Refinancing Traps

shutterstock_112335221Refinancing Traps

Refinancing can be tricky, but a little preparation before starting the process goes a long way in avoiding mishaps along the way. Here are some common traps that many run into while refinancing their homes and ways you can avoid falling into the same traps.

 

The automatic payment trap

Did you know it can take up to two weeks to have automatic payments canceled? If your payments are made this way, be sure to turn it off before closing. You don’t want to pay for the same month twice!

The missed or late payment trap

Believe it or not, lots of people think they don’t have to keep making payments once they apply to refinance. Missing a payment could damage your credit and even preclude closing. Just be careful regarding your very last payment, as it should be made in time to assure it’s credited toward your payoff balance.

The tax escrow trap

The funds in any existing escrow account will typically be held until after the current loan is paid off. Since this money will not be available at closing, you need to be able to establish a new escrow account and/or pay any upcoming taxes from savings or the new loan proceeds.

The insufficient funds trap

The tax escrow trap can contribute to this, and so, too, can many other factors. For example, a low appraised value could limit your loan amount. As many loans are set up to cover all closing and escrow funds, it’s important to know that any necessary or unexpected adjustment could change the cash to close requirements accordingly.

 

We want you to be aware of these potential pitfalls before they have a chance to occur. Of course, we will work with you and on your behalf to prevent and avoid them.

 

Looking to start the refinance process? Find your local Inlanta loan officer here. Already going through the refinancing process? Reach out to your Inlanta representative whenever you have questions, and we’ll be happy to help.

 

Inlanta Mortgage, Inc. NMLS #1016.

 

FHA Refinance Loans Available to More Borrowers!

Lower FICO Score Requirement for FHA Refinance

Borrowers with credit scores 620 and above may now be eligible to refinance their homes using an FHA loan.

Do you want to refinance your home using a FHA loan program? Due to new lower credit score requirements, you may now have the opportunity to qualify for an FHA refinance loan despite a few black marks on your credit report.

Lower FICO Score

Borrowers with FICO scores 620 and above may now be able to qualify for an FHA regular or streamline refinance loan. This reduced FICO score may help borrowers who pay their bills on time take advantage of near record low mortgage rates.

Contact a licensed Inlanta Mortgage loan professional for more details regarding FHA refinancing.

In case you missed it, you may be interested in knowing there are important deadlines for FHA borrowers. Check out our recent blog post FHA Borrowers Face Deadline to see why applying for an FHA loan before March 28th is so important.

Why Refi?

The number one reason to refinance is to get a lower mortgage rate. Use our calculator to input a lower interest rate and to estimate how a reduced mortgage rate could lower your monthly payment. Contact a licensed mortgage loan officer near you to discuss your refinancing options.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

FHA Streamline Refinancing More Affordable

 

Save on FHA Streamline Refinancing

Fee reductions for FHA Streamline Refiancing effective today.

 

Streamline refinancing just became more affordable for people with FHA mortgages endorsed prior to May 31, 2009. Effective today, the Federal Housing Administration reduced upfront mortgage insurance payments and reduced monthly insurance premiums.

The new FHA Streamline Refinance annual premium, which is paid monthly by the borrower, is now .55% on a streamline refinance of any loan endorsed on or before May 31, 2009. This is a much lower premium rate than the previous FHA Streamline rate of 1.2% – 1.25%. The upfront mortgage insurance premium (UFMIP) is a one-time fee collected by FHA and added to the loan balance. FHA increased UFMIP to 1.75% on April 1st, but as of today this new FHA Streamline Refinance UFMIP rate is only .01% when the previous loan was endorsed on or before May 31, 2009.  All other streamline refinances will still be subject to the UFMIP rate of 1.75%.

FHA Streamline Refinances are the fastest, simplest way for homeowners with FHA mortgages to refinance. Another defining characteristic of the FHA Streamline Refinance program is that a home appraisal is optional. Instead of a new home appraisal, the FHA will allow you to use the original loan’s appraised value as your home’s current value, regardless of what your home is worth today. This may be quite helpful to homeowners who suffered reductions in home values since 2007.

