For Immediate Release: Profile: A Conversation with Somerset Mortgage Lenders’ Executive Director Gregg Marcus Melville/New York/USA Gregg Marcus‘professional accomplishments are numerous, having run one of the top direct lending mortgage lenders for the better part of this decade being at the forefront of his success. However, if you scratch beneath the surface, you will find that so, too, are his many charitable activities. Gregg is not only a proven executive, but at his core he is a philanthropist and a humanitarian who cares about his community and about causes that are important to us all. Mr. Marcus has earned accolades for his savvy as an entrepreneur, and now he’s earning the same kind of honors for his financial and personal donations to charitable causes. He has dedicated a significant part of his time, talents and financial resources throughout his career to organizations in New York and beyond. "Success in business is one thing; helping to change the conditions of others is quite another" he said; and after listening to him speak, I can say that Gregg Marcus is very successful at both. He knows that one is not complete without the other. There are many organizations and non-profit groups where Gregg Marcus could donate his time, but he prefers to donate his time and resources to organizations that he believes in. It’s what led him to become a founding member of the Jericho Jayhawks Boosters Association. And it’s why he donates his time to organizations such as the Young Presidents Organization, the Hineni Heritage Center, the Long Island Children’s Museum and the Sunrise Day Camp for Children. Health is also important, and it’s why he’s an active member of the National Kidney Foundation. Additionally, he received the Interfaith Committee of Remembrance Humanitarian Award for his charitable efforts to organizations in the New York area and beyond. "Business accomplishments are great, but what are you doing to help the community?" Gregg Marcus asked in our conversation. It was a refreshing insight to hear from someone in the notoriously rigid financial sector. This is a man who tirelessly supports organizations he believes in; not just with a check every now and then, but with a time commitment. "Not to sound cliche" Mr. Marcus said, "But we can complain about challenges in our society, or we can just go and try to do something about them". After spending enough time with him, it seems that this is a man who believes in more than just talking - he believes in action. It’s why he spends countless hours and dedicates significant financial resources to organizations with causes he believes in. Gregg Marcus knows how important personal commitment is. He believes that successful people should give back by supporting organizations with their time, leadership and financial resources. We all have opinions about news items, but very few people have enough knowledge to be quoted by the New York Post. In December of 2007, the Post quoted Gregg Marcus as he gave kudos to the Senate for passing an FHA modernization measure. Gregg Marcus is one of those people who actually knows what affects the average person, and is not simply concerned with what affects corporations. He operates as though we were all in this together, because we are. #### SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer. Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.
The following are the primary factors taken into consideration when determining whether to approve or deny a potential homebuyer’s application for a mortgage! Property Value: An appraisal conducted by a licensed professional and based upon the both the current condition of the home and the relative selling price of comparable homes in the area tells the lender the value of the property you want to purchase. The lender uses this information to determine whether the home is actually worth the price you’ve offered to pay for it. Credit: This includes your credit history and your current overall debt situation. Lenders like to see that those applying to borrow money from them already have a consistent record of paying bills and other debts on time. Late payments and defaults on previous loans (ie. credit cards, car loans, student loans, alimony, child support, etc.) present a potential borrower as less-than-creditworthy and make lenders reluctant to give them new loans. If your credit history shows difficulties as recently as the past two years you can still write an explanation of the circumstances that caused the difficulties and lenders will take it into account when making their decision. Income and Employment Factors: This includes both your current income and your employment history. Typically, lenders like to see your current monthly expenses totaling no more than a third of your gross monthly income. Gross income, or all of the money that you’ve earned before taxes are taken out, may include alimony and child support received, and an average of your monthly commissions and overtime pay should you desire to have those factors considered. Lenders also like to see applicants having a consistent work history in the same or similar occupation with a trend of steadily growing income over the several years leading up to the submission of the loan application. They will almost certainly verify your employment (except in the cases of certain type’s loans - i.e. (No-Income-Verification, Stated Income, and No-Doc loans). If you are self-employed, have held your current job for under two years, get paid on a commission basis, there’s a good chance you’ll be asked to provide further information about your prior work history. Mortgage Terms: A definitive factor in determining whether or not to approve your application for a mortgage is the amount of your proposed monthly payment factored as a percentage of your current income.
