First, there are a bunch of up-front costs to the lender that are spread out over what's expected to be the average length of the mortgage--somewhere between 5 and 7 years. If a homeowner wants to pay off the mortgage in a year or two, those longer-term costs haven't been recovered through the normal monthly payments. Thus, the penalty helps offset that.
Second--though less common now--teaser rates typically are below market. Again, the lender has done the calculations and figured that it can lose a bit of money (or not make as much) on the teaser rate, so long as the rate goes up and the homeowner keeps paying. But with a refinance, that doesn't happen.
Here's a simple illustration: You go into your favorite fast food restaurant. There's a promotion: A free soda with the purchase of a meal. The restaurant will still make money on the deal, and in fact hopes the additional volume from additional customers will more than make up for the lost revenue from the free soda. You can't just walk in and say, "Well, you're offering a free soda. I want that free soda. But I don't want the full-priced food." Point is: There are costs or expenses in many mortgages that are spread out over an anticipated life of 5-7 years. If the mortgage is refinanced or paid off after 6 months, those costs haven't been recovered.
Thus, the penalty.... more
Just to throw a monkey wrench into the situation: Are you on the mortgage? If so, you'll still be on the mortgage; you don't get rid of that obligation with a quit claim deed.
Further, though it's not likely in practice, you could trigger the mortgage's "due on sale" clause.
Run those questions by your lawyer as well.... more
According to everything we see recently, we have very little room to go much lower, although we're experiencing higher pricing for MBS this morning, which is good news for potentially lower rates. I'd say if you are a gambler, get a good loan officer that stays on top of the market and be ready to pull the trigger. If you're more on the conservative side, find a good LO and lock ASAP. I stay on top of the markets by the minute so if you're interested in talking call me mobile at 919-906-1373.... more
All of Knightdale is considered a rural zone and qualifies for a USDA no money down loan. For more info, go here: eligibility.sc.egov.usda.gov/
I purchased 3 years ago in Knightdale under a usda loan & kept my downpayment funds. Call my realtor if you're interested - Adam Grossman 919-451-5717 He also negotiated with the owner for closing costs that were covered in full. So basically, I purchased a great, completely renovated home on an acre of land without putting a downpayment or paying for closing costs!
Keeping it real......getting financed immediately after a short sale is highly unlikely, even with a large down payment. We just don't see this happening. Getting financed after only a year is highly unusual since it generally takes 2-3 years at best before lenders will give you serious consideration.
You do have other options including: owner financing, lease options, renting. I know this isn't what you want to hear but it's real...
In order to buy a home using a traditional mortgage, you will have to be able to verify a credit history of 620 or higher, have proof of gainful employment for a certain period, and have a debt ratio that matches certain loan products. Each lender is different, but these are baseline requirements. You should speak with a loan officer to verify your status to be sure. Contact us if you would like to be referred to the best loan officers. They will guide you to where you need to be to purchase.
There are loans that do manual underwriting meaning they consider how much you are putting down and how much money you still have in the bank, not your credit score. They are typically the best options for those with low or no credit but have the income and down payment to afford home ownership. My company would be happy to guide through the buying process. Please contact us - Jimmy Conder, Conder Realty - 919.896.7131... more
Below are all very good answers to your question. Here's a solution to purchase and keep your good credit- Lease the 1st property and buy the 2nd. If you can improve your equity position to 30% equity in the 1st home(which its sounds like you may not) you can move forward as soon as you have a lease. Otherwise, lease your property for 1 year to report on your taxes the rental income. You will be able to claim 75% of the rental income towards your debt ratios for a new loan on the second house. This allows you to take advantage of mortgage rates and low housing prices! Once you close on the second house, you can short the first or have a property management company like Conder Realty manage your tenants. Remember, if you short, its likely to get a 1099c from your lender which will bring income tax liability on the federal and state levels unless you can show insolvency. See a CPA for tax advice. - Jimmy Conder, Conder Realty, 896.7131... more
Unless your fiance obtains a VA loan exclusively, your being on his loan still owing on your mortgage in NJ would create more debt and you both may be denied. It would be more advantageous if your fiance applied for a mortgage (VA loan) without your being co-borrower. In the meantime, place your home in NJ on the market hoping it sells - then at that time you both can apply for a loan or possibly check into renting your home.