A licensed mortgage loan officer can help you determine if you meet the requirements to be eligible for the reduced premiums available and if a FHA Streamline Refinance is right for you. Click here to find a mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Mortgage Applications on the Rise!

Mortgage Application Rise

According to a recently released survey by the Mortgage Bankers Association (MBA), mortgage applications increased 1.3 percent from one week earlier for the week ending June 1,2012.

The refinance share of mortgages increased to 78 percent of total applications – and increase from 77 percent the previous week. Not since February 24, 2012 has refinance activitiy been so high. ARM refinancing activity accounts for 5 percent of all applications.

Most borrowers opted for fixed rate 30-year mortgage loans. In fact, 85 percent of all borrowers elected to go with 30 year fixed rate mortgages while 7 percent selected 15-year fixed rate mortgage loans. According to the MBA survey, the average contracted 15 and 30-year fixed mortgage rates are holding at the lowest recorded rates in history.

Are you a first time home buyer that understands that now is the right time to buy but still have questions? Consult our Mortgage Basics blog post for a general overview of the mortgage process and key mortgage terms. Visit our blog post of home ownership for further evidence that now may be the time to make the leap to home ownership.

Perhaps, you are one of the many homeowners considering your refinancing options. FHA refinancing options for existing FHA mortgage holders are better than ever. Inlanta Mortgage also offers HARP 2.0 refinancing options for home owners who own less than their homes are worth. Inlanta Mortgage has a number of other refinancing options as well. Consult a licensed mortgage loan professional near you for more information.

Required Disclosures: Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

http://www.freddiemac.com/mymortgage/
http://www.fanniemae.com/loanlookup/

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage has recently earned the distinction of being named a 2012 Top Workplace in Southeastern Wisconsin.

FHA Streamline Refinancing – Fee Reductions on Horizon

FHA Streamline Refinance Mortgage Insurance Fees Going Down

On June 11, 2012, the Federal Housing Administration will provide relief to certain homeowners with existing FHA mortgages that want to refinance using the FHA’s Streamline Refinance program. This relief will come in the form of reduced upfront mortgage insurance payments and reduced monthly insurance premiums.

The new FHA Streamline Refinance annual premium, which is paid monthly by the borrower, will now be .55% on a streamline refinance of any loan endorsed on or before May 31, 2009. This is a much lower premium rate than the current FHA Streamline rate of 1.2% – 1.25%. The upfront mortgage insurance premium (UFMIP) is a one-time fee collected by FHA and added to the loan balance. FHA recently announced an increase of UFMIP to 1.75% starting April 1st, but as of June 11th this new FHA Streamline Refinance UFMIP rate is only .01% when the previous loan was endorsed on or before May 31, 2009.  All other streamline refinances will still be subject to the UFMIP rate of 1.75%.

FHA Streamline Refinances are the fastest, simplest way for homeowners with FHA mortgages to refinance. Another defining characteristic of the FHA Streamline Refinance program is that a home appraisal is optional. Instead of a new home appraisal, the FHA will allow you to use the original loan’s appraised value as your home’s current value, regardless of what your home is worth today. This may be quite helpful to homeowners who suffered reductions in home values since 2007.

A licensed mortgage loan officer can help you determine if you meet the requirements to be eligible for the reduced premiums available and if a FHA Streamline Refinance is right for you. Click here to find a mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

FHA Mortgages & FHA Streamline Refinance

FHA Mortgage Information and Frequently Asked Questions

What should you know about FHA mortgages?

FHA Mortgage Loans

FHA mortgage loans are very competitive loan programs. FHA mortgages allow the homebuyer to put down a low down payment and have less than perfect credit. Other benefits of the FHA mortgage loan program include:

  • lower closing costs
  • down payment can be gifted to the homebuyer
  • available on 1-4 unit properties
  • cash reserves not required
  • closing costs can be paid by seller
  • flexible qualifying debt to income ratios
  • streamline refinance available

FHA Mortgage Loan FAQs

Q. How can the FHA help me buy a home?
A.
Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify

Q. What are basic eligibility requirements for FHA financing?
A.
Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Your lender will verify income, assets, liabilities, and credit history for all parties on the loan.