Costs of FHA Mortgage Insurance by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.com Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on the costs of FHA mortgage insurance. FHA loans carry a higher mortgage interest premium than conventional loan programs, which only demand MIPs as little as .5% (for those homebuyers putting 10% down), with a renewal rate as little as .3% in subsequent years. It is a widely-known fact that FHA mortgages help a wide variety of Americans who otherwise would not be able to afford a home to buy one. FHA insured loans are not for everyone, however. Though the down payment and therefore up-front costs are lower on FHA mortgages, the monthly payments might possibly be higher. There is no clear-cut rule to whether a specific FHA loan would cost you more or less than a conventional loan. Just as with conventional mortgages, different FHA mortgages have different interest rates and different loan terms based on numerous factors, not least of which is your credit? With a conventional loan, your credit is considered jointly with your income. As FHA loans are designed more for low-to-moderate income households, an applicant’s credit is weighted even heavier. The result of this could potentially be higher interest rates and (with the additional cost of monthly mortgage insurance premiums) higher monthly payments than you could get by coming up with a larger down payment and getting a conventional loan. Of course, that is not always an option for would-be homebuyers. Fortunately, many of the closing costs associated with FHA mortgages can be financed into the loans. The FHA also helps homebuyers by imposing limits on how much money mortgage companies can charge in certain fees, such as loan origination fees which, according to the restrictions placed upon FHA lenders, cannot be higher than 1% of the total loan amount. The most striking fact about the cost of FHA mortgage insurance however is its cost to taxpayers, that being nil. FHA mortgage is totally self-funded, with the money paid by borrowers in mortgage insurance premiums going directly into an account which pays for the FHA’s expenses. The bottom line of this is that not only do FHA-insured mortgages and FHA mortgage insurance benefit borrowers and lenders alike. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
What is a Divorce Buyout? by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.com Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on Divorce Buyouts. A divorce home buyout (or a divorce buyout, for short) is simply when one party in a break-up buys out the other party’s share in the property that they own and have been residing in together. Divorce buyouts are generally completed according to the following 3 basic steps: 1.) The parties determine and write into the separation agreement which of them will live in the home and which of them will have their interest in the property bought out. 2.) The party buying out their ex-spouse (or soon-to-be-ex), then applies for a refinancing loan to take the place of the original loan, including borrowing enough extra money to compensate the party who is to be selling/losing interest in the property. 3.) Two documents - a quitclaim deed and a consideration letter - are signed at the closing and filed in the recorder’s office of the county where the property is located. It seems simple, yes? And in many cases, it is. Provided everybody’s on the same page, a divorce buyout could be one of the smoothest processes in the divorce proceedings. However far too often the divorce buyout is complicated by all that occurs prior to and during the process, The last thing you ever want to do in a divorce is complete the divorce proceedings without ever looking into whether or not you can really afford the court’s determinations and/or the settlement agreed to regarding the terms and conditions of the divorce home buyout arrangement. If your spouse, for example, defaults on their payments while the divorce is still pending, not only could it severely negatively impact your ability to buy them out, but it can be detrimental to your credit rating as well. It’s important to note, as well, that any divorce buyout agreement is incomplete without a date by which the buyout must be accomplished. This can cause a whole host of problems if an ex-spouse is reluctant to fulfill his or her end of the agreement, potentially dragging out the divorce buyout process indefinitely. In the worst of cases, you could even have to take them back to court to get it properly resolved, something no one want to have to do. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Using Downpayment Gifts for Your FHA Loan by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.com Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on using downpayment gifts for your FHA loan. Unlike with most other conventional loans, the Federal Housing Authority (FHA) allows borrowers to pay some or all of their down payment with gift funds. No verification of the source of the down payment money is required. All that needs to be done is for the money to first be deposited into the borrower’s bank account or an escrow account before and until the loan is approved, and for proof of that deposit to be provided. Greater than half of first-time homebuyers receive gift money from relatives in order to help them pay for their down payment. Besides relatives, other accepted sources of down payment gifts are friends, labor unions, faith-based organizations, and charity organizations. Another valid (and novel) source of down payment assistance is through the Bridal Registry program whereby newlywed couples can get gift money deposited into an account for them to use towards a down payment on an FHA loan. In 2004, President George Bush announced intentions to convince Congress to eliminate the down payment requirement for FHA loans entirely, but so far nothing has come of that. Recent attempts in the U.S. Congress to pass legislation that would make it extremely difficult for charitable organizations that provide down payment gift funds to claim tax exempt status, thereby disqualifying them from being able to provide a down payment gift fund for FHA loans at all has fortuitously failed. Despite the attempted U.S. Department of Housing and Urban Development (HUD) rule to eliminate all down payment assistance programs, the U.S. District Court intervened to protect low-to-moderate income potential homebuyers. The result of this injunction is that organizations like the Home Down Payment Gift Foundation and the Genesis Foundation can still claim tax exempt status and still provide down payment gifts to would-be FHA mortgages, at least until there is some sort of final resolution on the matter. It is likely that compassionate wisdom and common sense will prevail in this situation as it is plainly obvious that allowing homebuyers to cover the cost of their down payment with down payment gift funds is far preferable to burdening low-to-moderate income households with higher debt. By paying their down payment with gift funds, homebuyers begin their home ownership experience from Day One with equity in their new home, that home equity being equal to the amount of their down payment (or at least the amount covered by down payment gifts). This also puts these households that much closer to the day they own their homes outright. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
The Closing Process by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.com Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on The Closing Process. You've found the home you want. You’ve made an offer which the seller has accepted. You've applied for a mortgage, and been approved. Move in day is almost here. There's only one more step - the closing. The word closing in terms of real estate is the process by which the transfer of property from seller to buyer is finalized. Once your mortgage is approved, a date is set for the closing to take place: called a closing date. Depending on the state in which the transaction is taking place, the closing process is conducted by one of the following representatives of buyer and seller, respectively. 1 An attorney 2 A real estate broker 3 A lender/loan officer 4 A representative of a title insurance company 5 A representative of an escrow company In order for a closing to take place, several key items must first be prepared and delivered to the lender in advance 1 Title search and title report 2 Title insurance binder 3 Hazard insurance binder 4 Property survey 5 Inspection certificates - for termites, sewer or septic, and well (where relevant) 6 HUD 1 settlement statement - a list of all credits and charges itemized for you and the seller, according to the terms of the contract At the time of closing, the borrower signs many documents, most significantly a mortgage/deed of trust and a promissory note. These are loan documents granting the lender a lien against the property you’re purchasing as a way of securing your repayment of the loan. The promissory note is the borrower’s legal promise to pay back the loan. The mortgage/deed of trust is the legal instrument recorded in the local office of public records. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more
New Home Financing
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on New Home Financing.
