If you currently have a FHA or VA Mortgage Loan, you could qualify for a FHA/VA Streamline Refinance. A streamline refinance allows you to lower your mortgage rate/payment without checking your credit, verifying your income or your assets -- and there is no appraisal. The most important thing: YOUR MORTGAGE MUST BE CURRENT!!
So, if your current FHA/VA mortgage rate is 6.0% or higher, then you could definitely benefit from a streamline refinance. Act now because these low rates won't last. Call us toll free at 866 313 8445 or go to www.adsmortgage.net and complete the loan application.
With the current tightening of the credit market and the effect it is having on a borrower's ability to secure a mortgage, an FHA Loan is the best product currently available. Here are some points of the FHA Mortgage Loan:
The Subprime Crisis: Is Your Home at Risk?
Its all over the news. Subprime mortgage companies are in the midst of a true crisis. According to the New York Times, more than one hundred lenders have closed their doors for good. In fact, more than most of the top 25 mortgage companies from 2006 have either reported serious losses, been sold off to other companies, or have filed for bankruptcy!
When asked how many subprime lenders will be taken down by the current credit crunch, Bill Dallas, mortgage industry icon and former CEO of Ownit Mortgage Solutions, replied, “all of them.” When asked how many borrowers would be impacted by tightening credit standards, Dallas estimated anywhere from 10% to 40%, adding, “the coming shift in available products will be huge.” This could negatively impact some borrowers seeking financing in the next 12 months.
How has this happened – and more importantly, how does this affect your mortgage?
Over the past few years, credit standards loosened considerably. According to a recent article in Market Watch, this was partly due to home prices surging to record levels in recent years. This meant that people, who would have been unable to purchase or refinance a home, could suddenly obtain more financing than ever before. In fact, even borrowers with serious credit deficiencies could obtain 100% financing without having to document their income. Now, with more than 15% of these loans in default, the Wall Street bankers who bought the loans have sent them back, and the subprime mortgage companies have paid the price.
What Should you do Now?
If you or someone you now has a subprime loan, you need ot speak with your mortgage professional right away. With loan guidelines and credit requirements tightening and property values still declining in many neighborhoods, you may not even qualify for a refinance if you wait too long. Even if your mortgage has a pre-payment penalty, it ma y be less expensive to absorb the penalty and refinance into a more affordable or stable mortgage. Fixed rate programs are currently on the decline.
If you need my help, please fee free to call me right away. As always, I will provide a free review of your mortgage, credit report and finances – and help you find the right balance for your financial goals/need.
Steve Lokai
If you are a veteran and you are in the market to purchase a home a VA Loan is the best option, especially if your credit score is below 680. If your score is below that, your rate will be much higher if you are getting a Fannie Mae loan -- because you automatically pay fees for having a lower score. Couple that with PMI (which is based on loan amount, Level of approval, and credit score) and you have a much higher payment than you would with a VA Loan. You do, however, pay a VA funding fee, which is added to your loan. Please give me a call and I will be happy to discuss the details and show you a numbers comparison.
Steve
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