thorne,  919-649-5058 – over 25 years of experience in the Cary, Apex, Holly Springs and Raleigh Market!

 

Share and Enjoy

  • Facebook
  • Twitter
  • Google
  • Digg
  • Email
  • RSS
Filed Under: Housing News Tagged With: , , ,
Newer Posts »