Fixed Rate Loans
Several categories of conventional loans exist, the most common and familiar being the fixed rate mortgage. In the cases of fixed rate mortgages, the borrower will lock in an interest rate, and pay down both the principal and interest on the loan at that interest rate every month until the mortgage is paid off. The most typical term of a fixed rate loan is 30 years, though fixed rate mortgages can also be obtained for much shorter terms, the primary difference being in the size of the monthly mortgage payment.
Conforming Loans
Other conventional loans are known as conforming loans. In these cases, an arrangement is made between borrower and lender that comply with the stipulations of two federally run mortgage trading companies (or Government Sponsored Entities - GSEs) Fannie Mae (FNME) and or Freddie Mac (FHLMC).
Fannie Mae and Freddie Mac does not directly approve or deny loans. They buy and sell home mortgages, working with lenders to make home ownership easier for people to attain. Lenders like to sign up borrowers with conforming loan, because they can then sell these loans to Fannie May or Freddie Mac in order to more quickly receive the funds coming to them, and use those funds to make other investments. Fannie Mae and Freddie Mac, in turn, then repackage these loans to sell to investors as securities.
The current guidelines for a conventional Fannie Mae loan set a maximum purchase price for a single-family home at slightly above $415,000 (though residents of Alaska, Hawaii, or Guam may be able to qualify for an even larger loan).
The interest rate as well as the short- and long-term pricing on a conforming loan is determined primarily by the type of loan applied for. Also taken into consideration will be the amount of funds you already have to contribute to closing costs, your credit rating, credit score, and credit history, your employment history, and the type and location of the home in question.
Jumbo Loans
Other forms of conventional loans are nonconforming loan instruments that do not meet Fannie Mae or Freddie Mac loan qualifications, such as jumbo loans, or loans so large they fall outside the Fannie Mae and Freddie Mac loan limits (or purchase limits). Jumbo loans are provided by private investors and as such ordinarily come with much higher interest rates than conforming loans.
FHA Loans
Government entities from a local to a federal level and private entities alike have worked to Develop loan programs that make home ownership a reality for many people considered Under-qualified for traditional mortgages, these include; loans for first-time homebuyers, people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA). HUD and the FHA do not make loans directly, rather they insure loans; meaning that the lender still gets paid back - even if you default on the home loan.
New Home Purchase Loans are available from Somerset Investors Corp. in the following states: CA DE IN MT NM RI TX CO FL MA NC NY SC VA CT GA MD NH OR TN VT DC HI ME NJ PA
SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more
Why Choose an FHA Mortgage by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.comSomerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on reasons why borrowers would choose an FHA Mortgage. The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to purchase new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation. Many excellent reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications: 1.) You are a first-time homebuyer 2.) You are unable to offer much of a down payment 3.) You would like to have the lowest possible monthly mortgage payments 4.) You have concerns regarding monthly mortgage payments increasing at some point 5.) You have concerns regarding the consequences of falling behind on your monthly mortgage payments 6.) You have concerns about even being able to qualify for the loan in the first place 7.) Your credit is less-than-ideal If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages. The benefits of an FHA mortgage include, lower rates, since it’s the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans. Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Consolidating Debt by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True" http://www.somersetmortgagelenders.com Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on consolidating your debt. Debt consolidation was designed to help individuals who are “drowning in debt” to regain control of their financial lives. Consolidating debt gives individuals the chance combine their various monthly payments into a single monthly payment that is usually lower than the sum of the individual monthly payments on the same debt. Payments on consolidated debt are also quite often at a lower interest rate than the rates offered by the individual lenders. 1 Warning Signs If one or more of the following applies to you, debt consolidation may be in order a You pay for normal living expenses with credit b You transfer balances around from one credit card to another c You can only afford the minimum monthly payments on your credit cards, and no more d You have maxed out one or more credit cards e You find yourself spending more than half your income to pay your monthly credit card payments f You’re looking to open yet another line of credit in order to better manage your current debt, expenses, and lifestyle The following is a breakdown of some of the best and most common ways to consolidate debt 2 Debt Consolidation Loans The traditional way to consolidate debt is to take out a debt consolidation loan. This is a personal loan that is unsecured, and therefore considered riskier other types of loans. Lenders therefore will usually charge higher interest rates for these loans, the advantage to getting such a loan being the single (and hopefully smaller) monthly payment. People with lots of debt may find they have difficulty getting a lender to give them a debt consolidation loan, however, and may need to look further to find a viable debt consolidation solution. 3 Debt Settlement Debt settlement agencies help you resolve debt by becoming the intermediary between you and your creditors, You stop paying your various creditors and instead make a single payment to the debt settlement agency. Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now. SOMERSET MORTGAGE LENDERS Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Downpayment Assistance
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide on downpayment assistance.
Potential home buyers often discover that while they’ll have no trouble making their monthly mortgage payments, they nonetheless can’t buy a home because they lack the funds to make the necessary down payment and closing costs. Fortunately, a number of solutions to this problem exist, one of the most common being: down payment assistance programs.
While sellers are forbidden from giving gifts of down payment funds to their potential homebuyers directly, these down payment assistance programs guarantee that funds to financially-challenged potential homebuyers are delivered at closing to cover all or a portion of the down payment and closing costs.
Only certain sellers will participate in these programs, and it can often take a great deal of work, mandatory classes, and extra paperwork to accomplish. The upside is that not only can people afford homes who otherwise couldn’t, but they might even get a lower interest rate on their loan.
First the seller would enroll the home in a relevant program, contributing funds equal to the amount of down payment assistance the buyer is to receive at the time closing, plus a fee of around 0.75% of the purchase price of the home. Then, upon closing, the down payment is then wired from the program to the agent handling the closing, keeping the seller removed from the process of transferring those funds.
