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Team MOVE Blog

Your mortgage loan experts

By Russell Smith | Mortgage Broker
or Lender in Whiteville, NC
  • USDA Extends “Future Eligible Areas” map to take place January 15, 2014

    Posted Under: Market Conditions in Wilmington, Home Buying in Wilmington, Financing in Wilmington  |  October 26, 2013 2:01 PM  |  587 views  |  No comments
    Changes to the eligible areas map based on 2010 Census data scheduled to take effect Oct. 1, have been changed by passage of the Continuing Appropriations Act, 2014. The new implementation date, barring Congressional action, will be Jan, 15 2014.
    Click above then select "Future Eligible Areas" on the left menu to see the changes scheduled for Jan, 15, 2014. NOTE: Complete applications received before Jan, 15 2014, will continue to use rural area definitions based on 2000 Census data.

    This is good news for buyers and sellers in areas that could change so hopefully more people can take advantage of this delay and get great USDA financing.  Keep in mind that there will be a wait because USDA is quite behind in reviewing files.

    If you have any questions on USDA financing, please let me know.
  • Here is how a Veteran can have two VA mortgages at once

    Posted Under: Home Buying in Fayetteville, Financing in Fayetteville, Military Movers in Fayetteville  |  October 8, 2013 5:25 AM  |  440 views  |  No comments

    Veterans Can Have Two VA Mortgages At Once!

    Most think that a buyer can only have one VA loan at a time, but in certain circumstances a buyer can have two VA mortgages at once!! It is called the "2nd Tier Entitlement"

    ï‚· 100% financing available through the new VA loan

    ï‚· Can rent out other home and relocate to another home using a VA loan

     Need a good explanation letter from the Veteran detailing an acceptable reason to 
    VA of why they need to purchase another home

    ï‚· Not intended for purchasing another home in the same neighborhood or city generally

    Example how to calculate the 2nd tier entitlement for a new purchase:

    Eligible Veterans have a primary entitlement of $36,000 and an additional, secondary entitlement of $68,250.

    Example: Assuming a $417,000 county loan limit & $36,000 entitlement already used because of current outstanding VA loan, the example below shows how the Veteran can purchase using a mortgage between $144,000 and $273,000.

    Calculations:

    $417,000 x 25% = $104,250 Maximum Guaranty

    $104,250 - $36,000 = $68,250 Entitlement Available

    $68,250 x 4 = $273,000 Maximum Loan Amount With No Down Payment

    So this Veteran may borrow up to $273,000 to purchase a new home but the new loan must be at least $144,000 to access the 2nd tier also

    RUSSELL SMITH

    128 JEFFERSON STREET

    WHITEVILLE, NORTH CAROLINA

    910-914-0655 / FAX 910-914-0255

    RSMITH@MORTGAGES.RCBNA.COM

  • How to search for FHA approved condos in your area

    Posted Under: Home Buying in Myrtle Beach, Financing in Myrtle Beach, Property Q&A in Myrtle Beach  |  October 8, 2013 5:19 AM  |  444 views  |  No comments

    Just as the buyer must be approved for FHA financing, the condo itself needs to be approved with FHA which is a long drawn out process if not done already.  To search the list of approved FHA condos in your area, click here.

    To learn about other helpful tips or products, go to my website or read my other Trulia blogs.  If you found this blog helpful and informative, please comment such. 

    Thank you and have a blessed day!
  • How to find VA approved Condos in your area

    Posted Under: Home Buying in Myrtle Beach, Financing in Myrtle Beach, Military Movers in Myrtle Beach  |  October 8, 2013 5:15 AM  |  497 views  |  No comments

    Did you know that you can't just get a VA loan on any condo and that not only the buyer needs to be approved, the condo itself needs to be approved by VA.  To search for VA approved condos, click here and type in your search criteria.  It is best to not limit the search too much such as listing the condo name.  The condo may be listed a little differently than you type it in so it would be better to just list all condos by city and state that are approved.

    I hope you find this helpful.  Learn more helpful information by reading my Trulia blogs or by visiting my website.