Q. How do I find a FHA approved lender?
A.
Inlanta Mortgage is an FHA approved lender. Find a licensed mortgage loan professional near you here.

Q. Does bankruptcy disqualify a borrower from being eligible for a FHA mortgage?
A.
No, you may be eligible if more than two years has elapsed since the date of the discharge of the bankruptcy.

Q. How is an FHA Mortgage Loan structured?
A.
FHA Mortgage loans require a mortgage insurance premium to be collected at closing (upfront MI) and an annual premium is collected in monthly installments. The FHA mortgage insurance premium is not the same as your homeowner’s insurance and is required of all borrowers with less than 20% down payment. A typical monthly mortgage payment on a FHA mortgage loan includes principal and interest, taxes, mortgage insurance premium (MIP), homeowner’s insurance (assuming you have elected to make monthly payments on taxes and homeowner’s insurance).

~New developments regarding MIP~
HUD announced that upfront mortgage insurance premiums for FHA loans will increase April 1, 2012 and again on June 1, 2012 for high cost areas only. IF you think you’ll want an FHA loan for your next mortgage, the best way to avoid the new FHA fees is to apply for an FHA loan before the new FHA MI premiums go into effect April 1, 2012. Contact a licensed mortgage loan professional for more information on increasing upfront mortgage insurance premiums for FHA mortgage loans.

Q. Am I eligible for a FHA Streamline Refinance?
A.
The mortgage to be refinanced must already be FHA insured. The mortgage to be refinanced should be current (not delinquent). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. No cash may be taken out on mortgages refinanced using the streamline refinance process. Contact a mortgage loan professional near you to discuss FHA Streamline Refinance opportunities.

~BREAKING NEWS REGARDING FHA STREAMLINE REFINANCE~
Recently announced changes from the White House affects loans the Federal Housing Administration insures and would reduce fees on those mortgages for borrowers previously unable to borrow at lower rates.
The Obama administration said it will lower the costs on up-front mortgage insurance premiums to 0.01 percent for streamlined refinancing of FHA loans. The White House said it will cut the annual fee for these refinancings in half to 0.55 percent.
The eligible borrowers for the streamline refinance program must have taken out those FHA loans on or before May 31, 2009.
Contact your licensed mortgage loan professional for more information!

Inlanta Mortgage is proud to be a direct endorsed lender of the Federal Housing Authority (FHA) mortgage loans. Apply now for a loan or find a licensed mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

Avoid Loan Modification Scams!

Don’t Become a Victim!

Foreclosure rescue and mortgage modification scams are a growing problem that
could cost you a lot of money!

Scammers make promises that they can’t keep, such as guaranteeing to save your home or lower your mortgage, usually for a fee, often pretending that they
have direct contact with your mortgage servicer – which they do not.

From the Making Homes Affordable website here are four tips to avoid mortgage modification or foreclosure rescue scams:

  • Beware of anyone who asks you to pay a fee in exchange for counseling services or the modification of a delinquent loan.
  • Beware of people who pressure you to sign papers immediately or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
  • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
  • Never make a mortgage payment to anyone other than your mortgage company without their approval.

Get Help!

Two programs Inlanta Mortgage offers to assist homeowners who are current on their mortgage loans but could use some help reducing interest rates and/or monthly payments include:

HARP (Home Affordable Refinance Program)
If you’re not behind on your mortgage payments but you have been unable
to get traditional refinancing because the value of your home has declined, you
may be eligible to refinance through HARP. Contact a licensed Inlanta Mortgage loan professional more information on this program. Read more about HARP eligibility requirements here.

FHA Streamline Refinance
An FHA refinance loan allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal.  FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.Contact a licensed Inlanta Mortgage loan professional more information on this program. Announcing Fee Reductions! – For streamline refinance transactions on existing FHA loans that were endorsed on or before May 31, 2009, the upfront mortgage insurance premium (MIP) will decrease from 1 percent to .01 percent of the base loan amount. This change is effective for case numbers assigned on or after June 11, 2012.

Inlanta Mortgage loan professionals can help you identify the best program for your specific needs. Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.