Sellers can also help reduce the cost burden on buyers by offering to pay all or portions of the closing costs involved in the sale of the home. They do this by simply giving back to a part of their proceeds to the buyer at the time of closing. There are limits, however, on how much assistance a seller may provide, depending on the kind of loan the buyer is obtaining.
And though down payment assistance may seem undesirable to sellers considering whether or not to accept someone’s offer to buy their home, it could actually be to the seller’s advantage every bit as much as the buyer‘s. This is because a buyer able to afford the closing costs on a home can more easily get away with making a lower offer (and having it accepted), whereas a buyer requiring down payment assistance is more likely to make an offer closer to the seller’s asking price in order to compensate for their need for down payment assistance.
Realtors and lenders both are qualified to aid would-be homebuyers in finding and selecting the right down payment assistance program. Realtors and lenders alike are generally more than glad to explain how an offer to purchase property should be phrased in order to.
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.
SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Another Humbling Testimonial Proves That Somerset Mortgage Lenders Truly Helps Make Owning a Home a Reality For Borrowers
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus work hard every day to make the experience of getting your loan as easy and enjoyable as possible. So it's even more rewarding when a satisfied consumer comes forth with a heartfelt letter of recognition, a thank you for a job done right.
Here is a yet another letter on this subject, recently submitted to our offices at 290 Broadhollow Rd in Melville, NY 11747
"To Gregg Marcus,
Hello Gregg,
I just wanted to take this time to write a letter expressing how happy I am to have worked with the Somerset Investors Team. Especially, Nancy Grana, and Catherine Belle. For the past year, my wife and I have struggled with making our mortgage payments. I was very concerned that we might lose our house. And since my mother lives with us and she depends on her disability check, it would have been extra hard for her to find somewhere else to live. And I did not want to fail my family at all.
Although I was a little skeptical with working with any loan investor, I took a chance with Somerset. I didn’t believe that anything would go through due to our credit history. But I really had no choice and after Nancy starting working with me, she demonstrated how committed she was to try to make this work. And she did just that. I was a little upset when I turned over to someone new, but Catherine Belle filled in just fine. She worked with me to finish the job. Both were very concerned about their customer.
I think that the Somerset staff has proved that even in this struggling economy, there is still hope for those of us that are hard working people to make it through. But without the encouragement, not many will be able to follow through. I want to thank Nancy Grana and Catherine Belle for their diligence to see this through. My mind and heart are more at ease than before. I can’t thank them enough for what they have done. I will be sure to refer Somerset to anyone that I speak with. God Bless
Best regards,
Marcus"
We would like to thank Marcus as well for allowing us to serve as their loan partner - helping all their dreams get closer to becoming reality!
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.
SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Find The Right Home Loan Program
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide on finding the right home loan program.
Whether it’s to purchase a new home or refinance your current home, there are an assortment of loan programs you have to chose from, based on a combination of your objectives and your eligibility.
Conventional Loans: Conforming Loans and Jumbo Loans
The conventional loan is the most common kind of loan, available to most people who have at least 3% of the requested loan amount available to pay as a down payment. The two most common types of conventional loan are conforming loans and jumbo loans.
Conforming loans are a type of conventional loan that are secured by Freddie Mac (FHLMC), Fannie Mae (FNMA) and other GSEs, or Government Sponsored Entities. These GSEs do not directly lend the money to borrowers but rather work with various lenders country-wide to provide loans that meet the average homebuyer’s needs. These entities also buy mortgage loans from lenders in order to re-package them as securities available for sale to investors on the secondary market.
For loan amounts that are higher than the loan limits set each year by the GSEs, private investors offer jumbo loans. The trade-off of going to a private investor to borrow a larger amount of money is that the interest rate on such loans is also usually higher.
Special Circumstances: Loans for First-Time Homebuyers, Low-Income Households, and People with Poor Credit
Government entities from a local to a federal level and private entities alike have worked to develop loan programs that make home ownership a reality for many people considered under-qualified for traditional mortgages. These include loans for first-time homebuyers and people with a low-to-moderate income that are insured by the Department of Housing and Urban Development (HUD) via the Federal Housing Administration (FHA).
HUD and the FHA do not make loans directly, rather they insure loans, meaning that the lender still gets paid back even if you default on the home loan. Often, FHA insured loans are available with down payments lower than 3% of the total loan amount. There is a limit to how high of a loan the FHA will insure, but the limit is at least high enough to allow people in qualifying circumstances to buy reasonably.
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.
SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
A Testimonial and A Thank You
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus work hard every day to make the experience of getting your loan as easy and enjoyable as possible. So it's even more rewarding when a satisfied consumer comes forth with a heartfelt letter of recognition, a thank you for a job done right.
Here is one such letter, recently submitted to our offices at 290 Broadhollow Rd in Melville, NY 11747
"From:
Mark & Anna
Dayton, Texas
June 15, 2009
To:
Somerset Mortgage Lenders
Dear Somerset:
Although this may be an overlooked task, we feel that we must bring to your attention the exceptional service that we received from you and the entire Somerset Mortgage Lenders organization.
We are, of course, very delighted to have had the pleasure of working with you during the loan acquisition. Your professional and courteous attitude, expert knowledge, and patience in handling our specific issues were very important to our complete customer satisfaction.
In the past, I felt that loan service providers were not sensitive to our needs and provided the quickest and most convenient solution to my problems from their perspective. But not in this case. You and the entire Somerset Mortgage Lenders organization handled our issues as if they were their own, and we are completely satisfied. We again thank you for the exceptional and professional service and look forward to patronizing your organization.