    If you find this or my other blogs helpful, please comment.  Thank you and have a blessed day!
  • Typical maximum seller paid costs per program type

    Posted Under: Home Buying in Wilmington, Financing in Wilmington, Property Q&A in Wilmington  |  October 8, 2013 5:04 AM  |  413 views  |  No comments

    Max Seller Paid Costs Per Program Type:

    ï‚· FHA 6%

    ï‚· USDA 6% to unlimited (depending on investor)

     VA  4% (Veteran cannot pay for pest inspection) 
     
    FHA 203k 6%

    ï‚· Conventional

    • Primary:  3% over 90%, 6%- 75.01% - 90%, 9% - 75.0% or less
    • Secondary:  6%- 75.01% - 90%, 9% - 75.0% or less
    • Investment:  2% for any LTV

    Visit my website for more helpful information and comment if this helped you.

    I appreciate it and have a blessed day!






            • Construction to Perm Loans Available

              Posted Under: Home Buying in Wilmington, Financing in Wilmington, Home Ownership in Wilmington  |  October 6, 2013 9:00 AM  |  326 views  |  No comments

              Construction to Perm Loans Available

               

              When you are looking to build your dream home and the builder requires you to get construction financing, we may be able to help you.  We offer up to 80% financing as a one-time close construction/perm program with exceptions up to 85%.  Having a one-time closing up-front saves costs by not having to close two loans.  To protect against potential rate increases, the permanent loan can be locked for an extended amount of time and if rates have decreased, the rate can float down when within 30 days of closing.  The builder must be a licensed contractor and we do not finance self builds.  Contact us to build your dream home in NC today!
              Subject to loan approval.

            • Ways to pay off a mortgage early

              Posted Under: Home Buying in Leland, Financing in Leland  |  October 6, 2013 8:53 AM  |  232 views  |  No comments

              Ways to pay off a mortgage early

              • Refinance to a shorter term mortgage
                • 10 & 15 year terms offer lower rates than 20 or longer terms and will help save a lot of interest over the life of the loan
                • Make sure that the costs compared with the savings and the time expected to keep the mortgage makes financial sense (breakeven point)
              • Cancel PMI (private mortgage insurance) ASAP
                • Certain loans require the PMI or annual fee for the life of the loan so you can’t cancel them
                • If allowed, try to pay down the balance within your means to get under the 80% of the value required to cancel the PMI
                • If you cancel the PMI, consider making the same payment you were prior to the cancellation and this will apply extra to the mortgage which pays it off earlier, saving interest
              • Pay extra per month to the principal & interest monthly payment
                • If you are saving money from paying off another debt, got a raise at work, or refinanced, use those funds to pay extra towards the mortgage balance and save interest over the long term
                • Make sure you instruct the lender to apply these extra funds to the principal balance
                • If you have a specific goal of paying off in 10, 15, or 20 years for example, ask your lender how much extra that you need to pay on top of your regular payment in order to meet that goal
              • Apply extra money such as tax refunds, found money, sale of another property, etc. to the balance when received
                • Use extra or found money to pay down the balance of the mortgage which shortens the term and saves interest paid
                • Keep in mind when just sending extra money towards the balance, it does not lower the payment
                • Make sure you instruct the lender to apply these extra funds to the principal balance
              • Sign up for a bi-weekly mortgage payment option
                • Divides the mortgage payment in half and drafts the half payments every two weeks rather than twice per month which results in 26 half payments per year rather than 24 half payments.  This results in one extra principal & interest payment made per year
                • Most will charge for this service
                • In my opinion, even though the theory is a good one, if you are being charged for the service it is better to just pay extra per month to your mortgage company at no cost to pay off the mortgage early
                • If a lender offers the service for free, it is a great option but keep in mind that there are 2 months a year where there would be 3 half payments drafted.  I have heard from people that were surprised by this and it caused issues with their finances
              • Ask for a recast or re-amortization of your loan when applying a lump sum amount to the principal balance
                • Many lenders will allow this but make sure you ask the procedures and effect on the payment prior to sending the extra money
                • Rather than just lowering the balance and shortening the term, a recast will lower the monthly payment while keeping the same rate and remaining term on the loan
                • Great option for lowering the payment after selling another property, inheriting money, etc. without having to refinance and incur costs to lower the monthly payment
                • Ask for the procedure and cost to recast the loan.  Lenders may charge up to $350 or so for a recast, there is usually a minimum amount of lump sum payment accepted, and the lender may want a signed letter requesting the recast

               

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