I recommend you take practical measures, especially during these hard economic times. Your fiance should consult with a mortgage lender and with more information on income, debt, credit scores, etc., the lender will give you the most accurate answer for the best scenario.
If you would like to discuss this further, you may contact me at (919) 782-2417 or email me firstname.lastname@example.org - I have been a licensed N.C. Real Estate Broker since 1980 in Raleigh.
I can put you in contact with a very reliable professional mortgage lender with MET LIFE.
My husband is a retired military colonel and I can share some information that may be helpful.... more
"Good deals" on equity lines are hard to find these days. The interest rates are reflective of todays' risk and credit environment. Your best bet it with a local credit union or if you have a strong banking "depository assets) relationship with a large retain bank like Wells and Chase. Most large banks will discount the rate or waive annual fees if you maintain a certain banking relationship with them. Good luck!... more
Either you have to bring the difference between what you are able to sell your house for and what you owe the lender to the closing, or you need to contact your lender and see if you qualify for a short sale. A short sale (if approved) allows you to sell the property at current market value and then have the bank forgive the difference (amount not covered by the sale). There are rules and qualifications involved with a short sale so you need to work with someone who has experience with short sales. You are also going to need an attorney to help you with this. There are legal ramifications that go along with doing a short sale, so you wan to make sure that you cover yourself and have it handled correctly.... more
Speak to a mortgage lender. They will have Credit counseling programs that are very helpful.
Using one of the so called credit repair programs maybe more detrimental then helpful. If these Credit repair programs charge you for their services, that MAY be in violation of NC laws too.
In most cases a middle score of 640 is needed. There are programs and lenders that will work with you if you have a 620 and down to 580, if credit scores are improving.
The biggest factors are paying off debt, and back payments. Making your current payments on time and continue on time.
Being a veteran can help. There are specific veterans programs to help you purchase a home.
Gabriella: You may have to wait a little bit. If the 3 credit cards are in default, they need to be paid off. Lenders don't like to see people pay off bad debt and then the next day, try to borrow money. It's better to let the debt paid off to season for about 3 months (at least). The cars that are paid off are irrelevant because the account closed and it does not show your ability to currently pay a debt on time. FHA allows for you to use alternative credit (utilities, insurance payments, cell phone). However, if you just got back, you probably don't have those things in your name for at least one year. The credit score will also have to be at least 620 to get a good rate. Although many lenders require a 640 score, there are a few that will lend as low as 530 (no open collections) to 620. Mimi is right. It will be difficult to borrow less than $60,000 due to the predatory lending laws. A larger down payment doesn't necessarily mean an approval. Credit, income, employment stability, rental history are more predictors of any chance of default. Having those assets in your account after closing is a strong compensating factor. So, I'd say wait one year, pay off bad debt, get rental history and utilities history and then go buy.... more
I'm not positive of all lending guidelines since they're everchanging, lately--you'd definitely want to talk to a lender about it...it could be a situation where you would have to set up a specific power of attorney here in the U.S. in order for that person to sign for you as attorney in fact. An attorney here could set that up for you, most likely with a relative. With power of attorney related to just that transaction, they could sign all of the documents for you...there is a small fee for setting it up (which may vary if there are a lot of overnight packages sent oversears). Faxed signatures are legal, but an original signature is required on loan doc's, at least in my experience. If you want the names of 2 or 3 lenders, brokers, and mortgage bankers that I work with fairly regularly who can set that up for you or give you more information to verify how to go about it, just let me know. Thanks and enjoy your weekend!... more
Hi, to my understanding is 24 months. I have been told that could be exceptions, case by case.
Did you know that NACA only pre approves the loan? Final approval will be done by the "real" investor.
At the final stages of the purchase, you will need to provide update documentation, from cancel rent checks to bank statements, paystubs and anyhting else required by the investor.
NACA program requires rental verification of 12 months and from that information, seasoing has to be more than 12 months.
Good luck.... more
It's a great time to refinance and you should not have any problems with being in the UK. I am a loan originator with Alera Financial and will be glad to talk to you about your refinancing options or provide
you a list of loan officers. Best of luck!
They normally do not refund that charge, BUT you should have signed a form titled "Notice of Right to Reveive Appraisal." You can use that to obtain a copy, and have it switched to a lender of your choice for a small fee.
Not all Mortgage Brokers are equal!
I am a mortgage Broker. If I can be of further assistance, please let me know.
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