Please forward this letter to the entire organization as we appreciate their hard work, professionalism and understanding in completing this transaction.
Sincerely,
Mark & Anna"
We would like to thank Mark & Anna as well for allowing us to serve as their loan partner - helping their dreams get closer to becoming reality!
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.
SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
Understanding Your Credit
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief how to guide to understanding your credit.
Credit is the borrowing of money with the intention of repaying the lender at some later point in time. Examples of credit include: credit cards, home mortgages, student loans, and car loans.
There are 3 primary agencies that compile information on an individual’s credit history and produces a report which lenders use to help determine whether or not to approve a request for credit. These 3 main credit reporting agencies are: Experian, Equifax, and Trans-Union.
A credit report includes an individual’s name, address, social security number, current employer and employment history, and previous credit history. A person’s credit history includes various types of accounts (ie. bank accounts, credit card accounts, student loans), the respective balances remaining, the payment status (ie. whether or not payments were made on time), and any collection information. A person’s credit report contains information on that person’s credit history going back 7-10 years.
A credit report will also identify how often, when, and by whom an inquiry was made into the individual’s credit. This is valuable information to lenders as it shows them how frequently a person is applying for additional credit. And a credit report will identify any legal actions taken against an individual for the purposes of reclaiming money owed.
In instances where a person’s credit history is lacking, lenders may take other proof of credit into account, such as rental payment receipts and utility bills. It is difficult to obtain credit without proof of some sort of existing credit history, however short or small.
When a consumer applies for a loan or other form of credit, the lender will contact one of these credit bureaus to review the applicant’s credit report. Although most of the information collected by each of the agencies is the same, slight differences may exist in an individual’s credit report from each agency. In addition, errors will often exist on credit reports.
Different lenders will pull different agency’s credit reports on their applicants, making it essential for every consumer to make sure all 3 of their credit reports are accurate. Fortunately, every American is entitled to receive one free copy of their own credit report per year from each credit reporting agency. But even if you’ve already received your free credit report from each agency for a given year, you can still purchase an additional copy at any point in time you like for a small fee.
Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a LIVE Loan Officer now.
SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.
How Mortgage Insurance Works
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief explanation of how mortgage insurance works.
Typically, when the down payment on the purchase of a home is lower than 20% of the value of the property, mortgage insurance is required. Mortgage insurance comes in 2 forms: private mortgage insurance (PMI) and lenders mortgage insurance (LMI). Both are policies that protect lenders from the possibility of borrowers defaulting on loans. The lender purchases the mortgage insurance policy and passes the premiums down as a fee added to the borrower’s monthly mortgage payments.
A mortgagee (or borrower) must qualify for mortgage insurance by meeting certain conditions that have been set forth by Fannie Mae (the Federal National Mortgage Association). Such conditions include qualifications of the borrower, type of property borrowed against, size of the mortgage.
A mortgage that’s insured by having met the required conditions is then eligible to be resold in the mortgage-backed securities market, allowing lenders to sell older mortgages and thereby originate (or make) more new loans than they otherwise might be able to.
Fortunately for buyers, the costs of getting mortgage insurance can be folded into the monthly mortgage payments via a process known as capitalization. Premiums capitalized this way then provide a further tax deduction in any jurisdictions that permit mortgage payments to be tax deductible.
As many borrowers are unable to afford a 20% down payment and thus required to pay mortgage insurance, a financing technique was developed to aid them in still being able to afford buying a home. This technique involves a first mortgage (or primary mortgage) that covers 80% of the purchase price, and a second mortgage for another 10% of the purchase price, leaving the borrower to come up with a down payment of only 10% of the purchase price. This financing technique is familiarly called: 80-10-10.
In the case of 80-10-10 financing, the interest rate on the 10% second mortgage is higher than that of the first, but the requirement for paying regular mortgage insurance premiums is eliminated. This makes the 80-10-10 financing technique a more affordable alternative despite the higher interest rate on the second mortgage, and allows borrowers to pay down the mortgage debt faster.
Get a free live quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak with a Loan Officer now.
SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more get a free live quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783
SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more
get a free quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783
Mortgage Financing Costs & Fees
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief explanation of mortgage financing costs & fees.
The following is an overview of the fees and other costs associated with getting a home mortgage
Down payment: Your down payment is the money you pay out of pocket towards the total purchase price of your home. When borrowing money to buy a home, you can expect to pay a percentage of the purchase price with your own money, rather than the lender‘s. Different mortgages and loan packages require you make different down payments (i.e. 5% or 20%).
Monthly payment: The money you pay each month in mortgage payment can be applied to your loan in a number of ways. The payment is usually divided amongst loan principal (the remaining balance on the actual amount borrowed) and interest. However, a wise choice (and sometimes a loan requirement) would be to pay an additional amount each month to go into an escrow account to pay for taxes and insurance.
Mortgage insurance: In the case of mortgages for less than 20% of the purchase price of the home, a borrower is usually required to pay some sort of mortgage insurance. Insured home loans enable people to buy homes with smaller down payments than would otherwise be required. The cost of mortgage insurance varies greatly, generally depending on both the down payment amount and the type of loan chosen.
The Veterans Administration (VA) and the Federal Housing Administration (FHA) are two federal government institutions that insure different types of home loans. Borrowers can also turn to sundry private organizations to acquire mortgage insurance.
Closing costs: At the time of closing - when you officially, legally take title of the home - certain costs are due, many of which you will be responsible for paying. In general, you can plan to pay an extra 5% on top of your purchase price towards closing costs. Whenever you apply for a loan, the lender is required by law to provide you with an estimate of the closing costs associated with that loan. Items on that estimate may include, *Origination fees - the loans processing costs of processing your loan (such as: appraisal and property) *Title insurance - often an optional but highly recommended expense that insures you against problems with the title (i.e. property liens) undisclosed to you prior to the time of purchase.
SOMERSET MORTGAGE LENDERS
specializing in: purchases, debt consolidation, divorce buyouts, home improvement, mortgages, refinancing, reverse mortgages, FHA loans & more
The Underwriting Process
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
Somerset Mortgage Lenders and Gregg Marcus strive to keep the public educated with tips and tricks meant to make getting your loan as easy as possible. To this end, they have put together this brief explanation of the underwriting process
In terms of real estate, the underwriter is the representative of a lender who reviews a home buyer’s loan application and associated documentation. It is in the underwriting process that the determination is made whether to approve or deny a request for a loan.
In the underwriting process, the underwriter analyzes and evaluates;
Your ability to pay back the loan - by looking at your current income and obligations.
Your willingness to pay back the loan - by looking your credit.
The collateral you’re offering for the loan - by looking at the appraised value of the property in question in relationship to the size of the loan requested, or what is known as the Loan-to-Value ratio.
The underwriter examines your loan application to answer relevant questions such as;
Your source of income and its consistency and reliability.
The adequacy of your income to cover the costs of your new mortgage.
The overall amount of long-term debt you have already.
A key factor in determining whether or not to approve your loan application is your credit history. It is well worth every loan applicant’s while to review their own credit first, prior to applying for a loan. By checking your own credit before the underwriter ever sees it, you have the opportunity to identify and fix any errors and make reparations on old unpaid debts if at all possible, thereby improving your credit rating and the likelihood of being approved for the loan.
When a borrower doesn’t have an extensive enough credit history for an underwriter to make an informed decision about the borrower’s creditworthiness, underwriters will often accept other payment records for consideration, such as utility bills and rental payment receipts.
Whether an applicant has a provable and adequately lengthy credit history or not, an underwriter may require the applicant also produce a complete paper trail of recent banking account activity (ie. checking and savings). This may include deposit and withdrawal receipts, monthly statements, cancelled checks, etc.
SOMERSET MORTGAGE LENDERS
specializing in: debt consolidation, divorce buyouts, home improvement, mortgages, purchase, refinance, reverse mortgages, FHA loans & more
get a free quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783
SOMERSET MORTGAGE LENDERS
specializing in: debt consolidation, divorce buyouts, home improvement, mortgages, purchase, refinance, reverse mortgages, FHA loans & more
get a free quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783
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sales, marketing, debt consolidation, divorce buyouts, home improvement, mortgages, morgages, purchase, refinance, reverse mortgages, reverse morgages, fha loans, gregg marcus, rob haufler, robb haufler, michael levine, matt delarusso, somerset mortgage lenders
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Refinancing your adjustable rate
mortgage into a fixed rate mortgage is often a wise idea, especially in a
climate like today's, when adjustable rates are skyrocketing daily, forcing
homeowners nationwide into foreclosure.
There are definitely advantages to
getting an adjustable rate mortgage to buy a home, and in fact sometimes it's
the only way certain households are even able to get a home mortgage in the
first place. But part and parcel of using an adjustable rate mortgage
intelligently is planning to protect yourself from unwieldy interest rate hikes
in the future. Most people who get an ARM to buy a home should be planning
ahead to either refinance into a fixed rate mortgage or sell their home before
this eventuality occurs.
There are actually several good
reasons for making such a move, not only to get yourself a fixed (and hopefully
better) interest rate on your loan. People also refinance ARMs to get cash out
for home improvements and other big expenses, and to consolidate debt.
Whatever your reasons, if you're
thinking of refinancing that ARM, you're probably thinking clearly, and doing
yourself a big favor. But to be sure, read on…
To make sure the timing is right
in your refinancing endeavor, be clear on the terms of your existing loan.
- When
and how often will it adjust
- How
much will it adjust
- Is
there a cap (a maximum rate beyond which it will get no higher no matter
what the economic circumstances)
- Is
there a prepayment penalty for refinancing and if so, how much
You also want to consider how long
you're planning to live in your home. If you're thinking of moving within a
couple of years, for example, then the closing costs for a refi may not be
worth the small savings you'll get in interest rate reduction. (Incidentally,
one way to save yourself on these costs up front is to roll them in to your
refi - in other words).
As with getting any mortgage,
getting a refi involves the same preparation, including calculating the costs
involved and knowing your credit before you apply.
The peace of mind that often
comes from home ownership can easily be thwarted by fears of rising interest
rates. To protect yourself, and reclaim the peace of mind that should be yours,
and could be again, consider whether now may be the right time to try to
refinance that adjustable rate mortgage into a fixed rate mortgage. A fixed
rate is a rate you can rely on, and it may just help you sleep better at night
in that home you own.
It's no big secret that the best time to buy a home is
during a down market (much like the one we're currently experiencing), but does
that necessarily make it the right time for you to buy.
There are many more factors that come into play in
determining when is the right time for you to make the leap into purchasing a
home, whether it's your first, second, or third. To give yourself the best
chances of having your offer accepted and your loan approved, consider the
following questions, the answers to which will give you great insight into your
readiness (or lack thereof) to buy now as opposed to sometime down the line:
- Have
you research your market? The
shape of the overall housing market gives you only a broad and generalized
understanding of home values across the country. But specific markets
individual states, counties, towns, and neighborhoods may still fluctuate (and
diverge) greatly in any market.
Therefore it is of the utmost importance that you do your due diligence and
research home prices and values in the exact geographical area you're
interested in. Don't just assume that housing prices are down across the board
so you're free to lowball on your bid or you run the risk of turning off a
prospective seller. By the same token, even in a down market, it's still
possible to pay too much for a house as well. Information is power. Get it, and
use it.
- Do
you already have the money for downpayment and closing costs? 100% loans
were already absurdly expensive before the subprime mortgage crisis. Now
they're practically unheard of. If you need to take out a loan to cover downpayment
and/or closing costs, maybe you should put a little more attention into your
savings plan first. That way, you'll be sure to get a mortgage you can afford.
- Can
you afford the house you're seeking? Dream big, sure. But act rationally if
you want to avoid foreclosure happening to you. That means making sure your
total debt, including the housing payment you're considering taking on, isn't
more than 30-40% of your gross monthly income. Otherwise before too long you
may find yourself living in the doghouse.
- Have
you taken incidentals into account? Incidental expenses in terms of home
ownership include maintenance and repair, taxes and insurance, utility costs,
transportation for your commute, etc. When you're factoring how much you can
truly afford to spend per month on a home, do yourself a favor and be sure to
factor these expenses into your equation or you may find yourself coming up
short.
- How
is your credit? A good way to avoid setbacks in your mortgage application
process is to know your own credit situation before you apply for a loan.
Finding out that you have poor credit (whether legitimately or through some
error on one or more of your credit parts) after the fact is not only a blow to
the ego, it can also cause you to lose the home you have your heart set on.
Don't let that happen to you.
- Have
you made any major purchases recently? Buying a home immediately after
buying a new car or taking an expensive vacation or having a new baby is not
only ill-advised, it's also quite difficult to accomplish. If you've recently
made a major purchase, consider waiting a short while to get your credit and
finances back up to par. You'll thank yourself for your patience later.
Despite the current doom and gloom shrouding the housing
market, results released Monday of a survey conducted by the American Savings
Education Council and other organizations reveals that most American homeowners
still expect that they'll have paid off their home mortgages completely by the
time they retire.
Over three-quarters of U.S. homeowners, in fact, seem
unfazed enough by the rapid rise of foreclosures and the equally rapid
diminishing of housing prices to maintain full confidence in their ability to
own their homes free and clear before their working years are through.
The survey, which studied the savings patterns of over 1,000
American adults, found that almost three-quarters of them also believed that
they possessed enough money in savings to cover a sudden emergency while
slightly over one-third of respondents believed that they may not have enough
money saved to enjoy a reasonable quality of life post-retirement.
Is this merely a signal of blind optimism or is it an
accurate sign that the current housing situation isn't nearly as bad as most
media and government prognosticators are making it out to be? The answer to
that question may be purely subjective, but one fact is certain - high-income
households seem better poised to weather this storm than low-income households.
One possible way for less adequately prepared households to
buoy their ability to keep their homes and pay down their mortgages with all due
haste is to find ways to monetize their property, possibly by converting a
portion of it into a rental, thereby supplementing their income and lowering
the portion of their monthly mortgage payment that must come out of their own
pockets.
A well-deserved relief plan devised back in the days of World War II is still assisting
military servicemen and women and their families today in bearing the burden of
keeping up with mortgage payments while during deployment.
Called the 1940 Soldiers' and Sailors' Civil Relief Act, and
revamped several years ago with the Service members Civil Relief Act of 2003,
the program allows for military personnel who took on a mortgage prior to going
into active duty to request that their mortgage interest rates be capped at 6%
until their active service is completed. The federal program also protects military families from
foreclosure caused by mortgage payment default while the eligible family member
is on tour, and for up to three moments following their return.
This means that troops in the Middle East won't have to be
distracted from their duties with worries of the interest rates on their
adjustable rate mortgages resetting and other fallouts of the current economic
climate. Reservists and National Guardsmen and women are also eligible for said
relief. This provision is not automatic - it must be requested by
the eligible personnel. And it includes not just mortgage obligations predating
active service but consumer debt (like credit cards) as well.
Federal government officials are also suggesting that
lenders give eligible military personnel forbearance on all payments of
principal due during and throughout active duty.
In light of recent revelations that mortgage insurers are
having as much difficulty maintaining the status quo as mortgage lenders, we
thought this would be a good time to explain a bit about mortgage insurance.
These are insurance policies that protect mortgage lenders
from losing out on recuperating the money they lend should their borrowers go
into default on those loans.
Many lenders require that their borro [Justify Left] wers
purchase PMI in order to receive a loan, especially when the loan amount is
over 80% of the home’s value or, put another way, when the downpayment made on
the loan is less than 20%. Thanks to mortgage insurance, it is possible for a
prospective homeowner to purchase a home with as little as just 5% down.
One of the most common types of mortgage insurance, and one
often mistaken as the sole type of mortgage insurance available, is “PMI”,
which stands for “Private Mortgage Insurance”. This type of mortgage insurance
typically covers fixed-rate, fixed-year conventional home loans.
Another type of mortgage insurance, however, is
government-backed rather than privately funded. An example of government-backed
mortgage insurance is when a borrower gets an FHA loan, that is one provided by
the Federal Housing Administration whose job it is to insure residential
mortgages made by private lenders.
It is sometimes possible for a borrower to avoid mortgage
insurance altogether, even if borrowing more than 80% of the property’s value,
by consenting to a higher interest rate.
Like homes, like prospective homeowners, like mortgages themselves, Mortgage Calculators come in all shapes and sizes. All sorts of mortgage calculators exist to help those considering applying for a mortgage to determine how much and what type of mortgage they can afford. The following is a brief overview of just some of the many types of these free and invaluable tools available online for your use and empowerment: Additional Mortgage Payment Calculator: Shows you the long-term affect of paying a particular amount of extra principal per month to your mortgage.
Mortgage Comparison Calculator: Compares two user-determined mortgages side-by-side for easier decision making. Bi-Weekly Payments Calculator: Show you how making bi-weekly payments to your mortgage instead of monthly payments affects your overall mortgage payout. Mortgage Length Calculator: Shows the long-term savings you could achieve by making larger monthly mortgage payments. Buy vs Rent Calculator: Compares paying rent against paying the same amount towards a mortgage. Mortgage Payment Calculator: Estimates monthly payments and amortization schedule based on different loan amounts, interest rates, and mortgage terms. Debt Ratio Calculator: Determines that all-important debt-to-income ratio that lenders weigh so heavily in determining whether or not to grant you a mortgage.
Mortgage Principal Calculator: Predicts the balance remaining on your principal after making a set number of monthly mortgage payments for a particular period of time. HELOC Calculator: Shows how you can cut down your monthly expenses by using a home equity line of credit. Points Calculator: Shows the affect of paying points on the size and duration of your monthly mortgage payments. How Much Can I Afford?: Determines what annual salary you would need in order to adequately afford a home of a particular value. Refinance Savings Calculator: Details your overall savings should you decide to refinance your current mortgage to one with new terms, including a lower interest rate.
Income Qualification Calculator: Similar to the “How Much Can I Afford?” Calculator, this one determines what type of monthly income you would need to afford a home of a certain value. Second Loan vs PMI Calculator: Reveals how getting a second mortgage would affect your PMI payments. Interest Only Calculator: Figures out how much home you can afford if you get an interest-only mortgage instead of a conventional mortgage. Tax Benefits Calculator: Details your tax savings from purchasing a home after the first several years and for the overall life of the loan. Mortgage APR Calculator: Determines the actual annual percentage rate you’d be paying with a mortgage having a particular, set interest rate. Use any or all of these mortgage calculators to give yourself a clear idea of the repurcussions of your various mortgage options before you make any decision.
Relief from the subprime mortgage crisis – or at least the federal government’s latest attempt at it – has arrived in the form of a Bush administration proposal dubbed “Project Lifeline”. In essence, what this program provides is allowance for homeowners more than 90 days in default on their mortgage payments extra time – 30 days to be precise – to renegotiate their mortgages, thereby avoiding foreclosure. Unveiled yesterday, February 12, by U.S. Treasury Secretary Henry Paulson in a heavily covered joint press conference with HUD (Housing and Urban Development) Secretary Alphonso Jackson, the plan was initiated by six of the largest financial institutions in the nation who collectively service about half of the current mortgage market. Those six participating lenders being: - Bank of America
- Citigroup
- Countrywide Financial
- JP Morgan Chase
- Washington Mutual
- Wells Fargo
Available to mortgagees with any type of mortgage – not just at-risk, subprime loans – the initiative is but one of the Bush administration’s many approaches to the current mortgage industry situation, others including a freeze on certain types of subprime loans. Homeowners who may qualify for a reprieve from potential foreclosure with Project Lifeline will be sent notices by their lenders informing them of this new option and how to pursue it. Not eligible for the program include homeowners who: - already have a foreclosure scheduled within the next 30 days
- have filed for bankruptcy
- took out the mortgage in question to pay for a vacation home or an investment property
As of the close of the July-September 2007 quarter, approximately 1.3
million mortgages were either in foreclosure or seriously delinquent. Officials hope that Project Lifeline may go a long way towards ending the current housing slump. Will it work? Only time will tell.
The Wall Street Journal recently printed a piece on reverse mortgages. Its writer relayed the story of his ailing grandmother, diagnosed with bladder cancer and unable to afford the expenses involved in her care. With neither Medicare nor Medicaid an option she was left, like many Americans, in a real and dire quandry. We all know that our homes are supposed to be our greatest asset, so there had to be a way that someone in such a situation could use their home to stave off what could easily become an unbearable liability. And, in fact, for the above-mentioned grandmother, her home turned out to be her saving grace. She got a reverse mortgage. In essence, a reverse mortgage is exactly what it sounds like: instead of the homeowner making monthly payments to the bank, the bank instead makes payments to the homeowner – whether monthly, in a lump sum, or as a line of credit. Why would banks do such a thing? Because the loan is paid off, with interest, when one of the following conditions is met: - the house is sold
- the borrower permanently moves out of the home
- the borrower passes away
While this option eliminates the possibility that the homeowner can leave her home to her heirs, it also means that she can acquire the funds she needs to sustain herself through the trials and tribulations of old age. And her heirs won’t get saddled with sudden payments on a home they can’t afford. The funds obtained through a reverse mortgage can be used for anything the borrower wants – retirement costs, medical care, a child or grandchild’s education, travel and recreation, etc. The current mortgage on the home does not need to be paid off in order for a person to apply for a reverse mortgage. And there are no credit, income, or loan repayment qualifications. There’s a trade-off with a reverse mortgage: an elderly person or couple (over the age of 62) can give themselves a needed new and regular income, but to do so must accept the slow draining of equity built up in the home. It’s therefore wise to discuss the pros and cons of a reverse mortgage with a financial counselor before deciding to apply for one. To learn more about reverse mortgages, click here. To begin the process of applying for a reverse mortgage click here.
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